Jim Sinclair, the man who predicted gold would reach $1650/oz over a decade ago sent an email alert to subscribers tonight, stating that the Euro-zone, Russia, and China will determine the future of gold, as the financial power has shifted from the US and UK to the East. 

Sinclair also states that the purpose of QE was and is to transfer worthless assets on the books of the TBTF banks onto the Central banks themselves, and thus forestall the inevitable complete collapse of the western financial system. 

Sinclair states that the Federal Reserve has no means of ever unwinding the worthless and toxic junk assets it has taken onto its balance sheet, and that the mathematics of the price of gold’s response to what has already occurred are now well in excess of $4,000.

Sinclair’s full alert below:

2013 Silver Eagles As Low as $2.59 Over Spot at SDBullion!



From Jim Sinclair:

Let’s keep things very simple:


1. The future of gold will not be determined by the USA.

2. The present manipulation in gold is purely Western, and any other thought is rank nonsense. This event is both short term and very short sighted in terms of people’s published analysis.

3. The triumvirate of Euroland, Russia and China will determine the future of gold as financial power has shifted from the West towards the East.

4. The strategy of the flushing of Lehman Brothers was to initiate a transfer of failed and to fail debt and debit, producing obligations in all forms from the balance sheets of international banks and investment banks onto the only entity that could mechanically accept them in infinite amounts, the balance sheet of Western central banks. To avoid a total and terminal collapse of Western finance, the US Fed had to take the entirety of the problem onto its balance sheet in exchange for newly created electronic bank wired funds.

5. This cash then simply filled an empty hole that was not visible to a general public because of the willingness of FASB to allow these institutions to call what was worthless as full value.

6. The means of the transfer is presently and was QE.

7. QE was a total success in stopping an absolute economic collapse of the West in an unprecedented economic proportion.

8. QE was for the banks and not for anything else. It filled a black hole made invisible by FASB capitulation to political pressure allowing fraudulent computer valuations. This gave birth to the large equity rally off the bottom in early 2009 within two weeks of the FASB’s capitulation.

9. Because of the nature of QE, the only real economic stimulant was the wealth effect of a roaring equity market. That left Main Street totally out of the equation and did nothing to reverse the long term bull trend in unemployment.

10. Any consideration of an exit formula for the Fed to reduce the size of its balance sheet must take into consideration the quality of the assets that QE has purchased, which is known to have a strong emphasis on paper that truly has and will never have a market. For those assets that do have a market, sales of the dimension of the purchase would certainly impact interest rates in a most alarming way because of the lack of international buying of US Federal debt. All debt markets affect all other debt markets from the loan shark to the US treasury.

11. So there must be a way of doing the necessary in order to compensate for the weak asset expansion of the balance sheet of the Fed and other central banks because there is no exit strategy despite the over-educated academics that would try and convince you otherwise.

12. I am the most practical market related writer in this field. I assure you all talk of an exit program is based on a full recovery to opulent economic times that QE is not designed to produce, nor can.

13. Because the problem at the time of Lehman Brothers was so great, there wasn’t even a good estimate of its size so that QE had to be to infinity. I stated that many years before Bloomberg.

14. Therefore the solution to the present problem that must take place before there is any chance of real economic recovery is that central banks must balance their balance sheet in an economic condition as present and predicted here to remain about the same or worse that permits absolutely no exit strategy.

15. That means that the price of gold as the other central bank asset must rise in the free market significantly so that the balance sheets of the Western world central banks begins to heal and maybe even balance.

16. The mathematics of the price of gold are well in excess of the two magnets now functioning at $2111 and revolving around $4000.

17. Marry this concept to the recent memo of CIGA Belgian and you have the total solution to the present problem that no other mechanism can produce. This will be initiated not by the USA, but by Euroland, Russia and China.


Now add the text of the discussion of earlier this week on the ascendancy of the euro as we enter the final chapter of the Monetary Crisis of 2008 caused by the fraud of OTC derivatives, a crime with many millions of victims and potentially a lost generation. Not one of the major perpetrators suffered corporal repercussions.


Jim Sinclair’s Commentary


This is a brief of discussions within a private self financed research group in Holland.


It demands respect and my gratitude for their contribution of this ever more complicated subject, Gold.


They can be reached at goudstudieforum.com




The Asian wealth producers (physical economy) and the major oil and gas owners, sympathize with the euro goldkoncept, that concept being, the market revaluation of gold without any link to any currency. (Remember the Duisenberg Speech.)


Gold, the wealth reserve (so not as a currency), shall be freely valued at the world’s gold auctions. The demise of the old dollar standard and rise of the Gold value standard and reserve.


Real value should be priced in and exchanged for a currency that also values, recognizes and promotes gold as a value standard. That currency is not the dollar, but the € (€ system and regime).


This (brilliant) idea/concept is not new. The early pioneers were Jacques Rueff and Triffin. Read: The Monetary Sin of the West.


Both wanted, but disagreed, to a free-floating gold price (value) during the London Gold Pool period (sixties). Their (Reuff and Triffin’s) point was:


Financial, monetary, and economic global stability by introducing not co the Gold Value Standard. The Dollar-regime (system) refused and forced the acceptance of the absurd SDR (paper gold).


But the two-tier gold market was born:


Monetary ($)gold and non-monetary gold. Oil and Asians keep accumulating physical gold and the € currency (€-system) that favors Free Floating Gold Value. Stability means that value should be exchanged for value. Currencies that recognize the value of gold as a wealth reserve are worth to buy valuable oil and products. The owners and producers of wealth get the assurance that their wealth can be safely stored as a reserve in free floating gold value, the only appropriate store of wealth.


