Jim Sinclair: Multi Hundred Dollar Up Days Coming in Gold As COMEX Moves to Cash Settlements!

While Jim Sinclair was admittedly several months early in calling a bottom to the current gold correction, few if any today understand the FUNDAMENTALS for gold today as well as Mr. Gold.
With gold notching its biggest up day in over 13 months Monday, trading up $40 to over $1340,  Sinclair has alerted readers that the GOFO holding negative 11 days and counting is screaming the truth that that there is no meaningful above ground supply of gold.
As a consequence, Sinclair states that the COMEX will be forced to move to cash settlement for gold contracts within the next 90 days, and that the chaos resulting from the COMEX changing their spot contract settlement could result in multi hundred dollar days to the upside for gold!
Sinclair’s full MUST READ alert is below:

2013 1 oz Gold Buffalo As Low As $51.99 Over Spot!


From Jim Sinclair:

The cause of today’s spectacular rise in the gold price is the reality that with Friday continues large drops in the Comex warehouse gold inventory. No cogent argument can be formed against the reality that because of the continued fall in gold inventory that within in 90 days or sooner the Comex must change its delivery mechanism.

The highest probability is that Comex will have to move to cash settlement rather than gold. Part of that settlement could be lots of 100,000 GLD that represents the ability to exchange for gold.

Their problem is that if GLD is part of the settlement mechanism for the spot Comex contract that GLD will be destroyed by the convertibility. It is a truism in gold that which is convertible into gold will in fact be converted over time.

Gold rose today because those knowledgeable know the inevitability of the changing of the Comex contract, as it is today which calls for settlement in gold between contracting parties. There is no question this is the emancipation of physical gold from the fraud of no gold, paper gold. The emancipation will cause physical gold exchanges to take birth and to be the discovery mechanism for the price of gold. This is the end of the ability to use paper gold future contracts as a mechanism to make the gold price sing and dance at the will of the manipulators.

With manipulation coming to an end the true value of gold will be discovered by the cash exchanges that are now taking birth. The advent of the cash spot exchanges around the world is the natural demise of the Comex set up as convertible and now being converted.

As long as one can buy spot, pay insurance, transportation and re-casted by Rand Refinery to Asian products sold profitably, the demands for real gold are ending the hay days or even existence of the futures exchanges.

Gold is headed back to be traded as it was before 1973. Gold will trade well above $3500 and those who have lived in the gold market like me for now 53 years know it.

A price of $50,000 for gold is not out of the question as a result of its emancipation from “fraudulent paper, no gold, paper gold.”

GOFO is screaming this truth. The warehouse inventory of every futures gold exchanger is screaming this. The fact that there is no meaningful above ground supply of gold is screaming this. The fact that most of the central banks supply of gold is leased is screaming this.

There is no reason why gold cannot move up hundreds of dollars a day when the Comex changes their spot contract settlement, as they must, as they will, very soon.

Respectfully,
Jim

 

Silver Buffs Generic Add2

Comments

  1. DANGIT DOC!!! LOL
    I thought it had Finally HAPPENED!
    good read, tho…
     
    thx for the Sounding Board!

    (Pic says STAY CLASSY! Cannot resize on stupid iPhone)

  2. I believe he’s started following Zero Hedge and Precious Metal Pete?  Pete posted first then about a week later Zero Hedge broke the news:
    http://www.zerohedge.com/news/2013-07-09/golden-backwardation-rabbit-hole-gets-deeper-subzero-gofo-slide-accelerates
    Precious Metal Pete indicates a revaluation of above ground gold bullion is very near. 

  3. Pardon my ignorance, but can somebody please tell me what GOFO means?
    Anybody here who is a parent knows what GTFTS means.
     

  4. GOFO?
    Gold Offerings?
    F*** Off
    The standard stacker reply to selling his gold

    PIFMCDF?
     Pry it from my cold dead fingers
    The stackers standard reply to delivering his gold.

  5. You’ll like this:
     


    Video description: Keiser report 474. Lots on gold & silver. Time for shorts to panic.

  6. A few months off on the bottom call would have been fine genius, if the price had simply bounced around $1600(which is where it was at the time of his call). Problem lies in the fact that his bottom PRICE CALL missed by over 30%, which in the world of finance and investment today(where 5% is a good return) can be a loss that many will never recover from.

  7. Throwing enough darts will, at some point, result in a bulls-eye.  At this stage of the game, however, my enthusiasm for VERY expensive PMs is tempered by the dread of the accompanying total collapse in everything else and the terrible damage and hardship that result therefrom.  Bottom line on Sinclair’s current prediction?  Possible but “how likely” and “when” are significant questions.

    • Spot on Ed.
       
      Jim’s trotting out his $3,500 and $50,000 calls again. It kinda smacks of “I’m right I’m right I’m bloody well right and one of these bloody days you’ll bloody well see that I’m right”.
       
      I took that attitude when I was young, and it cost me almost 30 years in a doomed marriage and $750k in debt.
       
      Thank god I woke up from that nightmare and am debt free and stacking like a mother****er now hehehe!

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