Jim Sinclair - Gold Bottomed, Dollar Index Headed to 56
Posted: Wed Nov 03, 2010 5:45 pmhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/11/3_Jim_Sinclair_-_Gold_Bottomed%2C_Dollar_Index_Headed_to_56.html
The dollar index is 76.40 right now. A drop of the dollar index to 56 would be a 26.7% drop. If GOLD would commensurately rise 26.7% to compensate for the dollar's demise, that would mean that today's GOLD price of $1347 would rise to $1706. Since SILVER has been appreciating twice as fast as GOLD, SILVER should rise 53.4%, from $24.76 to $37.98. Of course, if BUYERs' momentum speculation got behind that kind of a PM rise, wouldn't $2000 GOLD and $50 SILVER be possible? I think so.
The dollar index is 76.40 right now. A drop of the dollar index to 56 would be a 26.7% drop. If GOLD would commensurately rise 26.7% to compensate for the dollar's demise, that would mean that today's GOLD price of $1347 would rise to $1706. Since SILVER has been appreciating twice as fast as GOLD, SILVER should rise 53.4%, from $24.76 to $37.98. Of course, if BUYERs' momentum speculation got behind that kind of a PM rise, wouldn't $2000 GOLD and $50 SILVER be possible? I think so.
