5000 goldLegendary gold trader Jim Sinclair released a truly EPIC alert to subscribers Sunday night, in which Sinclair states that gold will trade to $4,990 in the coming bull run prior to settling into a role as currency for the beginning of the greatest economic expansion in history.
Sinclair states that the coming volatility in gold (& silver) will be unprecedented, with $1500 swings in the price of gold prior to full valuation being achieved, and gold’s new status as global currency beginning.

For the first time, Sinclair gives his target for full valuation of gold of $4990/oz, and states that the return of gold to a global monetary role will usher in the greatest economic expansion the world has ever seen.

Jim Sinclair’s ultimate economic and gold prediction is below:


2013 Gold Eagles As Low As $74.99 Over Spot At SDBullion.com!

2013 Gold Eagle

From Jim Sinclair:

The new normal in Gold, the “Comet Gold Resistance Movement,” is your ticket to a sound monetary system. This will be followed by a period of long-term industrial growth as the world has never seen based on ultimate money, forced by the actions of the market place, not a product of any number.

 

Since there is no doubt at all that the price of gold is going to and through $3500 with unimaginable volatility, I once again would like to suggest as in all wars that when a battle has been lost, the rise of the Gold and Silver Resistance Force, a militia of sorts in the market.

 

The reason behind this suggestion is explained below as the economic axiom known as Gresham’s Law operating in the Central Banks of the BRICs whereby gold is being accumulated with a goal of 15% of the reserve balance. To create this reserve goal you can reduce the fiat reserves as well as increase the gold reserves. You can reduce your fiat reserves by long term contracts in dollars by parastatal accumulation of resources and the means of production. The goal of 15% of reserves are the currency gold, and gold’s ascent in the marketplace due to the effect of Gresham’s Law to an accepted currency form. This is something the West has no control over. All the West can do is to attempt to inflict outrageous volatility into gold thereby trying to make confidence in the price of gold hard for those that do not understand. I have started to suggest this movement in the video repeated at least 6 times here that states, “Gentlemen, prepare to defend yourselves.”

 

All you need to do every time the US Treasury and Fed seek to make the gold market outrageously volatile via their friends, the gold banks, is to do nothing. Consider the volatile gold market to be the lion in the following video CIGA Pat sent to us. You are the photographer. Accomplish in the market place what this wildlife photographer did in the field, and you will still have all your gold insurance when gold finally trades solidly at $4400. When gold breaks above $3500 and $4000, as it will do, the US Treasury and Fed via their friends and relatives at the Gold Banks will run gold from $3500 to $4990 and back again a few times before gold settles into the currency as described above at $4400 for the beginning of the greatest economic expansion the world has ever seen.

 

You must join my Comet Gold Resistance Movement, a golden militia armed with courage to do just one thing. Do nothing, stand still in positions in gold without ant debt, and ignore the enemy of fear within and gold banks without. The market made mad by the Gold Banks will approach your jewels, but you must be internally quiet.

 

There is a writer made famous in the gold community in their rare ability to feel the pain of another who wrote a now famous article while un-free titled, “Gold $5000.” He is now scaring his benefactors by calling for gold to return to a very long term uptrend line at lower prices. Should that occur, he is willing to sell you his system as a computer program for $20,000,000 US dollars. Knowingly or not, he is a tool of the Gold Bank’s banks to create unprecedented volatility in the gold price. Join my Comet New Normal Gold Resistance Movement, a true non violent but armed militia. This is the way to protect yourself and thereby get to the other side still holding the preeminent currency.

 

In two weeks I will have printed certificates signed for you representing membership in the Resistance, but without your name or other identification. There will be no meetings, no charges, not even expenses. When you are long your good gold companies, mining money, and your physical gold at a sound $4400, protected from the inflation we are already experiencing multiplied by a minimum of 25, you will know your Resistance membership and your mindset will have gotten you there.

 

You must have a brain to know and eyes to see in order to understand what the end game is. Know that you have a tool to fight back, which is explained in the following video. Stand emotionally and mentally silent doing absolutely nothing whatsoever as the Gold Banks play the Western egocentric dislike for gold’s final roll in the end game.

 

When the lions are close, all you have to do is do nothing. This is the Constitution of the Comet’s Gold Resistance Movement.

 

Lion sniffs cameraman's crotch | Crazy Cameraman Ep7
Lion sniffs cameraman’s crotch | Crazy Cameraman Ep7

 

 

Gresham’s Law, not international edict, will reform the monetary system. Gold’s role in money is moving towards officialdom not by edict, but by Gresham’s Law. The difference now is that this concept of Gresham’s Law inhabits central banks of the “Real New Normal,” the rise of the influence of the BRICS and is spreading worldwide.

