Gold has recovered nearly $150 or more than 12% in less than a month since hitting a three-year low of $1,180/oz on June 28th. Gold has made the strong gains due to robust physical demand as seen in the still high premiums in Asia.
Respected investor and precious metals guru, Jim Sinclair has again warned of a risk of a default on the COMEX and said that gold prices will rise to $3,500/oz and that gold at $50,000/oz is “not out of the question.”

Silver Buffs Generic Add2

 

From Goldcore:

 

Today’s AM fix was USD 1,326.75, EUR 1,007.10 and GBP 864.84 per ounce.
Yesterday’s AM fix was USD 1,313.75, EUR 998.21 and GBP 859.22 per ounce.

Gold climbed $39.30 or 3.04% yesterday and closed at $1,333.70/oz.

Silver surged $0.97 or 4.98% and closed at $20.46.


Gold Prices/Fixes/Rates/Vols – (Bloomberg)

Gold surged over 3% yesterday due to what appears to be have been significant short covering due to concerns about gold backwardation and the continual haemorrhaging of gold inventories from the COMEX.

Concerns about a default on the COMEX, once the preserve of a few observant market watchers, are becoming more widespread  as we appear to be witnessing a run on the highly leveraged bullion banking system.

Very robust physical demand from the Middle East, Asia and particularly China and a decline in the dollar also helped prices log their biggest one-day gain in over a year and their first close above $1,300 an ounce in nearly five weeks.

Gains in silver futures, meanwhile, outpaced gold’s rise, with silver surging 5%.

Gold may have been higher also due to the weak U.S. dollar which is under pressure from poor U.S. home sales and comments from Bill Gross, PIMCO co-chief investment officer, who said he expected the Fed won’t tighten policy before 2016.

Gold has recovered nearly $150 or more than 12% in less than a month since hitting a three-year low of $1,180/oz on June 28th. Gold has made the strong gains due to robust physical demand as seen in the still high premiums in Asia.

Respected investor and precious metals guru, Jim Sinclair has again warned of a risk of a default on the COMEX and said that gold prices will rise to $3,500/oz and that gold at $50,000/oz is “not out of the question.” 

Sinclair, the successful gold and silver investor and a former adviser to the Hunt Brothers in their liquidation of silver from 1981 to 1984,  said in a posting on his blog that was emailed out to subscribers that:

“The cause of today’s spectacular rise in the gold price is the reality that with Friday continues large drops in the Comex warehouse gold inventory. No cogent argument can be formed against the reality that because of the continued fall in gold inventory that within in 90 days or sooner the Comex must change its delivery mechanism.”

Sinclair, said that the COMEX would have to move to cash settlement as they do not have nearly enough gold bullion to make deliveries and warned that owners of futures may be forced to accept payment in the form of the SPDR GLD ETF. This which would make them unsecured creditors of the bullion banks who are the custodians and sub custodians of the SPDR GLD.

He said that this could lead to the GLD ETF being “destroyed” and said that “it is a truism in gold that which is convertible into gold will in fact be converted over time.”


Comex Gold Inventory Data

Sinclair was likely alluding to a form of Gresham’s Law where bad money drives out good and where ‘bad’ or more risky gold investments are driven out by ‘good’ or safer gold ‘investments’ such as physical bullion in your possession or allocated in a vault outside the banking system.

Gold rose yesterday and Sinclair said, “because those knowledgeable know the inevitability of the changing of the Comex contract.”

“There is no question this is the emancipation of physical gold from the fraud of no gold, paper gold. The emancipation will cause physical gold exchanges to take birth and to be the discovery mechanism for the price of gold. This is the end of the ability to use paper gold future contracts as a mechanism to make the gold price sing and dance at the will of the manipulators.

With manipulation coming to an end the true value of gold will be discovered by the cash exchanges that are now taking birth. The advent of the cash spot exchanges around the world is the natural demise of the Comex.

GOFO (Gold Forward Offered Rate) is screaming this truth. The warehouse inventory of every futures gold exchanger is screaming this. The fact that there is no meaningful above ground supply of gold is screaming this. The fact that most of the central banks supply of gold is leased is screaming this.

There is no reason why gold cannot move up hundreds of dollars a day when the Comex changes their spot contract settlement, as they must, as they will, very soon.”

 


Support & Resistance Chart – (GoldCore)

With regard to price, Sinclair said that “gold will trade well above $3,500/oz and those who have lived in the gold market like me for now 53 years know it”.

The respected investor said that “a price of $50,000 for gold is not out of the question as a result of its emancipation from “fraudulent paper, no gold, paper gold.”

Mr. Sinclair has a good track record and it is believed that he has insider knowledge due to his family history and relationships with key players on Wall Street.

