jim sinclair*Updated with more in-depth recap from SD reader GL

For those unable to attend the legendary Jim Sinclair’s NYC Q&A meeting yesterday, we have provided SD readers an exclusive full recap summary of the meeting below.

While 5 hours of Jim Sinclair’s wisdom could never be conveyed in a single post, of note- Sinclair urged PM investors that they have 2 years to remove your IRA funds before they are lost to forced Treasury allocation, and to stop contributing now.

Sinclair also confirmed he sees a triple digit future for silver, but that silver’s rise will be orgasmic- a rapid climax rally followed by a dramatic decline. 

Full recap of Jim Sinclair’s NYC meeting is below:

 

 

Courtesy SD reader StackerX:

I arrived at the Sutton Room in the Hilton Hotel at about 1:30pm. I figured it would be better to be 30 minutes early than a minute late and too my surprise the room was practically full. Once I entered the room I was also surprised Mr Sinclair had already started answering questions. Their were roughly 800 people at this meeting and hundreds of questions answered. I would say a quarter of the questions revolved around silver. Anyway the Q&A ran till about 5:30pm. Here are some of the notes I was able to capture while there:

1) Cyprus was a major mistake by the IMF. This was meant to shift the onus from debt monetization to the depositors. This means you should move your money out of the banking system and into something else like gold. He also said if Cypus was successful it would have caused the Dow to plummet down to as low as 1000 points because it would be a shift away from QE. QE would be second.

2) IRA timing question. Sinclair: “you have 2-3 years.” Says stop contributing. Get out. Doesn’t have to be right away. You have 2-3 years.

3) FDIC can’t meet its obligations. It could handle one or two bank failures but it cant handle a systemic crisis.

4) Mining production good to start now. 5 years ago maybe not so good.

5) Gold valuation math question: Dividing current fiat by amount of gold held = $15-17,000 gold? Sinclair: too soon to tell. Do this in 2015. This calculation may misguide you now.

6) Gold Confiscation possible? Sinclair: short answer “No” because gold has a different role today then it did back in the 1930′s. Back then they confiscated gold to increase the money supply. “Gold doesn’t function like that anymore”. Sinclair doesn’t believe their will be confiscation. Can’t comment on Taxing it instead.

7) Gold coins less likely counterfeit than Gold Bars.

8) Gold only asset to appreciate.

9) Gold will find its way back into the monetary system

10) Gold price to look for: $1517 and $2021.

11) Sinclair on Silver: Silver will rise past $50. It will rise as gold goes higher. Silver is not a monetary metal. The price of silver is based on the paper markets, because of this the supply is infinite. “The high Silver price wont be fulfilled”. “He cant agree on a really high Silver price”.

12) Why doesnt someone/ Billionaire try to corner the Silver market? Sinclair: because they will end up like the Hunt brothers.

Brings up a Jesse Livermore example where he was once pressured to take delivery. He said Livermore was a gentlemen and refused. Said other billionaires probably don’t want to go down in history as the person who crashed the Comex.

If the Hunts took delivery they may have ended up behind bars. When you break an exchange it creates a false price upwards. Problem with a Comex crash is it will go up but then crash down. He said it would be “orgasmic” lol. It is better to have a steady rise up!

13) Gold storage companies may become unethical like any other company.

14) Question about Gold Silver ratio. Sinclair: “He doesnt believe in ratios”

15) Sinclair is more of a believer of gold.

16) What about Silver? ” Silver will also do well”

17) Gold will be revalued by the market

18) Their has never been a nationalized mine that made a profit.

19) Remonetization of Silver is unlikely.

20) Yes physical Gold and Silver can run out.

21) Triple digit Silver a myth? Sinclair: Not a myth. But wont hold. $500 Silver probably wont happen.

22) Dow high because of liquidity. (floats all boats)

23) Dow could have a reaction lower sometime soon but then go higher.

24) Significant Gold targets: $248, $1650,

25) Gold was a utility in the 50′s

26) Miners are a great opportunity because they are smashed. Even with a market crash they cant go much lower.

27) QE pullback? Stopping QE creates a black hole. No limit to QE

28) The Fed only has two tools: Debt monetization and Gold revaluation.

29) Gold bull run cycle to end by year 2020-2021

30) Glass Steagall wont come back.

31) He believes Hyperinflation can occur. He believes if we have Hyperinflation it will only last 3 months. “It will be a very ugly experience”. Also said it would be short and violent.

32) Euro will outperform Dollar because they are practicing Austerity.

33) Said their is no solution to over the counter derivatives. He said a derivative is like a knot in a string that loops. He said the collapse of Lehman caused the loop to be cut.

34) 5 year window for BRICS to take over

35) He said next target for Gold was $3,100-3,200. Below $3500 is a buy. By 2015-17 Gold will be roughly $4000-4500.

36) He said if you are a Miner stock holder you must act crazy and raise hell to see profits.

37) He said the significance of March 27th date was it was his birthday. lol

38) Attack on Iran is unlikely. In the past it was possible but it doesnt look attractive today. Russian stealth Submarines may be game changer.

39) If Gold revaluation were to occur within a year it would be roughly $4,499. But could go higher after a year.

40) He was asked if he has a leg up in the industry. He said of course. Being in this business for as long as he has means he trades information with heads of industry.

41) He doesnt believe Comex will fail.

42) Question about Bitcoin? Sinclair:” it may not be practical”

 

 

*Recap from Green Lantern:

The room was packed. I came in at 1:30 thinking it would start at 2:00pm. He must have started at 1pm and took questions non-stop for at least 4 hrs. I left at 5pm. He entertained any question by anyone with great patience and kindness.
More people in that room than attended the Hard Assets conference last year to hear Eric Sprott and Rick Rule speak.
In the spirit of JIm Sinclair, I hope this is helpful.
How does the Cyprus, IMF, Russia situation effect the price of gold.
The situation represents a major shift of paradigm from bail out to bail in’s. From QE to keep banks afloat to stealing people’s money as the new form of QE  .short falls of the bank. Shifting the burden of QE to the depositors. Russians set up banks in Cyprus and Europe for themselves.
IMF is no competition for Russia. If IMF insists on confiscation, they will create velocity out of fiat into gold. It will backfire on IMF as people get out of the banking system and putting it into gold. The same tax is being implemented in Spain and New Zealand. On Cyprus “they were informed that this was going to happen”
There is a silent movement in the United States. All the people in this room represent a grass roots movement. You can trigger events by doing the wrong thing. It’s getting to he point that the average guy knows he has been had. If government wants to take the other guys money, realize that we are a feisty bunch. So politically government has to walk the razor’s edge or start civil unrest. It would very very dangerous to pull a Cyprus in the United States.
the Euro took a big hit with Cyprus. it will come back and out survive the US Dollar. They are on austerity. We should be approaching the end game but refuse to face it.
Should I get out of my IRA’s? Yes. Take the tax loss and protect your money Banks, brokerage houses etc… While FDIC insures banks it doesn’t insure all the systemic risk as clearinghouses will go broke.
Sinclair kept throwing out dates like 2015, 2016 as the line in the sand to get out. People were concerned about time loosing the 50% matching money. He said you have two years to think about it.
Will Confiscation of gold take place? Confiscation occurred because gold was the QE of time. FDR had to increase the money supply. Confiscation didn’t bring in alot of gold but it did control price. More likely a wind-fall tax based on punishment more probable than confiscation. The confiscation meme exists as fear. A tool to keep you away. No better tool than gold to deal with solvency.
Gold will find it’s way back into the system as paper markets have less influence than physical market.
What do you think of silver? The high expectations of silver will not be fulfilled. Silver is not monetary like gold. $500 silver improbable. 3 digits yes as it will follow gold. Gold silver ratio is meaningless.
Ratio is 20/20 hindsight. I don’t believe in ratio’s It changes all the time. (he elaborated but don’t have the notes). I believe in gold more than silver however I do not want to pee on anybodies parade. Silver will do well. Gold has more monetary implications. Silver does not.
Should we hold some gold in storage houses in foreign countries? By 2017 we will experience tight capital controls. As the gold market continues one will have to look out for unscrupulous business from coin sellers to storage facilities. Storage facilities creates temptation.
Have gold on your person
What do you think of Bitcoin? Intriguing but not practical Bitcoin not better than Krugerrand.
Is Sprott silver PSLV as safe as holding silver? Sprott is a top man. He will not steal your silver in any form. I invest in Sprott.
Why doesn’t Eric Sprott just place bets on the COMEX and take it out? Now he has to wait three months for delivery why doesn’t he just do it on the COMEX if he is really interested in silver realizing it’s full potential and helping everybody out? Because he is a gentleman same as Jesse Livermore. It’s not the right thing to do. Eric Sprott knows in his heart that fundamentals of silver will see light of day. Same outcome. Plus if he did it, they might put him behind bars.
Will gold mines suffer from nationalization/confiscation? Yes, possible. Mines never do well when governments take over.
Is the entire financial system a ponzi system? (Much longer question and much longer answer) but YES. Especially now. No ethical behavior. It is as bad as Sodom and Gomorrah except S&G was alot more fun. All societies reach this point.
How Close to a tipping point are we and at what phase in the gold market are we in compared to the 70′s? We are past the tipping point. We’ve entered wonderland. In the 70′s, we pulled back from the edge, now we have papered up all the problems. We drove into a big hole in the road and then threw a big rock in it. We can’t compare the three phases of the bullmarket, steal etc…, because now the dynamic is different. We should have peaked. If all of you come out the other end with what you have now, you’ll be fortunate.
My children were thinking of opening up a food business but with what’s going is it just an effort in futility? No. Food business, farming etc.. Good business’s. Don’t let the jerks stop you from living your life.
Other professions were mentioned through out the meeting. Education to the youth is of paramount importance. You are not looking to give your kids your called. You are looking to educate them and use it to help them start out on their own.
The usual things that people think will create value for gold will not effect it as much as the paper market dying, velocity of money being created by financial repression, bail outs to bail in. As the bleeding takes place, they become stupid, make mistakes and it will create velocity out of paper. When they get fat and happy, they get lazy. they are evil men whose appetites can not be satisfied. They always want more. Gold will only reach it’s potential when the paper market dies.
The markets are bigger than the banks. Russia, China, BRICS will bring down western elite. Don’t mess with the Russians.
On Martin Armstrong calling Sinclair a fool. “I do not mind being called a fool by a smart person” Martin is trying to become famous in mainstream financial system. His system of using cycles in the manner he doesn’t work.
Alf Fields, I like him. He doesn’t call me a fool. hardworking, good work. Doesn’t mean always right.
End Game: BRIC countries take over the world in five years. Massive economic swapping of economic and military power from US to China. It’s happening now. Settling transactions in Yuan in other currencies.
See Sinclairs story on his blog about two Chinese submarines appearing out of nowhere near the American flag. The Hunt For Red October is real and represents the paradigm shift of Chinese economic and eventual military superiority. Chinese subs could show up in NY Harbor undetected. We need to learn this technology. Our superior war machine is fading and China will soon take the lead. The end of US supremacy.
Attacking Iran off the table. Two years ago. Likely. Now if they mess with Iran, they mess with china and russia. If I go dead silent and you don’t hear from me, it means something is happening that I don’t like.
What is the best surrogate for gold? I like to answer all questions and because you asked it I would have to say CEF. Central Fund of Canada. I’d prefer to hold my own gold.
Will China become the worlds reserve currency? Not officially. People will choose it. They do not want the burdens that come with that status. Countries transmitting their problems. to them. Gold will back an official world currency
I don’t have much of life. I don’t sleep that much. I do not need that much sleep. I play with my dogs. I live my life for all of you! (applause) I am here for you. I will keep you informed through my blog. I will eventually tell you all my secrets. You will know it too. (told one guy part of his system of accurate prediction of gold came from Jesse Livermores 1923 Wall Street Journal articles)
I have answered well over 200,000 emails. Feel free to email me. Sometimes I miss some but my life is now dedicated to giving service to others. This meeting represents a huge grass root movement.

 

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

  1. I could really use an orgasmic rally.
     These are the things I dream of.
     It would be nice.
     But when I wake up, it all still looks like crap.
     By the way, I found the “orgasmic rally” reference in number 12.
    That doesn’t sound terribly optimistic when it’s put into context.

    Should be interesting.

    • WHY I DISAGREE WITH JIM SINCLAIR ON SILVER
      Jim believes gold will be the backing of the global monetary system.  I do not disagree.. he’s correct.  However, backing a monetary system with gold does not change the energy problems that are coming down the pike in the next several years.

      We must remember this important factor:

      ENERGY IS THE DRIVER OF THE WORLD’S ECONOMIES…
      …..GOLD & SILVER ARE THE ACCOUNTANTS– STORES OF VALUE.

      Gold will not solve the energy problems that is why in the end, silver will be just as valuable in percentage terms as gold (even more).  Gold and silver are both forms of trade-able energy.  Gold is a bit better than silver due to its ability not to corrode, rust or varnish… but it is not more valuable because it is the only so-called MONETARY METAL that will back the global monetary system.

      I will be discussing this with Doc in the future.

    • @SRSrocco:  You understand EROI and peak oil.  Central bankers and most policy makers don’t.  It’s therefore highly probable that when we transition off a global dollar reserve standard and into something that involves gold in part or in full, that these policy wonks will see to it that silver will not move into the global monetary system.  Jim is right about that point.

      But obviously, he’s wrong about silver not being a monetary metal (he’s moderated on this point over the years).  As a result, he fails to understand why silver should maintain a major share of any upward revaluation of buying power witnessed by gold (and that’s before one even considers the issues of silver as stored energy, or the fact that gold exists largely as an available “stock” of above ground supply whereas silver, more so as a “flow” given most of annual consumption is produced in the same year, unlike gold, making silver far more sensitive to tightening energy going forward, etc.).

      Heck, I don’t think Sinclair has anywhere as deep an understanding of EROI and peak oil as you.  That, combined with his poo-pooing 5000+ years of history of silver as a money,makes it pretty clear he’s not operating with enough information about silver.   No one is perfect.

      On a somewhat related note, have you been active at TOD in the last year or so?  I ask because I’m curious if you think the lion’s share of that community still subscribe to the deflation crash view for the short- to intermediate-term (next two years).  Long-term, the tax-like dynamic of ever higher energy cost will certainly prove problematic for economic growth (if not, eventually kill growth alltogether).  But from what I gather reading your posts, would it be fair to say you subscribe to the inflation burst first school of thought?  I do.

      I used to follow TOD daily;  my user name over there is ziggy (I think someone uses the name as well, but with a capital “Z”).   I probably spent about 10,000 hours studying peak oil last decade.  The funny thing is, unfortunately, it really does take a significant whack of time and effort to trully understand this stuff.  It’s not all that different from the hurdle a person must jump over to really come to terms with how the gold and silver market are being manipulated.   Nearly all conventional media sources — and even accedemic and professional sources — basically make the case that you’re conspiracy nut if you think precioius metals are manipulated.  It’s not all that different with how the mainstream treats peak oil “theory.”

