Jim Sinclair : the MF Global situation is a piece of dynamite sitting underneath the gold price

Jim Sinclair, host of http://www.jsmineset.com known as Mr. Gold for his remarkably accurate timing regarding the gold bull market of the 70s is the Founder of jsmineset.com and Chairman of Tanzanian Royalty Exploration.

Jim Sinclair interviewed by bullmarketthinking on December 12, 2011: “Many gold shares are selling at a significant discount to the price of gold, but also at a discount to simple logic,” for reasons that, “there are significant competing investments that didn’t exist back in the 70s and 80s, such as exchange traded funds in gold and silver…The largest of these funds, if you read the prospectus, you find out you’re investing in a fund that doesn’t have even the legal obligation to deliver gold itself, and they have the absolute ability to only deal in paper equivalents.”
and regarding the MF Global scandal Jim Sinclair says : “When problems like this occur, and when investors question whether or not their statements means anything, assets without liabilities attached to them held physically or stored personally by the investor become very attractive.” and He concluded by saying, “the MF Global situation—is a piece of dynamite sitting underneath the gold price.”

Gold to fall to $1450 - $1500 quickly says Dennis Gartman

Gold drops down below $1700 for the first time in two weeks and touched a seven week low earlier in the day. Dennis Gartman, The Gartman Letter founder/publisher/editor gives his outlook on the Gold Market : we could see gold trading down to $1500 - $1450 very quickly , he says , a lot of people got caught owning gold because they thought the problems in Europe will boost the gold market he adds , and what's really bad for the gold market is that over the weekend you had an announcement by a huge purchase by the Chinese which had no effect whatsoever that's not a good sign
Gold falls below $1700 for the first time in two weeks and is expected to go lower

Gold Falls to 6 Weeks Low and Could Drop Lower

Gold has the largest one-day drop in three months so what's going on ? : "... so from this point forward it doesn't look like it's going to be a very merry Christmas. the bulls are starting to run for the doors and, you know, the bears might be leading this parade right now for the short term ..."says Anthony Neglia, Tower Trading president. "The short term trend is bearish and could play a role into the end of the year," he explains