Jim Sinclair sent subscribers an alert today, urging PM investors to stay the course in the midst of massive cartel interventions in the gold and silver markets.   Sinclair states that the downward economic spiral caused my excessive amounts of debt cannot be stopped by central interventions or media propaganda, and that there is no tool in any central bank’s tool box to fix the size of the overmuch debt problems.

Sinclair urges readers to hold tight their physical precious metals, as cartel manipulation is a sign of madness, and will ultimately fail to prevent the outcome of the economic downward spiral in progress in Western finance.

Sinclair’s full MUST READ alert is below:

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

 

From Jim Sinclair:

 

Jim,

 

In reading your last email i’m perplexed at what the final outcome will be. Will it be that everything will go against the norm from this point out due to manipulation? Are investments using Wall Street products as an outsider over? Will the PM markets be controlled and held down to the advantage of the devils in the sandbox? For us outside the theatre investors, is it time to buy a farm outside the USA so we don’t have to use GMO seeds?

 

Cordially yours,
CIGA Jeffrey

 

Dear Jeff,

 

Let’s start with the economics of your question. In your business as a defense attorney you have had to deal from time to time with people in downward spirals. You know the downward spiral never stops unless perfect intervention is exercised and the person in the spiral actually wants change.

 

That is very rare.

 

Economics are the same. Economics is made up of people and their decisions. Having committed significant economic crimes of debt there comes a time when their total acts work as a heavy weight on their being and really bad habits take the individual down further into a negative spiral, which if not intervened properly will go to zero. They by definition in most cases must fall to hit bottom. Hitting bottom is the last human condition before death in such a set of circumstances.

 

Think of the drug addict that ends up dead from overdose. The drug in economics is credit. The downward spiral we have been in is the simple result of too much and too many pushers of the drug debt. It has grown to such an unbelievable level that there is no tool in any central bank’s tool box to fix the size of the overmuch debt problems.

 

The manipulation of markets in the hope of manipulating people’s perspectives simply will not work to prevent further drops into the negative spiral going to hit the bottom.

 

Hitting the bottom is now defined in currency values, particularly the present, by default, dollar reserve currency. Since nature always requires destruction before construction, in a downward spiral manipulation borders on a sick wasteful joke. We are stuck in the concept of time versus conclusion so many are temporarily confused by manipulation.

 

Manipulation is the sign of madness amongst governments suffering from egomania during a downward spiral. Manipulation may cull the weak in an industry from the strong, but the strong will succeed regardless. Manipulation will not prevent the outcome of an economic downward spiral in Western finance presently entrenched and long term.

 

We have now defined the long term downward spiral as the value of the US dollar versus other currencies.

 

Now on to your question of a hobby farm. Now is the time to acquire the property. The real estate market is bottom bouncing which means that utility properties such as a farm should be acquired for our purposes It should be within a day’s comfortable ride to reach. It can function as a gathering place for the family to grow protein and other eatables. It can be purchased utilizing a reasonable mortgage as long as the rate is fixed. You can use Agricultural services such as Farmer’s Credit Bank and Agricultural Extension service to get the right thing. Look at it as a fine family hobby and part of your investment portfolio.

 

Very few people can be happy amongst cultures not common to them so the thought of other areas for the hobby farm will apply only to a limited few.

 

Respectfully,
Jim

  1. It is  abundantly clear that going cold turkey has been screamingly painful for tens of millions in this country and hundreds of millions worldwide and the treatment may not be working. 
    While it appears the patient might be recovering, there’s probably $60 trillion in debt junkiehood that remains to be worked out of the body. The pain will continue and made even more unpleasant when we try a little dose of extra credit, thinking we are beyond addiction. Once an addict, always an addict.  Credit is not a solution.  A life without counterparty risk is.
    As to the FIAT drug pushers, Ben Bernanke, Abe, Draghi, Merkel, Kirchner and others, are hell bent on killing the patient with their relentless printing.  As the addict tries to recover, these monsters have no qualms whatsoever in destroying their client/addicts. 

