Legendary gold trader Jim Sinclair sent an email alert to subscribers Thursday night, informing them that gold will save the financially collapsing world of debt, and that the metal will trade to and through $3,500/oz.
Sinclair, who predicted gold would reach $1650/oz at the start of the bull market when gold was trading in the $300′s/oz and Brown was dumping the UK’s gold reserves on the market, stated that he was not predicting gold would trade to $3,500, he KNOWS it, the same as he knew gold would trade at $1,650 over 11 years ago.
Sinclair states that the Euro is in the process of rising to ascendency, and this is the reason why gold will achieve a high plateau at the end of this bull market run, and why he believes silver will not. (Sinclair believes that silver will see spectacular gains throughout the rest of the bull market, but will then see a correction, while gold will not).
Sinclair’s full email alert is below:
2013 Silver Eagles at SDBullion.com!
From Jim Sinclair:
The following article from the Telegraph was sent to us from Dean Harry Schultz. It was Dean Harry Schultz that gave me my first great opportunity. I worked for him for 11 great years.
I have been outlining this evolution to you for more than a decade. This article touches on it, but does not outline it. This article smells it but does not yet fully appreciate it. This process is behind the ascendancy of the euro despite every bear argument to the settlement currency of choice.
This is happening in the marketplace, and not behind closed doors in smoke filled rooms. Yes, there are closed doors involved in it, but they are free market proponents. I know more about this than even the people who have already adopted a name for it.
Gold is going to and beyond $3500 based entirely on this initiative certain to become completed as a reality. It is already happening right in front of your eyes, but the world is still blind to it.
This is why gold will rise to $3500 and beyond, but never do a 1980 fall again.
This is why silver is a great trading vehicle, but not a great long term holding.
This is why I have invested $32,000,000 in my own approach towards gold.
This is why I sold ALL of my personal material treasures to make this investment when only I would do it.
This is why I took on large debt to accomplish my plan.
This was the basis for my career interview by Forbes in Dec 2000.
No government fund, no gold bank, and no long cycle analyst can stop the progression of gold. The capitalization of the forces behind gold will overcome all these other bearish considerations. I say this because I know this, not because I think this.
I knew gold’s first most important number was $1650 11 years ahead of time. I did not think it. I am telling you now because I know it that gold will go to and beyond $3500. It will be gold that saves a financially collapsing world of debt.
A new Gold Standard is being born By Ambrose Evans-Pritchard
Last updated: January 17th, 2013
The world is moving step by step towards a de facto Gold Standard, without any meetings of G20 leaders to announce the idea or bless the project.
Some readers will already have seen the GFMS Gold Survey for 2012 which reported that central banks around the world bought more bullion last year in terms of tonnage than at any time in almost half a century.
They added a net 536 tonnes in 2012 as they diversified fresh reserves away from the four fiat suspects: dollar, euro, sterling, and yen.
The Washington Accord, where Britain, Spain, Holland, South Africa, Switzerland, and others sold a chunk of their gold each year, already seems another era – the Gordon Brown era, you might call it.
That was the illusionary period when investors thought the euro would take its place as the twin pillar of a new G2 condominium alongside the dollar. That hope has faded. Central bank holdings of euro bonds have fallen back to 26pc, where they were almost a decade ago.
Neither the euro nor the dollar can inspire full confidence, although for different reasons. EMU is a dysfunctional construct, covering two incompatible economies, prone to lurching from crisis to crisis, without a unified treasury to back it up. The dollar stands on a pyramid of debt. We all know that this debt will be inflated away over time – for better or worse. The only real disagreement is over the speed.
The central bank buyers are of course the rising powers of Asia and the commodity bloc, now holders of two thirds of the world’s $11 trillion foreign reserves, and all its incremental reserves.
It is no secret that China is buying the dips, seeking to raise the gold share of its reserves well above 2pc. Russia has openly targeted a 10pc share. Variants of this are occurring from the Pacific region to the Gulf and Latin America. And now the Bundesbank has chosen to pull part of its gold from New York and Paris.
Personally, I doubt that Buba had any secret agenda, or knows something hidden from the rest of us. It responded to massive popular pressure and prodding from lawmakers in the Bundestag to bring home Germany’s gold. Yet that is not the end of the story. The fact that this popular pressure exists – and is well-organised – reflects a breakdown in trust between the major democracies and economic powers. It is a new political fact in the global system.
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Well Jim Sinclair puts his money where his mouth is and man it’s a bunch off it. So when silver goes to the moon I better be ready to off load it into gold. Lol
I will keep my silver, being an industrial metal without much of a substitute a shortage will really drive prices more so than gold.
I think I rather trust Martin Sibeleau or SRSrocco than this Jim Sinclair… Once a crook is always a crook…
I extracted part of the article from Martin Sibeleau as below (read the last sentence in Bold) …
No systemic meltdown in 2013?
