$1764 gold target from Jim Sinclair

$1764 gold target from Jim Sinclair

The only sense I can make of it is from http://squareofnine.blogspot.com/ about Jesse Livermore, the one Jim Sinclair sighted when he talked about the basis for 1764.

This site talked about the importance of a 162% increase off a low to signal a change in a trend, in this case, much higher gold prices.

If !62% is $1,764 then about $1,050 is 100%, where we were at with gold in the middle of 2010.

Sinclair also said $1,764 was as important as $524.90, where we were early in 2006.

If 162% is $524.90 then about $324 is 100%, where we were at with gold around 2000 before gold took off on its 10+ year bull run.

Anyway, I don't have Livermore's formula Sinclair talked about, but keep in mind that Livermore was into squares and the square root of $1,764 is 42.

Gold was $35 in 1971 but $36 is used for simplicity's sake, since its square root is 6.

If gold looked like it was going to increase in price, usually due to currency debasement, one added 1 to the square root of the price (6) to get 7 and then multiplied 7 by itself to get 49.

One kept doing this each time gold looked like it was going to increase in price.

This adding continued until today, along with a few subtractions along the way to get the opposite result.

The net number of additions minus the number of subtractions from 1971 until today was 35.

Adding 35 to the 6 results in 41 such that 41 times itself is 1,681.

Gold was $1,742.90 at 5:51PM EDT, August 8, 2011 and 41 times itself (1,681) is the closest number less than $1,742.90.

I don't think it's unreasonable to have 35 net votes of confidence in gold since it was cut off from the dollar in 8/15/1971.

If one added 36 to the 6 one would get 42 such that 42 times itself is $1,764, the next number after 1,681 (41 times itself).

If one added 94 to the 6 one would get 100 such that 100 times itself is $10,000.

If one added 104 to the 6 he would get 110 such that 110 times itself is $12,100.

And Sinclair has been talking about $12,000 per ounce gold.

So 35 has been added to 6 to get 41 for just under today's prices, so why not add another 69, 1 at a time as the market calls for them to get 110 times itself for $12,100?

Each number added to 6 is a another vote of confidence for gold going up in price.

I don't think 69 more votes of confidence for gold are out of the question considering what the government just did to raise the debt ceiling and its downgrading by Standard and Poors.

It's done similar things in the past (create more money and tell big lies as excuses why things are worse) and it appears it's going to do similar things in the future (create money and lie).

So I think the market will close above $1,764 soon and it will be time to add 1 more vote of gold confidence, followed by 68 more, ending up with $12,100 or higher gold.