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Saturday, May 7, 2011

Central Banks prefer Gold to US Dollars

The gold returns to the vaults of central banks, who after two decades have returned to buy the precious metal with both hands, After all, gold has reached record highs this year, in response to the sharp depreciation of the dollar, which until now has been the preferred asset in central bank reserves, and the loss of attractiveness of Treasuries.

The latest figures from the IMF on the reserves of central banks confirm a change in the Central banks policies worldwide. At the forefront is the Mexican bank, which bought 93.3 tons of gold in March, followed by Russia and Thailand. These three countries carry a total of their reserves of gold in value to 6 billion dollars.

But the fate of the gold is not marked and if someone suggests a rise to the level of the precious record of two thousand dollars an ounce, the financial community remains deeply divided. And so it stands a wall between the bride and gold seekers and disenchanted. Among the first is the multi-millionaire John Paulson, hedge-fund manager of the same name, which does not hesitate to declare that gold will go up to $ 4000 an ounce !

On the other side of the wall there is George Soros, who gambled twice on the fall of the British pound , becoming a skilled businessman to the rank within the fold of the international financial community. Well, this time Soros has bet against gold, selling large quantities of the precious metal, because, he says, you see less risk in deflation. In fact, while the whole world bought gold to protect themselves from inflation, Soros Fund Management does it for the opposite risk, protected by a persistent decline in consumer prices.

Already in September Soros has been calling the gold the "last bubble" of speculation, but then he was building his wealth in the precious metals , but now he seems to have decided to follow an opposite strategy.

Who will win ? Some have argued that what appears to be a difference of views is just a different modus operandi, given the fact that the financial arm of Soros moves with greater speed and strength in the market, with the possibility of a quick turnaround. That the gold at this point is subject to correction is not in doubt, but what remains to be seen is for how long will it still shine ...

Jim Sinclair : Gold to hit $3,000-$5,000 by June 2011?

Jim Sinclair, "I will stand with what I have said for nearly 10 years. Gold will trade at $1650 on or before January 14th, 2011. That never made me want to buy expensive in time call options." The gold banks are throwing blocks to the price as we approach $1262. This is a major waste of time and money as gold is going to and through that price. The only argument is whether gold will hit $1650 in January 2011 or $3000-$5000 in June 2011.

Jim Sinclair, who called the top of gold in 1980, unwound the Hunt Brother's silver position, and says we are headed towards a world currency.

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