Jim Sinclair: Cartel Shorts Are a Managed Spread Position, Banks Flipping to Naked Long Will Propel Gold to $12,400!

The legendary Jim Sinclair has sent an email alert to subscribers in response to a reader inquiring why the bullion banks are short gold and silver.
Sinclair responded with his most in-depth explanation to date stating that the majority of what appears to be short positions is in fact a massive hedge spread which has been systematically used to manage the ascent of gold up from $250 and the USDX down from 1.25 over the past 10 years.

Sinclair states that when the bullion banks sense that gold is ready to explode upwards in price in the final bull move of this bull run, they will flip their spread hedge naked long, reaping the largest gains of anyone in the precious metals sector, and propelling gold to $12,400.

MUST READ!!!

From Jim Sinclair:

 

What is the “Strong Dollar Policy” of the US Treasury? The answer is it is a policy of support of the dollar at key technical points so that the dollar will decline in an orderly fashion. This has been in place since the dollar was trading in the mid one hundred and twenty-five area on the USDX. In comparison the “Weak Gold Policy” has been in place since $248 which means gold’s appreciation will not be an insult to the dollar by spiking to $3500 and beyond, but rather rise in an orderly fashion. How could you not have noticed this in both the dollar and gold? This opens the bonanza to the metals dealer to run what looks like a huge short but rather to operate their business where I was pleased to make one half a dollar unwinding the spread (a long position versus a short position offsetting between my buying product from the producer versus Comex short).

 

Today the metals dealer want to make fifty dollars, not 50 cents on that spread.

 

I owned a metals dealer here and in London. I made a cash market for gold. I know about what I speak. There might be outside of the gold banks less than five people who understand the big short that is always being screamed about by the so called gold experts, and COT is a crock. You are looking at least seventy-five percent at a managed spread position. What happened at $1800 then at $1775 and again at $1750 was the long side of the spread was dropped, leaving the short side exploded and the gold banks pounding the market to make a 50% profit by putting back on the long side of the spreads, locking the huge physical long versus the Comex short into a no risk position that reads on COT like the greatest short in human history. The same is true of silver. In this financially debased world, with the rules of a metal dealer’s company and a little help for standard financial fraud and you will never find this in the COT numbers.

 

I am telling you the truth. I am telling you how a metals dealer works. I know because I was successful in the entire 1970s gold bull market play against this game.

 

Here comes the “Golden Truth.” When the gold banks perceive that the gold market is about to go ballistic, just like any bull market does, they need only reverse the strategy in place from $248 called “The Weak Gold Policy” in how they handle the 75% risk-less spread. Now when gold falls you takes off the short aside of the spread with gusto and let the long run. The biggest money I ever made was when my very interesting partner and I went into the Sinclair Global Arbitrage Company and asked them how many ounces of gold and silver they had in a spread position. When they told us the huge number over 15,000 contracts spread we told them follow our instruction. Take every short off the spread making us naked long. This was when the gold price broke $400 the second time over, running like a bunny to $887.75.

 

You must note how central banks are either buying or protecting their gold reserve positions now. This is total about face two years ago. There is another change coming which is a replacement monetary system and the need for some asset on central bank’s balance sheets to have positive value, especially in the USA. Soon all that is required is a change in spread management by the gold banks and you will have whatever price the gold banks want from $3,500 to $12,400.

 

All the COT numbers are nonsense and a means of operating the markets. COT experts give buy and sell signals which help the physical metals dealers profit on their spread trading. The COT experts help this spread trading looking for immense profit to profit immensely. Nonsense makes markets so the COT analyst looks like a genius while really interpreting nonsense when he/she is being duped into a tool to help the metals dealers spread position profit.

 

I have told you 1000 times that the greatest profit over the shortest period of time will be made by the gold bank physical dealers.

 

Because I know.
Because it requires only a shift in spread trading tactic handling of the spreads. 
Because it is simple.
Because in truth the gold banks are simple.
Because I did not get named “Mr. Gold” in the seventies because I wrote on gold.
Because in the 70s I ran the gold market and the gold price by attacking the dealer’s spread position which no one has done so far in this market.
Because attacking a spread position is simple. You simple run the opposite spread tactics with major balls and major PR.
Because I like keeping it simple.
Because the proof on this is that the gold banks got pissed. Both I and my partner were brought before the board of directors of the exchange under the accusation that we two running huge spreads between us, thereby manipulating the world’s gold markets.

