Legendary gold trader Jim Sinclair has turned his sights from warning investors to protect themselves with gold to urgently warning them to exit the financial system immediately, and take possession of physical gold held in your own possession. Sinclair, who Friday warned investors that the US will be Cyprus’d and gold will reach $50,000/oz sent an email alert to subscribers Monday night warning that merely owning gold and storing is not enough, and that:
How you own and store becomes of critical and possibly terminal importance. Investors with significant deposits at in the system banks and brokers are in the dead center of harm’s way. Retirement accounts are also in the cross hairs of central planners.
Sinclair urges readers not to become a casualty of the central planners via the coming bail-in deposit confiscations, but to protect yourself by owning physical gold held outside of the financial system.
Sinclair’s full alert is below:
From Jim Sinclair:
As you probably already know, the Bail-In has been in preparation officially at least since 2010 with Basel III. It was to become official policy in 2013 and was implemented, according to plan and schedule, in Cyprus.
The rationale for the Bail-In is, of course, that the credit provider, not the taxpayer, is responsible for credit risk.
Why nobody was told of this 180° policy turnaround and why it is being denied even now is very telling, not only as to the character and intention of the policy makers, but also the nature of and risks inherent in the plan.
The Financial Stability Board (FSB) seems to have developed the Bail-In conceptually and has accompanied and monitored its institution and legal implementation around the world.
In case you are not already familiar with FSB publications, please permit me to direct you to the following documents, the final working paper on the Bail-In, “Key Attributes of Effective Resolution Regimes for Financial Institutions” from October 2011:
and the latest progress report from April 15th, 2013:
I found FSB publications surprisingly concise and easy to understand. They name the Bail-In explicitly and describe it in no uncertain terms. They leave no doubt that central planners consider that they are “managing” crisis.
Thank you for all your help. Reading your blog is a fascinating, if not enlightening experience for me. Should you consider the trouble of holding a Q&A session in Europe, I would most gratefully attend.
I have had two messages to communicate to my extended family. The first was to invest in gold, not as a trader on margin, but rather as insurance against the ecopolitical trends that are moving to infinity.
My concept is that problems/solutions by central planners comes out of the blue usually on a Sunday so if you are not insured by a solvent insurer you life’s work or a great part of it is toast.
Now there is another message which is “Get out of the system.” The central planners know that the potential need for funds if met by QE would collapse the currency of the central bank doing the QE manufacturing. The yen is the present example, but much more so under the bankruptcy scenario. Insolvencies are therefore coming down on the head and in the pocket of the unsecured creditors (depositors) of the institutions which means you at banks and brokerage houses.
This means owning gold and storing is not enough. How you own and store becomes of critical and possibly terminal importance. Investors with significant deposits at in the system banks and brokers are in the dead center of harm’s way. Retirement accounts are also in the cross hairs of central planners.
The entire thesis of protection has become increasingly more difficult. The entire theory of gold insurance now depends on how and where. The concept of the gold ETF is completely wrong.
In theory you may have done everything that appeared correct up to now, and still find out you are a casualty of the central planners.