October 19, 2009 02:51 pm
Oct 14, 2009
15. I've long stated that the gold juniors would shine only when the US dollar institutional lake began moving into gold, not just into foreign currencies. I gave $1000 as the rough launchpad where I expected to see the lake start the gold geyser erruption. Assuming there are no new massive OTCD (OTC derivatives) surprises, I think we're at that point right now. I seriously believe there is more leverage in junior gold stocks to gold bullion, right now, than there is with futures contracts. That's the power, that's the tool that is sitting right in front of you in your gold toolbox. Jim Sinclair, the only real bank family member of the gold community, has predicted (knows?) that gold futures markets (the COMEX) will be turned into cash-only markets with no leverage. I'll add that if YOU are long gold futures on the day that is announced by surprise, you'll have the mother of all margin calls.
21. As the juniors go on a tear that could make the high-tech bull market look like a bear, I believe "stock picking" will become even more irrelevant with the junior golds that it was with the high techs. The gold juniors ETF could see hedge fund participation. If so, all bets are literally off as to the upside, when you are talking about funds leveraging their investments in junior golds at 20 to 1, 30 to 1, 50 to 1. And more.
22. Last week I asked subscribers to send me their favourite gold juniors and I'd run the technicals on them and post them on my website. I got overwhelmed. I posted all thru the weekend and I'm still only partway done. The bottom line is that the technical situations on almost all the gold monthly charts is the exact opposite of what I saw when they crashed last year. Basis the monthly charts, last year showed one major sell signal after another. What I'm seeing now, especially basis the TRIX indicator that is too boring for most writers and investors to follow, what I'm seeing are major multi-YEAR buy signals! It is absolutely critical that you get out of the mindset of trying to flip your junior golds on some company-related announcement. Use the information from the various junior gold writers to pick the companies to buy, but after that, all those upside pops that seem big now, will be too small to see on the chart. Don't use the advice of the junior gold writers to sell, to "manage" your juniors portfolio. You'll wreck it. As the banksters' grand plan of creating worldwide USDollar panic is played out to perfection, the whole juniors section will launch upside in a move too big to miss out on. That panic is also designed to crash the US bond market, which would add an even bigger engine to the gold bull market. The bond market didn't disintegrate in the 1970s gold bull until near the end. I believe it will be the same this time.
23. Don't focus on some negative mining report and ignore billions of dollars of institutional money flow panic-buying the juniors!
### Oct 14, 2009
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