    • @Flying Wombat
       
      My two cents on Sinclair’s presumptions about … survival of currency with gold as THE money exclusive of silver … is that he views the will and determination of ‘da boyz’ as permanently determinative of outcomes as they’re inclined to dictate. In the present environment, I won’t argue that presumption … but … by my reconning of the basic viability of the banknote scheme being certain of utter dissolution, like an 800 pound gorrilla … that has fallen off a 1000 foot sheer faced cliff … all their fearsome power ends at the bottom of that traverse.
       
      Mankind has toyed with this goofy wet-dream of virtual ‘money’ quite a few times over the past many centuries and it ALWAYS collapses because it’s design parameters are strictly limited to conditions that presage failure and it always so thoroughly fouls up the balances of supply-demand that the chaos becomes too widespread for societies to tolerate the insanity.
       
      Jus’ sayin’ … Paper Rots, Coin Does Not … ya’ know?

    • @PatFields: I’m with you at least part of the way through your argument. But if I understand your points correctly, the thing that gives me pause is that Sinclair is actually of the view that ‘da boyz’ attempting to orchestrate today’s manipulation are simultaneously planning for the global monetary system reset and after which, ‘da boyz’ intend to support gold as at least part of the system. I mean, ‘da boyz’ are all over the darn place sending trial balloons in IMF and BIS policy papers, etc. They’re not making much of an effort to hide their plans — and one way or another gold is, as Sinclair puts it, moving back towards the monetary system. After that change happens, the incentive to attack gold and prevent it from rising will probably vanish for a number of years in the least.

      They might remain aggressive with silver given the 100+ year history of industrial users acting behind the scenes to wield the levers of political power to beat the crap out of silver (e.g., the history of the Pilgrim Society; others following along here and interested in more, read Charles Savoie’s writings for starters.). But I doubt the suppression effort on silver will remain anything like what it is now once we get on the other side of the monetary reset — other than the risk of outright banning the trade of the stuff on account of the need to rebuild a strategic stockpile. Military and geo-strategic interests are another ball of wax entirely.

    • Eh?! Canadian! I feel the exact same way. Jim did take a shit on sliver. However, that is his business too. No one want to be the next Hunt brothers and corner the market. 
      Here is a letter to Bix Weir 
      I received an email from a long time Road to Roota subscriber who actually LIVES in Cyprus. He is an English national but retired to Cyprus about 10 years ago. Although his email may seem unimaginable to those of you in “financially stable” countries that false sense of stability will not be around for long…
      3/20/2013
      Hi Bix -
      Just a note from a very loyal subscriber to say THANK YOU…thank you for sticking to your guns when everyone else said you were crazy. I’m a long time follower of yours going back to your GATA days and took your advice to withdraw all my money from “the system” back in 2009. Friends and family who followed my subsequent advice over the years are very happy they did the same.
      Those who did not listen are coming to the realization that there are no scenarios where they will ever get their money back. Although they are looking for people to blame they are also mad at themselves for waiting so long to take any action. I was tempted to give them a loud “I TOLD YOU SO” for mocking me all these years, but I find myself feeling very sorry for them and lending them cash to get by the best they can.
      A few observations… The purchasing power of physical cash is rising as not many have any and folks are trying to stock up on essentials. Bartering should be kicking in soon as nobody (shop owners included) wants to part with their real goods and also nobody knows what our future “cash” will be if we leave the Euro. There are many rumors that they are going to tax or nationalize all retirement account as well.
      I know Cyprus is not a huge country but we have all been violently awoken to reality over the past few days. You have always said that the end will come quickly and boy were you right in our case! Cypriots have come to realize that no fractional banking system can survive when the required blind faith in the system is lost.
      There is no doubt that this same realization will hit the rest of the world very soon so tell all your subscribers that ROOTA WAS RIGHT ALL ALONG!
      Bless you and all those who are fighting the Bad Guys.
      Stephen Xxxx
      Paphos, Cyprus
      Thank you Stephen and we will heed your advice.
      My the Road you choose be the Right Road.
      Bix Weir

  2. Mr. Sinclair says: 11) Sinclair on Silver: Silver will rise past $50. It will rise as gold goes higher. Silver is not a monetary metal. The price of silver is based on the paper markets, because of this the supply is infinite. “The high Silver price wont be fulfilled”. “He cant agree on a really high Silver price! —– MR. Sinclair: Ag most certainly is a monetary metal every bit as much as gold and has been for millenia, for at least as long as gold has been in FACT! The price of both is based on paper! These gold bugs, sometimes it seems they have their heads up their asses.

    • Yeah I don’t get it. 2 years to get out of your IRA? Are you out of your f*cking mind? You’d be lucky if you have 2 weeks the way things are going. I don’t know why he’d shit on silver when something like 92% of the US domestic production is going to ONE PRODUCT, silver American eagles, not even the primary product of industrial users. I think Sinclair is treading lightly and doesn’t want to step on the toes of his overlords. If a billionaire decided to clean out all silver at the Comex, they’d probably be suicided before they could take delivery.

    • Jim SInclair has not been a big silver fan.  He is consistent in his support of silver.  There was a time when he wouldn’t even speak about it.  Kind of strange since he was the person that  Paul Volcker brought in to diffuse the silver bomb that the Hunt Brothers created.  There’s is some thing that Jim is not telling us about silver. For him to say that silver is not a monetary metal completely ignores the history of money.

    • Yeah, I found Sinclair’s comment on silver prices intriguing.  On the one hand, he says that gold will go to $4499.  $4499?  Why not round that to $4500?  Rather odd, actually.  Then he says that he doesn’t believe in a gold / silver ratio.  I presume that he means that he does not see their prices as set by a fixed ratio.  That would be fine but there definitely IS a ratio of the gold to silver price.  Currently, that is in the area of 52:1.  Historically, it has varied all over the map, moving from 10:1 in ancient times to 100:1 more recently and now about 50:1.  In another comment, he says that if gold were repriced to be equal to all the fiat produced, it would have a price of $15-17k.  So, what would be have if we had a historically possible G/S ratio of 30:1 and $17k gold?  Answer: $567 silver.  This is possible, given the above comments.  But is it likely?  Perhaps not but even that which is unlikely has the annoying habit of occurring from time to time.

    • @Ed_B He mentioned it is to early to say $15-17K gold. That was a number I believe thrown out by a questioner. I believe what he was saying is Gold will go past $3500 and as high as $4499. If you buy below $3500 it is a buy. Above $4500 not so much. As far as the G2S ratio goes. He doesn’t believe Silver will be monetized so its price will still be manipulated by the paper markets. That is probably why he doesn’t believe in a set Silver to Gold Ratio. He also doesn’t believe their will be a Comex crash to separate the paper and physical silver price. So it could still be a 50:1 ratio with Gold being saying $4000 per ounce while Silver could be at only $80 (with spikes to as high as triple digits). My personal belief is Silver will see at least $250 before 2017. But if it does spike to $250 it might be a sudden thing or not. Time will tell. I believe Silver will break $100 then get crushed to as low as $50, but then will climb to $200-250 by 2017 or who knows 2020? Sinclair in the past admits we should turn to Sprott for Silver information. He is a Gold guy. He maybe correct about Silver not being monetized but that doesn’t mean it still cant hit crazy price levels. Personally I could care less as I plan to trade my stack for other forms of wealth when the time is right.

    • OK, StackerX, thanks for the clarification.
       
      My thought on gold prices is that they have increased by about 5.5 times since about year 2000.  Anything that has already happened in the past CAN (not necessarily will) happen again.  If it did, then we would have gold priced around $8800, based on a current price of about $1600 today.
       
      In keeping with this same reasoning, I can see where silver could be monetized as an adjunct to gold.  Whether or not it actually will is another matter entirely.  Even if it does not, the industrial uses for silver are many and growing, so its value could become much higher in the not too distant future.
       
      A Comex crash seems plausible to me, not necessarily due to anyone’s special efforts to crash it but because it is an inherently unstable leveraged system that could very well crash of its own weight.
       
      “My personal belief is Silver will see at least $250 before 2017.”
       
      I can see that happening as well, particularly if there comes a time when the US dollar suffers from considerable damage due to over-printing, loss of WRC status, refusal of other countries to buy any more US debt, etc.  In fact, given these possibilities, MUCH higher prices might be realized.  Hyperinflation might be a long shot for the US but it is not impossible.  Under that scenario, the currency becomes virtually worthless and PMs become incredibly valuable… not just in dying dollar terms but in terms of what other real goods they will purchase.
       
      “Personally I could care less as I plan to trade my stack for other forms of wealth when the time is right.”
       
      Indeed… but, the tricky part will be in knowing when that time arrives and not selling too soon.  I am not at all sure that I know when that time will come or if any of us will recognize it when it does.  I may have to approach that via dollar cost selling, spreading out my sells and, hopefully, averaging a better price than if I were to sell too soon.
       

  3. woooooof   info overload.  Love it.  From my little pension theft amen corner, the Cyprus parliament is voting on nationalizing the private pension plans of the Cypriots.  No news on whether than includes ex-pat UK.  Welcome to Spain, where their pensions were 90% nationalized to buy SP bonds, CCC minus junk sure to default after they are unable to make loan payments.  Next Tuesday is the deadline for funding from the ELA, the banker bailout fund from the ECB.  Since the two bankrupt Cypriot banks are filled with bankrupt Greek bonds that are completely unacceptable as collateral for even the Emergency Lending Authority.  So by Tuesday there will be some big event when the Financial rubber hits the road.   Russia may provide funds to breach the bank insolvency funding gap.  It will be interesting to see if Cyprus banks fail, Russia comes to the rescue or the IMF/ECB decides to break their pledge to not fund bankrupty no-hope situations. 

  4. One thing about Sinclair, he is consistent in his opinions.  I asked him once for his opinion on silver.  He told me silver is a good trading tool but not a good long term buy and hold.  He seems to continue to believe this.  I will be following his advice to the letter and will be methodically selling silver when the price gets into the 40′s and convert my assets into phyzz gold. I will keep a smaller percentage of my savings in phzz silver to use for bartering.  Silver is very important to have on hand as a bartering tool.

    • @PolloKeeper Heck I was following your advise that Mar 27th there would be something special happening, hell it’s his Birthday. Lol as for his take on Silver not performing as well as gold, I’ll wait and see. I still strongly believe that Silver is Money and will prevail.

    • Thats funny.  I knew something special would happen on his birthday.  Dammit, we should have all thought of that.  Its still a week away though.  Hey, keep stacking that silver.  Who in the heck really knows what the future will bring.  I know I don’t.  I wonder if Jim was given the heads up about this Cyprus fiasco?  I bet he was.

    • Remember that Silver is the hard headed little sister.  Sometimes gold takes off and she just sits there playing in the sand but will eventually get up and trots down the road after her bigger brother.
       
      Anyway I’ll be happy if silver goes to $60 and gold goes to $3,000+ because they are going to move in tandem.  Maybe gold has more staying power at those higher dollar levels seems to be the argument that Jim Sinclair made.  One can easily make an argument either way because historically a lot more coins have been made of silver vs gold so silver does hold a very strong monetary value.  The biggest mistake is not to own either one!

    • I’m with you, Charlie.  For the most part, gold really is just a monetary metal.  Yes, there is some used for jewelry and for electronics components but these are relatively small uses.  Silver, on the other hand, is WAY more useful as an industrial metal.  Its industrial uses could dwarf its other uses and if supply shrinks as quickly as some believe, it’s price could jump upwards at a much faster rate than gold.
       
      As to silver not being a monetary metal… well, at one time, it was a monetary metal and it then got “demonetized”.  If it can do all that, it can jolly well be re-monetized too.  If gold “finds its way back into the monetary system”, as Sinclair suggests, silver will almost certainly join it there.  The alternative to that would be to have to produce some VERY tiny little gold coins for small purchases, instead of the usual dimes, quarters, and half dollars.  I dunno… maybe he is saying that if gold were to be used as backing for money, it would back paper notes like the old gold certificates.  Still, they were $10 and $20 notes in some cases, so one would not be getting much gold if they were swapped for metal on demand like the old gold certificates.

      In any case, I do not see anything in these comments that would prevent me from continuing to stack both gold AND silver.

    • Yes, indeed.  I second the comment from Pollo.  It’s good to have eyes and ears in many places where we all cannot be but still want to know what is happening there.  

      Same goes for our friends on Cyprus who are now having so much difficulty and who will likely have more before they have less.  If nothing else, the sacrifices that they are being called upon to make are tremendously eye-opening to much of the rest of the world.  We owe them our thanks for that and our moral support.

    • I respect Sinclair on what he says. He’s right. The silver market is too easy to manipulate. The best way forward with silver is arbitrage versus gold.

    • Surely, there MUST have been some.  Coin clippers?  Adulteration with copper?  This trick CAN’T have been overlooked by the banksters and lords of those days.

  5. SilverSpike:  “Sooo….I’m supposed to trade ALL of my physical silver for physical gold and shares of Tanzanian Royalty Exploration (of which Sinclair is CEO)??”
     
    Eric Sprott:  “No, SilverSpike.  Silver is the investment of the decade.” 
     
    Jim Sinclair:  ” Sprott, you need to go away.”

    • Arbitrage.
      If you trade at the right time, you win bigger than anybody else.
      Sprott couldn’t ever fill Sinclair’s shoes. He wouldn’t try.

    • “If you trade at the right time, you win bigger than anybody else.”
       
      Yes, and if you do not, then you can also LOSE bigger than anyone else.  Hell, if it was just a matter of timing, someone would already have ALL of the money in the world.  lol
       

    • With 7 billion souls on this old world if there isn’t enough silver to be money the same would apply to any PM. It just needs to be revalued. Instead of paying someone a dime a day, it would be a gram a week or 1/2 a gram.

  6. The TPTB didn’t give a damn about how many ounces of Phyzz the Hunt Bros. bought. They only went after and destroyed them when they started trading the FUTURES MARKET! THE PAPER CHASE! Billionaires couldn’t play in the silver sand box, not even in the 70s and 80s.