 

From Wikipedia:

 

Gresham’s law is an economic principle that states: “When a government compulsorily overvalues one type of money and undervalues another, the undervalued money will leave the country or disappear from circulation into hoards, while the overvalued money will flood into circulation.” 

Note please that the US Treasury still holds firmly to the mad concept that their gold, if there is any not compromised, at $42.

 

 

More… 

 

SD Bullion

  1. Swings as large as today’s price!!!! Hard to believe we will ever get there seeing the current sentiment, but that’s the name of the game. While on a Lion theme. Accumulate while the herd are migrating in the wrong direction towards a dry waterhole. They’ll come back to drink at the Silver Lake eventually and we’ll be ready and waiting.

  2. If he were to be right, sitting tight would be a pretty stupid thig to do. Sell high, buy back the dips, that would gai you so manny ouces.
    JS is all about gold of course, but I’d like to kow his expectations for the gold to silver ratio during all this.

  3. My Head Hurts, first it’s down then it’s up, whom am I to follow? What the hell, I’ll just keep stacking. When it’s down I’ll buy, when it’s up I’ll hold or I may sell.
    These Gurus are driving me crazy but I tend to like Jim the best. More Positive.

    • Totally true! The financial gurus keep pointing out the obvious thing since the bull market which is annoying! I don’t follow their advices anymore especially because the majority of their predictions are wrong. “Listen to all, follow none.”

  4. Trading gold or silver seems counterintuitive at present time.  There’s usually $2buy/sell  spread on silver prices. Trying to wring out a profit on these slow $3-4 price movements does not work for me but I’m not a trader. Maybe reading the charts and using good predictive software will make this possible. As for me,  I’m going to see what the market bears in mid April selling physical at the gun show.  My premium sale price will be at least $15 on single coins, Morgan’s, Maples and older ASE. 
    In my opinion, there is a big disconnect between gold assuming  a role in the monetary system  and economic revitalization.  It’s unlikely to happen in 5-10 years.  There are some problems that must be dealt with,  like $70 trillion in worldwide debt, $1 quadrillion of derivatives and in just the US $220 trillion in mandated transfer payments promised to various groups.
    If these promises are to be kept and the debt is to be repaid, even if gold was at  $16,000 an ounce, the debt and mandate problems with be scores of times as big as the entire gold market. $50 trillion in gold value won’t be enough to plug the gap.
     If the gold prices swing violently, that is not an encouraging sign to TPTB to rotate to a gold standard or gold backed currency.  It is more likely that we will continue down the path of printing and debt until the system collapses.  Then the debt and promises will be refused or repudiated.  And maybe after that we’ll  see some rationality and sense in our leaders.  This could easily be a 20-25 year process in any case
    If you look at Argentina, they are promising to repay their debts, some going back to 2001. But what they are really saying is they are planning to default, using the same excuses as the last president used when they defaulted.

    Defaulting is pretty easy. Just stop paying, devalue the currency 50-75%, throw the citizens under the bus, condemn the country to 5-10 years of economic depression and the problem is solved. How we’ll do this on a global scale is something else entirely.
      I’m not going to hold my breath or rely on vague announcement of economic restoration.  The entire system of FIAT and debt must be completely destroyed and that’s not in the cards until the house of cards comes down. The price of gold will rise substantially due to the lack of faith in currency and some form of hyperinflation.

    • “Defaulting is pretty easy. Just stop paying, devalue the currency 50-75%, throw the citizens under the bus, condemn the country to 5-10 years of economic depression and the problem is solved. How we’ll do this on a global scale is something else entirely.”
       
      Perhaps an even more interesting question is, “CAN this be done on a global scale?”.  The Great Reset?  Probably only if everyone agrees to it and just how likely is that?
       
       

    • The derivatives market does appear to be a zero sum game, so it is possible that everyone could just back away from their derivative assets and liabilities.  Yes, it seems odd to use terms like “assets” and “liabilities” in this context but I don’t know another way to discuss derivatives that cost a company money vs. one that pays them money when they are activated.  The tricky part could be the interconnections between companies in terms of who owes whom what.  When the US Gov saved AIG from collapse, it was not because they had any special love for AIG in particular or insurers in general, it was because their derivatives obligations were huge and spread throughout the US banking system.  It was such a tangled mess that no one knew how to untie the Gordian knot of those obligations.  Compared to the derivative obligations of the big NY banks, however, AIG at $180B was “small potatoes”.
       

