Jim Sinclair: Banksters Will Make Most Money in Shortest Period of Time in Gold Bull Market

Jim Sinclair has sent email subscribers another alert Sunday night regarding the latest take-down of gold.
Sinclair again re-iterates that the bullion banks will be the entity that makes the greatest gains in the current precious metals bull market.

Those who think the Goldmans or Morgans are stupid and clumsy are the ones demonstrating those traits. I see and know the same things these greatest of all time manipulators of price see and know. This is 1979 in the gold market right before the greatest price appreciation took place over the shortest period of time then. The most money over the shortest period of time in the gold bull market of the 70s was not made by the gold crowd but rather by the mega powers of Establishment Wall Street after doing the same things they are now doing.

Sinclair concludes by stating that in years to come his missives on gold will be dismissed based on his prediction for $3,500 gold, and the $3,500 number will be looked back upon as just the start of gold’s move.

Sinclair’s full email alert is below:


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From Jim Sinclair:

The gold mining business will be looked back on in time as the greatest business opportunity of the millennium. That which polite groups look on today as an investment pariah will outperform the tech stocks of 2006-07 and hold their price levels rather than crashing like a South Sea bubble.

 

Today you got insight from CIGA Patrick on the essential tool gold has been to central banks, a hint of a final price on gold and why it takes almost a generation to return gold to its rightful owners, the Germans, who have made that request of the US Treasury and Fed. That is an article that you should print, read and re-read as it is essential to your understanding of the Golden End Game.

 

Lars, our investigative reporter in the field of economics, published a long interview full of good reading and fact, but the following is in my opinion something you must print read and read again.

 

My purpose is to teach you practical monetary science in terms of the Golden End Game certain to occur and thereby transit you from this time of evolution of money into the future safe and sound. The present reaction of the gold price in the market today is almost comical if you know what is in store and in fact taking place right now.

 

The mark to market of gold that is taking place on at least half of the globe is the beginning of a ground swell that will in the cash market for gold provide the means of balancing the balance sheets of the worst offenders of the exponential growth in debt up to today and well beyond.

 

Those who think the Goldmans or Morgans are stupid and clumsy are the ones demonstrating those traits. I see and know the same things these greatest of all time manipulators of price see and know. This is 1979 in the gold market right before the greatest price appreciation took place over the shortest period of time then. The most money over the shortest period of time in the gold bull market of the 70s was not made by the gold crowd but rather by the mega powers of Establishment Wall Street after doing the same things they are now doing.

 

The gold price can be pushed around like any market can be, but the purpose is to take away yours, increase theirs and then do exactly what is being done now on the upside.

 

In years to come you will dismiss all my efforts based on my $3500 and beyond number. The reason for this is that number will have only been a start in the gold price towards the new era of industrial expansion based on sound money and major nation’s balance sheets having been balanced by gold.

 

Note that even UBS hinted at that last week. I would post their article but every time I do I am handling lawyer’s letters screaming about copyrights. One wonders how many people I am teaching the end game to?

 

 

Gold Gives You Extremely Important Signals

February 17th, 2013
(Excerpts from article)

 

 

L.S.: However, you support a commodity price rule for monetary policy connected to gold.

 

D.P.G.: Yes, sure.

 

L.S.: Could you explain the concept behind that and why you support it, please?

 

D.P.G.: This is an idea that was advanced by Robert Mundell, but actually it goes all the way back to David Ricardo’s idea of the gold standard. Robert Mundell, of course, is the father of the euro and the father of supply-side economics, he’s a Nobel Prize winner, and he has been the most prominent economist advancing this idea; he has talked about it for roughly the last thirty to forty years. The idea is pretty simple: to create some kind of objective market-based rule which would limit the ability of central banks to create money and to debase their currencies, or on the other hand to act as a break against deflation. In other words: to use market observations of auction prices that reflect expectations of the overall price level in order to correct central bank errors.

