Rare Earths Gold Blog

China’s forex chief not too keen on gold as investment (why we don’t believe him)

Posted on March 9, 2010. Filed under: Articles on Gold, Invest in Gold | Tags: Bert Seligman, China, Death Cross, Gold, Gold as an investment, International Monetary Fund, Invest in Gold, Jesse Livermore, Jim Sinclair, T Bills, Tanzania, Tanzanian Royalty Exploration |

1. This was the headline on MarketWatch.com (the words added in brackets are mine).
2. Apparently the Chinese would rather buy T Bills than buy Gold.
3. Do you really believe this?
4. Famed gold trading legend Jim Sinclair says, do what the Chinese do and not what the western media quotes them as saying.
5. Jim Sinclair’s father was none other than Bert Seligman, a close associate of Jesse Livermore.  Jim learnt enough from his father to become one of the biggest gold traders.
6. Jim should know, as Jim’s Tanzanian mining company Tanzanian Royalty Exploration company (TNX.TO) has Chinese partners.
7. Here’s what is really happening… The Chinese got beaten to the IMF sale by the Indians, who bought a huge quantity of gold at approximately $1045 per ounce.
8. The Chinese apparently were caught off guard by the Indians and will have ‘lost face’ if they buy higher then them.
9. They are trying to jaw bone the price of gold down so they can acquire the rest of the IMF gold at either the same price or better than the Indians.
10. The chart action indicates that the price of gold could move down further here under $1100 per ounce.
11. A ‘death cross‘ has just come into effect – this is where the 50 DMA (day moving average) crosses below the 100 DMA especially if both DMA’s are above the 200 DMA as shown below:
12. 
13. Gold should be a great short term buy over the next week once the current pullback completes.
14. I only ever buy gold when it pulls back and sell it when it goes up … see The Secret and Only Way To Trade Gold.

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