Friday, December 30, 2011

Embry - Physical Gold & Silver Tight Because of Eastern Buying

"I would be very surprised if gold weren’t up at least 60% from current levels. Silver will be more explosive. What they have done to silver is astounding. In the longer-run it just ensures even greater physical shortages and when that manifests itself, I think the silver price will easily double.

So I think it will be a big year next year. These (metals) are both as sold out as I can remember and the sentiment gets worse and worse, if that’s possible. These are all precursors to a major move and I think it could get started quite quickly...."

- Read the full article at King World News here:

Thursday, December 22, 2011

The Bearish Gold Predictions Forget One Important Market Reality

There is a certain extremely important market reality that must be kept in mind as you listen to all the bearish gold predictions.

What is good for the dollar is bad for gold.

This is wrong because it depend what dollar related factors are giving a positive dollar price action.

If the good for the dollar was strong US economic activity, sound balance sheets in the US financial industry and a US consumer ready and credit able to expand, the answer would be yes if these activities were for the long term

That strong dollar would not be good for gold.

However there is only one dollar positive out there. That is the largest currency market on the planet is the dollar vs. euro market in which the so called vigilantes (International Investment Banks) are shorting the euro to infinity. That downward pressure on the euro creates a mirror image of dollar strength but give that strength no greater legs than the euro problem posses.

What happens the third weeks post and euro settlement be that a changed euro or no euro.

There will be an end to the euro’s problems one way or another sometime sooner than later as that is the nature of failing euro hopes as today and fruitless euro financial programs as every proposal has been so far.

That process brings you closer to a crisis rather than further away. Even if there was a miracle that saved the euro at today’s price, the soap opera then ends.

Within three weeks from whatever date is the final act in the euro soap opera the US dollar will be the primary focus of the vigilantes via US dollar and long bonds.

There is enough knowledgeable money sources that know if any resolution is coming will begin to prepare for it. That preparation may be why at in this din of gold bearishness gold still may well be resolving the accordion chop.

So far on the unique studies done only by my dearest friend Kenny Adams and shared only with me, scream a clear refusal to confirm serious long term top indications.

If anyone will see the point of gold’s terminal overvaluation, it will be Kenny Adams and myself. That simply does not exist now nor is there full confirmation of the intermediate down with the depth so many are putting in their headlines.

Gold investors stand tall and stay committed. It is time for a glass of cold water and a long walk. Traders will be guided well now by the Angels.

Up to $1764 the Angel has and will continue to herald the market. After that and the gold price move goes in the 2000s things will be somewhat more difficult, if you can imagine more difficult.

Email or call me if you need me.


Jim Sinclair

View here:

Tuesday, November 15, 2011

Gold - Next Stop $4500

"Once this correction has been completed, Intermediate Wave III of Major THREE will be underway. This should be the largest and strongest wave in the entire gold bull market. The target for this wave should be around $4,500 with only two 13% corrections on the way."

- Alf Field

Thursday, November 3, 2011

With few options, Fed turns to 'jawboning'

With little ammunition left in its armory, the Federal Reserve has entered the "jawboning" phase of its campaign to spur stronger economic growth.

Fed Chairman Ben Bernanke and his fellow policymakers emerged from a two-day meeting to declare they planned no major changes in their policy of using low interest rates to get the job and housing markets back on track. In a statement, the Fed pointed to a recent improvement in the outlook but warned that the recovery is still very fragile.

"Economic growth strengthened somewhat in the third quarter," the Fed said in its post-meeting statement. "There are significant downside risks to the economic outlook, including strains in global financial markets."

- Read the full story here:

Thursday, October 13, 2011

Jim Rogers tells it like it is!

Jim Rogers: Bernanke Is Lying to Us - Tuesday, October 11, 2011
Jim Rogers tells it like it is.
In the EPJ Daily Alert, I have been pounding away at the fact that no new QE is required, that the money supply (M2) is exploding. Rogers correctly points to this money growth in the clip below.
Also, Larry Kudlow is correct in his view that the European Central Bank is likely to join the Fed in the money printing. If they do, it will be the first time ever that the world could face a massive global inflation.
Kudlow is correct that the stock market will skyrocket under these conditions and Rogers is correct that commodities will soar.
Prepare yourself for climbing prices like you have never seen before, to differing degrees both Rogers and Kudlow know what is coming.