  7. I think ole Jimmy Joe Sinclair is a little bit full of himself, but not as much as Dr.Phil, but almost.
    IMO:
    Systemic bank failure is already here and shaded over with false balance sheets and collusion with the
    entire world banking system chain linked together. It will only take one link in the chain to break for all
    off the domino’s to start falling very rapidly. The current Cyprus bank crisis may very well be the fuse to
    ignite the failure of all Euro zone banks. Like the U S Fed, there is no exit strategy for the Cypriots and
    more bad than good news is on the way as the Cyprus Parliament tries to raise 7 Bln Euros to gain 10 Bln
    in bail out money by raising corporate taxes and shaving savings accounts over 100,000 by perhaps 15%.
    I disagree wholeheartedly that we have two to three years to bail out of our IRA’s and possibly 401k’s and
    savings accounts. Bad to worse is on the way and regardless of the Stealth Russian Submarines, Iran will
    be at risk. Netanyahu will not play Obama’s game of with holding armament and he will do what he feels necessary
    for Israel. Israel believe it or not is the most feared country in the Middle East. Furthermore as I have stated
    before here on The Doc, the industrial use of Silver is greater than the monetary investment side. The Silver
    market is at the behest of the industrial users not the Fed or the banks. The question is how high will Silver
    go when most of the use is in electronics? Televisions, Cell phones, computers, Ipads and just about anything battery
    operated or that plugs into a wall requires Silver to manufacture. This is the heavy demand and if the price of Silver
    rises to “Orgasmic” heights, what will be the affordability of the consumer items that require Silver?
    I do respect Sinclair, but he does waffle a lot on his predictions, IMO the ones stated in New York are only about part right.
    I would however suggest getting you money out of your IRA, 401K and savings accounts sooner than 2 or 3 years.
    Hell’s coming and the banks are coming with it!

  8. Mr Sinclair likes Silver but he likes Gold a hell of alot more. He doesnt disagree with Silver being regarded as a monetary metal but he said in the end of the day the establishment will decide to leave it out. He sees Silver above $100 but it wont stay above that level long.
    I will see about typing the Silver questions much more clearly tomorrow. I audio recorded the entire 5 hour Q&A :)

    • The ground rule of no audio recording was made clear.  I was there and I could have recorded audio.  But I didn’t because we were asked to not record.  There are lines of personal integrity that we would be wise to respect.

    • Agreed. I did send a couple of private messages about this. Jim Sinclair gave his time for free. His request for people not to record him was clear and reasonable. I wouldn’t blame him if he declined to hold further meetings.

  9. “The major monetary metal in history is Silver, not Gold.”
    –Nobel Laureate US Economist Milton Friedman
     
    “Friedman in an interview with James Blanchard at the New Orleans Investment Conference. November 7, 1993. The above quote is fact of monetary history but few in the West study or know silver’s history. Yes, gold is money but silver has been used as money more often, in more places, by more people than gold ever has.”
    –David Morgan
     
    “Dollars or Units DOLLARS OR UNITS–each to be of the value of a Spanish milled dollar as the same is now current, and to contain three hundred and seventy-one grains and four sixteenth parts of a grain of pure, or four hundred and sixteen grains of standard silver.”
    –US Coinage Act of April 2, 1792
     
    According to this act, if the Dollar is money, then Silver is money, because the Dollar is defined as 371.25 grains (0.85 oz or 0.77 Troy oz) of pure Silver.

  10. Avatar of
    IndenturedServant says:

    I may be one of the few but Mr. Sinclair does not impress me much. Reminds of the boy who cried wolf with the never ending “ALERTS” he puts out which turn out to be much ado about nothing most of the time.
    I_S

    • He’s just blogging. He’s the man who moved the gold price $150 overnight in 1980. So I’m listening. He gives his advice for free. How many ‘special subscriber insider newsletters’ can you afford to sign up for?  ;)

    • Avatar of
      IndenturedServant says:

      So 30 years ago he impressed you? I’m listening too and have been since 2007. Listening is cheap. Free advice is worth every thing it costs you. I just don’t see why so many hang on his every word? His is just one voice in a chorus of thousands. I’m none the richer or better prepared for having listened to and read his writings but I’m none the poorer or less prepared either. Meh!
      I_S
       
       

  11. I was there yesterday. Someone asked JS if they should switch their silver to gold. He said firmly no need to do that. He said stick with what you have. He said silver will do well and there is no problem w silver. He just feels gold is what the big boys focus on and that it will plateau without a 1980-90s style decline while silver could come down a lot after a blowoff. JS is Old School. Several decades ago the world was swimming in silver. He didn’t “politely shit on silver” as someone commented. He is just positively biased to gold.

    • Silver is so easily manipulated BECAUSE it is so rare. It doesn’t take much buying to move the price up. And it doesn’t take much selling to move the price down.  Gold is more stable precisely because there is so much of it in storage. And those boys aren’t selling.

    • @Slvrizgold Nice to hear from another source, This was a good article, but it is easy to let bias slip in, even if it is unintentional. Don’t get me wrong their may no bias intended and just a wealth of info to share and sharing sentiment is a tricky business. Thanks Tiger

    • I was also there on Weds and agree with the statement that Sinclair did not shit on silver.

      There are a couple of things I think our esteemed StackerX got wrong, much to his credit for recapping all of this. I took 11 pages of notes and pretty much stopped for the last hour or so as the questions got redundant. It was tough keeping up with what was said at times, especially as Sinclair would attempt to read the minds of his questioner and cut them off quickly.

      That being said, the gist of what’s above from StackerX is pretty much on. I am going to keep reading since this stuff may be clarified somewhere else in this thread. If not, I’ll be happy to type my notes up and share w/the community, if that’s desired.

    • @Edward London
       
      “I’ll be happy to type my notes up and share w/the community, if that’s desired.”
       
      We crave input. That’s why we’re here!

    • @Pat, then consider it done. Only a few things off the top of my head seemed to differ, a few significantly. But again, my understandings about some things may be incorrect, while others’ understanding may be correct, vice versa, or we may both be wrong (or even right; and I have training as a logician, but do not wear this hat when I say this).

      I’m not sure where I’ll post it just yet, as it will be a long document and may need to be edited for brevity/readability.

      Maybe Doc will have an idea on this. Maybe we can have multiple threads on here where we share what we understood to have happened. Especially considering I have some critical thoughts on the talks, esp. the parts where Sinclair and the audience kept referring to a Chinese sub that popped up in a US aircraft carrier Navy exercise. While this did happen, it happened years ago. But I think he was under the impression that it happened this past week, and was a “game changer.” Yet it already happened and wasn’t in any obvious way apparent at the moment, a game changer, i.e. the game continues today, even if they may hold some cards that we don’t yet know about.

      Keep me posted.

  12. Just to celebrate Mr Sinclair’s predictions I am buying 3 gold maples tomorrow.  Cash and carry.  I personally would never dare try to argue with Mr Sinclairs opinions or predictions.  I just don’t know enough.   

    • I have no doubt he has a top notch financial mind. But, when one makes a rediculous statement like “Ag isn’t a monetary metal”  one has to wonder what is going on in his head no matter how respected he may be. No one erases 6000 years of history.

  13. There is a nagging in my subconscious that won’t go away when I read or listen to Mr. Sinclair’s statements and render them into a single ‘sauce’. This is a nagging I experience whenever I take in the comments of all similarly focused ‘gold bugs’. It’s that they’re surreptitiously undergirding the global banking elite’s minor re-trenchment back into the ‘gold-standard’ paper scheme bunker, to regroup for a new offensive of plunder. NONE of these people EVER ventures into the systemic self-destructiveness of the banknote scheme and ALL of them automatonically presume its eternal progeneration. To ‘sell’ their ‘expertise’, they’ll pander to the predisposition of banknote inflation, decrying it’s cruel ‘hidden tax’ ,,, then turn right around in the following breath ballyhooing all the paper ‘profits’ to be anticipated! ‘Sell into the peaks we’ll identify for you’ … is their monocromatic battle hymn!
     
    Throughout most of my life, I’ve had a variously intensive passion for study of monetary schemes. After a significant amount of contemplation I’ve come away with the firm conviction that only a poly-metallic scheme (the more the merrier) yields maximal financial independence to every life-station and general societal capacity to maintain Liberty for all. It’s the product of long honed, carefully tested and re-tested principal, gleaned from millennia of humankind’s socio-economic trek that sets me so intractibly in it’s bed-rock.
     
    To float the concept of gold as the only viable ‘money’ (or worse still, basis for a merest image of it), is tantamount to saying that silk is the only acceptable clothing fibre or that mahogony is the only accptable wood for ANY purpose, however mundane, to the HUGE ‘de-valuation’ of ALL OTHERS, is a … not so well consealed … BOONDOGGLE! Great for the pigs occupying the farmer’s house, but not so for the rest of the livestock in the barn, we could say.
     
    Mr. Sinclair doesn’t ‘believe in ratios’, because rationality is the ‘Hammer of Thor’ over the heads of elites universally. Without their iron-fisted mercurial control mechanisms designed to eradicate the real-life, un-discriminating effects of supply-demand on THEIR ‘dreams’, to everyone ELSE’S detrement or even crushing misery, they must descend to the condition of the ‘commonality’ they so deeply despise.
     
    Mr. Sinclair … I’m okay with gold. I like it too, but the difference twixt, is that I won’t worship at its altar … EVER.

  14. Sinclair has a distinguished career and was correct in the past, but I think he is living on his memories. He talks about too many things that he could not be an expert on. In particular, with silver he never acknowledged that it has been manipulated for decades. He seems to base his price predictions on the past when silver was plentiful and not industrially needed as is the case today.
    IMHO most price predictions we see today for the future of silver are based on the past where conditions no longer apply. For example basing price on the Hunt brothers peak and factoring in inflation is completely irrelevant. That price, about $150, completely ignores todays physical supply and demand fundamentals. With prices of other PM’s being $750 and up, there is no way that silver will be less when the costs of mining and demand have similar fundamentals. Call me crazy, but I believe silver is going above $1000 when the fire is lit, the public jumps in, and the manipulating scumbags are completely overrun.
     

    • And then it will fall to $200*. (*arbitrary figure) Gold, on the other hand, will be used to back a currency, so it won’t fall. This is gold:
       
       

    • If Silver went to 1000 and dropped to 200 I can guarantee you that no one on the street would sell it for that price. Bullion dealers would also go out of business and there would always be a huge premium on silver. Why couldn’t silver be used to back currency? Is it because silver is more rare that gold?
      But not to worry according to Jim Sinclair: “The price of silver is based on the paper markets, because of this the supply is infinite

  15. Sinclair for all the good information he provides is a GOLD bug!  Plain and simple.  While he doesn’t TOUT silver, he really can’t do/say too much negative about it because its a no-brainer that SILVER is king.

  16. Sounds like Sinclair thinks things will hold together for a while, calling for 2020-21 for the end of the gold cycle.  That’s still 7-8 years away before the final “gold rush” or super spike.
    I guess all this panic is nothing more than silly according to Sinclair. Look at it this way, with only 300 million ozs of investabale silver per year, or $9 billion per year, or only $750 million a month for the whole world, where are the buyers?  
     
     
     

  17. 10) Gold price to look for: $1517 and $2021 – Did he offer an explanation as to why $1517 relevant
    24) Significant Gold targets: $248, $1650, why these seem strange targets
    thanks for the report
     

  18. “If I go dead silent and you don’t hear from me, there’s something happening that I don’t like’
    Interesting comment.  Jim might know he has a target on his back, or he just went to ground.

    • Jim already went fairly silent after he quit doing KWN’s for many months.  He has also permanently moved out of the US as well.  Something just all of a sudden happened where he decided that he had to get out of dodge.  Also, he has to be careful about what he says so it doesn’t conflict with his mining company.  I wouldn’t be surprised if he quieted down again at all.

    • Does anybody know why Jim quit doing KWN?  My favourite Brit analyst Robin Griffiths disappeared about the same time. From EVERYWHERE.

      :O?

  19. Old “Double Down” Mannarino is now moving on to geo-politics since all his calls have been horrible in the markets.  He has moved on to being a trader, male nurse, back to a trader, and now a historian about geo-political manners.  He is calling for a immediate war with Iran and a collapse of the financial system!!!!!  Wow, thanks Greg for your detailed analysis of the situation.  I’m sure this video has nothing to do about hits on youtube or selling your bullshit books.
    For your viewing pleasure, Mr. Greg “double down” Mannarino at his best.

    http://www.youtube.com/watch?v=0hCkJ9ZoisA

     
    PS:  Thank you Greg for saving us all. 

    • LMAO @duckvision why did you put this up, you made me watch it. Lol
      Greg: Why did we fight the Iraq War. My response, the Elite had no control over there or the rest of the Middle East prior to the wars going on now. So they have to get control for their One World Order Agenda. Nothing to do with oil. IMO
      The Euro is going to be stronger than the Dollar. You MUST UNDERSTAND GREG, ONE WORLD ORDER.
       
       

  20. Hey Green Lantern and StackerX,
    Thanks for the recaps, great job.
    One point that Sinclair seemed to insinuate between the lines yesterday was that there is no fixing the problems in the West, not to bother trying and just prepare as best you can.  He defended not taking down the Comex as it was not the gentlemanly thing to do, but it was somehow okay for gentlemen to allow criminal bankers and politicians to take down an entire society. 

    • Maybe his view is less a matter of what’s OK and more a matter of what IS.  
       
      Sprott is already on record as saying that he had no interest in bringing down the Comex, which he probably could, because he does not want to have to look under his car every time he gets in it.

    • Irene, but Jim also said that we’d basically need to wait until this crop of criminals dies. 
      I might suggest waiting for their system to end, but he may be correct.

  21. I follow my Gut Feelings and my Gut Feelings is telling me to buy more Silver not Gold. There are so many stories out there from all the Gurus and most are different from each other. So I’m listening but I’m only going to Stack Silver.
    By the way @StackerX thank you for the update. Though I listen carefully to Mr. Sinclair more than the rest of the Gurus this time I won’t be following his lead.

  22. Ad 5)
    gold is the only commodity I am aware of that is NOT taxed in Europe.
    Tax plans to intensify regs for silver are in the works. Legal tender silver may also get the full 20% VAT as soon as January 1st 2014. It almost was pushed through for introduction in Germany 1st January 2013.
    I can see an orgasmic rise in silver, and a sharp correction after. But will that be the end of it, or a run-up for more as in 2011 (and future)?

    • XC Skater: TPTB really do not want people investing in the one thing there is not enough of. The one thing they have no chance of controling the price of in the long run. They have to get silver in their vaults and they can’t! We and industry compete with them for it. They can’t afford it, no matter how wealthy they are. There insn’t enough of it to cover the cost rise if they tried to invest in it. They would send the price to Mars and back! The best they can do is to try to turn others off on the idea of investing in it.

  23. The question is not, believe Jim Sinclair in gold-silver ratio or not believe.
    And the question is not whether Jim Sinclair believes in mass ratio of the earth and the moon or not believe.
    The question is that these ratios are a facts of the nature.

