By Jim Sinclair
Gold is down today because stops got run on the paper Gold exchange. That came on the back of a strengthening dollar due to a weaker euro as a mirror effect.

Please return to December of 2009 when the impending dollar rally was sold based on a sustainable US economic recovery. That was enough to convince money managers. That demand then triggers the algorithms which fires off huge fund buying for what today is no reason at all.

Our friends at the COMEX use this phenomena to bomb gold and so many of you have a heart attack selling your insurance in both shares and metals. It is like living in a mental hospital where emotions drive all decisions and most of those are total madness.

Technicals run the short term

Fundamentals run the long term.

Insurance is not a day to day item.

Despite these facts, most of the public gets pick pocketed in the paper Gold market as a ritual played out every 28 days. You are not better than Trader Dan therefore stop speculating before you have no money left to protect.

Jobless claims were anticipated lower to confirm December’s US economic recovery enthusiasm, but went the other direction today. This is another wound in the assumption that started your dollar rally in December.

Other reasons given for the general decline in commodities was fear that world demand for raw material will subside. As usual the West assumes it is the engine of world demand for everything.

The West is not anymore.

As the BBC special , "The Last Days of Lehman," clearly points out, the West is F**ked and we did it.

Courtesy: www.jsmineset.com

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