‘The End Is Not Near, It Is Here and Now’ – Gold Legend Jim Sinclair

Friday, June 8, 2012
By Paul Martin

GoldCore
GoldSeek.com

Gold’s sell off was attributed to Fed Chairman Ben Bernanke not hinting at further quantitative easing. Leveraged speculators sold gold & silver aggressively after Bernanke failed to communicate aggressive use of helicopters to dump money on the citizenry of the US and further debase the dollar.

When prices hit around $1,600/oz, Comex gold stop losses kicked in and exacerbated the selloff.

Bernanke’s testimony also led to US equities falling at the close and weakness has continued in Asian and European indices.

Although Bernanke didn’t offer hints in the near term, he said that “the central bank was ready to shield the economy if financial troubles mounted,” which suggests that the kneejerk speculative sellers will be buying back sooner rather than later.

QE3 is assured as are further versions of QE – although they will no doubt be given a new dissembling name and acronym and remarketed as something other than mass currency debasement.

The People’s Bank of China cut their interest rate due to concerns of a property crash and because of their slowing economy. Gold rose on the news prior to prices being capped.

German exports and imports have dropped sharply in April – the latest sign that Europe’s largest economy is beginning to feel the chill from the euro zone debt crisis.

Europe’s debt crisis is creating economic contagion and may be spreading to the already fragile Chinese and American shores.

‘The End Is Not Near, It Is Here and Now’ – Gold Legend Sinclair

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