Friday, October 7, 2011

The Chinese Mean To Control The Global Gold Market

Get ready for the Pan Asian Gold Exchange, scheduled to open in June, 2012 in Kunming City, Yunman Province– the gateway to all of Southeast Asia. This is serious, as the Pan Asian Gold Exchange is a part of China’s five year plan– which means it is part of China’s strategy for dominance in global financial markets and the global economy.

Pan Asian will allow Chinese to speculate in gold futures contracts or buy physical gold through an account with a bank or broker. All 320 million customers of the giant Agricultural Bank of China will. simply be able to use their Renminbi, the Chinese currency, from their bank accounts to trade gold. Sounds bloody dangerous doesn’t it...

- Read the full story here:

Thursday, September 29, 2011

Jim Sinclair - Why Gold?

During reactions in gold, the degree of gold and gold share holders pessimism is EPIC and without cause.

Why Gold?

1. Gold is a currency.
2. Gold is competitive to paper currency.
3. Gold is not a commodity
4. Gold is a barometer of fear.
5. Gold is a barometer of confidence in government.
6. Gold is insurance.
7. Gold is insurance against government gone mad.
8. Insurance is not something you trade.
9. Gold is the financial high ground when global debt problems exist.
10. Gold in your hand eliminates all counter party risk.
11. Every single currency is paper backed by nothing.

Stay the course. Nothing is solved, nor will it be.

Gold will be violent. Gold is nowhere near fully priced.

Jim Sinclair

Tuesday, September 27, 2011

Gold has formed a bottom at $1535

Today’s hard overrun of MAJOR support at $1584/$1675 and down to a low of $1535 (in spite of Friday’s punch down into that major support on a low of $1631.70), produced a 105 point rally action back up to $1640, and a close of $1630. We did not expect an overrun of 1584 at worst, but today’s rally back and close into the core of the support bracket itself indicates the beginning of a bottom action has begun.

We now expect a bottom action to occur at or above today’s low of $1535. Today’s extreme sell off and hard rally action does make the possibility of a narrow bottom quite possible.

The drop from $1923.70 to $1535 has generated an impressive wall of resistance, but which could be overcome in relatively short order if gold generates a narrow V bottom followed by hard rally action. Even so, the bottom should be visibly resolved here within another 14 to 15 days at most ff we are to have a moderately fast or a fast return to a test of the recent high ($1923.70), and thereafter, higher highs.

Our internal figures remain long term bullish…

- CIGA Kenny, via

Saturday, September 24, 2011

Market Violence Will Create Large Bear Trap

This is a repeat of 2009 – actually even more extreme readings than 2009. We are severely oversold today. Anyone not buying here does not believe in the fundamental story. In my opinion, this will be a huge entry point by 2012.

- CIGA Eric, via

Tuesday, September 20, 2011

China’s Gold Investment to Top Record: Cheng

Gold investment demand in China is likely to top a record 200 metric tons this year, the World Gold Council said.

The country’s investment demand surged 70 percent in 2010 to an all-time high of 187 tons, said Albert Cheng, the Far East managing director at the World Gold Council.

China’s “investment demand has picked up exponentially,” Cheng said yesterday in an interview in Montreal. “The financial crisis has triggered people to be cautious of anything they don’t understand,” boosting demand for bullion as an alternative asset.

Gold futures have surged 29 percent this year, touching a record $1,923.70 an ounce on Sept. 6. The metal climbed as escalating debt woes in Europe and the U.S. boosted demand for haven assets. India is the world’s top bullion buyer followed by China. The two countries accounted for 54 percent of world gold consumption in the second quarter, Cheng said.

The council has estimated demand from China may double in 10 years. The forecast may be “too conservative,” Cheng said.

Thursday, September 8, 2011

The Pan Asia Gold Exchange (PAGE) - This is Huge!

The Pan Asia Gold Exchange (PAGE)

The Pan Asia Gold Exchange (PAGE), backed by the Chinese Government, opens for business in the next few months and is expected to be fully operational by the end of 2011. This development represents an unprecedented challenge to the entrenched institutions that effect the price of gold and at the same time supports Beijing’s ambitions for world currency reserve status. In short, there is a new gold trading market in the wings with the potential to change global supply and demand dynamics and how gold can be traded.