  24. I will avoid the vulgar part of this post.
    Here are my 2 cents.
    I don’t know that people usually reveal all their cards, and most people bluff here and there in life for certain reasons.
    Even lowly poker games will see some bluffs here and there in order to throw others off so that they don’t know what your next move will be. Big boys at high levels do this a lot.
    So, I don’t know if 100% of what Mr. Sinclair said was bang on. I know nothing, but if he threw in a few bluffs here and there, it would only make sense to me. A little disinfo thrown into a package of good info can have its purposes.
    In any case, with regards to Iran, hehe, ok. Well, I don’t know if he knows anything concretely, but my guess, though I wouldn’t be presumtuous enough to try and speak for him, is that he would be supportive of a good hard hit on Iran. Whether openly or not, here is my reasoning:
    Mr. Sinclair, it seems to me, is Jewish. If he’s not Jewish, then he’s very closely connected to Jews (I don’t know if Bert Seligman was his biological father). Either way, he must have very deep connections within the Jewish community, and if he is Jewish ethnically, then he would likely have an innate sense of belonging with his people who are surrounded by islamist nuts. Not only this, but this well-connected man used to quote frequently from Debkafile (not that it’s 100% accurate… on purpose maybe?), and I don’t usually see anti-Israel folks spend much time on Debkafile (except those who have an interest in tracking Israeli thinking). Not that this means anything, but it seems as though his associate, who organized his NYC meeting, is Jewish as well.
    So, put two and two together. He is Jewish (or closely connected), the Seligman clan is very closely connected to other powerful Jewish clans, he likes Debkafile, his associate is Jewish…
    And by the way, Israeli si very active in Africa. Kenya, South Sudan, Ethiopia, Tanzania etc. etc.. Jim’s company in Tanzania might serve as an Israeli front in some way. I know he said that he migth go silent… this means he might make good on his commitment to move to Tanzania if the USA becomes an anti-gun drone dictatorship.And with a Sunni President who loves the Muslim Brotherhood in charge of America, He’d escape an anti-Jew Muslim President for greener pastures. Plus, Tanzania is a closer launch pad for his (apparent…?) Mid-East friends, as well as his (possibly) beloved Israel.
    In any case, as former IRGC member Reza Kahlili revealed today on WND http://www.wnd.com/2013/03/revealed-evidence-iran-crossed-nuclear-red-line/ , Iran has already crossed the nuke red line.
    Thus, as the saying in Israel goes: “THOSE WHO KNOW DON’T TALK, AND THOSE WHO TALK DON’T KNOW”.
    Some of this is hypothesis, but I’d try and do some triage with the information available and figure out what is more likely to be accurate.

    • You are spot on…on many points it seems. Most folks with Jewish ancestry are expected to be part of the Sayanim network. Sinclair also has an interesting motto:
       
      “Quis custodiet ipsos custodes? Qui tacet consentire videtur.”
      (Who will watch the watchers? He who is silent appears to consent.)

  25. Indeed, the legendary Jim Sinclair doesn’t seem to have a fraction of the interest in silver the regular SD readers have. It can’t be out of ignorance, he’s obviously more than well informed. Yet, he doesn’t seem able or willing to attempt coming up with reasons to go with gold over silver. Odd, to say the least. 
    I don’t know JS’s ties, but could he be so deep in gold that he is just being the gold god to pump up that metal the slightest bit he can? Inefficient way to get your gold holding to increase if you ask me.
    MIB route : JS was told he could talk about gold all he wants, he is to keep a low profile and forecast for silver. Until the MIB have cacccumulated sufficiently of course, he can slip on his silver robe then and preach to the choir.

    JS is not wrong about silver just because I (busy potty training when silver first reached for $50) have a different vision, but I do wonder what our difference in opinion pivots around. If he knew more, why not speak out?
    Lately I’ve become a bit uneasy in one respect : gold might be remonetized and boosted like 6 or 10 fold overnight. Silver would respond, but not be able to provide the anticipated diminishing gold to silver ratio. With gold becoming a monetary come back rock star, money flow tto gold might be so strong that silver is left out, and GSR drops to 100 and stays thereabouts, possibly even jump to 150. With $12,000 gold, that’s $80 silver, and not what I signed up for. And yes, mines would make reasonable money with that price level for a while. With people obsessing over gold, selling their silver to swap before the GSR rises more, shortages might be solved for a decade to come. Especially if the mines are still thrown a bit of a bone, incentive to produce at a higher output rate.

    • @XC skater  I don’t know why you think Sinclair is anti silver.  He is not.  First of all, he is worth quite a bit of money.  Silver is not a practical metal to invest in if you have money.  Too bulky.  He’s probably got a few monster boxes laying around to use for barter if need be.  Thats all it is to him.  Silver is not a monetary metal only because there is not enough of it around to serve that purpose.  Gold is the prefered metal for those that have money.  Always has been.  Silver is great for us working folk because we can afford to buy a few hundred oz.  I agree with Sinclair.  Silver is a great metal.  Its just not going to be a monetary metal.  If you want to buy it great.  If you had a couple of million laying around my bet is that you would buy gold.  Just saying.

    • @Pollokeeper
      What you say is not always how you feel, and that might go for JS.
      He acknowledges a billionair could corner the market but that would be “unwise”. Heck, just one country (where they speak Mandarin) deciding they all need a silver 1oz medal depicting their great leader would turn the silver market into a war zone.
      So because no one billionair should be so unwise to do it (I’d do it posthumous perhaps, put it in my will “buy a couple billion worth of physical silver, donate gradually to charity X”), it will also not happen. Or that no individual silver buying will come into play on a larger scale than the obscure hobby scene in place now. Anything to happen that increases investor demand could run the world dry, and JS knows and basically acknowledges that. Yet, he sees gold do better due to being more monetary.
      That silver acutally has countless industrial uses, and that gold is one of the more abundant available to investment metals above ground while silver is obviously getting rare or into ever stronger hands, he does not factor in, or even offer as “might create a shot term freak price”. $500 not happening basically means he thinks the USD will cease to exist before it inflates by a single order of magnitude. While it’s done much worse actually over the past 100 years. Yet, the Euro will do outperform the USD he says.
      It all just comes across half-arsed. Acknowledging fine facts, but making a prediction that contradicts it without offering satsfactory reasoning. He seems to have taken on silver as something to mention, in order to not be painted too anti-silver and thus lose credibility when reality kicks in.
      I see he does mention gold revaluation. As I wrote earlier, that could indeed drive the gold silver ratio up. Perhaps lure money out off silver to gold. BUT, if investment demand explodes too high (darn, the stackers were right, at least on gold), gold might run out, silver seem like a nice alternative, and that generation of better-late-than-nevers could clean up the silver market completely, unless the big banks start selling. Which will only pull on the trigger that much harder.
      When I started stacking I wanted a part in gold, but never got myself to buy it at the high GSR’s I was buying at. Maybe I should get some anyway, if anything to swap to silver if such a revaluation happens and silver lags behind?

    • @Pollokeeper
       
      How many times does the simple explanation have to be repeated to dispell this nonsensical notion that … ‘there isn’t enough supply for silver to return to monetary use’? That supposition is entirely based on a prejudicially limited valuation precept. There’s plenty metal to serve the purpose … if properly valued by ratio to any other monetary metal such as gold. If, in that particular, it’s 5:1 or 0.05:1 is simply a function of practicality while circulating  silver volumes need to be raised.
       
      I’m of a VERY strong opinion that one hell of a lot of silver that COULD circulate in trade is simply being patiently (or carelessly) stored until it’s rational valuation is appropriate for a reasonablly sufficient ‘release’ point. It’s easily conceivable for instance that even the most humble of folks planet-wide have a couple ounces of neglected jewelry form in drawers or boxes that would ‘magically appear’ if the valuation were compelling enough to relate to a few days living expenses.
       
      Now, obviously the industrial out-take has had an effect on the magnitude of that potentiality, but I venture it isn’t what’s touted. Even the ‘economically un-recoverable’ metal in landfills is by definition wholly dependent on pressures of necessity arising from supply-demand. In a scenario where the entire world returns to monetary sanity and universal demand for silver trade in daily commerce again comes into play, then you can bet your baby those landfills will become economically viable ‘mine sites’ for a while!
       
      ‘Not enough silver to be money again’ … is self delusion ,echoing elitist Pavlovian brainwash. You’ll be best served to … lose it!

    • “Yet, he doesn’t seem able or willing to attempt coming up with reasons to go with gold over silver. Odd, to say the least.”
       
      Maybe.  But if any of us had a gold hoard as big as his is, maybe we wouldn’t care much for the lesser metals either.
       

    • If you used to listen to Bob Chapman.  He suggested that you have half silver and half gold.  I didn’t always agree with Bob, but that seems to be a good suggestion for those that ask the question.  I don’t think anyone knows the future.  I do know one thing.  Silver is bulky and heavy.  Terrible to lug around.  Ever try to lug a monster box in a back pack using buses and taxis and long walking?  It really sucks.  I promise I will not be buying any more just for that reason alone.  I know, you stateside guys got cars etc.  Maybe when SHTF those cars may not be on the road so much.  But think about this.  You can put 20 g’s worth of gold in your front jeans pockets and no one knows the better for it.  Maybe thats the real reason the wealthy don’t screw around with the poor mans metal.

  26. Crosby Stills Nash and Young?
     Tawnyard  You seems a little young to be quoting that fine Woodstock song That’s more my generation genre  I googled it and enjoyed spirit of the group and theme once again.  Very Cool. 
    Yesterday I called up Sam the Sham and the Phaoroh’s Wooly Bully while thinking about the Kiwis and their fun with sheeple.  Regards
    Did I hear that a few weeks ago Jim Sinclair was all over a pivotal event that would ‘change everything’ next week. He also made the comment that hedge funds shorted gold and silver because they had some inside intel about this Cyprus debacle. I’m going to listen much closer. He seems genuinely concerned and is posting almost daily and doing it to warn anyone within earshot that things are not going well. I’m not overly concerned if he is accurate to the day or week. We can take some of these expressions of concern to add to our theme. Piercing the Fog of War even for a few moments can provide such valuable information that entire battles are won or lost on this. On the other hand, good intel can allow you to get out of the way in time to be safe.

    Be safe

    • Aye. I do love a spot of CSNY, but the song was beautifully crafted for them by one Joni Mitchell. And I love that woman’s voice.

      I’m not that young. Rgds : )

      Jim Sinclair is frighteningly well informed, but I think that a lot of his calls come from intuition. He learnt to trade as a youth, and it’s been his life. When people have been doing something that long, they just get a feel for the way things are. They factor stuff in without even really needing to be aware of it. Like a veteran farmer, or a seasoned fisherman. When a lifelong farmer squints up at the mountains and tells me I’m going to need a coat, I expect rain.

  27. All the faith was put into solar panels, now that China is bowing out, Jim takes a powder?
     
    Doesn’t matter what silver does here on in,  the fact that fiat has lost its followers is everything. Hold whichever commodity floats your boat, anything is better than fiat and fiat based debt packages. 
     
    I am selling silver bars at a great rate, 20% over refining costs. Great returns in silver, more than I would get with some dumb savings account with SFA interest. 
     
    I am holding gold though. Not selling it at all.
     

  28. My sense of Jim Sinclair is that he is a very wise man who knows what he can and cannot say in a public way without incurring the ire and wrath of TPTB in any dangerous measure.  Our old friend Bob Chapman used to remind me off-air during our radio show that there are things that are just too incendiary to speak of in a public venue or manner and that, at times, discretion and survival are to trump the urge to say what we really know.  I took his warnings seriously.  And we know that he spoke to us from a place where few knew to look for him.  There was certainly a reason for this…
    I am fairly certain that Jim’s sense of self-preservation is at also hard at work when he shares and doesn’t share what he knows.
     

    • No doubt about it. What I don’t like, and maybe it’s just my maniacal bent on silver, but he appears to be downplaying silver’s potential in order to steer the sheep away from going all in. Neuro Linguistic Programming style. These aren’t the droids (silver bullets) you’re looking for. Perhaps it is self preservation, and why people like Sprott are also ‘gentlemen’ and don’t try to crush the Comex and take delivery. I think we need to keep in mind that Sinclair comes from an elite background and take his advice from that context. Once in the club, you’re a lifetime member. He has got to where he is by playing ball, not going against the grain. He probably learned from his dad, go along to get along.

  29. I think part of the problem with silver is that JPM is connected to bad dudes a la the Russian KGB types…    If the silver price takes off, that bank is in a world of hurt but they can still send out the heart-attack teams. Sprott and the other ‘gentlemen’ are not dummies…
    Kidding aside, I have listened to Jim Sinclair in the past 6 weeks or so with rapt attention as he has spoken of the changes in the trading patterns of gold each day.  I agree that something appears to have changed in the way that daily price chart unfolds.  But, while it is far from me to question Mr. Gold himself, I find myself conflicted with his apparent conviction that we be at the end of the gold price suppression.
    As I see it, there have been two major, and, up until now, complimentary, reasons to suppress the gold price.  First, to facilitate the flow of gold from West to East.  Perhaps this flow has indded reached a point where, for any number of reasons, they are slowing this transfer (maybe the supply is getting to the point where there is little or nothing left to send eastward?) 
    However, as I see it, the second reason for suppressing the price is still alive and well.  This is to defend the dollar.
    Clearly, if they were to remove their jackboot from the throat of gold currently on its back on the ground, and that metal were to rise up and head anywhere toward its current market value, perceived or otherwise, the dollar would be in very serious trouble as the canary in the coal mine would drop dead, and rot to stinking heaven virtually overnight.  The whole world would see the charade in a flash.
    In the context of this Cyprus fiasco, the last thing the bankers need right now is for the gold price to show any sign of life, let alone rocket skyward.  Sinclair may be right about the change in the nature of the trading patterns, but I still see the need to keep the gold price severely throttled, at least for the immediate future as we watch the aftermath of Cyprus percolate through the system.
    That’s just my thought when I’ve listened to Sinclair.  He speaks of the pressure on gold being removed… but I think the elites still feel a compelling need to keep the reports of dead canaries in the same file as the silver manipulation whistleblowers… away from the attention of the masses…

    Yanno, thinking back, I do remember Chapman thinking out loud with me one night that Sinclair might be ‘on the other side’ — I argued in return, defending Jim, that perhaps this was because he was still active in the gold scene, making him vulnerable to reprisal were he to speak too candidly about certain topics. In response, Bob just gave me one of those sounds he used to make when he wanted me (politely) to know that he disagreed with my assessment(s) :) Damn, I miss that man!!!!

  30. I am bullish on Silver and all things precious. Sinclair is just having his day with his groupies. Everyone needs the comfort of a hand holding session to know they made the correct investment decisions.
    Jim Sinclair, James Dines,Peter Grandich…take your pick…but let your intuition and research be your guide, not your emotional bondage to these pin-the-tail-on-the-donkey types!