    • AG… don’t forget about our friend Mario “Three Card” Monti.  Yes, he is quitting his current position but something tells me that we are not yet rid of this guy.  Like the critters in the Whack-A-Mole game, I am sure that he will pop up again somewhere… probably in either London or NY.  :-/
       

    • I paid down all my cards and shredded all but one so I have something for car rental etc. House and car are paid for, just minimal monthly bills which is a good thing on my fixed(shrinking actually adjusted for inflation) income.

    • Yep isnt that interesting I cant remember the last time any guru called a fall ……but AFTER they allways call to buy more….IF he was such an insider why not tell us before hand when it will tank ?

    • So he’s supposed to read the minds of the people who collude to smack the prices? If you’re stacking, what do you care. If you’re playing paper, haven’t you realized yet, that the technical analysis has gone out the window? There are at least two paper traders, that I’m aware of, who have either closed their funds or are considering closing their funds due to poor performance (they trusted their technical signals).

      Surely, you’ve read enough articles here on SD to understand that TPTB are manipulating the heck out of PM prices. What better way than to wait for a technical buy signal, let the longs to get in, then smash the price.  Lather rinse, repeat. QE to infinity should have caused the PMs to skyrocket; they were flash-crashed. QE4 should have sent them to the moon; they were raided, instead. The paper market is for fools. Trust me, I am one. I’ve been stuck in the mud for over a year on a paper position (put in place because of technical signals). Thank goodness I also stack (although its unfortunate how often my canoe overturns and places all my carefully collected PM at the bottom of some river…).

      Stick with the fundamentals, stack phyzz, screw the bankers.  

  2. Yes Marchasa. Jim’s comments definitely reflect a vain and pontifical tone in recent months, with a certainty that no man can possess. He suggests that we all just be quiet and listen to the master.  This plus his cryptospeak communiques are becoming increasingly annoying.
    And yes, he can never predict a downturn before it happens. This is a major characteristic of all the gurus who are in the business of selling metals 

    • What is with all the Sinclair bashing?  He doesn’t sell metal or a newsletter.  Study his background.  He is the ultimate insider.  He understands markets and gold more than anyone else in the PM space.  His career accomplishments earn him credibility.  I think it’s great that he feels called to share his thoughts and educate those interested.   If you live and die by every minor tick up or down in the price of gold and silver, you’re in the wrong asset class.  Tide is rising on gold and silver.  If you get caught up in the day to day sea conditions you’ll talk yourself out of your position.  Sinclair knows that.  So he states with confidence that all you need to do is stay the course.  

       

    • Idiots with darts could have made money in the Reagan bull markets. Same goes for Jim. The world has changed. Stay the course?

      What course? The old paradigm? Our court systems ruled it is OK to steal our money in cases of bankruptcy. Remember MF Global? According to the Sentinel ruling, brokerages can use customer funds to pay off other creditors!

      Who is to say what will happen when the USA defaults? Can they use dedicated “taxpayer” money to bail themselves out? Or maybe, go after private wealth holdings such as gold and silver in a confiscation raid?

      A Supreme Court rules that a law passed in the dead of night with no debate, votes openly purchased with pork barrel spending is taxation that is Constitutional? All of this done with open threats against the Supreme Court by the Executive Branch? Taxes being raised by Executive Order? Mass killings where investigators and reporters are pressured to not report the findings, even eye witness accounts being suppressed?

      Bashing?

      This is 2012 going on 2013 and the players have broken all the rules and you are calling people bashers?

      Looks like, based on all the reactions by us boomers, well educated, did the best drugs, drank the best scotch, stayed away from the churches, had access to a world class education, ran all the way to the markets to make a fortune, we have done nothing, nothing in the face of what is happening except take it day in and day out.

      Is this the course Jim says we should stay on?

       

    • Thomas….that is not what Sinclair is talking about.  Sinclair is a student of Jesse Livermore perhaps the finest trader ever.  In fact Sinclair’s father and Livermore were colleagues and Sinclair new Livermore from his(Sinclair’s) childhood.  Livermore’s best advice is “be right and sit tight”.  Do not get scared out of your position when you are in a bull market.  Buying early and sitting tight through the gyrations is the hardest thing to do but that is how the big money is made.  That is what Sinclair is talking about. 

