THE DERIVATIVES OF DAMOCLES

"Dear CIGA:

What an interesting difference a day can make. One CIGA asked me today: “Now that the $530 mark has been hit, what will gold do?” Forget for a moment the truths you already know about the gold price. Gold, as I see it, is headed to $682 and then through $750. All the rest is drama.

It doesn’t matter if it happens now or later this year. No one can be absolutely sure of the timing because there is a hidden hand in the market equation called over-the-counter derivatives ["This statute was intended to provide certainty with regard to the legal enforceability and regulatory status of most OTC derivatives." Ha-ha-ha...] which supersedes the US Dollar/Gold relationship, the price of oil, the Fed minutes or any other potential motivator.

What is most critical today is what the media refuses to discuss in print or on business television. The code of silence being applied to OTC derivatives is not happening without a good reason."

--Jim Sinclair (free subscription)

And what that reason might be is you and me.