 

Wake up experts, you have been had and your comments to the community are helping make sure they are had. You are tools of the gold banks and do not even know it. Your sage comments when I hear them from readers makes me sick because it is ignorant of the business.

 

Now I know this is going to cost me big, but you must understand what I am teaching you above. If you do not understand ask me the questions but no tomes please, all in at least 24 font, no other “expert” articles please. Just write me on what you are stuck on and I will try to clear your understanding of what you own or trade.

 

Please do not argue with me because you will only be demonstrating your ignorance, not your knowledge.

 

If you are convinced the decorated professor is a turkey, guess who really is the turkey.

 

Respectfully,
Jim

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Comments

  1. Maybe Jim Rogers should read this!!

    • Jim Rogers knows that if this happens he makes a lot of money, he doesn’t have to believe it for that to happen. His position is correct and that is all that matters, not all the infinite predictions that abound.

    • Today was the weirdest trading day I have EVER seen. I think this was a watershed of sorts for the precious metals markets. Gold and silver get pounded out of the blue, which is par for the course. However at the same time the MINERS RALLY?? This is seminal. While I braced for the inevitable portfolio bodyslam that I’ve been hit with a hundred times before over the past 5 years on days like this, it just didnt come. If this was positioning before the beginning of a ‘Sinclair’ian Sea Change in goldprice as alluded to in the article (they cant just keep giving away the physical at bargain basement prices forever), then its show time!! Triffin wrote his ”Triffin’s Dilemma” paper in 1960, on how Bretton Woods system of US deficets and a low gold price couldnt both exist. It wasnt til 1980 that gold exploded. These suppressions can go on for awhile, but not forever and eventually they unravel.

    • Jim Rogers position in gold/silver is just as unknown as what is unknown concerning the cartel. Believe nothing you hear and half of what you see. It is amazing how gullible some people can be. Making statements they cannot back up with facts. Jim Rogers position is only known by Jim Rogers. Many of the PM gurus do quite well off their newsletter. If you can’t see that, then you truly are naive. Anyone can speculate where PM prices are going. Sad fact is, most predictions have proven to be wrong. Yet some continue to tout these individuals are though they are the all seeing eye. I’ll stick to my own due diligence. Making decisions on statements from strangers is a stupid financial strategy. AND QUOTING THESE STRANGERS IS EVEN WORSE! 

    • Seems we are thinking alike again, Snowy… I linked to this article (via Twitter) and added this tagline to it:

        MANIPULATION by any other name Smells JUST AS BAD! 

      Posted it about an hour ago :D  

    • I see 2 problems with this…The first being that real money supply for the people that actually consume the silver is decreasing rather than increasing… Also, if you watch the COT reports, the amound of contracts being cashed in is not coming down and that means a much lower price for silver since they are not about to lose, never have and never will.. The time to go long is when the shorts start to cover and we are not there yet… I’m thinking that there will be a lot of pain for holders and many opportunities to stack in the next few months… These outrageous numbers being thrown out for the price of gold and silver is probably a couple of years away if ever.. IMO

    • TED BUTLER said the same thing, but he attributed it to the Presidents Working Group which consists of Timothy Geithener, Gary Gensler Paulson, and Bernanke, so of course they are going to want to let JP Morgan’s Blythe Masters short Gold & Silver, to pretend that they are hedging inflation.
      The question for Jim Sinclair is WHEN will they flip and go naked long? and how will we know to get on for the ride?, I was told this last bull ride, they were $10 off the high that would have broken it and it would have gone ballistic, which is why the smack down. Apparently, the timing is not right, and Ben Bernanke IS NOT READY to let it go BULLISTIC yet.

  2. Haha great article by Sinclair! Thanks Doc for bringing this to our attention! :D

  3. Makes no difference to me how they run the ponzie scheme.  I have my silver to buy food someday, nothing else.  The dollar is soon to be history.

    • The US dollar will sure become history and a thing of the past especially thanks to QE infinity that will cause high inflation. Even if there is a silver manipulation, at least that metal will allow us to buy stuffs even after the collapse.
       

  4. And I’m gearing up to sell folks food when that day comes.

    • Sell them food for what? 90+% of people only have fiat dollars! :P

    • Maybe he’s going to sell them for some physical gold and silver which will that way, generate a lot of profits after the collapse. He may also be farming so it is a good business to be a farmer during the beginning of the afterward of the collapse.

