“GOLD IS HEADED INTO THE $2000S” – JIM SINCLAIR
Gold prices rallied Wednesday as uncertainty over the euro zone crisis prompted safe-haven buying. Doubts have risen as to whether Greece’s parliament will approve a referendum on the country’s next bailout. "Over the next few days, we think gold prices are likely to remain more resilient as the market should benefit from safe haven demand and its reasonable evaluation," Barclays Capital said in a note. If Greeks voted to not pass austerity measures and not receive more aid, the country couldn't pay its bills, which would hurt countries and banks that own its debt and would lead to Greece having to leave the euro so it could print its own money. (Reuters, 11/2/11)
U.S. equities are higher on a better-than-expected report on the job market and hopes that Fed chairman Ben Bernanke will hint at new plans for additional stimulus measures as the Fed wraps up its two-day policy meeting. Investor sentiment was lifted after payroll processor ADP said private-sector payrolls rose by 110,000 last month. Stocks had experienced two days of heavy losses this week on uncertainty in the euro zone and the bankruptcy filing of MF Global on Monday. (CNN Money, 11/2/11)
Gold is headed to the $2,000s, according to Jim Sinclair, precious metals analyst and founder of Mine Set. “The mess in Europe is incurable and can only be damage controlled by QE,” he said in his most recent column. “After Europe comes the US as media has been successful in keeping the focus of the problems off the US dollar,” he continued. “What today’s economic managers don’t know is Titanic in nature. There is no practical solution to the economic problems of today making gold in all forms desirable long term.” (Mine Set, 11/2/11)
†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.
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