Here’s the background:

PAGE will allow individuals to buy physical gold from their computer at home. Initially, the 200 million or so clients of Agriculture Bank of China will be able to buy 10-ounce mini contracts on the PAGE. Later, non-Chinese will be able to purchase International Spot Contracts through the exchange.

Ultimately, PAGE will provide an alternative playing field for global gold investors who hitherto have had to rely on unsecured gold futures contracts and the bullion banks to determine the price for gold. With PAGE, a gold buyer will be able to receive a 90-day International Spot Contract and actual title to the gold he/she buys, not just a futures contract or an unsecured note from a bullion bank, or an international banking institution. The PAGE gold’s in 10 ounce bars can be delivered to the customer with little effort. The international bullion banks, have been accused for years of manipulating the gold price. Such manipulation will now be more difficult.

PAGE could pose a challenge to the near monopoly on gold price discovery currently held by the members of the London Bullion Market Association (LBMA) that include many large banks.

For years, their practice has included leasing gold often from central banks and then selling it into the market to drive the price down. Leasing and selling of gold has been a profitable game for the savvy players involved. Every game has a loser, however, and in this case it has been less sophisticated gold investors. The selling activity has often created panic among gold investors who sell at the wrong time allowing the short sellers to buy back the bullion at low prices.

PAGE provides an alternative route that bypasses the bullion banks of the LBMA.

PAGE also provides a new way for international investors to own Chinese currency — the Renminbi (RMB). Here’s how: The buyers will purchase gold contracts denominated in RMB. They can then hedge out the gold in the dollar-based gold markets. As a result, they effectively own RMB.

We see here yet another example of multiple Beijing initiatives opening the RMB to world investors. Over time, these innovations will enhance the value of the RMB and create a deeper, more liquid foreign exchange presence for the Chinese currency. PAGE is another internationalization step forward for the RMB in the direction of world reserve currency status.

The advantages of being the world reserve currency, as well as the responsibilities involved, have not been lost in the Chinese government. They won’t rush the process, but they clearly have a long term plan.

- Via

Friday, September 2, 2011

John Embry interview with James Turk at GATA's Gold Rush 2011

John Embry ( and James Turk, Director of the GoldMoney Foundation, talk about the price of gold and the US debt downgrade.

They discuss Sinclair's $1,764 level and how the majority of observers still disparage gold, even if perception is slowly changing. They explain how the physical gold market is taking charge of gold price discovery and how strong physical demand will drive the price much higher.

They talk about how the price of gold will react in another market meltdown, similar to 2008, and whether there will be a sell-off. They conclude that this time the flight to safety will be more important than the rush for liquidity and that gold is uniquely placed to act as a safe haven, especially with T-bills and other traditional safe assets discredited by US debt issues.

John and James explain how important it is to own tangible asset that are free of counterparty risk. They also talk about some relatively safer currencies like the CAD, AUD and CHF, and conclude that, although better than the US dollar, they also have their flaws.

They talk about mining stocks and how undervalued they are. They mention key levels to watch in the XAU and HUI, as signals of a start to the mining stock rally. They move on to look at sovereign debt issues and how they expect other countries, like the UK, to suffer downgrades soon as well.

John also explains that China, despite its huge potential, is not without issues and he fully expects to see a lot of instability there.

This interview was recorded on August 5 2011 in London.

Tuesday, August 23, 2011

Bernanke is in no position to announce another round of QE

Politically Bernanke is in no position to announce another round of QE. If he were to try this route once again, a route which has obviously been an abject failure considering that between QE1 and QE2 over $2.5 TRILLION was spent with nothing to show for it except a collapsing Dollar and rampant inflation in energy and food prices, he would unleash a firestorm of protest here in the US and certainly abroad by our largest creditors, China in particular.

- Trade Dan

Friday, August 19, 2011

Mining Share Ratio To Gold Back At Pre-QE1 Levels

Gold’s move to a new high today above $1764 has not happened for technical reasons. There are fundamental problems in the entire Western World Finance that lack solution.
Gold is heading exponentially beyond any expectations of the short of gold share hedge funds.
Weakness in gold shares is manic at this point, and the shorts will not see the top in gold they expected now or for years to come.