  5. Great article and great insight into how the market works. Very interesting.

  6. Jim’s getting down right serious on his predictions.  Whether gold goes to $12,500, it’s clear that Jim has one large sack for his gold and another even larger sack for his ‘nads

  7. Whoa!!! that is the metals version of watching chick on chick porn. Time to sell all my daughters toys to raise fiat for more stacking — Jim any idea when this may happen?
     

    • Prolly sometime after the 1/1/13 revaluation of Gold as  tier 1 asset by central banks. 
      Heck, the Fed is imposing it on ALL US Banks. It could proceed before 1/1/13, actually.
      It has begun, but IMO shorts are keeping prices low for the banks to purchase as much
      as they can at a discount. This may not be the ‘technically correct’ terminology per JS’s
      world, but I bet it is pretty close to reality. makes sense, at least. 

      Are you riffing off my Good Name, Dood? lolZ 

  8. So basically he’s stating watch the longs and shorts because they will flip when timing gets right.  Right now the naked shorts are ruling the market by 10:1. 
     
    What I’m not clear is when gold did run from $240 to $800+ were there still this level of naked shorts on gold and silver?  Or had the commercials mainly flipped to naked longs for the metals and now they are mainly naked short?

    • But is it really a “naked” position if you hold the phyzzz to back it up? 
      Or does that mean they do not have the metal deposited in the CRIMEX… 

       

  9. It’s bad enough when people start throwing around numbers like $3,500/oz, $5,000/oz, $10,000/oz.  But it’s just simply laughable when I have to see a specific number like $12,400.  I mean come-on, really?  Year after year it’s the same old crap. 

    • “Year after year it’s the same old crap” 

      Some facts (rather than uninformed opinion)…

       . In 2002 Jim predicted that gold would go to $1650 in 2011… you call that crap… I call it amazing.

       . And please, “laughable?” The $12,400 figure is simply basic arithmetic… the price required to cover the US balace sheet with the current supply of gold.

    • StackSmack, Been doing my own Wizard Calculations. Sinclair is full of CACA,
      my calculation is way different. Gold will go to $115, 686.34 by 2095. Then I will
      purchase my Rolls Bentley Convertible! Sinclair doesn’t know anything about how to figure
      stuff at all!

    • So these experts were using arithmetic to calculate the future gold’s price. I didn’t know that! I though they were just saying their predictions randomly. Now I want to learn how to do arithmetic. :(

  10. Interesting read, if true it still shows massive price manipulation that should be illegal.

  11. there is no rule of law anymore only rule of money

  12. Like Doc Holiday said in the movie TUCSON, “Say When”. Took a trip last weekend to my wife’s 50th high school
    reunion.The traffic flow was averaging around 75 to 80 and as an old lawman, I can tell you that regardless of the
    posted speed limit, always travel the speed of traffic to be safe. I know that each one of you reading this has had
    the experience of no matter how fast you go, there are those that will go past you at a break neck speed tp catch
    up somewhere on the road you are traveling with those speed demons trying to catch up with the leader of the
    pack, I have always figured it must be a Turbo Porsche, Ferrari or some other high velocity speed vehicle out there
    on the horizon leading the pack and not yielding the lead to anyone. So, no matter how fast you go my friends you
    will never get in the lead.  That’s why I say “When” are we going to see the volumes of audio and stated text on
    this blog come and find who the leader is and When is Gold and Silver going to the stratosphere as been predicted
    for so long? I am liking all that is said here to the story of the two indian scalp hunters that scalped two indians on the
    prairiie, took the scalps into town and unbelievably received $25 bucks a piece for them. The next day they awakened
    from an overnight sleep on the prairie next moning to get more scalps only to be awakened by a whole band of indians.
    One cowboy looks at the other and says, “We gonna be rich”. So fighting the indian bankers riding the high velocity cars
    and trying to catch up is driving most of us crazy. If anyone out there has a clue when “When” is going to happen, please
    advise. 

    • Cannot advise on the future as it hasn’t happened yet and NO ONE KNOWS what it will be.  There might be some pretty good guesses out there, though.  Dollar collapse?  Probably sooner rather than later… say sometime in the 2014-15 time frame.  Got preps?

