Last Updated : 19 May 2009 at 10:45 IST

'Gold to touch $1650 by 2011'

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By Jim Sinclair
I have said for a considerable period of time that Gold will trade at or above $1650 by January 14th 2011. I started saying this so far back it looked nuts.

That statement means exactly what is says. It is not hedged in any way.

Martin Armstrong is a market timer. Specifically, he times "SENTIMENT." Sentiment makes markets happen so his highs and lows need not be on the day (many are). They will be close.

Gold requires a lack of confidence in other alternatives such as the US dollar. Gold can be roughly attached to Armstrong’s changes in sentiment. Long term gold is attached in the inverse to Armstrong’s trends, especially under today’s unique and unprecedented circumstances.

Alf Field’s prediction of prices have been outstanding. Gold can do what he has outlined. My commitment to you is $1650.

Are we clear now?

They are going to clean up as usual. The first low was on April 19th and the take off is in June. $1650 will be reached on or before January 14th, 2011. In all likelihood, the number will probably be much higher. The inside always knows. What more do you need to know?

Read a news item from Dow Jones on why hedge funds are making big bets on hold:

Hedge Funds Making Big Bets on Gold
By Joseph Checkler
Of DOW JONES NEWSWIRES

NEW YORK -(Dow Jones)- Hedge fund firms Paulson & Co. and Lone Pine Capital made big bets on gold during the first quarter, becoming the No. 1 and No. 2 shareholders, respectively, in the SPDR Gold Trust (GLD) exchange-traded fund, according to regulatory filings.

Paulson & Co. - run by John Paulson, who had already been beefing up his exposure to gold companies - bought 31.5 million shares of the ETF during the first quarter, according to its mandatory end-of-first-quarter holdings report with the Securities and Exchange Commission. That stake would be worth more than $2.8 billion if Paulson still holds all those shares at present.

Stephen Mandel’s Lone Pine bought 26.5 million shares of the ETF, which would be worth $2.4 billion if it still holds those shares. Lone Pine didn’t immediately return a message seeking comment.

Many hedge fund managers have been increasing their gold investments lately. More than 28% of the SPDR Gold Trust ETF’s outstanding stock was owned by hedge funds as of the end of the first quarter, according to Factset Research Systems.

The increased bets on gold come as the price of the yellow metal have remained high, above $900 an ounce. Funds also see hard assets as insurance against further turmoil in the financial system, including a decline in the value of paper currency.

Most active investing in gold has been by Paulson.

In March, Paulson paid $1.3 billion to buy Anglo American PLC’s (AAUK) remaining stake in South African miner AngloGold Ashanti Ltd. (AU). Paulson also recently introduced to investors a new share class pegged on the price of gold.

Courtesy: www.jsmineset.com