  31. @Green Lantern wow you type / take pretty fast notes lol.
    Finally got home from a long day today.  Yesterday after I got home from the Q&A at about 8pm I knocked out. I guess due to information overload myself. I woke up at around 2am and typed the above notes. I will try to clarify some of the notes I made above, but it might take awhile.
    Here is a clarification on bullet #38:
    @ 3:40pm

     Questioner: My question really has to do to some degree what I consider the big picture of why own gold and why do you believe gold is of value? I am sure you are familiar with a book called “The MercantileTheory” which was basically the economies throughout the ages and all of history and Civilization, Countries or Empires that held Gold had what we called the Golden Rule (he who has the gold makes the rules) and those were the nations who had the greatest power. And the Pirates of the Caribbean where basically British government agents that were commandeering the spanish gold that was coming out of the Americas, so that was where the gold power was but now its really more like ” he who has the guns makes the rules” and that would be the United States and our empire around the world. We/ I believe we have been talking about a conspiracy to surppress the price of gold. I would like to ask you what you see as the end game? I think this is why they took out Gaddafi because he wanted to go to trading oil for gold and create a gold standard.They had more gold per capita than Great Britian. Would you like to comment:

    Sinclair: Well the BRICS are about to take over the world economically. Within 5 years. The impact of the BRIC nations will be tremendous. It could be quite upsetting to any planned change conspiracy or getting together the good old boys for a common game. So the power of nations lie both militaristically and economically but did you notice two Chinese submarines popped up in the middle of our war games and we didn’t see them coming. They have no means of identifying the enemy any longer.It isnt functioning. We are maintaining our position now not because we are the economic power of the world but because we are the military power. And we like to make wars especially against little nations, so you got somebody out their who has one hell of a sense of humor and a lot of ??? to put two submarines right in front of our carrier, because the carrier might take you out.  This is very serious, because we must maintain our military power but in order to do that we have to put fuel into our carriers. We can’t go make a speech saying we are going to the administration stating we are sorry but we can’t invade any more nations for a while. So the rules i believe will be made … we will be checkmated militaristically it would become like the nuclear program.  No body dare do it. China and the other countries are going extremely fast even though they aren’t  anywhere near our military now. So I don’t think we would dare do what we might have undertaken under the Bush administration for many administrations forward. Look at how meaningless Iraq is? and Afghanistan? If the world had an enema that would be the place. (crowd laughs) Its not a place to make war because their kids and their kids kids will come back for retribution. We can’t afford to do this. and we are not going to be able to continue it as a major debtor nation. While China merrily has submarines pop up. Its a dangerous situation.

    Questioneer: What about North Korea.

    Sinclair: Well thats a nut! We have a big kid with a nuke!

    • Stacker -
        Thanks for y our contribution.  you get a comp subscription to PEAK PERFORMANCE PICKS for  your work.
      email me @ “Denaliguide1@gmail.com” to arrange.  Best,  DG
      Thanks Again.

    • StackerX: did you happen to transcribe the excellent question and arguments presented by the guy who asked if the financial system was effectively a ponzi scheme? That may have been the best question (along with the African-American making a case through Jim to the elites to consider monetizing silver, which I don’t think is necessary).

      Thanks.

  32. Steve SRS
     if there is a chance that gold and silver will help solve the monetary problems and silver ramps in value to its rightful place, there is a statement by  Jim Willie that gold demand is inelastic, meaning that a rising price attracts more demand. He calls it Gold Fever.  It’s also a Giffen Good, a rule that dictates a spike in demand as price rises.  
    If gold is already Giffen good and silver, due to its importance as an industrial and monetary metal, also assumes an inelastic demand  with  accompanying price spike, thus becoming another  Giffen good, wouldn’t the vital importance of these two metals transcend the cost of all productions, especially petroleum. Distressing situations like the EROI equations might focus the minds of leaders who see this.
    Maybe there is a chance that these petro resources would flow to metal mining in spite of the cost of oil  for the basic reason that gold and silver are all things;  a registerable storehouse of energy (equated to oil value), the accountants of energy used to produce them and a  part of a new  petro-gold-silver  monetary system where these 3 assets are more highly valued than the currency they ALL back, inextricably linked and thus providing a foundation of value to the currency, a stabilizer to the price of oil and a valuable indicator to the importance of focussing on the extraction of oil, gold and silver without all the impediments to their harvesting.  It seems that this might solve many problems at one time.
    I realize this is weak thinking right now since it’s the first time this occured to me.  I’m more curious if all these factors could have some sort of natural or forced (bad idea but maybe needed initially) linkage in the near future.  It would mean a lot of people would need to wise up to the disasters that loom if we stay on our present course and nothing is done fix the FIAT system.  If  we continue to marginalize the larger oil deposits through misguided political considerations this is all moot.
    Your posts show clearly the EROI is dropping, fracking flows are illusive in the long pull.  But there are, or are there, large deposits of petroleum that could be unleashed if the gold and silver became so valuable and important to a stable set of currencies that we could have a petroleum Marshall plan to get the oil flowing more fully and without entanglements, many that there are.
    When I mention large petro deposits, I mean those which could be extracted and used specifically for precious metal production.
    This would be a bit like the marshalling of resources for the Manhatten project or Google developing new in-place power sources used specifically to create energy for their server farms
     

    • @AGXIIK
       
      If it is true that the US does not, in fact, hold the gold in Ft. Knox and other US Depositories that it claims to have, gold’s ability to ease the monetary issues of the US becomes far more problematic, as I see it.
      A Marshall plan to produce natural resources indeed.  Remembering that the possibility exists that it will take a massive collapse to actually create the political will to trigger such a revaluation and backing, I have to imagine that oil might well glut in the face of a very large drop in demand as a result of the massive fall-off in the economy that would ensue from the carnage. The resulting supply surplus might be quite sufficient. As to the shortage of mineable in-ground metals, that might be another story.
       

    • @C Dirtlump,
      Dirt you are probably right about not having enough silver to monetize, but if that is the case I can see in the future that Apple, Samsung, Solar Panel manufacturers, cell phones, automobiles, TV’s etc., will be willing to pay a very high price for Maples and Eagles or silver bars, to melt down to keep their product production lines going. Like I keep stating here, the industrial side of Silver is the largest consumer or there will be a shitload of cold solder joints coming to market.
      Now the flip side maybe that industries using silver in their products may find an alternative to silver conductivity and Wallah, paper or plastic? Silver or Gold? Anything is possible with raging technology. Auto makers are finding new ways to get around the use of Platinum for catalytic converters. Another issue is the Platinum and Palladium metals market. The prices are just as volatile as Gold and Silver, high and low prices, mostly level and no good upside movement, and those metals are not recognized as money. Sprott has introduced a Platinum ETF that I wouldn’t touch with Bernanke’s money. At first Platinum was higher than Gold a couple of weeks ago, but Gold now has surpassed Platinum and is sucking hind tit.
      To wrap it up Silver may very well be a hard asset combination with Gold in replacement of the Petro dollar.
      However the world will be mined out of Silver in under 8 years, Gold will not and remains plentiful. Value then? Who knows whether monetized or not. By the way did you know that Gold was created by the Sun?
       
       

    • I think it will be the consumer who will be deciding what is money after the banks fail and the fiat ponzi scheme ends. Silver will have its place right at the top. There is till a 9 to 1 S/G ratio in the ground. So if there isn’t enough silver to be remonetized then there isn’t enough gold either. But business will need 70%-80% of that silver that will be mined. Silver will be on par with gold as a monetary metal.

  33. MR. Sinclair says:”The price of silver is based on the paper markets, because of this the supply is infinite”. “The high Silver price wont be fulfilled”. “He cant agree on a really high Silver price. This statement suggests that Mr. Sinclair thinks that the manipulation of gold by TPTB will END but not the silver manipulation! WHY? An electronics manufacturer can’t keep their line going with infinite paper silver. What they need is not infinite!

  34. Sovereign  There is that nagging issue of gaining agreement, will and resources to accomplish this this notion of having a currency backed by oil, silver and gold.  A large world wide reset,  the accompanying ‘fear of god’ shock to the senses plus  a scrap drive type of mentality like those of WWII might be needed.  Much of this may have to be done on one’s knees.  

  35. This is Mr Sinclairs response to a statement made about Silver that you all will find interesting. Here it is:

    Statement: Good Afternoon! Earlier today you stated that you believe that gold will institute itself within the monetary system however you do not believe that Silver will. I actually agree with that. However I believe the middle class here as well as the millionaires should be very careful about this. My opinion is that gold and silver not only maintains wealth and prosperity but it is actually property. The ability to own property is very important, but it seems to me that is occurring to allow the  system or entity to remove the property and issue promissory notes. Which is the exact reason we are in the situation we are in now. By the way this is more of a statement than a question.

     If we allow the system to get into a gold type standard and alienate silver what would occur is this in my opinion: because gold holds so much value in such a concentrated area to institute physical gold will cause a problem with the people in my community / the financial lower class. We will then again be issued paper to represent the gold that these entities will then … buy gold these institutions are leasing in order to put this system into place for the future will ultimately cause…do you understand what I am saying? Silver being a precious metal holding allodial title and property will allow a situation where if i have silver i can do the same transaction as i would gold on a smaller level. You said earlier you wouldn’t necessarily go buy a car with silver, you would have a pocket of gold. Later on you stated why would you go to the supermarket with a Canadian maple leaf? That is exactly the point, but if we go to a one precious metal standard and remove the metal that we would be able to utilize on a more … currency type aspect it will lose its purchase to begin with. Would you agree?

    Sinclair: Your view on precious metals is balanced by your sensitivity…that is something that is very difficult to be argued. Bear in mind the people who make these decisions and who will be very much involved in the final determination are not motivated by that. Silver will rise in price, because gold rises in price. Silver will rise to an even higher price in fact if we had a solvent economic recovery and modest inflation. To monetize silver (we are going back to what they call the cross of gold) its …your right … nothing you said was wrong but the people that makes these things happen don’t have those sensitivities. The way that will happen will be by the community …silver and that is by tracing price but because it is cheap. You have to monetize it individually but not monetize it collectively because the guys who make these decisions stink and they are only interested in themselves.

    Gold is a rich mans game. Silver is the monetary item of the people. There is no argument where that is concerned. Silver is not going into the trash can and people that say silver has no value don’t understand the physiology of markets. Silver is going up not down. The fact that Morgan beat the pants off the suit against them for  manipulation they won a victory because the lawyers were dopes. I told no one to sell their silver and to invest in gold. You should stay with whatever you have because you aren’t wrong. Due to the market. Silver will move with gold. The only reason I say go with gold in the longer term is because the men who make these decisions will focus in that direction.

    • Thanks StackerX, interesting thoughts.

      With gold receiving more respect than ever (projected by JS), I cannot but expect the gold inflation versus silver to continue and intensify. Gold will be mined like crazy, and new mines to be opened maybe a state corps, not privately held. When mining yourself becomes cheaper than buying in the market, and helps you be more stealth about it…
      When gold is appreciated more, both in terms of sympathy and price, silver will relatively lag behind, especially in production. And we are at best running a balanced supply/demand right now, with huge industrial usage and no mentary sales, just investment, mostly private. The mining ratio may drop from 9-11 where it is now, to even lower. The world above ground will color green, and no silver to be found until just before it disappears in an Apple gadget. 
      I see the silver vacume intensifying, perhaps slower and later, but regardless. There is hardly a realistic scenario which frees large amounts of silver to the market to suppress the price. The end result, eyeballing it from where I’m sitting, will again reduce silver above ground. Left or right, silver is going rare on us. I do my part by not selling what I have, regardless of price, until it has vastly outperformed gold. I used to see gold as the end station, but in gold I cannot live. So I might skip that part entirely.

    • Excellent post!  To anyone who is interested in learning why BOTH Gold and Silver belong in a sound monetary system, you are urged to read the following articles (available via Internet search):

      “The Monetary Case for Silver”
      –Silver Institute Speech by David Morgan, circa 2008
       
      “Bimetallism: The Only Enduring Standard”
      –Franklin Sanders, around 2006
       
      Quote:
      “The gold standard by itself is a problem, because it is essentially monistic. A gold standard alone is just a fiat standard in disguise. Bimetallism is the only answer, with gold defined in terms of silver and silver in terms of gold. That offers a self-correcting mechanism to keep the currencies honest. A gold standard is just fiat money defined in terms of gold and gold defined in terms of fiat, without any independent valuation to keep the system honest.”

    • Sinclair uses the term “allodial” title (middle of 3rd paragraph) without any explanation. It’s too important a concept to not emphasize.  The Founding Fathers understood the importance of allodial title to prosperity.  It would take @PatFields to do any justice to the discussion, and perhaps PF might put together a piece on it sometime. It basically means Kings title, that you own it out right without encumbrance. Think of your house. Even if you don’t have a mortgage do you really own your home? Try not paying the property tax. See what happens. Property taxes are a relatively new event here in the United States. Founders knew property taxes were a bad idea.

    • Sinclair didn’t use the term ‘allodial title’. The third paragraph was the questioner speaking.

      Gentlemen, perhaps we should cease ruminating about what should or might have been, and start thinking about what is.

      We’ve got property taxes, and we’ll always have them. We’ve got one hell of a situation brewing in the world. A perfect storm. We need a set of strategies to get through it. A plan of action for every possible outcome.

      I would like to be discussing exit strategies, tax efficiency, arbitrage, etc.
       

  36. Maybe Jim’s more of a gold bug because of what he saw happened to the Hunt Brothers  Not only did he see how they were screwed into the ground, laid on by the full weight of the Federal government.  He was also hired by Volker to clean up the mess left by the Hunt smash.  If it was me, even if I liked silver I’d probably stay away if for no other reason that silver burns

    • No doubt, Jim Sinclair stirred the pot this week!
      @stackerx; thanks for posting the clarification reply from Jim on his comments regarding silver.
      From a systemic perspective of TPTB; silver is just something that will inconveniently come along for the ride as they focus on selling the idea of gold to ‘reset integrity in the system’ when their current fiat Ponzi Scheme implodes.
      Since they will own nearly all the gold when the paper finally collapses to zero; (as most dummies sell @ $3500, $4500, etc); it is unlikely gold will circulate in physical form due to its extremely high intrinsic value. Alloidal title will hadly be a concern as they attempt to circulate some new paper mearly ‘backed’ with (their) gold.
      Physical silver, on the other hand is widely(relative to gold) held by the commoners around the world, and if it were accepted again even modestly in barter, that would bypass/undermine their control. Remember, they have been working for two generations to sell the idea that silver is NOT money! Lol. Further, silver is anonomous, difficult to track, tax, etc. For ALL these reasons TPTB HATE physical silver and will forever be at war with the physical.
      The EROI aspect of mining is something that took me a long time to digest. @AGXIIK: once you realize that there is NO Marshall plan possible once world EROI approaches 1:1; meaning it takes a barrel of oil input to produce a barrel of oil; then there is no price or input mix that will produce surplus energy for mining; even if it is mining money! 
      Even if a deflationary collapse destroys demand so that there is again a ‘surplus’ of oil supply, once the world’s oil reserve EROI approaches 1:1; there is NO net surplus oil to feul further exploration to maintain reserves, run the power grid, power the farms, etc, etc… EROI has been eroding steadily around the world and even a massive fracking boom will only delay the day of recognition: physical above ground gold and silver is MASSIVELY undervalued today. 