      “I know that each one of you reading this has had the experience of no matter how fast you go, there are those that will go past you at a break neck speed…

      Reminds me of the time that we had freezing rain and I was on my way to work one morning doing about 45 mph on the freeway.  Traffic was very light but in the rear view mirror, I see a car coming up fast in the left lane.  I moved over to the right lane.  It was a Volvo doing a little over the posted 65 mph. I was in 4×4 at the time and driving at what I KNEW was a safe speed.  Sure enough… came around the next bend to see her off the road, butt first in a snow bank, and with that deer in the headlights look on her face.  Could I have pulled her out with my Jeep?  Yep.  But why do that when she was clearly unhurt and safer right where she was?  This area is well patrolled by the WSP, so they probably found her in 20-30 minutes.

    • Here’s what I have been working on for a long time, as far as timing, I say buy as much as you can afford, as soon as you can.
      And keep adding each payday. DCA (dollar cost averaging) rocks, but if you see that manipulation still seems to be going on, you might temper these purchases a bit if you see the likelihood of a price cut. Don’t hold off too long though…

      Here’s the “prediction”

       My prediction is that Silver will rise at a 2 to 2.25x rate of Gold’s increase.
      It has followed that MINIMUM for the last 3 years. I predict a similar
      or greater “rate of rise” in Silver until it normalizes at around a GSR
      of 15:1 or even 10:1 in the next couple of years, maybe 2015 at the latest.
      Consider this with a grain of salt, plus, the Tier 1 revaluation of Gold for
      central banks may skew Gold’s rise early on, maybe half way through
      2013… at least until central banks get “caught up” or they figure out
      that there is not enough Gold to go around, and SILVER takes off even faster. 

    • Current mining ratios are below 9:1 SGR. 
      8.89:1 to be exact, when I checked.  

  13. C&P from FB side …

    What happens on the paper ‘market’ is all ‘show-buisiness’. It’s brainwash to influence the gullible inclined to connect reality to fantacy. The purpose of staging this elaborate ‘play’ is the singular goal of enticing people to ‘sell’ their precious metals.

    On the one hand, to generate ‘greed’, the ‘price’ is raised and on the other hand, to generate ‘fear’, the ‘price’ is lowered. In BOTH cases the ‘price’ is made in completely worthless Plantation Scrip designed to entice fools to accumulate debt-claims for genuine money! Since the ‘trade value’ of that scrip is wholly dependent on a critical level of … borrowing …, the framework is self-destructive. Once the all-important minimum new borrowing activity is breeched by global Debt-Saturation, the collapse of the whole Plantation Scrip, banknote scheme is at hand.

    Gold, silver and copper are the only substances from which genuine money is made, because only trade of a physical good for another physical good extinguishes debt with finality. The panoply of ‘currencies’ are merely ‘trade facilitation instruments’ loaned out by banks and governments. They are ‘unitary evidence of debt’ that can only ‘off-set’ immediately transacted indebtedness.

    To KEEP these stamps, is to accumulate debt claims. When Debt-Saturation is reached, the inevitable line of default ‘dominos’ begins its sequential cascade. Realization of the ultimate worthlessness of ‘currency’ is initiated at that point and anyone’s willful ignorance of the transformation is their undoing. The ‘upshot’ is that 12.000 zeros equal zero.
      

    • Agreed, Pat, but we also have the financial miracle of derivatives to consider… over a quadrillion dollars worth of this financial sewage is oozing through the bowels of the world financial system as we speak.  There is no way to ever pay these off, either.  They amount to about 20+ times world GDP and when they begin to implode it will be like a string of firecrackers, each lighting the next one in the string.  IMHO, this is a HUGE problem and if anything collapses the world financial and fiat currency systems it will be derivatives.
       

    • I’m with Ed_B on this one. Where is Glass-Stiegel when you need it? 
      That would wipe the slate clean instead of instituting the largest bailout of ALL TIME, Forever and again.
      If we STAY on the hook for that mess, mankind will never get it all paid back. Even if we do, it will never
      be exceeded again. I hope and pray that these bad derivative debts NEVER become monetized and socialized…

       

    • That’s true! Most people think their wealth in terms of fiat currencies and not in physical gold and silver which is why most of the people are discouraged by the cartel’s raid. Why would I put my wealth on pieces of paper made out of nothing? This is common sense!
       