That’s the running transition out of the non-wealth $-system.


CIGA Belgian


Conclusion to both briefs:


You have all the mechanical parts of the solution to the problem. The progress toward resolving this mess will again make huge profits for the “Good ole boys club,” particularly the Yalies.


Gold will move up in the free market and that is what this reaction is all about. The Canadian Dollar, Swiss and Euro will all benefit. Gold will not be confiscated because it becomes a major asset of the insiders. Gold producing companies with low cost operation will enjoy the leverage common to that industry in what is about occur. The amount of bearishness now developing in gold and certainly in good gold shares is the ultimate contrarian’s dream about to come true.


This is the golden stage. It is so simple it is almost silly, but few if any, really get it.



  1. The age of paper has virtually passed and the age of hard assets is upon us. The transition will be relatively swift and the last ones to understand it will be the American public. I am noticing the sales of 90% silver on Ebay have dwindled down to near nil and prices are at a premium. The smarter 1% among us are stacking the real money and using the almost worthless paper to buy it…..such a deal! China and Russia will break the back of the American dollar.

  2. Harvey Organ: “I believe China’s 300 million ounces of silver became the original inventory for the SLV, along with Buffett’s.  We are now seeing all this inventory go, and China is now manipulating the silver market down to pick up silver.”
    Jim Sinclair: The present manipulation in gold is purely Western, and any other thought is rank nonsense. This event is both short term and very short sighted in terms of people’s published analysis.”
    LMAO That’s why I changed my Avatar, wake me up when it’s over but in between snoozes I’ll continue to Stack.

  3. With all respect to Jim, he is wrong. Wall St., London and western banks are not the only ones manipulating PMs. We know for certain India (a BRICS country) is part of it. For sure China is part of it. They just do it for different reasons.

  4. Judging from the comments we seem to be in a contest of whom to believe,  Jim Sinclair or Harvey Organ.  I respect them both, but it’s like comparing Peyton Manning to his brother Eli.  They’re both good, but I’m going with Peyton.  Sinclair has light years more experience than Organ and it really showed a couple of years ago when Organ went on King World News thinking he was blowing the whistle on Scotia-Macatta for not having his gold in the vault when he and his son went to check on it.  Turns out the Organs had no idea that they had an unallocated gold account or even what that meant.  Oops.  Bottom line is Sinclair is the guy to listen to.

  5. Any country that owns a printing press does not want the price of PMs to go up. Many with a printing press want the phyzz and will use that printing press and other things to get the price of PMs down to buy more Phyzz. These criminals know what real money is, just as we do and they want it all.

  6. What I want to know, Mr. Sinclair, is where the hell do The Peoples of the world come into these elitist plans to make gold freely valued while Plantation Scrip continues to plunder the planet’s laboring folks? The vast ocean of humanity couldn’t care less about what banknote ‘value’ is put on gold. THAT’S INFINITE. What The Peoples need is to be paid in money that ALSO has a freely derived world value in optimal ratio against the universe of goods-at-market so their labor receives full value commensurately, Mr. Sinclair.
    I don’t begrudge those folks their gold’s true value, but I keep seeing a constant stream of indications that they begrudge US … OUR … ever more humble wealth, that is, the fruits of our labor. The ONLY means for us to have economic justice is to have money of rationally derived value arising from objective supply-demand conditions.
    No, Mr. Sinclair … SCREW your sacrosanct banknote currencies … ‘gold-backed’ or NOT! In these high-zoot meetings you folks pow-wow in, you’d better start talking about restoring REAL MONEY to the Earth’s PEOPLES. The message is growing LOUD and it’s spreading FAR … PAPER ROTS, COIN DOES NOT.

  7. “3. The triumvirate of Euroland, Russia and China will determine the future of gold as financial power has shifted from the West towards the East.”
    How the hell does the EU somehow become part of a powerful triumvirate that will rule the economic future when it is seriously in doubt as to whether or not the EU will even remain intact?  Plus, why would either China or Russia find these EU boneheads in any way at all useful?  Do they have a huge PM hoard that no one else knows about?  Somehow, I don’t think so.  Currently, the LBMA is losing gold and silver to China and India hand over fist and the US and Switzerland seem to be propping them up by sending them the metal they need to satisfy Asian demand.  Once this has all been milked out and is resting comfortably in Asian vaults, there will be no more need to pay any attention to the irrelevant West and that includes the EU.

    • I can’t see that happening, myself. We would have WWIII before we had any kind of world government. The bickering and infighting would be impossible. The EU can barely hang together, never mind a world government.
      I see another lazy shift of world dominance back to the East. After that, the West will rise again.
      BTW, speaking as a Brit, I see the EU as part of the West, not the East. If the West goes down, we’re going down too.
      The EU is no more “East” than New York is “East”. These are political, not geographic borders. If you go far enough east from Washington, you hit Los Angeles. 😉

    • War will happen on a grand scale but the fact of TPTB creating a one world government is still valid. War will be one of their mechanisms to make it happen. I guess we will find out soon enough.

    • No, I didn’t think you were seeing the EU in the East. It’s ludicrous. I picked that up from the article. Sorry, Crissy, I should have made that clear.
      I live on a little island off the coast of Europe. We are in the EU, although we aren’t in the Eurozone. We have so many different languages and cultures, I can’t see us ever being truly united. I think a third world power – a kind of United States of Europe – is what the leaders of the EU want, but it won’t happen. Not in our lifetime. Besides, like the Roman Empire, the British Empire, the USSR, etc, it would stagnate and die. All empires do.

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