Legendary gold expert Jim Sinclair sent an email alert to subscribers late Monday regarding the MSM’s MOPE that the economy is in a recovery, and that real interest rates are set to rise, resulting in a bear market in gold.
Sinclair states an emphatic NO to both presumptions that the economy is recovering or that real interest rates are set to rise. Sinclair urges readers who are concerned that gold (or silver) are set to decline do so based on a fundamental basis, rather than relying on emotions.
QE is going to Infinity…AND BEYOND!!
Sinclair’s full alert is below:
From Jim Sinclair:
Here is the bear case in gold in the actual words of an establishment analyst.
In reviewing this the question is simple. There are two premises stated in the positive – real rates and business activity. Do you agree or disagree with those two premises?
This is the Establishment, MSM and MOPE consensus?
“With a recovering global economy, and prospect for real interest rates increasing, gold should lag.”
1. Is there a solid recovery in the global economy? Yes or No?
2. Will the Fed reduce or cancel their QE program? Yes or No?
My answer is a simple: No on both counts. If you disagree with me do so on a fundamental basis. That is certainly more acceptable than relying on your emotions, or being influenced by the brute forces in markets common today.
You don’t need to be a brain surgeon, economist or monetary scientist because the above quote is the fundamental argument underlying markets right now, both in the dollar and gold.
This should explain to you why a firm dollar and weak gold is being preached by the establishment banking firms and their voices on the air waves.