  14. What a revelation from Sinclair.  Once in a while we the sheep get a tidbit from our empathetic friend, who generously lifts the curtain of Oz and gives us a peek. He does not have to help us, but he does, even though he is one of the the billionaire high Swiss castle dwellers, with ascot and Louis XIII snifter. The apparent “big short” on silver is nothing but a deception. The silver price is manipulated up and down by the banksters for short term profits, by the use of opaque undisclosed spread positions.  The COT is entirely useless and not representative of the commercial’s true spread positions.  Meanwhile the ascent of silver and the descent of the dollar are managed. So, traders beware, you will be fleeced.  Stackers chill out and wait for the ascent and/or currency collapse.   Am I missing anything here?

  15. @PowerBall

    Good question.

    Yes, they had a huge short position and what he is saying is that huge short position has been used to “manage” an orderly rise to the price gold is at currently.  Without the cartel taking those huge short positions, gold might go ballistic. But, it wiould go ballistic up and ballistic down, in other words, incredible volatility in both directions. Completely unpredictable.

    I get the chuckles when i read an article like this from Sinclair or anybody else as it lists things which most people do not question. 

    The really sore thumb in this article is the idea of flipping their short position to a long position.

    Not possible.  At least not quickly.

    Remember, for any futures bet the bet is comprised of a long side and a short side.  There has to exist someone willing to take the short side of the bet in order for the long bid to get a buy.

    Now, the commercials can cover all their shorts but in order for them to buy longs they must have someone willing to “sell” short in order to make the contract complete.

    So, if gold is going to leap from a certain level to $12,400 as Sinclair states who is it that is going to take the short side of their spread???

    No, this is an operation that takes a long time to pull off – it just does not simply flip overnight as the emotion of Sinclair’s article would lead the readers to believe.  Somewhere, during the process of going long there is many, many, many tons of short contract covering to accomplish.

    You don’t just “flip” it….

     Bad, bad article…

    • Great Point! BUT:

      These guys are all playing with “Monopoly Money” provide by the FED, and they can withdraw Trillions of “Funny Money” from derivatives accounts (most of this is likely derivatives anyway) and BUY THEIR OWN TRADES BACK as “Longs”. Not fair, not moral, and probably not even “legal” but remember the Banking Reform Act of 2009? I bet you it’s all legal NOW. In some twisted way, they will get away with this. 

      Their losses on the short side will be totally absorbed on the long side, and forgotten… or fondly remembered as a savvy investment! 

      Just my 2 oz. Worth!
       

    • Actually Martin Sibileau broke it down in a simple flow chart.

    • I pretty much eliminated the idea of a big short squeeze on the cartel, with finality, from my thinking a long time ago.

      I now believe the cartel is too smart for that.

      In order to have a short squeeze of that magnitude the speculators pretty much have to go long and stay long, buy no shorts, and stick to their guns in doing so.  In doing that they would get the cartel to match higher and higher priced longs and eventually squeeze out some of the cartel’s shorts.

      They, the speculators, simply are not that coordinated. 

      The cartel not only is that coordinated, they already have a massive short concentration at their disposal, use HFT effectively, and position their contracts to take advantage of increasing or declining price. 

       

    • The idea isn’t to fight the cartel, the idea is to play along and stack when they smash the price. Enough people do it and physical will become tighter.

    • I think that the main reason why everyone bought physical gold and silver is to protect against inflation. Most of the people just don’t care that much about the cartel’s raid if they are really focused on protecting their purchasing power.

  16. I got one of those “infomercial” videos linked in my email, LOTS of GREAT INFO 
    before the sales pitch. Tells how Gold will TAKE OFF, and soon. Explains the
    BASEL III Central Banking Rules, and how the Fed has imposed it on ALL US BANKS! 

    Link-age:  http://www.angelnexus.com/o/web/39787

    • This is “Supplemental Information” that seems to support JS’s thesis, IMO. 

      Read the transcript if you don’t like infomercials  ;) 

  17. Bravo! Your message is loud and clear. Atleast 24 font….well okay! I will be “Thomas from silverdoctors.com”.

  18. @UG

    That is a very good point.  Which means they basically accept huge losses in short covering with the future prospect of even more huge gains on the long side and they still show a profit.  Its all funny money, for them, anyway, so no problem.  

    They can do that but at the same time there has to be someone willing to take the short side of their new long.

    So, basically, they have to create a situation where a ton of speculators are going to think a collapse in the gold price is imminent (or in progress) so the speculators, in masse, have a reason to go short and sell longs.  Then the commercials  take all that fake money from their derivatives so they can cover their shorts while at the same time buying longs to match the speculators new shorts.