From earlier letters, you know that I believe quasi-fiscal deficits (i.e. deficits from a central bank) are a necessary condition for a meltdown to occur, and that these usually appear when deposits begin to seriously evaporate. So far, capital is leaving main street (via leveraged share buybacks and dividends), but at the same time, it is being parked at banks in the form of deposits. The case of Wells Fargo and the temporary pause in the flight of deposits from the periphery of the European Union suggest that the process towards a meltdown, if any (and I believe there will be one), will be a long agony. Furthermore, in the short term, at the end of January, European banks have the option to repay the money lent by the European Central Bank in the Long-Term Refinancing Operations from a year ago, on a weekly basis. I expect them to repay enough to cause more pain to those still long of gold (including me, of course).
If you want to know whether it will cause more pain for us who still long of gold, go read the Gold chart. The answer is there.
Jav
Doc, it would be interesting to get your own personal take on silver, regarding Jim’s comments.
The reason I think it’s important to note them, is that this is the 4th or 5th time Jim has publicly said yes to gold, while no to silver.
It’s not for me: I already know why I’m in silver, and why I’m not in gold right now.
Others who visit this site, many for the first time, might read his thoughts and stay away from silver.
Considering that you are the “Silver Doctor” and not the gold one, now might be a great time for “iron to sharpen iron”, in a congenial but serious fashion.
Just a thought.
There’s a sickeningly sinister reason that the Morgue has been stockpiling gargantuan amounts of physical copper and it ties in with Sinclaire’s off-hand dis of silver. For all these years of ‘barbarous relic’ crap-talk, the bankers worship at the alter of the ‘Golden Calf’ and they plan to now immensely OVER-value it in ratio to silver and copper. Their obvious tactic is to ‘kick the legs out from under silver’ by selling copper into under-valuation as peoples attempt to restore the classical metallic monetary scheme. Thus, in sequence KEEP silver under-valued against their golden god.
I’ve illustrated it this way before … the metallic scheme is like a building … the structure has to have a base or foundation onto which is erected a framework and walls, all topped off with a protective roof. That’s how copper, silver and gold respectively synergize into the strata of the metallic scheme. In that construct, (given a FREE market) they each equilibrate the ‘tension and compression’ of the whole; in other words, by competetive forces of inter-trade, they hold each other in rational value-ranges where none of them can long remain far out of their average natural supply-demand norms.
What we’ve seen happen to silver over the past 200 years is about to happen with copper … again. The Brits had already run this scam in their own country, India, China and America centuries ago, debasing copper by strategically dumping huge quantities into markets, then withholding it, all the while slowly siphoning out silver then floating HUGHLY over-valued gold … credit paper … in the victim economies. That’s basically how the ‘pound note’ had its genesis.
Once the Notes are BACK in wide circulation, ALL the silver and gold are vaulted in exchange for steadily increasing paper until the world again winds up where we find ourselves today … leaving copper impossibly uncompetitive against their notes all alone.
Sadly, I’m finding myself drifting into that ‘uncivil’ camp which harbors resort to gillotines for all bankers.
I agree. There is a mine in Mongolia started up by Steve Jobs’ mentor. TRQ, a ticker look-up will fill in ownership, is sitting on 36 billion pounds of Copper. There is an obvious move to manipulate copper prices from the PTB.
Seems this board has taken off from our back and forth, back there. I see who is/who is not in “Doc’s office” much more clearly.
Copper, Silver, and Gold is our history and future.
I enjoy your posts thoroughly and admire your clarity.
A little lesson in history will help:
“The U.S. Coinage Act of 1873 eliminated provision for the free coinage of silver. The act cast the die for a gold standard. The conventional view is that “the act of 1873 was a piece of good fortune.” This paper indicates that it was the opposite–a mistake that had highly adverse consequences. This is a judgment about 1873, not 1896. By 1896, when William Jennings Bryan ran for president on a “free-silver ticket,” it was too late to undo the damage. Bryan was trying to close the barn door after the horse had been stolen.”
–Milton Friedman (Hoover Institution), The Crime of 1873, Journal of Political Economy (Dec 1990).
“[The demonetization of silver] was the crime of the nineteenth century.”
–Senator William M. Stewart, 1889.
“I am persuaded history will write it [the act of 1873] down as the greatest legislative crime and the most stupendous conspiracy against the welfare of the people of the United States and of Europe which this or any other age has witnessed.”
–Senator John H. Reagan, 1890.
“You shall not press down upon the brow of labor this crown of thorns. You shall not crucify mankind upon a cross of gold.”
–William Jennings Bryan, 1896, U.S. presidential candidate.
The U.S. Coinage Act of 1792 authorized free coinage of both silver and gold…
“‘Both’ is critical because it effectively established the United States on a bimetallic standard, that is, a monetary standard that authorized free coinage, and hence the use as money, of either of two metals, silver or gold.”
–Milton Friedman, The Crime of 1873.
“The omission of any mention of the standard silver dollar in the Coinage Act of 1873 ended legal status of bimetallism in the United States. Had that fateful line not been omitted from the act of 1873, resumption in 1879 would almost surely have been on the basis of silver, not gold.”
–Milton Friedman, The Crime of 1873.