 

There has been an enormous amount of debate for centuries now about what the criterias should be for central bank money creation and how important that is. Mundell’s argument is that the quantity of money is much less important than the way the market responds to central bank increases in high-powered money or in bank reserves and how that affects expectations of the price levels. So central banks should listen much more to the market.

 

And gold among all the commodities probably gives you the purest signal about future price expectations. There is a very simple reason for that: the amount of gold in stockpiles is many times – 25 to 30 times – annual consumption. So a change in desire to hold gold as an investment is a much more important determinate of the gold price than changes in current mining supply or changes in current consumption of jewelry or industrial applications. If you use copper or platinum or bauxite or other commodities, the stockpiles are extremely low relative to current use.  And you also might have a technological change or an economic slump or a big increase of demand which would drastically affect the prices. So it’s much more difficult to interpret price signals from industrial commodities as an indication of expectations about the future price level. Gold gives you much better information. So it certainly has pride of place among all commodities as an indicator of expectations about the price level and as a guide to central bank activity.

 

That idea of a commodity-based standard which is to create confidence in the market place and to correct for central bank errors is the core of Mundell’s concept. I think it is an extremely good idea and I firmly believe monetary management in general would have done much better if we would have followed Mundell’s view and not the guess work of central bankers.

 

Certainly errors committed by the Federal Reserve in monetary policy contributed to the development of the financial bubble during the 2000s. During 2003, as you recall, the Federal Reserve eased because they were afraid of deflation – there was a big drop in the bond yield and they saw it as a deflationary signal. At the time my department at Bank of America produced a large body of research, arguing that this was not a deflationary signal, that the Federal Reserve was in error, and the Federal Reserve’s ease was mistaken. Therefore, I can think of a number of instances where the Federal Reserve would have been much better off to watch the gold price rather than bond yields or consumer price indexes or other things that they were watching.

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Comments

  1. So all the  bailout – trillions parked in bank’s balance sheets and levered infinitely will soon be flowing to gold, remonetising the Basel III AAA-grade collateral?
     
    The rules are already there. The only question for me is, why hasn’t JPM been frontrunning this more blatantly.. Or have they?

  2. I sometimes wonder if the time lag of saving face for Germany’s gold repatriation in the next seven years will keep the Cartel’s mission of keeping the prices of precious metals low.  They are in no rush to give back any gold or to allow the price to jump up – so they might be planning on forcing the metal’s price down, down, down so they can buy up the metals (via another source) themselves to re-stock what is owed to Germany (and any other country that demands their cache back).  Since depressions last a decade or so – they will hold out and hope that people get frustrated holding on to metals when they see the price go lower and lower and they have to turn in a bunch to survive on (so in the meantime – the Cartel can pad their own stash before allowing the lid to jump out of the paper market). I think if you can control the price and the paper money supply/stock prices – you can basically keep playing the fantasy game until it’s in your favor.
    That being said – the wild card is what happens when the other countries refuse to play with the banksters’ plans, or rebels do something unexpected and hold the mines hostage…it’s all a waiting game – those who can outlive the others wins!
     
     

    • Don’t forget that if the precious metal cartel keeps the price of gold and silver for too long, there would be metals shortages appearing quickly since more buyers will be hoarding them for cheaper prices.

  3. Maybe JPM and others hedge their precious metals bets by stacking. They probably don’t acquire PMs other than by theft or subterfuge.  See that JPM gold bank in London that ZH reported on recently. 
    A reverse to Doc’s law. 
    If they hold it  they own it and you’re screwed.  See Jon Corzine and MF Global. The rule of law that used to sort of work is now completely defunct and non existent.  These banksters don’t need a reason to steal your assets. They  want them and take them,  Good luck in getting them back.  Steal big; steal small; it’s still theft and no ones assets are safe.

    • Any metals they have belong to others but they will never get it back. JP Morgan started with a ruthless businessman who did anything and everything to get ahead. Hasn’t changed.