    On a massive drop in price they might also minimize their short losses.

    Another possibility here that no one has really mentioned is the prospect of a huge decline in total open interest.  Speculators, in the face of a huge drop in gold, sell their longs which provide short coverings for the commercials but those speculators will probably not take new short positions in as huge of numbers as they had bought longs to begin with so the net result is the commercials are able to covert some percentage of their shorts but not all of them.

    So, we have the prospect of a huge drop in the gold price coupled with a huge drop in the total open interest.

    Any new open interest requires there to be a short to go with the long bet.  Who is going to take the short side?

    My guess is only a fraction of those who were previously long because no one knows where the bottom is going to be in a mad rush to find the bottom.  

    Therefore, my best guess on the Sunclair’s prospect of a flip in all that short naked open interest is going to take a long long time or else we have a scenario where total open interest is reduced dramatically from current levels because someone out there has to be convinced they can make more money playing short to the commercial’s longs.

    Years of watching open interest tells me that while some speculators will go short they only go short for temporary durations of time while most speculators simply go long trying to time uptrends in price.

     

    • Marshall, because I’ve examined the base construction of the banknote (so-called, monetary) scheme, I thus recognize that ever-more borrowing of new currency into existence is absolutely not ‘optional’, but rather essential to its ‘valuation’ and viability. The sequence and severity of unfolding events in step with my perception of how it would most likely approach its climax, once that borrowing dropped below the critical threashold, have been occuring, so I’m as sure as I possibly could be, that the system is extremely close to its mathematically prescribed collapse.

      This is where my speculation takes over … now, if in defense the ‘elites’ are frantic to gather in gold and silver by alternately creating overtones of ‘greed;’ and ‘fear’ with increasing frequency (shaking off the weak hands with volatility … relinquishing both bullion AND ‘claims’) in preparation for the ’main event’ as defaults begin their all-engulfing cascade, I’d envisioned that the final act will be to abruptly gap to a high figure in a ‘coup-de’gras’ (The Bernank DID lay this out minus follow-on) … then as the metals are delivered into the bullion bank vaults and ‘the greatest fools’ receive their ‘credits’, governments universally ’agree’ (admit, actually) that the ‘monetary’ system has failed and jointly abandon all their existing banknotes as valueless. Anyone who had ‘sold’ would have no prayer of ‘buying back in’ and the banknote ‘purchases’ would be ‘grandfathered’ as ‘legal’.

      Not wanting to ‘give up a good thing’, governments would then placate the surviving private metals holders with loans of new ’gold-backed’ paper at ‘irresistably low’ interest rates (which, to be sure, would require bullion deposites), to start their cruel game all over again. In this way, the ‘shorts’ could expire under ‘force majure’ excusing ‘reasonable obligation’, negating ‘performance’ altogether.

      If you were ’in the driver’s seat’, would you be tempted to turn down that lane?

    • The system may in fact be very close to its mathematical collapse point but the real question is will it ever actually get to that point?

      Thousands of articles have been written on this subject and if you had asked me last Spring when the Greece and JP Morgan issues were hot buttons I would have seriously told you that I would be very surprised if indeed we got to late October without the collapse occuring.

      Yet, amazingly enough, here we are and not many people speculating about when the collapse will be, in the last few weeks.

      It seems every time we think we are close to such a scenario somebody prints enough money in just the right places to kick the can down the road.

      Many people were sure war with Iran was a foregone conclusion by now but here we are and nothing happening there but political posturing.

      This mess may in fact be managed right up until the very end with war(s) the next step before an Armegeddon-esque final act. 

    • I’m not that up on commodities trading, but they can openly (or through a proxy) buy BOTH sides of a trade. This is how Hillary Clinton made that big strike in the commodities markets. The banks that were “rewarding” her bought a long and a short, seven 
      trades is a row, and she was registered as the “winner” in all 7. The bank took the losses. And probably a tax write off. IMO the “proxy” could get a bailout, and the banks (new longs) will get the funds, and their PM appreciate at the same time! 

      Oh well, I’m out of my league on this one, but I’m pretty sure they have an “out” when they flip it.

      Good conversation,  @Marshall Swing!

  19. “Many people were sure war with Iran was a foregone conclusion by now but here we are and nothing happening there but political posturing.”

