In the wake of his epic $50,000/oz gold call Friday, Jim Sinclair sent an email alert to subscribers over the weekend calling for paper longs to stand for physical delivery of gold, and stating that the current physical demand for gold threatens to completely destroy the fractional gold system.
Sinclair states that the recent $200 take-down in the gold price will ultimately result in damage to the gold banks, and not to gold bullion itself.
Nothing will unnerve the paper gold shorts more quickly and do more to undercut their confidence than to strip them of the real metal and force them to come up with more hard gold bullion to make good on deliveries. “Stand and Deliver or Go Home” should be the rallying cry of the gold longs to the paper gold shorts.
Sinclair’s full alert is below: [Read more...]