Jim Sinclair of

Monday, August 8, 2011

Jim Sinclair interviewed by James Turk

James Turk, Director of The GoldMoney Foundation, talks to Jim Sinclair, host of, about his successful gold price predictions, US debt problems, how to ride the trend and the second phase of the gold bull. It's a gear change from arithmetic to exponential growth as public perceptions about the safety of the US dollar changes. The debt ceiling debate is a wake up call for people all over the world. The video was recorded on August 5 2011 at the GATA conference in London.

Thursday, August 4, 2011

Jim Sinclair on CNN Your Money

Jim Sinclair on CNN Your Money. Note their reaction to his prediction of gold $1650. Funny times.

Wednesday, July 27, 2011

The Cat is Out of the Bag, Gold to Soar, Dollar to Crash

There is no functional hedge against the downgrade of US Treasuries that is sure to come with or without a default except gold.

The cat is out of the bag. The political opposition can back the present administration into a corner on the most important issue, debt.

If that is the case with debt, then what else could they do it with?

To assume there will be a default is extreme, however within a week we will know. There are those in the political opposition that might go to any length to cripple the present administration.

The only conclusion that I can come to is that you should NOT take your gold hedges off. At $1764 a runaway gold bull market becomes an exponential run away gold bull market.

After $1754 Alf and Armstrong become the predictors of note for Gold at $3000 to $12,500.

Jim Sinclair of

Thursday, July 7, 2011

The Die is Cast

My Dear Friends,

Have you thought about all the dramatics now taking center stage in the media? What compromise will be adopted that will allow for the US to avoid default by raising the debt ceiling?

Raising the debt ceiling is the problem and not by at means a solution. The race between dropping revenues and increasing costs will not be settled by politicians that do not even understand the problem.

The resignations of key economic personalities in the present Administration is systematic of the solid nature of the downward spiral that has gripped Western finances since the failure of OTC derivatives turned a normal recession into a long term depression.

There is no event that will turn the tide of the ramifications for poor economic management. Nothing can stop Gold, Silver, the Swiss and the Cando now.

The present drama of tax increases and spending cuts, like the release of oil, means nothing whatsoever even in the medium term.

The damage is done as the damage is cumulative. Day to day events are irrelevant. Day to day market activity is interesting but meaningless.

The die is cast. All we can hope is that gold is not headed to $12,500.

Jim Sinclair

Saturday, June 18, 2011

Sinclair - You’re Out of Your Mind If You Sell Gold Assets Now

You don’t need one more thing to happen, you don’t need any more problems, you don’t need any more degrees of problems.  You’re in a situation right now where if confidence is to be lost, be it by the equity market taking an outrageous header, the price of gold will not only go to $1,650, $3,000, $5,000, but has the possibility of going into five figures based on just what we have here and now.  That’s what you need to understand.  That’s why if you let go of any of your (quality) gold shares, you let go of your gold, you let go of your coins, you are out of your mind.

- Jim Sinclair, as interviewed by King World News

Read the full article here:

Thursday, June 9, 2011

Gold to Exceed $12,500

"...A cessation of quantitive easing could open up the black hole of Calcutta for the general equities markets in a way that very few really understand.  You could see thousands of points taken off that market in a very short period of time.

The only way to overcome that would be by whatever name you called it to start the QE again.  That would be indicative of a total loss of control.  So the question is what would the price of gold be if it became publicly undeniable that control of the economic functions for the believers no longer resided in Federal Reserves and central banks? 

The answer is gold would do what it historically attempts to do and that is to balance the balance sheet of the United States of America’s external foreign debt...and when we do the calculations we come up with a figure that is in excess of $12,500.”

