The legendary Jim Sinclair has sent an email alert to subscribers regarding the blatant gold and silver manipulation in the wake of Wednesday’s QE4 announcement. Sinclair states that the Fed via Goldman has been capping gold in the $1700’s for months via the ESF, but that the Fed’s capping of the gold market via paper will fail spectacularly as Eastern physical gold demand overwhelms the paper manipulators and drives the price of gold well north of $3,500/oz.

Sinclair’s full MUST READ alert is below:


From Jim Sinclair:

Gold will trade at $3500 and above on its own merits with Eastern demand in the cash market being the engine of price.


The Fed via Goldman has capped gold in the paper market for months. They were so obvious between $1775 and $1800 that Petunia can call the strategy.


Goldman is, in all practical senses, the Exchange Stabilization Fund because ESF is only a brokerage account. There is no fund in terms of what one thinks a fund’s office should look like. Read the law.


The President or US Secretary of the Treasury may appoint ANY person or entity to act on their behalf as the manager of the Exchange Stabilization Fund. The Exchange Stabilization Fund has a broad mandate that allows it to trade many things including GOLD. The USA is not the center of the Gold price in the full valuation move into 1980.


Right now the geniuses in charge of the ESF are driving gold via the paper market directly into Eastern hands. There is much speculation about the amount of Gold the USA holds and its deliverability as much gold and silver was used in the Manhattan Project and no audit has ever been carried out.


The gold price will in the not too distant future go through the cap and that will take it to full valuation above $3500. If you’re speculating in gold in futures without at least 20 years of positive history and training as or under a professional you have a financial death wish.


If your reason for owning gold and silver is an exchange failure you are fundamentally challenged.


The volatility in gold and counter intuitive moves, thanks to Goldman as broker for the Exchange Stabilization fund investor, will migrate back to good gold shares with the real beef.



  1. Don’t expect those “Eastern Forces” to be in any hurry to see PM prices go up. They are behind their ramparts fighting a currency war and are losing at the moment. They are eating the Feds inflation and priting like everyone else in the race to the bottom so as not to lose market share in international trade. They must get as much metal as they can, as cheaply as they can, and as fast as they can to hedge or they might just lose the currency war.

  2. This estimate could be too low.  A 100 % increase seems short given that certain stocks can accomplish this in months, not years.   There is no available outstanding stock of gold in the world today. It is either in the hands of central governments, central banks or individuals.  Try to find anything more than a  few coins at the LCS.  If you are an institutional buyer the supply is nearly non existent.  If countries can’t get their godl returned, then there is no gold to be had.  When the ETF GLD says they added 3 tons of gold to their vaults they are lying.  It’s a paper entry. Their alleged 1,340 tons is fiction.  there may be dust and post it notes but gold, sure, you bet.

    • You are right! I’ve only seen once a full ounce of gold for sale at one of my local coin shop and that was on September 2012. I also don’t often see physical gold pieces for sale and whenever the local dealers have them for sale, they are sold very quickly.

  3. Not really understanding this comment from Jim Sinclair:
    “If your reason for owning gold and silver is an exchange failure you are fundamentally challenged.”
    Perhaps a kind person on this site can explain, in a paint-by-numbers way, what this means.
    Thanks in advance.

    • @MarkPA…Agreed.  Sinclair’s writing style can be a bit obtuse.  Sinclair means that the fundamental reason for holding physical gold/silver is to protect yourself from debasement of gov’t issued fiat money.  He considers those betting on a major gold/silver exchange like the COMEX crashing and moonshotting the price because the can not deliver the physical to be speculators.

    • I believe Jim Sinclair is saying that, if your reason for owning gold and silver is because you expect the exchange (COMEX) to fail, you do not understand the fundamentals behind the price (value) appreciation in precious metals.  COMEX is rigged and may be kept afloat by the manipulators for a long time, but the physical demand for gold and silver is ultimately what is making the prices of silver and gold go up.  In other words, don’t expect gold and silver to go up in prices because of COMEX failure, but because fundamentally the available physical supply of silver and gold is diminishing as more and more people buy and hold them long-term for protection and for preservation of wealth (purchasing power).
      Although difficult to watch and witness, the fact that manipulation is more and more blatant and is widely recognized by more and more people means that the next major price surges are getting closer and closer.  Even in the late 70s leading to 1980, the prices for gold and silver did not increase continuously in a straight line.

  4. UglyDog and Plebian – thank you for the explanations.  I now understand that Mr. Sinclair was basically calling out the speculators for speculating on the COMEX (and the COMEX’s own speculation/manipulation).  Not trying to be funny, so please bear with my simple re-statement of what I now believe Mr. Sinclair was stating.
    Please correct me if my stated understanding is faulty.  And again, I really do appreciate your kind explanations.
    And kudos to the Doctors for the work that they do.

    • The only way to remove these corrupted people is by starting a new revolution which will be called the Second American Revolution. I mean it is the duty of each American citizens to remove the bad people away from their country.

  5. If gold becomes 3500$ per ounce, then silver will also become 70$ per ounce if the gold to silver ratio is 50 ounces of silver for one ounce of gold. I’m sure that silver will have more demand than gold because silver is a lot more cheaper than gold.

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