It's hard for me to get into Mr. Sinclair's mindset, but I think that he advises selling at $1,650 because that is where a price smackdown will occur. As the rhino horn turns into a fishing line, we will have extra cash to pick up bargains, just like October 2008.

Stewart Thompson at Gracelandupdates.com says the same thing. After the next leg up to around the $1650 level, then Banksters will slam the gold perhaps even down into triple digits (briefly) while bombing the media with "See How Volitile and Unsafe Gold Is?" type commentary while they rush in a scoop it up before the next upleg.

In his scenario, the Gov't stimulus packages will have gained some traction, and with the fudging of employment and productivity numbers can paint a pretty picture for the gullible. It might even look like recovery is here at last, and the gold bull is over. Just a big headfake, but then it sets us up for the main event, with gold stocks going to stellar levels.