    • Exactly! But, the question is when? When will the economic collapse happen? It may be possible to default the whole world especially when most of the countries have banned guns or require a license which means citizens don’t have a lot of access for them. So, they will suffer the police’s brutality after a global default.

  5. JIM SINCLAIR GETS AN “A+” FOR GOLD… BUT FAILING GRADE FOR ENERGY

    However, he gets a FAILING GRADE for energy. Jim’s newest release to subscribers said that when GOLD hits $4,990 and settles into a currency, the world will see the greatest EXPANSION IN HISTORY.

    This may be nice on paper, but I highly doubt we will see a huge expansion. Why? Cracks are beginning to appear in the energy (oil) markets. Gold might be the best accounting for trade, but energy DRIVES the economy.

    Evidence is becoming clear that things in the oil market are much worse than MSM realizes. There will not be any huge EXPANSION… maybe a small amount of superficial growth… but thats about it.

    I will be discussing this more in the future.

    Hey AGKIIK… how you doing?
     

    • If energy costs do get out of hand, miners may still not be making too much money at $200/$5000. Grades deteriorating, more oil per ounce needed…everything to a miner that’s not for free, will get more expensive.
      Anyway, I am not so sure that in the anticipated bull run, mining will be as profitable as it once was.

    • SRS,
       
      Exactly my thinking.  Gold, yes, it will go to the moon at some point.  But no cheap energy, no recovery and no growth.  That’s the future, folks.

    • If the US has 300,000,000 oz of gold and Sinclair thinks they will back the dollar with 15% Gold and gold will settle at $4400 then the US will print 8.8 Trillion dollars in total.  Oil will be at a 16 to 1 ratio, $275 a barrel, gasoline will be $10 a gallon.
      SRS, with this formula you can figure out if the miners will be profitable.  What percentage of sales are energy costs for miners?

    • @SRSrocco:  F?  Maybe a D+.  He’s not totally out to lunch regarding peak oil.  I’ve seen him make comments that suggest he’s open minded on the subject.  But it’s obvious he hasn’t given it much thought and there are holes in his worldview.

      Heck, I’d only give him a “B-” for his understanding of silver.  But at least he does admit to not being a master of the silver market.

    • For what it’s worth, it’s not hard to argue that metals pricing will easily blast higher within the next 1 to 2 years to a level that will still permit substantial mining company operating leverage.  The level of price suppression in the PMs is so large that the snap-back to reality will overshoot the initial  pain of higher energy prices over the next few years. 
       
      Absent a new form of cheap energy, declining EROI will prove SRSrocco’s thesis about mining companies correct in the long-run.  But my sense is that most of that brick wall will be hit in the 2020 decade, not this decade — and I’m factoring in an assumption of declining economic activity on account of higher trending cost of energy.  Just to put numbers on the table for the sake of discussion, a heck of a lot of money will be made by many well run mining companies once silver and gold are trading at $150+ and $3000+ in a few years even with $180/oil.  (again, numbers selected for illustrative purposes only)

      The mining sector sh*t is most certainly going to hit the fan somewhere a handful of years out — probably within the early 2020 decade.  SRS’s analytical work already shows the outlines of those problems.  But even with these sizable economic headwinds, there’s still one mega-bull cycle left in the precious metals mining share space.  Believe me.  When silver and gold shoot out of their current funk like a bat out of hell and in as little as six months from now (or whatever it takes for mining shares) the financial mainstream will flock like sheep and send the tiny share sector blasting higher.  There’s only a modest requisite time-frame needed for the “financial world” to understand and accept silver and gold prices trading at an order of magnitude higher over current prices.  
       
      For the “financial world” to fully come to understand what declining EROI means, on the other hand, involves moving through a collective level of cognitive dissonance greater than pretty much anything humanity has faced in its entire history.   Just because we can already see nasty impacts like Jeffrey Brown’s Export Land Model already taking root and biting economically, for example, doesn’t mean a hill of beans to the mainstream financial community — at least not yet.  So, there will be a lag between these two “mega trends” which will create a window of time for a massive precious metals equities market boom.
       
      Steve, you probably would agree, the mainstream financial world can best be summarized with the example of Daniel Yergin’s worldview.  Even though we are already in his “undulating plateau” and beyond it when it comes to conventional petroleum production, Yergin and much of the financial community perceive blissful sailing all the way through the 2020s because they believe the undulating plateau will provide enough wiggle room.  Obviously, they’re all deeply ignorant.  But the point is, silver and gold are going to go bananas to the upside on a much shorter time-frame than what will be required to see these sheep come to terms with peak oil.  These sheep will manifest a level of greed for mining companies that will be breathtaking, and it will come long before they have to stop and think about what happens next.  Your work on EROI and mining companies is fantastic.  But give consideration to what I’m pointing out here.
       
