Sinclair and Gold

[Miss Tint]

Hello, I am very new to the stock world and have been trading for a year. I enjoy trading gold plays and watch certain analysts and commentaries. One such article from Jim Sinclair has come to my attention tonite but I do not understand its content . I was wondering if those here with the experience behind them would be kind enough to clarify for me the message he is sending and how exactly it transpires in the markets. It goes as follows:


Gold Community Will Not Make The Most Profit On Gold’s Rise
Posted: Jul 27 2010 By: Jim Sinclair Post Edited: July 27, 2010 at 6:27 pm

Filed under: General Editorial
My Dear Friends,
I have said to you many times that the entities that will make the most profit on the gold price will not be the gold community, but rather just those that the community identifies as the enemy, the gold banks.
What is happening now is the setup to that event.
Recently Armstrong questioned publicly if the Goldmans of the world were using his cyclical analysis. Judging from what we have seen the answer is yes by intention or coincidence.
Those wishing to offset their pain on me today have to be defined as the public. The only bulls today are the stone professionals who can see what is taking place in the published numbers.


The gold banks are engineering their short cover and will shift to the long side of gold. It is in fact happening right now as the public panics. The currency market and media will be called into service in order to take gold to and through $1650.
Respectfully,
Jim

Thanks in advance, Miss Tint

 

[anley]

His point basically is this, most Gold long term investors are complete idiots.

They like Gold, believe it will continue to rise significantly. However, they watch it all the time so every time it moves lower they panic and sell out.

What they should be doing instead is sitting back, let the market move around, and pick up the big winnings over the longer term.

The saddest thing about all of this is the gold professionals know what idiots many of the gold community are so play with them like a cat plays with a mouse before eating it.

Summary: If you're investing for the long term you'll only do damage if you base your buy/sell signals on short term price action.