      @PatFields:
      Yes thanks for adding the (more) complete logic of metallic monetary standards including copper. My reference was myopic, the last and final removal of silver from circulation in the US; and yours to the further debasing with even the removal of copper… I agree with your additional comments on all counts.
      I recall Ron Paul lamenting our failure to even maintain a Zinc Standard as recent talk of eliminating pennies began.
      All of this highlights the nonsensical reasoning towards BitCoins, for example… Proof to me that there’s a bull market in highly devolved dillusional thinking when it comes to money!
       

    • @silverseeker123

      “Physical silver, on the other hand is widely (relative to gold) held by the commoners around the world, and if it were accepted again even modestly in barter, that would bypass/undermine their control. Remember, they have been working for two generations to sell the idea that silver is NOT money!”

      They’ve been working a hell of a lot longer at brainwashing The Peoples of the world to disparage copper as money. Thinking through the object of concentrating power among a relative handfull of elitists, it becomes evident that slaves have to be made of the great huge volumes of the humble folks of the world. To do that they’ve got to be made completely dependent on a ‘money’ that the elites retain complete control of … aka: Plantation Scrip … An intrinsically worthless ‘money’ bearing interest, ALL owed back to the elites!

      The metallic monetary scheme can’t survive on only two components, because the vast majority of consumers in societies are at the bottom of the economic strata and silver’s inherent rational value is still too high for their daily commerce. So, if the goal is to enslave them (first), their means of financial independence has to be removed altogether! Independence of the humble from silver, comes from ‘small money’ of copper (used as a ‘stepping stone’ TO silver).

      Everyone’s financial life breaks into three divisions … short, intermediate and long term expenses that we attend to every day. We have to eat, shelter and fuel our movement; we have to plan for more expensive items like tools and furnishings up to schooling and cars; then we have to provision for our feeble years.

      For the metallic monetary scheme to remain stable over many centuries, an appropriate money has to suit those three divisions. Take just one out and chaos ensues. The ‘fast turn-over’ money of copper suits the lowest level, silver is best for the intermediate term needs and gold is perfect for the long term.

    • “physical above ground gold and silver is MASSIVELY undervalued today.”
       
      Which sounds a great deal like fiat is massively overvalued today.  ;-)

  37. When people realize that their wealth can be stolen from the banks, there will be a rush to gold and silver for protection. These metals will then become scarce and the price will rise and destroy the paper market.  Keep stacking on the dips.

    • If people get cynical… “it gets stolen in the bank, it gets stolen from my house”.
      They might just go into stocks. to win some and lose some. It’s the #1 place to throw cash at. Gold and silver, most people currently don’t know it exists in buyable, physical form, and that it’s actually a cool investment product. Gold and silver are seen as a graph on a screen. Shiny yellow and white. The bullion market had its work cut out.
      Actually, in my city one or more trams actually have the local bullion dealer’s ad all over the sides. Tiny assortment, too expensive for me to even consider them again, but they’re putting themselves out there. No idea what it’s done for them since.

  38. There are a few things that some continue to either forget or simply deny when it comes to not only Mr. Sinclair, but most of those who over the years have kept hammering the same mantra. Of course there is much that a guy like Sinclair will not say, part of that is he like many of the others do not always tell the whole truth, they do not fully disclose their motives, etc. I am learning something as time goes on, and maybe it comes when one begins to realize that so much of what has been hammered into our collective consciousness has hidden motives. Sinclair has backed himself into a corner, along with myriads of other folks that are fighting to make that name for themselves. One can only be wrong for so long until they begin to be questioned about motive. When one feels the ‘heat’, they know it is time to step up the manner of pacification, even if they despise the very people they are addressing, if that makes sense. I do not like playing games with people in case that is not obvious. ;) Certainly some good info. to think about, but let us look a bit deeper than the surface, not to be judgmental, but in order to seek the truth as unbiased as possible.

    The biggest claims over the years always come from those who have a personal vested interest, and often those claims are well cloaked fantasies that are profitable for these folks to keep alive, while in the background they are making a killing while selling fear. It works for them, and obviously will continue to work, as long as they continue to say a few things that pacify those who are caught in the trap. I see Sinclair doing little more deciding to hold this meeting, than simply pacifying his groupies and those that refuse to make effort to think for themselves. He has recently called many of those who contact him as “whiners”, etc., which is little different than outright saying “if you do not follow me nor agree with me, you are my enemy.” Sinclair has taken this path with several people, and I find it to be self defeating. These guys are not stupid, they will tell you what you want to hear…but never forget that anyone that will do this, even in the smallest manner, does NOT have your best interests at heart.

    This is what I have learned. I have been in markets for 19 years, I have heard so much over the years, and often saw claims to be found to be cleverly self serving by those so many follow. There is a general conflict of interest I see growing within the ranks of most of these people, and once I see this, I begin to question most of what they say AND do. This NY meeting with Sinclair in my humble opinion was to pacify those running scared because they have followed the hype and now find themselves either in a bind or completely confused and even angry that maybe they allowed themselves to be fully persuaded by the massive amount of noise that has been pushed down our throats the last 4 years. Most have been wrong, and this has caused many who refuse to think for themselves to feel disappointed or even angry. This happens to all of us at times when we begin to ‘see’ how it has all worked together to enrich THEM at the expense of those who are vulnerable and live in fear.

    I do not like seeing people being manipulated nor do i enjoy watching their lives become so wrapped up with the fear they feed upon by some people who need to exert control over those who blindly will follow them. It is so easy for some of these people to manipulate others, while they cry out against and make claims about “market manipulation”. i find this to be hypocritical at the very least. I find Sinclair’s comment about going silent at some point to be an excellent way out of being held accountable for some of his claims and actions, not so much that he feels threatened by some group of financial thugs. If there is a target on his ‘back’ it is mostly of his OWN making, and this goes for the majority of those people who have long ago jumped on the ultra hype bandwagon. It has made them not only much wealthier by selling their fear, it has also created a trail that can now be seen for what it has been…more hype than fact, but it worked to enrich them, so they must defend their motive fervently.

    I respect JS, his experience and knowledge, it is just that I am seeing too much over the last year or so that includes a few of his comments to anyone who will not blindly agree with him, he has a streak that sometimes shows itself by demeaning them and basically calling them stupid so to speak. At this point, I have little respect for most of these guys, because it is apparent to me that they have used our current financial nightmare to take advantage of far too many folks, while convincing them they are their ‘servants’ when in reality they will always serve only themselves. Indeed, many of these folks will be long gone or simply transition into another arena that they can play their games with before they would dare to account for their often insane forecasts and claims, of course at the expense of those who join them. I apologize if I sound harsh…it is not intended, I am disappointed that greed and the manipulation of ones emotions appears to be the mode of operation…and the longer this facade of a system goes on, the more despeate will their claims be until most will abandon them. They KNOW they must make their killing NOW, because soon their following will have had enough of their manner of conduct and see it for what it is. The financial condition we are in globally never needs hype to be explained for the fraud it is. It all will come to a halt…the only thing that needs hype is the part of the game that sells the most, and there is little disagreement that fear is the greatest motivator and most, NOT all, know exactly how it works.

    Cyprus is a test to see how far they can push the envelope…but there can be no mistake that the end game will see the final phase of looting the public, this time literally by stealing what is not theirs to take. Again, no hype is needed to have a basic understanding that for now, the financial criminals are in charge…but this too will change and those who once thought they were untouchable, will find their tricks have come to rest upon their own heads.

    Thank you to all who have shared their thoughts on these matters, and for those who took the time and made the effort to share what Mr. Sinclair had to say. I find a few things stated do not line up with some of his past comments, but apparently the easiest way to handle them is to simply EXTEND their timing out long enough to not only buy them some time, but also hoping somehow they will look “right” when it all stops. Sadly, I feel even more certain that many of these guys will disappear…but it will not  be due to their excuses…it will be due to the trail of hype they cannot cover any longer. Just my humble opinion after enough experience over the years to know that things are not always the way they appear, especially when money and greed is involved.

  39. @truthlives
    In the world around us, there are many people with many motives promoting many different perspectives from many different angles.  We must always use discernment in processing what we hear and choose our path based on our best understanding of that information. You are correct to be wary of the motives and agendas behind what we hear in the world around us. In this case, indeed it is not merely the message that counts, but the messenger’s motive that is also relevant to how we respond to that message.
    As a former radio show host dealing with this financial/economic realm, I have been in Sinclair’s shoes, albeit to a much lesser degree when I was bombarded with criticisms from those who simply could not grasp the reality of our present situation.  I know what it’s like to be blasted for presenting inconvenient truths or uncomfortable information.  I did my level best to report what was so and relied on those I considered best informed and experienced to inform my reports and assessments of the situation facing us going forward.  Yet, in spite of this, there were a fair number of folks who could only hurl invective and criticism at my efforts.
    It is in the nature of human beings to be resistant to that which they cannot understand or accept as possible.  If you are true to YOUR title here  of TruthLives, then you must realize that the truth is simply what is so (with NOTHING ADDED) and it cares not whether or not people are comfortable with it, accept, or can respond to it, appropriately, or otherwise.
    All of us in this realm are charged with learning as much as we can from anyone and everyone we can, in order to prepare ourselves for the future.  No matter what Sinclair’s motives may or may not be, when he speaks, he will certainly have my attention.  If he appears to disdain the ‘whiners’ — well, I think I know the frustration he may feel… for I have been there.  ANY ONE reading this HAS TO BE ABLE TO SEE that the vast bulk of the people in this country at the moment are woefully unaware and uneducated in the matters with which we concern ourselves on this website.  Tell me that there is ANYONE reading this site that HASN’T been at least a bit irritated at the collective ignorance of the masses of what is heading our way!
    A man like Jim Sinclair probably sees our predicament far more clearly than most.  I, for one, am thankful for his willingness to take the time to speak what he ‘knows’ with the world as he does.   I knew another man of a similar selfless way… these people are gifts to us all and far too rare.
    If one wishes to impugn Sinclair’s motives, then that is their prerogative and it is their responsibility and choice to evaluate his words through their own discernment and filters.  We call this, “Thinking for Yourself!”  That said, I believe I speak for many when I say that Sinclair has demonstrated a grasp and knowledge of this realm over many many years matched by a very few.  His predictions over the years have clearly demonstrated a higher than average accuracy and value — at least from my vantage point.  And, I, personally, am thankful for his work and his willingness to speak what he knows publicly.
    If that serves him personally, this is fine with me.  In the final analysis, his words are mine alone to assess in the matter of guiding my actions and decisions.
     
     

    • Thank you Sovereign Economist for your thoughts. :) No doubt that Jim Sinclair has been very informative, this part is not an issue. Indeed I appreciate his background and knowledge of gold, etc., but I also am aware of how difficult it is to deal with some folks who can be difficult to get the point across, and it can be draining. In these cases, it is best to clarify as much as possible without labeling anyone who questions. It is prudent to question after one assesses what has been stated. I find over the years telling everyone gold is going “to and through 3,500″ may be true, but the problem is throwing those kind of figures around such as Sinclair does although gold may very well see that range, it can be self defeating for any market forecaster/analyst when the market in reality is less than half that forecast price currently. Of course this kind of forecast causes problems and I am not implying Jim is wrong, only that making this kind of statement goes a bit over the top at this time and can be seen as a bit misleading.
      Yes, truth is what is so, and I do my best to seek it and live up to my title, and after 19 years in markets and analysis, claims coming from so many such as they are today, one needs to do much due diligence on their own, never relying solely upon speculative statements as being “truth”, but understanding it is a call being made, and Jim has broadened his time line which I think is proper because it is not going to happen any time soon. As long as each person derives some useful info. that assists their goals, that is what is important aside from all the noise coming from too many in my opinion that are getting caught up in hype trying to make a name for themselves. This is where as you put it, one needs to “think for themselves”.
      Certainly Mr. Sinclair has good knowledge of the fraud and horrible policies that we are currently seeing, it is destructive and will become more so over the next few years. Plan accordingly, and no doubt we all thought metals would have been popping higher long before this, but I think we all underestimated how long this game of papering over the system can go on. It has its effects that now cannot be avoided. This reality needs no hype to get the point across, hopefully we all take prudent steps to prepare as best as we are able, while always seeking truth for ourselves and making sure our motives are never manipulative. Only person that can answer those matters truthfully in regards to how they conduct themselves are the ones making the claims. it is up to each person to decide for themselves. I have learned to question everything, and not bashing Mr. Sinclair at all, simply saying that in many ways, as well intentioned as one may be, it is important to look at both sides of what is stated. I applaud Sinclair for his willingness to take the time to hold a meeting, and share what he can over 5 hours time, and face those subscribers. It was the right thing to do, and he did it. Not many would follow that course. For that he always has my respect…i just see the other side of what these meetings can accomplish and it is usually some pacifying those who are confused by what appears to be a very broad forecast that can often come across to some who think 3,500 gold was going to happen next week. This has no doubt caused a lot of confusion for Jim, not that he is necessarily wrong, but that often it is made to sound ‘imminent’ when it is not.
      Thanks again for sharing your thoughts…much appreciated :) I too was in radio for several years, I enjoyed it for the most part, the constant station promotion was the part that made me tired LOL Somedays, I just did not feel like talking so much but it was my job at the time. Not market related though, just entertainment. I do miss it at times, but some things I do not miss.
      Have a good day!
      Jim

  40. It goes like this…you have to hear what he did not say, and see what he did say. He must speak guardedly for many reasons, for many people, without being a snitch. To keep his contacts, he can not betray their confidence. Also, two people reporting the same event will always have three points of view…each reporters’ and what actually happened. I have much more needed info to make my decisions. Thank you, Jim!

  41. What Sinclair says is basically what the big boys are preparing behind the scene. Big money always go for gold, that’s for sure so Sinclair is not telling us anything new. 

    That being said I don’t think those big boys can really control it all. I remember Sinclair once commented on these cocky ‘Wynter Benton‘ kinda hedge fund guys that if a bunch of hedgies think they can muscle COMEX then their ego is too big for their own good. The same, however, is true about big boys Sinclair talk about: If a bunch of big boys think they can design the next monetary system and have BRICS to accept their plan their ego is getting too inflated. China, Russia and so on could care less what the elite boys are thinking. They will only go with a route of their choosing.