       
       

    • Ever heard of Zero-Point Energy?  Current scientific theory allows for the extraction of ‘free’ energy from the Universe, and this is a topic that shows up in government research endeavors.  Nikola Tesla and Bruce DePalma both researched this field.
       
      However, the ramifications of the availability of free energy on human existence are ‘unthinkable’ to the central planners, who would rather have energy be costly as a way to ensure continued debt accumulation in support of the debt-based fiat monetary system.  In other words, free energy would lead to too much human freedom…  And people would be ‘out of control’.

    • @Plebian:  Sure, Zero-Point Energy can even be considered a fact at this point, not theory, because we can prove its existence.  The only part where theory comes into the picture is how to bring the energy into a usable form.  Supposedly, humanity hasn’t figured that out yet.  But there’s evidence that that is B.S. and the technology has been suppressed.
       
      True fusion could be a game changer.  Helium 3 on the moon’s surface (totally loaded with the stuff) might also be a game changer and the US government’s objective of “owning” space isn’t just about military dominance over Earth.  If that sounds whacky to anyone here, I’m sad to say this is just one more example of something most call conspiracy theory without any review of publicly available government documents.  It’s stated and open U.S. military doctrine to dominate and basically own space, including the possible bonanza of resources like Helium 3.
       

    • If the price of gasoline goes very high, then that is good for silver because silver is dependent on oil since it cost around 30$ to mine an ounce of silver right now due to the price of gas. That’s what I’ve heard somewhere!

    • The Sky is falling …..the sky is falling …..the sky is falling
      while we get $%^KED
      another tool of TPTB
      OBTW tomorrow gold & silver will be up …..untill New York opens
      yep there is no MANIPULATION ……..screw ……this
      the miners got $%^KED today ……who do you think you are fooling ?

  6. Is Gold supposed to start it’s run by Jim Siclair’s Birthday on March 27?  My uncle says Peter Schiff is the man he thought was the most accurate in the last run but I haven’t heard where he has put a date to it.  Either way, keep stacking.

  7. JS is a dog lover and I’m sure they love the sound of his voice. As do I. Yet I cannot help but feel his wonderful dogs understand his cryptic verbiage to them better than we the CIGA’s. 

  8. Cunning references to Martin Armstrong. He is truely the man with the talent: forecasting time. I believe that he is the only one calling for a fall in the gold price in the medium term - maybe down to an unbelievable $1000. His story works because everything fits in. The dollar is rallying and will – by his forecasts – rally much further as capital flows out of Japan and Europe. The strong dollar will push down commodities, but when the trend changes, grab your seat. Those who read James Dines’ work and follow Jim Rickards know that gold will eventually outperform…but we need to shake the goldbugs from the trees and get really bearish on the metal before that can happen. One of James Dines’ sayings: “Things take longer to happen than you expect.” Trashing of the dollar and breakout in gold are cases in point.

    • That’s a risky strategy due to all the worldwide money printing and ever increasing debt.
      I prefer the advice the people that called gold at $250 which is Jim Sinclair and Gerald Celente. 
      Trying to predict a bottom in the metals is like walking on a razors edge.  You’ve probably got a better chance at winning the lottery.

    • I believe Martin Armstrong will be proven wrong.  Current facts on the ground do NOT support his prediction that the Dollar will strengthen substantially.  People in Europe and Asia are not exchanging their Euros and national currencies for US Dollars; rather, everyone is converting cash into hard assets, frequently into things such as real estate, precious metals, or Gold in Japan, etc.
       
      His predictions assume that most people do not understand that the US Dollar is just another fiat paper currency that can be printed out of thin air, by out-of-control governments and bankers.  In fact, most people are beginning to understand, although most are afraid of what the alternative might be (a systemic collapse).  But it only takes a small percentage of people, reaching ‘critical mass’, to set off a trend that will be unstoppable.  Already, nations are ditching the US Dollar as a tool for worldwide trade and commerce.  Individual people can see what is happening as well.  In Mexico, for example, the US Dollar no longer has the prestige and desirability it once had.

