Gold is about to take out $1,600…We may never see that $1,600 level ever again. – Jim Sinclair on King World News - Jim Sinclair, King World News interview LINKI highly recommend reading all of Jim Sinclair’s recent interview postings on King World News, as he does a great job explaining the significance of the Cyprus crisis, what it means for gold and why the mainstream media is completely missing the mark in reporting the situation.
The way I see the Cyprus situation, it is the trigger we’ve been waiting for to ignite the next big, long-term move in gold:
Based on the current QE program, the Fed’s monetary base projects out to be at $4 trillion by 2014 – a 31% increase from where it is today. If we assume that gold does a “mean reversion” in its correlation with the Fed’s monetary base – a high probability assumption given the high correlation observed since 2008 – a 31% increase in the price of gold as of today – $1610 – would imply that gold has a high probability of going to $2100 by the end of 2013. In fact, I will make that my price prediction for gold for 2013.READ MORE
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