    I don’t see how a gold revaluation could fix the system. Our problem is not really some assets being mis-priced. Our problem is simply that the western world as whole are so lazy that we run outta future money so the fix is to get off our collective ass to work to earn some income. That’s the fix. Gold revaluation ain’t enough.

    • @Rui
       
      You’re correct … gold revaluation is NOT ‘enough’.
       
      The optimal correction is to revalue … EVERYthing … to reflect actual, real-life, real-time supply-demand conditions so that investment and production priorities can become founded on reliable parameters once again.
       
      That’s the most immediate economically and financially destructive aspect of circulating credit in commerce as ‘money’. It distorts genuine rationality translated into pricing. This ripples out in pricing across the entire matrix of goods-at-market, resulting in a rising crescendo of utter cacophony. Entrepeneurs find completely false signals reflected from the markets and make (what would be otherwise) stupidly hopeless investments that are completely out of sync with true supply-demand constraints because they become so obscured by credit.

    • @PatFields 

      You’ve got it. We need an honest market to direct capital to where there’ll be real growth. That’s how a sound economy is supposed to be.

      The current system is controlled by these boys who want fast & furious profit, so they don’t want a hard money that they cannot inflate. They want FIAT that can come outta thin air with just a few keystrokes so they could profit from these bubble games. That’s why I don’t trust any solutions coming outta the “elite boy” camp. They are the ones killing the current economy, the last thing we need is having them still running the show in the next system.

      I still like Jim Sinclair. He’s telling people what’s happening behind the door so he’s a good guy. It’s just that I don’t think the boys he’s talking about could really dictate how it’ll work out. BRICS would not want any part of these boys, either.

    • @Rui
       
      Well, from my perspective, Mr. Sinclair is paradoxically both correct and incorrect. The banknote scheme is doomed to implosion no matter how big, bad or strong-willed ‘da boyz’ are today. So, you can take heart in that once their paper props dissolve and they’re forced to return to reality (real competition lorded over by real economic factors in the real world), life for all of us can get back to its steady historic natural growth pattern again.

    • “China, Russia and so on could care less what the elite boys are thinking.”
       
      I believe that they do care… along the lines of intel and know your enemy.

  42. Do I remember correctly that, when the Euro was first created, that it was backed by 15% gold???   When’s the last time ANYONE has mentioned the gold backing of the Euro recently?
    Ah, never mind… guess I’m just a victim of the flouride in the water… must be those politicians and their revisionist historians…

    • I don’t recall the euro being backed by gold but I DO recall it being worth about 85 US cents… once upon a time.  :-)

    • I don’t really see any connection there but… silver has been money in China for a VERY long time and only recently has not been.  It could make a come-back there, especially if Mexico or other large silver producer were to use silver to buy from China or to sell silver to China.  The Chinese love affair with silver has gone on far longer than their recent love affair with gold.
       

  43. I go to this site almost every day for news… I do not comment much but I have learned much more about the state of the world’s economy from the reports on this site and the comments alike than from any other source. I appreciate all the good work that keeps SD informative. It looks like the general spirit of financial innovation is about a gradual expropriation of people’s surplus: levies on savings, bond purchasing by pension funds, windfall taxes on metals, ‘counterfeit’ banknotes requiring self-reporting (read on Zerohedge just now). Its as though Cyprus’s refusal, so far, to install the troika’s latest plan made these tools of financial repression more rapid across the world.
    Sinclair’s assessment here summarises the pieces that I have been hearing about anyway but I am aware of his own position as a gold trader and his scepticism on silver. I don’t put too much stock on his setting definite dates and figures… the main thing is for us to do what we think is best and help eachother. I have come to see physical silver as a savings instrument and see how the rising of the price might slow after reaching past a critical mark where ‘mining’ the landfill sites may well become more viable. The state/banking fraternity appear to see pension funds and depositors as lower-hanging fruit. But do readers here believe that TPTB would leave the market open after ‘releasing’ the gold/silver prices after the central banks and other big players have bought all they can buy or would they impose a nominal windfall tax to choke out the smaller savers i.e. those with no more than say 1000 oz?
    Be that as it may, I try to bring others on board with how corrupt and artificial the financial world has become and on the potential of silver. The main thing is to open their eyes to an alternative to the 42-year experiment that is winding down as we speak. Some have been receptive but often come up against normality bias… I’ve had responses like “stuff gold” and “I want to enjoy life”. Well, that’s my bit, I have been reading up on this for the last couple of years but still learning.

    • @cordoba:  And don’t forget the godzilla of “financial innovation” – over-the-counter and, nearly totally unregulated financial derivatives.

      “pension funds and depositors as lower-hanging fruit.”  — Now, in the US, it’s not too far of a stretch to say that’s the only fruit, low or high — left to steal, other than the slow bleeding of the middle and lower classes via inflation.

      I’m in the windfall tax camp.  That’s the most likely outcome.  But it’s important to underscore that we can easily see the paper markets up and running (after a period of closure and cash settlement) and even central banks (through retail banks) accepting coversion of gold from any and all sellers at a new higher gold standard floor rate and simultaneously have an active “excess” profits tax.  Such a scenario would require policy makers to have the foresight and understanding that a 90% “excess” profits tax would greatly reduce any inflow of gold because people would more likely just sit on it than get whacked by the 90% tax.  Maybe 50%?  60%?  Who knows?  Trying to make an investment decision based on an assumption that policy makers are going to be rational is certainly dangerous!

      Welcome — and comment more often! Your reading for the past couple of years is clearly visible.  :-)

    • @SilverDagger:  Can you provide a quote and link to something he said that you think is not correct as it pertains to gold’s trading in the last 60 days?  I’d like to better understand where you are coming from.  Thanks.

    • OMG!  Silver Dagger wrote two ENTIRE sentences and did not mention “Luciferians” even ONE time!  It’s a RECORD!!  lol
       

  44. Mr. Sinclain doesn’t believe in ratios but I have one he might should consider. What is the ratio of the amount of Au he holds or controls compared to the amount owned and controled by his nemesis? My nemesis is most likely the same as his. My nemesis has a tiny ratio of physical compared to their obligations. Some one, at some point, will have to caugh up the real thing and nothing else will do!l

  45. SRS Rocco, Flying Wombat,Pat Fields
    I read your data regarding EROI and it’s clear that high oil prices and  oil scarcity create a huge drag on economic growth.    From a layman’s standpoint  it’s clear this factor grinds against all economic activity, even without going through the complex calculations that drive these observations. Bringing in gold and silver prices add further complexities to this matter.
     Seriously, there are few things that would make me happier is to spend 10,000 hours drilling down into this subject and learning everything I can about the subject. Or the study of Pat Field’s field of common law.  I noted the time he spent on EROI and TOD writings. Since that time is not available to me, I rely on your studies to help my understanding
     My focus is generally directed towards debt, leverage, income, P&Ls, good marketing and the outcome of of those factors as it relates to business success. This is a bit simpler endeavor and relies less on  complex calculations. Key business ratios rely on basic arithmetic.  These matters have been the focus of  my 35 year  career.  I end up seeing almost everything in light of how to turn an entrepreneurial opportunity into a profitable venture or helping someone achieve that end.  Debt and its costs weigh on these decisions as well as how a bank will see the business as an acceptable risk and make the loan to assist that business with its growth.  This is the good part of debt, financing which will help start or grow a business.
    When I read the basics of the economic theory presented by Reinhart and Rogoff, which states that a country’s growth rate is limited to less than 2% when it’s Debt to GDP exceeds 90% (based on the study of virtually every country and it’s GDP over the last 200 years) a light went on. 
    If you take a business with a debt to net worth in excess of 2 to 1, this becomes a major concern for a lender given that the lending industry has millions of businesses and their financial data for decades as their means to determine creditworthiness.   That 2 to 1 debt ratio and the interest paid cannot be ignore since that overhead grinds against all capital flows in the business. It can be managed with prudent growth and retentiion of earnings that help build growth without further debt or even better, paying down debt. It’s clear that since the advent of world wide unbacked currency 40 years ago no country of any size has reduced its debt load.  The worldwide GDP has been stuck in neutral  or had little more than sub par growth in relation to inflation since then.
     
    When the US Debt to GDP went past 90% a couple of years ago and will probably exceed 120% by the end of this president’s term (not ncluding the GAAP debt to GDP in the tens of trillions), this factor is never discussed when politicians and others holler about Jobs, and Growth and Increased tax revenues. We get lots of the third item but none of the first two. If the R&R factor is correct, no policy addresses this, thus defeating any measures to boost the GDP.  I think that no one discusses this factor in economic growth it’s because they either don’t understand it or, if they do, they can’t mention it because it would destroy their talking points.
    It seems to me that this country is going to be stuck in sub par or non-existent growth as far as the eye can see.  Our growth has been zero, or negative is inflation is factored in.  The local, state and federal governments also represent 43% of the entire GDP. These components are the only parts actually growing.  Worldwide, most countries are well in excess of 100% debt to GDP with Japan at 200% and the UK at 700% plus.  Even China is near 100%.  Debt’s growing exponentially, exacerbating the debt/interest drag on all GDPs.   I don’t compare private sector businesses and their debt to worth since they can actually outgrow their debt by real top and bottom line increases while countries find a magical growth trend to be a near impossible task. (politics as usual)
    If the biggest factor weighing against GDP growth is the debt to GDP ratio, has the EROI of oil or  gold and silver relationships been factored into this matter?  Is the debt to GDP a mirror to EROI and petroleum prices or is there a relationship in those two factors?  Is the gold and silver relationship to EROI a reflection of GDP growth.  I have heard that the Dow is a proxy for gold prices and oil prices are a proxy for gold prices.  Are there direct or indirect relationships of the debt to GDP ratio,  country GDP growth and the other factors you weigh in on?  Maybe there are no connections but I was curious if you thought those factors are related. I don’t mean to load a large amount of research on you.  If you have some basics on this I’d be interested in hearing about it.  Thank you

    • “… overhead grinds against all capital flows in the business but it can be managed with prudent growth and retentiion of earnings that help build growth without further debt or even better, paying down debt.”
       
      Only a muse, but, if not already, you might factor currency depreciation into the overall equation, keeping a sensitive finger on how rapidly it’s ‘progressing’. I expect that’s the prime ‘value added’ contribution keeping ShadowStats such a busy operation. An unanticipated gap up in general costs can not only affect profitability, but sales volumes concurrently … and wage demands to boot.

  46. HowHow true it is Pat.  Inflation is like rust. It never sleeps.   For the last 4-5 years companies small and large have had to balance increases in overhead costs with the bottom line.  It’s not easy to increase prices for the small business since another company down the street will sacrifice profits to hold prices in line.  It becomes a race to the bottom    The winner loses.
    The best way more firms contain costs thus preserving profits without price increases is grinding down the help.  Regretfully, they are the first to be thrown overboard.  This can continue for a while but eventually the firm suffers.  Raising prices is accomplished by reducing product sizes and volumes. This is the hidden side of inflation.  New Large Economy packaging is 2 oz less in a 24 oz box.  Creating printing and colors deceive the unawares.  SNAP and EBT cards make price knowledge immaterial so Walmart gets away with this sort of thing.  Small businesses can only improve efficiencies so much.  Prices will be going up fast and soon as most of the small tricks of the trade are being used up.  That is going to be seen in hard reality in 2013 and 2014.  Shadow Stats makes this clear

    • @AGXIIK
       
      The ironic thing is that in the metallic monetary scheme … deflation … is the norm. The historic record shows that world population growth very slightly exceeds recovery of precious metals (on average). So, the natural ‘Population Demand Factor’ results in money APPRECIATING over time, effecting LOWER relative pricing in costs of living (and conducting productive enterprises).
       
      Unlike other observers who presume that all these experiments in virtualization of the money function have their universal basis in greed and criminality, I’ve come to see their origins as ill-conceived (and impossible) attempts to counteract this ‘PDF’ to ‘stabilize prices of goods (which, given the human life-cycle, probably SHOULDN’T be sought). I can agree completely that it’s come to criminality, but not that it’s always been so.
       
      Adding ‘PDF’ into the calculations, things like coin clipping and regular debasement long ago, were primitave attempts to countervene that natural trend. The banknote scheme is the zenith, whereby inflation is ‘baked into the cake’, with the only difficulty (in THEIR view) being ‘management’ of how much or little inflation is appropriate to reflect productive ebbs and flows, through ‘control’ by current-interest leverage.
       
      In my re-construction of the history, this is the perfect explanation for why there have come to be an international network of ‘central banks’. The hypothesis is confirmed with revelations like the ‘LIBOR Scandal’. Control of the current interest rate is existentially fundamental to the entire framework, but the silent action of PAST rates, negates the effectiveness, as is also demonstrated by zero and even negative current-interest … exhibiting no practical responsiveness!

  47. Sinclair Quote:
    “He(Sprott)is a man of great knowledge I am sure the price he has in mind (for Silver) will in fact occur, but it will occur not in a manner creating a rise up followed by a fall down. If you break the exchange Silver would go to $100-500 but then go straight down to $30. You create a false price by breaking the exchange. ”
    ” The Comex was never intended for delivery”
    “What do you think would have happened if the Hunts took delivery? They probably would have wound up looking through bars. The system would come down on them very heavily. It is unethical to break …(the exchange)”
    “So to go in and say give me a billion dollars worth of silver next month. Its NOT happening. I know it will have to go up… It would be for a second but it would be orgasmic because then it would go straight down.” (crowd laughs)
    (Sinclair is referring to what would happen if the Comex was artificially crashed which he doesn’t believe will happen because no investor wants to go down in history as the person who broke the comex)

  48. Maybe it will not be one billionaire that doesn’t care about the risks for his personal or family’s health. 
    It could be a few thousand well-off small time millionaires doing what they can to take some risk out of their portfolio. They will not crash COMEX directly but indirectly. The will dry up the market, the bullion dealers, who’ll order from wholesalers who’ll order from mints who’ll be forced to buy a lot from COMEX.

    Could someone ask COMEX how much it OK to ask delivery for, without repercussions? Buying in a free market ought to be free anyways. As little as dollars are worth, why not hold on to 35 million ounces, $1bln worth, just in case? Better than cash in a falling stock market. And gold is for the big boys.

  49. Jim Sinclair: “The price of silver is based on the paper markets, because of this the supply is infinite”
    OK what does he mean by this? I guess he believes that if physical supply continues to decline and run out we will still have an infinite paper supply to make photovoltaic cells or to use as our last line of defence against the most dangerous strains of antimicrobial resistant bacteria?
    Also how is the price of gold not based on paper markets? Because central banks and governments buy it? What if they started buying silver?