- Jim Sinclair via a King World News Interview

Monday, May 30, 2011

China SAFE Reports Monetary Gold Holdings Increased By $11 Billion, Or 30%, In 2010, As Gross Foreign Financial Assets Pass $4 Trillion

China's State Administration of Foreign Exchange (SAFE) has released its breakdown of 2010 international investments. In summary: financial assets abroad rose 19% last year to $4.126 trillion from $3.457 trillion. That includes the country's $2.914 trillion of foreign reserves at the end of 2010 as well as other assets such as direct investments, securities, and gold. As for gold, it increased by $11 billion from $37.1 billion to $48.1 billion, or a 29.6% increase (it is unclear if this number is at a fixed gold price or accounts for MTM). On the liabilities side, which increased from $1.946 trillion to $2.335 trillion, the biggest change was as a result of a surge in Foreign Direct Investment into China which increased by $162 billion to $1.476 trillion. Netting liabilities against assets leads to a net position of $1.79 trillion in external net assets.

- Read the full story at Zero Hedge, Here:

Thursday, May 26, 2011

The Mathematics Of Gold


Because gold is held by many central banks, once as a reserve currency but now as an inventory currency, it functions as a swing asset to balance the International Balance sheet of the US.

Central banks are sellers of dollars but still hold, by default, large dollar inventories.

China has hedged its dollar position 50% through commitments to long term dollar commercial agreements, pay in, mineral, and energy deals internationally. That is an act of pure genius.

We can assume other central banks still hold 90% of their reported dollar positions, on average unhedged by commercial obligation positions.

In crisis times, the US dollar price of gold ALWAYS seeks to balance the International Balance Sheet of the USA.


Take 90% of international US dollar debt less China and then add 50% of the US debt owned by China. Then divide that number by the ounces supposed to be owned by the US Treasury. The result is where gold wants to go.

In 1974 this gave me $900 gold. Now you do your homework, and submit your analysis to me. Do this, and I will give you Angels going to that price by a little known technique of Jesse Livermore that only works on gold after it has broken to a new high above all resistance.

Little by little I am passing on all that I have learned from Jesse through Bert to those that read every day in thanks for your support of me and mine.

- Jim Sinclair of

Monday, May 23, 2011

Don't Trade Gold. Accumulate it.

"Too many people who are new to the precious metals markets attempt to trade them.  Non-professionals are attracted to trading like moths to a flame and both are very dangerous.  The bottom line is to focus on accumulating physical gold and silver because at the end of this bull market what will matter is not how many dollars you have, but how many ounces of gold and silver you own.”

- James Turk, KWN Interview

Friday, May 20, 2011

China Is Now Top Gold Bug

Chinese investors are snapping up gold bars and coins, buying more than ever before in the first quarter of 2011 and overtaking Indian buyers as the world's biggest purchasers of the metal.

China's investment demand for gold more than doubled to 90.9 metric tons in the first three months of the year, outpacing India's modest rise to 85.6 tons, the World Gold Council said in its quarterly report on Thursday. China now accounts for 25% of gold investment demand, compared with India's 23%.

- Wall Street Journal

Thursday, May 19, 2011

Jim Sinclair - The View From The Bridge

From outside of North America looking back, the opinion in the Eastern world is that in the last month North America confiscated its citizen’s retirement funds and invaded a country.

The view from this bridge does not enjoinder confidence in the US dollar. It sees gold as a preferential storehouse of value rather than a currency of a spend thrift brute.

The view from this bridge sees traffic crossing it no longer from east to west, but now financially from west to east.

The safest place to be during hyperinflation is not in the midst of brutes, but amongst kind people.

In my opinion, the safest place to be is in Tanzania working, producing, giving employment and respect to the locals, working with the people for mutual best interests.

Times have changed. Change with them and prosper. If you choose to fight the change you will financially perish.

Respectfully from the bridge,


Wednesday, May 18, 2011

Peter Schiff - Mexican Central Bank Buys 100 Tons of Gold

When asked about the Mexican central bank purchase of 100 tons of gold Schiff replied, 

“What surprises me is that more central banks aren’t buying even more gold.  Central banks are loaded up with depreciating dollars, they need to buy gold instead.   The crazy thing is that I’m even hearing talk about the US selling its gold to help fund its debts.  That would be the worst thing we could do.  The last thing we would want to sell is our gold, I mean if we sold that then that would be it, we would have nothing.  The dollar would just become complete confetti.”