  3. There will never be any real austerity in the near future regarding entitlement.  I know a nice gentleman in his early 70s.   He was once worth well into 6 figures, would have been 7 figures if the govt didn’t steal 55% of his parents estate…    He absolutely survives soley on SS check monthly.   He was an only child and had no children.   His only blood relatives are a couple cousins who he has no contact with.    He barely can afford apt rent, food, and medicine and ususally has only a few bucks emergency pocket change for the last few days of each month.

    Does he “deserve” it?   Absolutely, since he paid into that crazy commie system for half a century, working in NYC of all places most of his adult life.   Is he some kind of deadbeat who didn’t plan correctly for life?  NO.   Actually, even though he and his wife had medical insurance, her health problems consumed ALL the money before she passed.   But that’s what you get when your healthcare is the most expensive in the world, but over 30 countries have healthier people and better medical care than this Ziomed system of allopatric medicine which is basically just cutting and pilling and poisoning.

    All we will see for several more years in penny ante nickle and diming like the current fiscal cliff grandstanding.    So the outlook for PMs long term has never been better, as increased debt, increased taxation, increased aggregate money supply and financial assets, and a slowing economy assures continuation of secular PM bull market.     

    The markets could drop 20% at any time, that’s an everpresent fact of life, in which case owning fiat money could temporarily be a great thing. But if its money I want to store for 5 or more years I’d rather own a pile of rusty nails for scrap metal prices than Euros or dollars or yen.

    • “But that’s what you get when your healthcare is the most expensive in the world, but over 30 countries have healthier people and better medical care than this Ziomed system of allopatric medicine which is basically just cutting and pilling and poisoning.”

      I am curious as to why he did not take her to one of these health Meccas for superior treatment at reduced cost.  Too ill to travel by that time?

      I know that everyone has their own take on this but I have already instructed my family and physician not to go to heroic and expensive means to allow me to suffer on with life for a few more weeks or months when it is clear that it is ending.  Just keep me as comfy as possible and that will be sufficient.  I refuse to impoverish my family in the false hope that “something be done” when it is clear that my time on this Earth is about up.

  4. JIM SINCLAIR OWNES A GOLD MINE. HOW CAN HE POSSIBLY BE OBJECTIVE AS TO  THE FUTURE  OF THIS ASSET? YES HE WAS VERY SUCCESSFUL IN THE PAST BUT HE DID NOT MAKE HIS FORTUNE DURING A PERIOD OF MASSIVE PRICE SUPPRESSION AND CARTEL BANKS BANGING PM’S ALMOST EVERY DAY OF THE WEEK IN A DESPARATE ATTEMPT TO KILL ALL SENTIMENT FOR THE METALS. hE IS UNWILLING TO SAY WHEN THE GOLD WILL HIT $3500 ( IT COULD BE YEARS FROM NOW) AND HE NEVER SUGGEST THAT THERE WILL BE A SIGNIFICANT DROP (PERHAPS SEVERAL SIGNIFICANT DROPS)  IN PRICES FIRST BEFORE THEY TURN AROUNG AND BEGIN THEIR MARCH TO THE $3500 LEVEL.

    I  HOPE HIS  IN HIS PROGNOSTICATIONS ARE ABSOLUTELY CORRECT BUT I RARELY RELY ON HOPE ANYMORE.   

    • He owns exploration property, he does not own a gold mine.   I’ve been reading the man since 2005 and his uncanny accuracy and “big picture” correctness is far more important to me than how “objective” he is.   

    • “…BUT I RARELY RELY ON HOPE ANYMORE.”

      That’s good, because HOPE IS NOT A PLAN.  If you want to succeed in life a good plan for the important aspects of it is essential.  Hope is a fine thing and we should all have a generous share of it but more is needed if we are to succeed. 
       

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