Legendary gold trader Jim Sinclair sent an email alert to subscribers Thursday night, informing them that gold will save the financially collapsing world of debt, and that the metal will trade to and through $3,500/oz.
Sinclair, who predicted gold would reach $1650/oz at the start of the bull market when gold was trading in the $300′s/oz and Brown was dumping the UK’s gold reserves on the market, stated that he was not predicting gold would trade to $3,500, he KNOWS it, the same as he knew gold would trade at $1,650 over 11 years ago.
Sinclair states that the Euro is in the process of rising to ascendency, and this is the reason why gold will achieve a high plateau at the end of this bull market run, and why he believes silver will not.
(Sinclair believes that silver will see spectacular gains throughout the rest of the bull market, but will then see a correction, while gold will not).
From Jim Sinclair:
The following article from the Telegraph was sent to us from Dean Harry Schultz. It was Dean Harry Schultz that gave me my first great opportunity. I worked for him for 11 great years.
I have been outlining this evolution to you for more than a decade. This article touches on it, but does not outline it. This article smells it but does not yet fully appreciate it. This process is behind the ascendancy of the euro despite every bear argument to the settlement currency of choice.
This is happening in the marketplace, and not behind closed doors in smoke filled rooms. Yes, there are closed doors involved in it, but they are free market proponents. I know more about this than even the people who have already adopted a name for it.
Gold is going to and beyond $3500 based entirely on this initiative certain to become completed as a reality. It is already happening right in front of your eyes, but the world is still blind to it.
This is why gold will rise to $3500 and beyond, but never do a 1980 fall again.
This is why silver is a great trading vehicle, but not a great long term holding.
This is why I have invested $32,000,000 in my own approach towards gold.
This is why I sold ALL of my personal material treasures to make this investment when only I would do it.
This is why I took on large debt to accomplish my plan.
This was the basis for my career interview by Forbes in Dec 2000.
No government fund, no gold bank, and no long cycle analyst can stop the progression of gold. The capitalization of the forces behind gold will overcome all these other bearish considerations. I say this because I know this, not because I think this.
I knew gold’s first most important number was $1650 11 years ahead of time. I did not think it. I am telling you now because I know it that gold will go to and beyond $3500. It will be gold that saves a financially collapsing world of debt.
A new Gold Standard is being born By Ambrose Evans-Pritchard
Last updated: January 17th, 2013
The world is moving step by step towards a de facto Gold Standard, without any meetings of G20 leaders to announce the idea or bless the project.
Some readers will already have seen the GFMS Gold Survey for 2012 which reported that central banks around the world bought more bullion last year in terms of tonnage than at any time in almost half a century.
They added a net 536 tonnes in 2012 as they diversified fresh reserves away from the four fiat suspects: dollar, euro, sterling, and yen.
The Washington Accord, where Britain, Spain, Holland, South Africa, Switzerland, and others sold a chunk of their gold each year, already seems another era – the Gordon Brown era, you might call it.
That was the illusionary period when investors thought the euro would take its place as the twin pillar of a new G2 condominium alongside the dollar. That hope has faded. Central bank holdings of euro bonds have fallen back to 26pc, where they were almost a decade ago.
Neither the euro nor the dollar can inspire full confidence, although for different reasons. EMU is a dysfunctional construct, covering two incompatible economies, prone to lurching from crisis to crisis, without a unified treasury to back it up. The dollar stands on a pyramid of debt. We all know that this debt will be inflated away over time – for better or worse. The only real disagreement is over the speed.
The central bank buyers are of course the rising powers of Asia and the commodity bloc, now holders of two thirds of the world’s $11 trillion foreign reserves, and all its incremental reserves.
It is no secret that China is buying the dips, seeking to raise the gold share of its reserves well above 2pc. Russia has openly targeted a 10pc share. Variants of this are occurring from the Pacific region to the Gulf and Latin America. And now the Bundesbank has chosen to pull part of its gold from New York and Paris.
Personally, I doubt that Buba had any secret agenda, or knows something hidden from the rest of us. It responded to massive popular pressure and prodding from lawmakers in the Bundestag to bring home Germany’s gold. Yet that is not the end of the story. The fact that this popular pressure exists – and is well-organised – reflects a breakdown in trust between the major democracies and economic powers. It is a new political fact in the global system.