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Market plunge doesn't scare gold advocates Grandich and Sinclair
5:22p ET Tuesday, February 27, 2007
Dear Friend of GATA and Gold:
Our friend Peter Grandich of the The Grandich Letter this afternoon issued some urgent commentary about gold's place amid today's turmoil in world markets. Grandich writes of gold:
"Despite being quite overbought short-term and too many funds long on the Comex, gold managed a valiant comeback from its lows today (although they have it back down in the access market). I believe this clearly demonstrates that outside of very short periods of correction, gold's path of least resistance over time remains up. I welcome these sharp and short corrections and wonder what the shorts must be thinking it's going to take to ever see a sustained retreat in the gold price. The answer appears more and more to be a four-digit gold price. ... A correction as low as $650 is possible but I remind you yet again that the surprise should all be on the upside."
You can find Grandich's special letter at his Internet site here:
Meanwhile veteran gold trader and Tanzanian Royalty Exploration Corp. CEO Jim Sinclair writes:
"When I was asked yesterday in Toronto during the informal question-and-answer session what would happen to gold when and if the equity market broke, I answered, 'At first the equity market breaks will bring in temporary sellers of gold. However, quite quickly thereafter and most certainly when the U.S. dollar also gets hit, gold will steady and start its move to all the angels.'
You can find Sinclair's comments at his site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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