Jim Sinclair:  “Historically we are at an extreme low.  But more so than that, when you are short you have a price objective.  If you are a government you have a price objective.  That price objective being reached might change the pattern of your trading.

The pattern of what’s taking place in this down market is absolutely clear:  At periods every day like clockwork, when the lowest volume of trading historically takes place, the largest amount of offerings have come into the marketplace (for gold), creating a drubbing, a down (move). 

Every time there is a major move in a market there will be hangers on, and they are the ones that tend to lose on both sides....

Continue reading the Jim Sinclair interview below...


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“When markets are running up like Apple, most of it (the move) is highly professional.  But then you get the chat group people, day traders, the less professional, and those are the hangers on who try to make the market look the same way.  Because once a pattern changes, the direction of a market changes, and in the least you get neutral (in terms of the price movement).

Over the last two weeks, the pattern that had existed, set in stone, carved into granite, of how the gold market would act at the exact same times, on the exact same days, has (now) modified and changed.  So there is a strong possibility that either a level has been reached, or the major people (entities) who wanted to effect, for a reason, to a price, have completed their intentions (their price or objective has now been achieved).

It’s the pattern of selling or price manipulation.  And I’ve done this.  (Back in 1980) Hunt’s major buyer came out in silver, and I didn’t believe the market.  And I wanted to test the market to see if this really was an infinite buyer.  It was about 3 minutes before the close, out came his agent onto the floor bidding like mad for silver. 

So I told my partner on the floor, ‘Offer him 5,000 (contracts for sale).’  Now back in those days 5,000 contracts was a lot.  The offering I made, I made at a time of illiquidity to see if the demand which was so popular in the mainstream media at that time in the markets was real.

Well, I didn’t get a wrong answer because the market locked limit down and it wouldn’t stop trading until about 5 minutes after the close.  I was called in by the board of directors of the exchange for having manipulated a market, in which case I told them just what I did.  And it was unfortunate I didn’t look at my watch.  I thought it was about 5 or 10 minutes to go (in live trading), and it was about 3 minutes to go.

Well, that’s exactly what’s happening now.  I’ve done it myself (manipulated markets) so I know it well.  People are coming into the marketplaces internationally, and into the US sessions, at historic periods of low volume.  And in the morning people want to see what happens. 

But 7:30 to 8:30 AM (EST) the market (manipulators) are offering huge amounts of gold for sale when they know there is no bid, to create, not selling because if you want to sell you do it strategically, carefully, well reasoned, to get volume off without affecting price.  But if you want to take a market for a ride (manipulate it), you do the absolute opposite.  You offer huge amounts, hoping you don’t sell too much, at a time when you know you won’t sell too much. 

But at a time where the little guys will start jumping on each other because here comes the moose.  And the moose is always a big moose and it tramples on your forehead, and therefore they (the little guys) run.  It becomes ‘beggar thy neighbor.’  You turn around and if the guy behind you has a bid, you sell yours to him before the moose (does). 

That ends up making the price (during those illiquid trading hours).  That is the nature of this takedown (we have seen).  The nature of this takedown is not what would be common to a top (meaning it has been artificially induced).  It is not any reflection of what the top in the market looked like in the early 1980 period.  Also, it’s all electronic.  Hard to feel, hard to touch, and therefore much more scary.”

Sinclair also added:  “I think whoever structured this decline, and it really was structured, clearly anybody who knows markets and has eyes in their head has to figure out this wasn’t the gold gang, and gold positive large entities dumping their investment positions.  This was an operation and it was totally classic.”

IMPORTANT - A second written interview from Jim Sinclair has now been released on KWN, but the audio interview is most likely the greatest you will ever hear with this legend and it has now been released.

© 2013 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

The interviews with Dr. Stephen Leeb, Jim Sinclair, Rick Rule, Ben Davies, Andrew Maguire, Marc Faber, James Turk, Bill Fleckenstein, Egon von Greyerz and Felix Zulauf are available now.  Also, be sure to listen to the other recent KWN interviews which included John Hathaway, Eric Sprott and Art Cashin by CLICKING HERE.

Eric King

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© 2013 by King World News®. All Rights Reserved. This material may not be published, broadcast,

rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

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