    • @JR:  Unlike the 1920s-1930s period of currency warfare and even the warfare of the 1970s/80s, we are now seeing much faster rotation among combatants.  Part of the reason is that there’s more coordination going on now because policy makers in multiple countries buy into the idea of rotational devaluation.  The smashing of the Euro from the start of the Greek — and then “PIIG” — crisis has already switched to the Euro rising for a period, from which it will soon start falling in a true trend.  

      Jim Rickards gets this and recognizes the difference between today and previous currency war cycles.  He also better understands the fact that the end game will likely involve multiple countries devaluing against gold rather than fiat because it’s the rational thing to do.  China currently has a buy trigger on gold when it falls below $1550.  Jim Rickards has stated (and I agree) that China is simply stair-stepping their buy trigger over time.  Once it becomes nearly impossible to get PHYSICAL gold at sub $1,550, they’ll ratchet their bid trigger higher.  This is exactly what has been going on for nearly a decade and given the probability of a global currency reset in the not too distant future, the Chinese and Russians and many others know damn well they don’t have the luxury to screw around with nice little cycles theories — even when those theories are generated by smart dudes like Martin Armstrong.  This is war, man, and Armstrong will be proven wrong.  Rickards, on the other hand, has pretty much nailed what is going on and he’d be the first to tell you there’s very little chance gold is going much below where we are today for any extended period of time.

    • Gold going back to 1000$ per ounce? That’s like if he said that the price for a gallon of gas will go back to a dollar, a loaf of bread will cost 0.50$ in the future, etc. He needs to know about something called “inflation”.

    • @Thomas:  Yes, good eye.  Those are exactly the type of stocks one would look to for such a signal to be triggered — the main stomping grounds of institutional money players.  Most institutional players are clumsy by definition given the size of money under managment.  Even if the money managers know the sector and individual companies well, they can’t easily make large, fast jumps into smaller capitalization stocks so one often sees the reversal signals on a consistent basis and across the entire large cap list.

      Freeport was especially impressive.  You can add Newmont to the list, and both Newmont and Freeport now trade with 4% div yields.  Freeport hit that level only yesterday and that contributed to its bounce.

      First Majestic Silver also qualifies for this list, but it’s bounce was not as strong.

      These jumps are just one more signal that the bottom has already come and gone for precious metals prices for this raid cycle.

      I made some pretty agressive stock and options trades Monday and last Friday in anticipation of the turn and I’ll be buying this morning too.   It’s possible that the monkies-that-be have more planned for the near-term and a test of $26 on silver and $1500 on gold remains a possibility.  But when it comes to bullion, it’s now clear that falling through $1550 gold level triggered huge Asian and Russian buying.

      I will be a buyer today as well.  

  9.  
    @Flying Wombat
    Yeah – l follow all that Jim does and says. I like this interview too: http://www.youtube.com/watch?feature=player_embedded&v=UeCqzwNnqyk
     
    Now Jim has stated again and again that these currency wars last a long time. He is looking at the current one lasting until (at least) 2020.
     
    I also disagree with the general idea on this blog that fiat is to blame. Fiat is fine—it is government irresponsible spending which causes the problems. Even if government was tied to a gold standard, they would still find a way to spend more than they have. Would you be happy owning the Swiss franc or the Norwegian krone? I would be because those governments operate sound budgets.
     
    And look at the charts for gold. Getting ugly. The value of charts diminishes as the time period falls. Yearly levels are more significant than quarterly than monthly than weekly than daily etc. Gold  is breaking down. Fact.
    http://www.kitco.com/charts/popup/au0182nyb.html
    While the dollar is rallying. Fact.
    http://www.barchart.com/charts/stocks/$DXY
    Jim Rickards, Martin Armstrong, James Dines, and James Turk are on the same wave length. There is only one point l have found that they disagree on—Martin is positive towards China while Dines is negative.
     
    @Plebian
    Facts on the ground were the same over 1980~1999, yet gold went down in price. This is a dynamic system and not straight forward by any means. Capital is flowing into hard assets—that is why the Dow is surging and house prices are rising and why gold/silver will go up. But if you aim to park your money rather than invest it (not small scale investors but pension funds and other large players) the dollar is relatively safe (vs the euro and yen) and the most liquid. That is why bonds are also rallying (since Feb 18 but amid a longer term fall). When reality does not happen exactly as you envisaged, does that make reality wrong or you?
     
    Sentiment is more important than fundamentals, though sentiment follows the fundamentals.
     

  10. That picture on this article is showing the future of the US dollar. ;) Also in my opinion, the gold market will become very interesting once gold passes 2000$ per ounce. That will soon happen once the inflation rate becomes high.

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