this commentary comes from jim sinclair yesterday at http://www.jsmineset.com/

he has raised his initial target for gold to $980, and what goes for gold also goes for silver, and then some.

Considering inflation even at the manufactured rate the PPI and CPI show, the Fed is giving away money in exchange for garbage paper at ZERO percent. I dare to say the bottom in gold has occurred this week. Gold will take out $1024 on the third try. Now the magnet is at $980 to $985. Gold will rise, kicking and gouging its way to at least $1650. Gold shares will, as they did in 1979-1980, outperform gold as they will return to asset based situations in a hard asset demand environment.