    Yes but is that not what ALWAYS precedes a war?  That there will be war with Iran seems highly likely to me.  The timing of it, however, is unknowable to all who are not part of those developing any false flag plans that may be implemented to encourage a blatant attack on Iran.  Failing that, Iran could be goaded into attacking Israel and we’d be off to the races. Not that Iran would need a lot of goading.  There are so many possible scenarios that it is virtually impossible to guess what will happen.  It is clear that any nation that attacks the petro-dollar structure WILL be attacked… Iraq… Libya… and soon Iran.  After the election, things should start heating up and sometime in early 2013, we will either have reached an accord with Iran or the shooting is likely to start.
     

    • Declaring war on Iran isn’t that easy. If the USA and Israel declare war on Iran, Russia and China are going to join in to help Iran. Then, more countries are going to join in the war. Like that, WW3 will start and the USA is going to get wiped out.
       

  20. The time period is the thing here. All sorts of numbers may fly round and probably in ten years time 90% of the commentators can beat their drum for the spectators.
    If we see $12,400 per ounce gold soon we will be in massive inflation and the beginning of hyperinflation and in the grip of the economic colaspe predicted often in the pages herein.
    The fact that a juxtaposition of any of a number of fiscal, agricultural, climatic, industrial and global political problems of import are coming together in the foreseeable future, to cause an economic burden upon the general population as individuals is readable by the least newsworthy persons simply by observing the increasing unrest on their behalf and the increased oppression by the application of the rule of law which is becoming ever expansive.
    Simply put $12,400/oz is not a hard figure to guess at for a figure in ten years time if the world economy does manage to stay the course. However . . .
    Is $1,000,000/oz gold realistic ? If the sort of crash expected in the next few years is realised then $12,400/oz Gold (excuse the vernacular) is a piss in the ocean to the trouble we’ll be in.
    In the meantime, the content of Jims disclosure is of more concern than the figure, if what he tells of is true then does he hand himself over to the authorities for acts unbecoming ? Acts which this site accusses JPM ? Do authorities act upon their own merit and charge the fiend as guilty for manipulation ?
    Or really is this just another bone (of contention) to throw to the masses for entertainment during the show provided by us for the pleasure of the elitists.
    It smacks of the game we used to play as kids with a flashlight and the cat. When she caught that thing, boy was she gonna worry it then.
    keep accumulating that good stuff

  21. Those bankers…..they are very smart. Very smart. What helps them is being able to see the big picture. They all know what is really going on. At least the ones at the top. After all, they didn’t get there by sitting on their butts. I would not put it past them. They’ve had a lot of experience. I am sure they keep a whole library of secret knowledge among themselves and away from the masses. The last gold rush was what….in the 80s? Not that long ago. They’ve had a lot of practice. They know what’s going on. 
    I’m currently patting myself on the back for selling just under $35 silver. I was going to sell at 35. I was going to. But oh well. I didn’t make out too bad. I’m about to buy back in too. Not sure how much longer I’m going to play this game though. It is definitely a lot safer to just stack. Talk about risky when you sit there and send off in the mail, thousands of dollars worth of metal…..real money. Gotta have balls to do that. And then to trust those who you are sending it to not to meddle with it. Maybe if I was just buying and selling gold because 10,000 dollars worth of gold is not as bulky as 10k worth of silver and may be less conspicuous. Still dangerous nonetheless. 
    This quarter should be interesting, to say the least. I am still not sure what to make of it. Good coverage on sinclair. 

  22. Awesome Article! Thanks Mr Sinclair!

  23. If gold reaches 12400$ per ounce, then silver will also reach 225.45$ per ounce with the ratio of 55 ounces of silver for one ounce of gold. Why would gold reach 12400$ if it is guaranteed that QE infinity will happen which will cause huge devaluation of the US dollar. I think it will be more.

    • Silver will go much higher than that. Back near the 15 or 16:1 range or higher. 
      Silver almost always moves twice as fast (or faster!) up than Gold…  

    • I’m just saying it because 225.45$ per ounce is a price that will sure reach in the silver market if gold reach 12400$. According to my one year experiences with silver, you’re right about silver moving faster than gold in percentage gains to its initial prices.
       

  24. I GIVE YOU THE LEGENDARY JIM SINCLAIR. Entering this on July 7th, 2013. Gold is at 1200 and silver is at 19. Boy was he wrong.

  25. Not worth commenting

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