The (Gold) Cartel of Common interest is apparently a term that Jim Sinclair used in the 200-2003 timeframe.

Mon Sep 1, 2003
Let the Game Begin
Author: Jim Sinclair


In the past, we've covered the technical means of determining where to take some profits during periods of appreciation.

The aggressive investor attempts to sell a portion of his position into strength for either of two purposes: first to profit and thereby mark down the original cost of the remaining two thirds of his portfolio to zero dollars; secondly to reinvest the entire amount in a constant up grade of his position, ending up with a more refined and larger portfolio at the end of the day.

In order to accomplish these objectives I will be constantly informing you of what I see in both the share and bullion markets.

Who Needs to Sell? Actually, only those that are using margin borrowings. All others sell for the above two reasons. This is important to remember so that you do not propel yourself into a mindset that invites sloppy trading tactics.

We in the Community have a view that says we are in a long term bull market in gold and its shares. This is the time to review that conclusion. If you do not agree, then you also need to sell. If you do agree, consider the following:

The Gold Community beat the cartel in gold trading and it can easily beat the cartel in gold share trading as well. We ran the commercial gold short sellers into covering Friday and today in non-US markets. This proves the fallacy of COT and reveals the fundamental weakness of the cartel.

We can put a stop to the cartel's professional market makers who have been trashing gold shares every 8 weeks. Here's a strategy to achieve that objective:

1/ Sell 1/3 of your share portfolio professionally and at optimum prices during periods of appreciation.

2/ Do not use market orders in buying and selling shares because you are now disciplined enough in your order execution. Never place more than 100 shares on a stop order. Use your stop orders only as an alarm clock for notification that a certain level has been hit.

3/ If you feel like buying or selling and are willing to pay up or sell lower, you simply limit your order at the best premium or discount that you will accept. Your broker has an obligation to do the best possible execution. Hold him to that obligation.

4/ And now for the cartel killer: "If you do not get the optimum sales on the 1/3 rule, simply do nothing."

The Gold Community can frustrate the cartel's professional market makers in the exact manner it recently killed the cartel on its short position. Last Thursday, the cartel tried to run Comex futures bulls by hitting the level where stops were expected to be. Each time nothing happened so all the cartel did was increase its short position. The end result was a panic run for cover on Friday and today in non US markets.

Now if you made optimum sales - or in a reaction simply stopped looking at the quotes - you would be amazed how the price structure of gold shares would remain strong.  Because people practiced this in 1979-1980, the price of gold shares were higher when gold recovered from $450 to $725 than at $887.50. Think about that and you will see how such a strategy executed individually by Community members would end the cartel manipulation of share prices.

We beat the gold traders last week. We have beaten the ratio trade. Do as I suggest and we will end the manipulation of gold shares and the 8-week cycle dead in its tracks. COT is a fraud that became a self-fulfilling prophecy. You just proved that the biggest boobs in the gold trading business are the commercials unless they are able to bamboozle you.

Now you can get this bull market into gear without interruption by burying the professional market makers. I used to be a professional market maker myself and believe me I know what I am talking about.

Post this article on every chat board and every gold site that will accept it. Tell your friends how to finally defang the cartel and ask them to tell their friends. The Gold Community flexed its muscles last week and took the commercials out. Now flex your muscles in the shares and watch what happens. It is simple! Curtail margin, get optimum sales or do not sell at all.

Any margin trader with brains uses margin in establishing his original position but sells into strength to reduce all margin and finally the entire position. Anyone who holds full margin during share price appreciation is that pig I told you about that will always lose. If you must use margin, then be professional in how you handle it. Any other approach is the action of a maniac who is destined to go bust.

So my dear comrades in arms [CIGAs, Comrades in Golden Arms], here is my suggestion! Sell into strength and if you believe in gold as I do sell nothing into weakness. I always sell into strength in a gold share market. I always buy weakness in gold shares because I am a believer in the long-term bull market in gold based on both fundamental and technical evidence.

Do as I do and even in a declining market gold shares will exhibit an excellent price structure. When gold rises, the shares will move much higher each time than they would do otherwise.
What I'm asking from you today is to join with me and send the cartel straight to where they belong, a place where gold will only run in its liquid form.

With gold heading towards its maximum price potential, I want you to pledge the following:

1/ Sell whatever you chose of your position into strength along the over bought side of the power up trend line in the PUT up trending channel.
2/ If you don't obtain the optimum price that you deserve and that is technically correct, don't sell at all.
3/ Do not chase declining prices when selling a gold share.
4/ Never buy a gold share except during periods of weakness and when technically justified.

For the margin trader the following rules apply:

1/ Use maximum leverage when establishing a position and reduce the margin by one half if the price does not begin to climb within one week of assuming the position.
2/ Reduce your margin by sales along the over bought side of the up trending channel not waiting for a power up trend to take the share higher at an appreciating rate.
3/ Eliminate all margin by sales along the over bought side of the power up trending channel that takes the price out of the original up trending channel.

We have demonstrated already that we can beat the Gold Cartel of Common Interest in gold futures. We have ended the ratio trade. Do as I suggest, and we end the manipulation of gold share prices and the 8-week cycle.

This Gold Community is stronger than the cartel whose past successes have been based on bluffing rather than any particular skill. We will control the cartel if each Community member acts professionally.

When you own them, you are in the long term bull market in gold. You deserve to win. It is your birthright to win and you will win NOW!

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