Return Of The Hedgies And Dirty Tricksters Posted: Jun 01 2010 By: Jim Sinclair Post Edited: June 1, 2010 at 10:10 pm
Filed under: General Editorial

Dear CIGAs,
The hedgies and dirty tricksters are back.
Frustration goes both ways. The price of gold has been a disappointment to the gold bears. The action in the HUI (AMEX Gold Bug Index) has posed a threat to the short on gold share hedgies and dirty tricksters.
This morning’s pop up on the euro was accepted by this mangy group as the forth entry of emergency money into the currency market in the form of intervention. That message was taken by this group as confirmation to hold the euro at $1.2150 Gold’s failure to hold the highs of this morning has been taken by the discouraged gold and gold share shorts as courage to try one more time.
Discouragement goes both ways. The gold share longs have felt it for a long time. The gold share shorts cannot be too happy either.
So in rolled the short of gold, gold share hedgies and dirty tricksters to re-establish closed short positions and add to old ones.
This time it will be different.
Different because the short of gold and gold share hedgies are fighting key dates of the long term cycle now.
Different because MOPE (Management of Perspective Economics) is not having the desired effect on business activity.
Different because every weak member of the euro will be lambasted by the rating agencies, the IMF and the CDS tool.
Different because California, larger than any of the weak euro members, is heading for bankruptcy.
Different because the US dollar claims strength by basking in the euro problems, not because it has fundamental value for price.
The wind is not at the back of the short of gold, gold shares hedgies and dirty tricksters. $1650 is certainly coming. About that there is no question in my mind. More so, the short of gold shares and dirty tricksters no longer live in the dark, but are rather public figures to management and major shareholders of their respective issues they have offended for the past few years.
Their jitney (trans-border false flag brokers) partners do not hide their identity.
There is a balance in all things and retribution will be dealt out by us, not them.
Respectfully, Jim



In The News Today Posted: Jun 01 2010 By: Jim Sinclair Post Edited: June 1, 2010 at 10:02 pm
Filed under: In The News
Dear CIGAs,
David Rosenberg is correct. Let the hedgies and currency intervention play their game.
There is no question in my mind that they are totally wrong and gold will trade at $1650 and beyond.

Gold $2,500 Looks More Likely Than Ever – DailyFinance By DAN BURROWS Posted 4:42 PM 06/01/10 Investing
Gold added another $11.30 Tuesday to hit $1,226 an ounce, and although the yellow metal is still well off its nominal all-time high of about $1,240 set just a few weeks ago, you don’t have to be a member of the build-a-bunker-in-Montana crowd to believe gold could hit $2,500 an ounce in the next couple of years.
David Rosenberg, chief economist and strategist at Canada’s Gluskin Sheff, tends to be pretty bearish, but he’s also about as dispassionate and data-driven a guy as you can find. In other words, he’s hardly some kooky gold bug. And if past relationships among data sets hold up, gold fever is just getting started, Rosenberg says.
"There is no doubt that when benchmarked against the CPI, money supply and GDP, gold can easily double from here," Rosenberg told clients in a Tuesday report. "Demand is always difficult to forecast, especially for jewelry, but we do know that central banks have very deep pockets and bought more gold last year (425 tons) than at any other time since 1964."
A Simple Matter of Supply and Demand
Which brings us to the issue of stagnant supply, and that too favors a sustained bull market in gold, Rosenberg says. Global mined production of the ductile metal hasn’t increased in a decade — and has actually declined outright in five of the past eight years. Furthermore, almost all the gold that’s easy to dig up — and therefore cheaper to get at — has been unearthed. Gold companies in South Africa have to drill as much as 2.3 miles to get to new deposits. Meanwhile, all Federal Reserve Chairman Ben Bernanke has to do to create currency "is press a button," Rosenberg says.
"What makes gold different is that, unlike paper money backed by the good word of the government, it has withstood the test of time for thousands of years," Rosenberg writes. "It is not the liability of any government. It has an inelastic supply curve. How many times is gold mentioned in the Old Testament? Try 391 times. How many times is paper currency mentioned from Noah, to Abraham, to Moses? None. Nada. Efes. Gornisht. Nihil. Rien. Nichts. Niente."
More…


Jim Sinclair’s Commentary
Confusion precedes total loss of confidence which is followed by extreme anger.
The short of gold and gold shares are in for a shock.

Steve Wynn Takes on Washington, Vegas & EBITDA Published: Friday, 28 May 2010 9:34 AM ET By: Jane Wells
Steve Wynn says Americans are afraid. He’s just angry.
“Washington is unpredictable these days,” declares the CEO of Wynn Resorts [WYNN 81.53 -2.35 (-2.8%) ]. “No one has any idea what’s next…the uncertainty of the business climate in America is frightening, frightening to everybody, and it’s delaying the recovery.” (Catch more Steve Wynn’s views in the videos below and on CNBC throughout the day).
Wynn spoke to CNBC in Las Vegas from the new Encore Beach Club opening for the Memorial Day weekend. He created the $69 million pool club and bar area after tearing down a brand new $13 million entrance to the Encore which looked out on Las Vegas Boulevard.
Turns out the view wasn’t good. Across the street are a slew of half finished developments which stalled in the downturn. Wynn didn’t want his guests to see that. “There were going to be 10,000 rooms across the street and they all went bust.” So he changed the whole front of the resort to close it off and create a sensual adults-only escape.
Pool clubs like the one he’s built are the hottest new trend in Vegas. “This generation…they have a different attitude,” Wynn says. “Instead of sitting and watching something, they want to be a part of it…they’re very hedonistic and sensual.”
More…


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You really need to watch/read this...

Does it sound like good times are just around the corner?

A speech by economist Marc Faber, titled Mirror, Mirror, On The Wall, where he talks about what will be the next entity like AIG to fall. At minute 54, he says to buy a house in the middle of nowhere" to avoid the various forms of social unrest he believes is coming. He also recommends, of course, that you buy physical gold as a hedge against inflation. It sounds like he's now in accord with economist and investing guru Barton Biggs, who has also recommended buying retreat property: “Your safe haven must be self-sufficient and capable of growing some kind of food,” Mr. Biggs writes. “It should be well-stocked with seed, fertilizer, canned food, wine, medicine, clothes, etc. Think Swiss Family Robinson. Even in America and Europe there could be moments of riot and rebellion when law and order temporarily completely breaks down.”