He predicted back in the early 2000’s with gold below $300 an ounce that gold would reach $1,650 within a decade. Now he is talking about “quantitative easing to infinity” and a similar trajectory for gold and silver prices.

Sinclair is highly respected amongst precious metal buyers due to being extraordinarily generous with his knowledge and his time in recent years. His writings on his website  JSMineset and his free email have protected tens of thousands of people around the world.

This year he has undertaken conferences where hundreds of people have turned up in Los Angeles, London and New York City for highly informative, interactive, question and answer sessions and is holding more conferences around the world in the coming months.

War Bird

NEWS
Gold extends gains into 4th session, near 1-month high – Reuters

Gold Futures Advance Most in a Year on U.S. Stimulus Outlook – Bloomberg

Gold logs biggest one-day gain since June 2012 on weak dollar – MarketWatch

India witnesses spurt in Gold smuggling – BullionStreet

COMMENTARY
Gold Price May Reach $1,420 `Pretty Soon’: Video – Bloomberg

Gold Price May Reach $5,000 by 2020, Analyst Says: Video – Bloomberg

Debt Ratios Crossing Point of No Return in Portugal and Italy, Nearing Danger Zone in Ireland – The Telegraph

  1. Hard to know what to make of a post such as this… which seems a patching together of a typical GoldCore daily bombast with excerpts from the JSMineset script and a bit of SDism thrown in for good measure…
    all too many Mary Shelley stitches for the comfort of the thinking man, me thinks.
    Yes, Au will go to 3500 and far beyond, yes the CRIMEX will default(and more importantly – LMBA will fold and slink)…
    but this is not the good news that the gold community(western world chapter)was waitin for… forever.
    All of the wealth of all of the West will be stolen\confiscated\sequestered\choose your favorite adjective here\ and the cupboards of all of those who held on in good faith will be laid bare. You can be sure that Gentleman Jim knows that, and his sincere desire to spread the gospel is not to be disparaged – BUT – he is one of the(less than) 1% with the means to fly out of Dodge in a private jet from a private field – to a place far from the center of the coming storm – where the bulk of his assets already await his absconding…within the hour of when the final nail comes down on the coffin of the formerly mighty Republic.
    You, otoh, my brothers, are in the pot. I’ve been banned for life from places like Zerohedge for trying to bring this into perspective for y’all. Even a piddling 500,000 of us melatoninally-challenged folk outside the net of the nefarious ones would be enough to preserve the rootstock and give us a chance for future recovery. But nobody is allowed to understand, by order of tptb – to survive the coming wreck, you must be outside of the disaster zone. Gold and silver will be the currencies of the future. But not where you live. Give it some thought. And then please… make your move. All the best.

    • I believe hedgey’s point is that we all need to be prepared – and that there is more to prepping than just stacking shiny stuff.
      Got skills?
      Got basic necessities stockpiled?
      Seems that I have some more work to do…

    • PM’s food, water, ammo, guns, skills that make you useful during a SHTF situation…. Gardening, food preservation, meat preservation, carpentry (and supplies/tools for that), electrician, plumbing, reloading ammo are all skills I have. Plus backup communications for the town.

    • @hedgey:
       
      1st off, WELCOME!!! 
      As for your suggestion, it rings true. But I unsubscribed from the Sovereign Investor 
      because that seemed to be their ONLY response. I’d rather stick it out here than to
      give up on the only thing (country) worth fighting for, since I was never in the military…
      But that is just me, GodSpeed to all who can and do decide to flee to greener pastures.
      But I believe it will be world wide, but this is the epicenter!  

  2. Maybe at $1600 gold, the Comex will have plenty of gold in its inventory.  Maybe at $1300, it’s too much pressure on the exchange, higher prices solve a lot of issues, we will just have to wait and see.

    • “Gold and Silver prices were what the two parties agreed upon, not some market spot price.”
       
      You mean like some market where a buyer and seller can get together, agree to a price for forward delivery of gold and then deliver that gold to satisfy the agreement?

  3. $1,600 gold is ok with me.  $2,000 works well too.
    As for Hedgey being banned for at least one life time, given that with a long enough time line every blogger’s survival rate drops to zero, I’ll use  like the old Groucho Marx line, related to the ZH banning   I wouldn’t want to be a member of a club that would have a member like me
    I use this litmus test whenevery I join a club or association.  Knowing myself fairly well, this is a good way to know if I fit in.   Most of the time it’s a resounding “Heck No”
    Another way of thinking is the old saying  “I’ve been thrown out of better establishments that this one’  Kind of like Ron White.  He was drunk in a bar.  All of a sudden he  was drunk in pub-lick.  One of the best lines I’ve heard. 
    Good stuff Hedgey.  If ZH banned you, then you are in good company.  LOL

    • Kinda like the kitco forum, I have been suspended there 4 times, now I rarely bother to comment there, just read the prepping section and guns section lol

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