    • @canadianstacker
       
      Exactly! That was THE goofiest thing he said! If there’s an infinite ‘supply’ of silver because of paper, then the same is true of gold as well! So, in that ‘logic’, how the hell can he be promoting gold at all? At a 9:1 SGR, I’ll dig up measured bits of silver and START dickering with the goldies.

  50. Pat your input is always appreciated.  I recall a bit of what you report in the  long periods of price deflation in our history.  For many decades the prices dropped as the population created greater outputs,  technology made products less and expensive and the industrial revolution made great goods for the greater good.  This all happened Pre Federal reserve.  In the Roman days the growth of the Empire also saw bouts of deflation as the population experienced great growth, more products and wealth until the Empire overreach, guns and butter, coin clipping and metal debasement spelled the end of their regime.  I am not sure what the Roman equivalent of the Fed was in those days run by the Emperors and their corrupt treasury, high taxes and draconian wealth theft measures.  Wow, that’s just like today.  Hmmmm,  me thinks we’re screwed.

    • AG… my reading of history is that an empire MUST expand or die.  There is no standing still.  I believe that this is so because empires have command controlled economies, which are inefficient.  Their lack of efficiency does not do as much damage to them IF their rate of expansion / growth exceeds their losses due to inefficiency.  Old empires eventually reach the point when their income cannot sustain their bureaucracy, they collapse, and younger, stronger, more energetic, and far less inefficient systems replace them.  This is a cycle and it seems to repeat at intervals.  All of the Western governments are doing their damnedest to reach this point.  We now stand on the very threshold of their success, IMO.

  51. Whoa I just listened to Chris Duane’s latest Report and boy is it very informative especially about Mr. Sinclair and if you’re a Silver Stacker it’s a must listen. I now believe he is part off the Elite. Yes he is Jewish on his fathers side. Bertram Seligman part of the Rothschild’s of America.

    http://wakeupfromyourslumber.com/blog/pandora/outing-jim-sinclair-sinclair-rothschild-goldman-sachs-lehman-bros-connections

    http://www.goldismoney2.com/showthread.php?8133-Sinclair-s-ancestors

    Boy I wish I could post the link here, maybe @Doc can get permission.

    • Oh, boy.

      If I had the choice of giving my stack to Chris Duane or Jim Sinclair for investing, I would choose Jim Sinclair. He would have made me a tidy sum by the end of it. And there would be an end of it. Chris Duane would have me still holding silver long after it has become overvalued.

      Chris Duane thinks that the Royals have enslaved Britain, and that we should all get ourselves some guns.

      Baaaaaah.

    • @ Tawnyard,
      Chris Duane has talked much regarding potential rotation out of silver and into productive land and other real assets. Like many of us, he simply expects silver to outperform all other hard assets as the USD reserve status and most other fiat currencies collapse.
      Jim Sinclair’s views are still (justifyably) influenced by his first hand experience around the times of the last great reflation executed via Volker. I don’t think any of us expects a viable productive reflation can be engineered now another 30+ years into this Keynesian hole.
      If TPTB maintain control through all this, perhaps Sinclair’s views will be more accurate that Duane. My preference is weighted towards Silver and in line with Duane’s view largely because it carries through a far greater range of potential scenarios, and I will not allocate via any presumption that TPTB will endure.  

    • @silverseeker123 I can’t stand all the anti semitic talk I’m hearing. I have great respect for Jim Sinclair’s technical knowledge and decades of experience. He’s not once said that a hawkish Volker will step in and crush gold. It’s different this time, and Jim knows it. He’s just telling it as he sees it. He answers all his emails, blogs faithfully, holds investors’ hands when they’re about to puke up their positions and gives up his time for meetings, asking only that we contribute to the cost of the venue. There is no ulterior motive, only altruism. He is not trying to make money by preying on others’ insecurities. He has chosen to dedicate his life to helping people, and this is his way of doing it. If the people here knew anything about the man, they would STFU.

      Chris Duane, on the other hand, worries me. He is preaching hate. I’ve watched his videos. His ignorance astounds me. I’m a Brit, and I’m offended by his insistence that the British are under the thumb of the monarchy. I’ve discussed this with him, and he really hasn’t got a clue. He’s never been to the UK. The monarchy are a British tradition. They generate far more income for the UK than they cost us, therefore they’re an asset. They fight in our wars, pay taxes and serve the people. They work from early childhood until the day they die. Charles is already at the age most men retire, and he hasn’t even started his main job yet. He will work until he dies. They are the slaves, not us. Duane has somehow got the idea in his head that the monarchy in Britain are the government. He insists on calling us ‘England’, which we are not. He says we should never have given up our guns, or – bizarrely – our right to hunt foxes. No doubt he believes that we should arm ourselves and rise up against our ‘oppressors’. One of his silver rounds even depicts the Queen as a death skull.  I mean, WTF?!!!

      I’m sorry, but I can’t take the predictions and aspirations of such a bitter, hatred-filled person as Chris Duane seriously, no matter how promising his early videos seemed to be. Whether TPTB endure or not, Jim Sinclair is one voice I am going to listen to carefully, through all the static.

    • In the American tradition, we have a long held disdain for royalty and royal titles (see the Declaration of Independence for details, the part about King George). If you separate yourself with a title of some kind, it implies you think you are somehow better than the rest of us, or perhaps your blood is blue and mine is red…whatever the case it, it does not go over well here. We’ve been given reason not to trust royal types.

    • And yet, we also have another expression, which is, “Every man’s home is his castle”.  Does this not at least imply that their IS a bit of lordship in every one of us?   ;-)
       

    • @Ed_B
       
      A pivotal element in Common Law is Magna Charta as a ready source of its written authorities. Article 52 spells out unequivocally that absent the Verdict of a Trial by Jury or Grand Jury, NO ONE may be disseized of his lands or ‘castles’. So, YES, an American man’s home is in documented fact, his castle, as The People (being each man and woman in their body) are this country’s Sovereign Power. 
       
      “If anyone shall have been disseized by us, or removed, without a legal sentence of his peers, from his lands, castles, liberties or lawful right, we shall straightway restore them to him. And if a dispute shall arise concerning this matter it shall be settled according to the judgment of the twenty-five barons who are mentioned below as sureties for the peace.” MC 52

    • Yes, the Magna Carta is a pivotal document in the development of both English Common Law and Constitutional Law in the English speaking countries of the world.
       
      “…as The People (being each man and woman in their body) are this country’s Sovereign Power.”
       
      I do not feel particularly powerful or sovereign much of the time, Pat.  Most of the time I feel as if we citizens are VERY small cogs in a giant and totally uncaring machine that will grind us up and spit us out, given ANY opportunity to do so.
       
      Government is a bit like salt… necessary in small amounts but nasty when used to excess… and right now, we are awash in it.  Does anyone here feel as if we have gotten >$7T worth of benefit from it in the last 4 years?  Somehow, I don’t think so.

    • @Whiskey Six  I can argue that Royals are intrinsically better. The British Royal Family has a long and bloody history. If rulers didn’t make the grade, they were hacked to pieces by some young upstart, as we can see from the body of Richard III, recently dug up in a leisure centre car park in Leicestershire.

      Your ‘elected’ elite only have to look good on TV, or be related to someone who did.  ;)

  52. Funny thing Tawnyard
    I grew up in Canada when it was still an integral part of the UK  4 generations of my family had close ties to GB and loosely to the Royal family in service to Queen Elizabeth her father, George VI and even back to Queen Victoria. This was mostly through the military and government service.  They were very loyal and appreciative to and of the family and did quite well by their service to the crown  Interestingly enough, my great grandfather came to Victoria BC as a country doctor, assigned to this region by the Queen with a small royal stipend and a nice allotment of Crown Grant Land.  As a Canadian originally and a US resident since 1964, I have dual nationality.  The ceremonial aspects of the crown  with pomp and circumstance was an enjoyable part of my childhood. The Magna Carta was my Constitution before we immigrated to the colonies.
     Chris has a thing about royalty as does Jeff Berwick of The Dollar Vigilante. They seem to chafe at authority of any sort.  It’s easy to pick on someone who can’t pick back. I’d like to see them go face to face with HRH.  I can just imagine their faces if Elizabeth turned her full regal wrath in  their silly faces.  With all due respect, bullies come in all types and sizes.  I dislike the lot and people who snipe at those who can’t answer back. Some people are just toffee nosed malordorous twits.
    LORD is another thing.  Anyone who has control over me chaps my hide a bit so I do my best to keep the authorities far from my door. I prefer the word LORD in its proper context.  And that’s looking upwards.
     Property taxes are the most burdensome of the royal weath extractions held over from the earliest kings 4-5000 years ago. It’s an annoying anachronism and be shown the door.  I like the definition and intention in Alloidal Title.  Pat Field and Ed B explained it in clear common terms that resonated with me

    speaking of Ed  I see you on the tax benefits of the IRA.  I was sort of tongue in cheek referring to some fed-speak quid pro quo of the NDRP patriotic duty to support the gummint if it gets its butt in the crack and expects the sheeples to cough up their retirement plans.  The day of reckoning where taxes are levied will come soon enough. Our plan is to wait until around 68-70 before taking some of the savings.  It’s all in gold and silver and held in a very secure place.  No counterparty risk at the bank or brokerage.
    If we can chip away at the stacks without creating too large a tax burden and assuming we don’t assume room temp before hand, we will carve bit by bit using the most generously annuitized minimun annual withdrawal. If there is any left, we will donate the remaining stacks and anything else to our preferred charities.  At least that’s the plan for now. 
    Having an SDIRA gives us a measure of comfort that ABN AMRO won’t give us the shaft.  Or The US Treasury.

    • “I like the definition and intention in Alloidal Title.  Pat Field and Ed B explained it in clear common terms that resonated with me”
       
      That was ALL Pat!  lol   Terms like that make my head hurt.  Let me worry about something more straightforward, like hyperbolic functions or quantum physics.  :-)
       
      “I was sort of tongue in cheek referring to some fed-speak quid pro quo of the NDRP patriotic duty to support the gummint if it gets its butt in the crack and expects the sheeples to cough up their retirement plans.”
       
      Well, we BOTH know that the Gov can and will do this once they have sufficiently screwed the pooch and they are making a VERY good effort in that direction as we speak.  As many others likely feel, I CAN do without the Gov FAR more than I can do without my financial future.  Sure, they will couch it all in loving terms about how they want to help us secure our retirement benefits, so that mean old Mr. Market won’t take it all away just when we are ready to retire, or some such BS, but neither of us are buying it!  Other than my family, this is probably the only thing I have that I would kill to protect.
       
      An interesting side note in this possible IRA / 401K / 403B / 457 plan grab is whether or not it will apply to those of us who are already retired and taking distributions.  Sometimes, us oldsters get “grand-fathered in” with these deals.  My investments have averaged about 7.7% for the past several years and support me just fine but the usual 2% return of UST bonds would not.
       
      “Our plan is to wait until around 68-70 before taking some of the savings.”
       
      OK, that sounds good.

  53. This sounds a little strange, but I agree with you. Most of the sheep here need to be told what to do. If they want to run off a cliff in a herd, you won’t see me trying to stop them…the herd needs culling. I see it every day and have grown cold and cynical

    • Well, it is certainly a bad idea to try to jump in front of them when they are running.  You could get trampled that way via a Sheeple Stampede!
       
      Whether it needs it or not, the herd WILL be culled because sheeple do not plan for the SHTF scenarios that are our daily grist.  They will very soon run out of currency, food, water, and anything else remotely required for survival that is not delivered to them on a routine basis.  Their confusion will very rapidly devolve into resentment, then anger, and then violence.  The good news is that they are virtually all lousy shots.  :-)
       

  54. EdB  That is a good point regarding empires.  In the very earliest stages the birth rate in families is high, with 5-7 children.  This child wealth creates growth opportunities and the inevitable expansion of the country to accomodate the high birth rate. As the country and empire expands, wealth outside the birth of children increases, putting less pressure on mom and dad to have a large number of kids.  The children become more scquisitive, thus pushing the boundaries of the economy and empire such as it is or is developing.  The country builds a large government with a ammense bureaucracy since government is a good place to go to build wealth and control the flow of wealth. From there increased taxes, corruption, regulations and the inevitable debasement of currency to pay for all of this takes roots. 
    In the final cycles of the empire the birth dearth takes hold with a strangling effect as the birth death goes under 2 per family and the empire country starting dying from with and without. Every western country is now under 2 per and some are as low as 1.3 kids per family.  The downward spiral of the family size is an attribute to the death of the country and empire and contributes to its inefficiencies.   We are right at 2  kids per family and moving downwards.  Its like a glacier. It moves slowly by it moves and there is nothing to stop it.  Our empire is on the wan. CHina is too with their one child per policy  Within 20 years they will have a employment job gap of 140,000,000   I plan to apply for a job at the Gwangzhou McDonals  once my Mandarin is up to speed.  Or maybe selling Bitcoin ATMS in the provinces.

    • I hadn’t considered the number of children per family aspect, so thanks for bring that up, as it seems quite important.  In my own family, my wife and I had 2 kids because we knew we could afford to care for that many but we less sure about 3 or 4.  Our daughter has 2 kids but our son has none, so we have a 1-kid per household average going forward.  This does not seem to be uncommon in US families these days.  While this is a problem for the US, it is a disaster for Japan, a country that buys more adult than infant diapers.
       
      Yes, AG, in 20 years, we will both be in our 80s, if we survive that long, and a job will be just what we need.  ;-)
       

  55. as for every mans home is his castle.  That’s work well in theory  Around here when I try londship that stuff HRH Princess “C” lets me know in no uncertain terms my main jobs are heavy lifting, stuck jar lid removal and dead bug cleanup.  I do get to go shooting regularly so I can defend my castle so I’m good with the situation as it stands.
    I will try Pat Fields argument regarding the rights provided in the Magna Carta when HRH gets up. That should be good for a belly laugh. Her’s, not mine. She’s still a skeptic re what I read on Silver Doctors but I am slowly working on that aspect of our relationship.

    • Hey, I said that it was his castle, I did not say that he was in charge of it!  He gets to do the plumbing, electrical, painting, and other general maintenance.  Yes, stuck jar lids, dead critters or ones that need to be so, and items stored on top shelves are our forte.  The pay is lousy but the bennies can be pretty good.  ;-)

  56. Rockets, I heard Merkel crossed her legs in front of the President of Cyprus.  What he saw in that quick peek scared him into the grand bargain.  I can scarcely imagine.  Got coconuts? Hairy ones too boot

  57. You should not just get out of the IRA, you should also get out of this system as much as you can so that you can become independent from it. You should really get rid of your paper stuffs considered as valuables that have no intrinsic value including fiat currencies. 

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