  4. So say he is right an pms start to climb. The question is say $200 silver an $3500 gold.Who is going to pay the price for these levels. It turns into a huge bubble pyramd scheme an who holds the bag at the end gets buried in it. An the only one that comes out the winner would be the gov since they get tax money out of it .But they didnt do this atleast not yet. It seems to me the gov is trying it hardest to bankrupt it self. They are not trying to save money at all. And if they could i actually beleieve they burn it so nobody get there hands on it in the american economy.

    • First time poster, long time reader.  Love your work Doc.
       
      But had to respond to Dang, the gov’t troll.  So say Gold is at $350.  Who will buy it at $700, $1200, or $1600?  Idiot.  It’s not “price” of gold or silver, it’s the relative destruction of the US dollar that his going on.  Wake up and stop posting lies.  Gold and silver are a form of saving, not ‘priced’ like APPL, EBAY, or HNZ.
      Stop posting idiotic lies based on trying to fear people away from holding the only valuable saving, which is gold.  US dollars are going into the toilet and recommending others ‘save’ in that form is wrong.
       

    • “$200 silver an $3500 gold.Who is going to pay the price for these levels.”
      A lot more people than now because more person will start to realize that the fiat currencies are losing values and that they would collapse soon so they would buy precious metals as hedge against inflation. From my point of view about your comment, I see you’re thinking about precious metals’ values in depreciating dollar values and you might be thinking that a 20$ bill today will have the same value after 10 years.

  5. JP Morgan and the rest are simple puppetiers. The seem to be in control. Except the puppet show is on the Titanic, and lifeboat space is limited.

  6. There’s one critically important factor that has only recently made its presence clear.  India, China and Russia are buying the entire world wide supply of mined gold.  That is about 2,200 tons X China and Russia.  There is no extra supply of gold from mines.  Recovered and scrap gold is also being purchased by by these countries along with the middle eastern countries.  There is no additional supply of gold either through mines, scrap and recovery.  There will be no appreciable drop in the gold price because there is no extra supplies that might precipitates a price drop. 
    Any modest gold price decrease due to a Black Swan of an equity price crash might see $1,500 or slightly less but that will not be the real price in the market, just a paper glitch in gold that will recovery in very short order. Gold prices have few places to go but up as the relentless quest for gold by central banks and central governments will not abate until these countries have acquired enough gold to create an alternate reserve currency, with a partial gold backing.  This might be a 3-5 year process as China is not done with its remorseless pursuit of gold.

  7. I believe what Jim has said.
     
    We ought to believe that the heinous criminals that are doing the manipulation have the smarts to take advantage of the work of their hands, at the most convenient moment in time.
     
    It will all happen very very fast – far too fast for the main street people to react or take advantage of it themselves.
     
    Those of us with insight and information such as what Jim provides, and the guts to take action ealry when it all looks rather shaky, will come out of the shakedown very very well, but to keep it in perspective, we are not the big fish. I, for one, am putting up to 20% of my income into silver. It’s only a couple of grand a month. This is all I can afford to do, but it is surely better than doing nothing, which is what the masses are currently doing.
     
    Just look up Mark Dice, and how he tries to give away silver and gold coins, or sell them to members of the public for peanuts. Most people just walk away. It’s not that they are stupid – they are just not educated on the subject.
     
    Jim, you are a ranting, repetetive egotistical son of a gun, but I’m glad you are there shouting and communicating the truth. Thanks for that!

    • I have only seen once on one of Mark Dice’s video where only one person actually bought a precious metal piece for a dollar which was an American Silver Eagle and ironically, the buyer was European. Mark Dice’s videos just shows how Americans are unaware about their current financial situation. At least they are more aware than Canadians because I don’t see a lot of Canadian precious metals stackers on the Internet!

  8. 3500$ per ounce gold… 2000$… 5000$… 10 000$… I have been hearing about this since last year! The financial “experts” keep pointing out and keep saying the obvious thing that we all already know! *facepalm*

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