- Peter Schiff via King World News Interview

Read the full interview here:$50,_New_Shorts_are_Suckers.html

Monday, May 16, 2011

London Trader - Massive Asian Buying of Physical Gold & Silver

"Gold is not going to go down much further at this point, so you should not see an awful lot more damage to silver.  Shanghai just closed with a premium to gold just a few minutes ago.  If you look at what happened to gold on Friday, when did the smash occur?  After the fix, after London had gone home, suddenly 35,000 contracts came out on the sell side.  The Chinese and the rest of Asia along with London had gone home and paper was used to drive the price down."

"This physical buying is part of an increase in hard asset reserves for China and other Asian countries who are underweight precious metals and it is expected to continue for quite some time, most likely for many years.  Right now, each time we see gold under $1,500 the demand out of Asia is massive, they are huge physical buyers."

- London Source, Kind World News

Read the full article here:

Sunday, May 15, 2011

Zimbabwe Says Days Of The US Dollar Are Numbered, Pushes For Gold-Backed Local Currency

"Topping off a weekend of surreal news is the announcement from the Central Bank of Zimbabwe that the country is now evaluating introducing a gold-backed Zimbabwean dollar, and, in keeping with the Salvador Dali feel to the past 48 hours, that the "days of the US dollar as the world's reserve currency are numbered." Yes. Zimbabwe, the same place that two years ago sported a brand new crisp Z$100 trillion bill. What is just as odd is that this news comes less than a week after Iran's President Mahmoud Ahmadinejad criticized US economic policies, saying that the paper currency created by the American government is taking a heavy toll on the global economy. While Zimbabwe, which now transacts almost exclusively in foreign currencies such as the USD and the South African Rand, is actively considering ways to return its own currency into circulation, the man who has up to now served as an inspiration and a role model to Ben Bernanke, Gideon Gono, said the country should consider adopting a gold-backed currency. “There is a need for us to begin thinking seriously and urgently about introducing a Gold-backed Zimbabwe currency which will not only stable but internationally acceptable,” he said in an interview with state media... That giant ripping noise you hear is the Chairsatan tearing down each and every 20x10 poster of Gideon Gono, lining the hallways of the Princeton Economics department."

Read the full story at Zero Hedge here:

Saturday, May 14, 2011

Louise Yamada - $5,200 Gold is Long-Term Channel Target

“Well it hit our target at $1,500, so that is due for a rest in terms of achieving a target and than taking a little bit of a breather. But certainly $2,000 is next and we have higher targets over the long-term for gold. If you look at it from a very, very long-term perspective all the way to the early ’70’s when the dollar was delinked, the long-term channel line could take you to $5,200.”

- Louise Yamada via a King World News Interview

Read the full interview here:$5,200_Gold_is_Long-Term_Channel_Target.html

Friday, May 13, 2011

Forbes: Return to Gold Standard Within Five Years

“When it comes to exchange rates and monetary policy, people often don’t grasp” what is at stake for the economy, Forbes said. By restoring the gold standard, the United States would shift away from “less responsible policies” and toward a stronger dollar and a stronger America, he said. “If the dollar was as good as gold, other countries would want to buy it.”

Read the full story here:

Thursday, May 12, 2011

Central Banks Purchase 127 Tons Of Gold In Q1

"Most have heard by now that Mexico disclosed that back in Q1 it bought 93.1 tonnes of gold, increasing its total gold holdings from 7.1 tons to a whopping 100.2 total tons, a stunning move which was disclosed to have been done "in line with prudent diversification principles of reserves management." However, what is less known is that many other central banks, chief among them Russia and Thailand were also waving the shiny yellow metal in between January and March. And just as importantly, from the World Gold Council, from where this update comes: "The latest statistics show no significant selling by the signatory central banks in Year 2 of the third Central Bank Gold Agreement (CBGA3)." So no central banks sell, yet the daytrading retail public knows better. As for the key question of whether China is adding to its meager holdings of 1,054 tons, which put it behind the GLD, not to mention France and Italy, there is no update. Recall, however, that when China announced an addition of +454 tonnes of gold in April of 2009, this indicated stealthy purchases of the metal in the 2003-2009 period. In other words, China is very likely accumulating gold and the next update will likely come some time in 2015"

- Read the full Story at Zero Hedge, Here: