Jim Sinclair: 9 Immediate Predictions for Gold

Jim Sinclair is the doyen of gold experts. It is interesting to see a very clear timeframe for the gold price posted on his website yesterday:

1. Gold reacts as currency support for the dollar enters mid June to a slow decline (that is the official definition of a strong dollar policy, really).
2. End of 2nd week going into the beginning of the 3rd week of June Gold launches towards and this time through the neckline of the reverse head and shoulders formation.
3. Gold rises to $1224 where it hesitates.
4. The OTC derivative market takes on the dollar as short sellers into dollar support.
5. This OTC derivative currency short position builds.
6. t is the US dollar where Armstrong will get his WATERFALL.
7. The main selling takes place when Israel makes a major miscalculation.
8. Hyperinflation is always and will continue to be a currency event.
9. Hyperinflation will be a product of the upcoming massive OTC derivative short dollar raid.

"Should I be correct in the gold price action going into late June, it will fit Armstrong’s criterion for a move to $5,000", adds Mr. Sinclair whose predictions are not always right, and who got similarly carried away last summer.

But there is the old mantra in forecasting that if you repeat something often enough then it will be bound to happen in the end.

And to be fair to Mr. Sinclair, the gold positive scenario stacking up right now does look unstoppable.

Comments

[Market Sniper:]

Have followed Mr. Sinclair's career for over 35 years. Few know the mining and gold busness better. Over the years, he has had the broad strokes correct. Warning of the absolutely destructive nature of the derivative problem long before more prominent commentators took up the drum beat. But as a trader (and he is one of the best gold traders on the planet. Long ago he was the largest gold trader in Hong Kong), timing is everything. He may not always have the time frames correct (who does?) but he does know where this ends up. We may not know how and when we get to where this is going but we do know where it ends up.

May 28 03:28 AM

[ktchnsnk:]

on April 21st, you wrote:

"The gold price is poised to break through $1,000 an ounce this week and could reach $1,500 before a price consolidation."

Making predictions based on "very clear timeframes" just might NOT be your strong suit.

May 28 07:41 AM

[User 379122:]

Although supposedly GOLD has no stategic use. The psychological aspects cannot be overlooked!!! When panic erupts, (reality sets in) it will be the only acceptable means of trade!! Just like the Guards in Germany who only accepted gold coin to look the other way!!

May 28 08:36 AM

[HA65MPH:]

DO NOT FOR GET SILVER !!!!!!!!!

May 28 09:26 AM

[doubleguns:]

# 7 scares the hell out of me. A miscalculation of some magnitude could be the catalyst for the final collapse of the worlds stock markets and the result COULD be the proverbial GLD $5000.

May 28 09:36 AM

[yellowhoard:]

There are lots of whack jobs out there scheming to do horrible things.

All of the world's bankers are hoping that one of them will do something terrible to trigger the collapse.

Then they can shift the blame from all of their idiotic decisions of these last forty years to the "event" that triggers the inevitable fall.

The politicians would prefer an economic disaster caused by some external threat also. Then, instead of being derided for their incompetance, they will be cheered for leadership in a time of peril.

May 28 12:03 PM

[JCL:]

If #7 happened do you not think the government would not confiscate all physical gold as it has done in the past?

All other holding will be worthless and the physical will be confiscated. Now that is a reason to hold physical silver.

May 28 12:12 PM

[Hot Richard:]

Yes, there is a realistic chance the US government will confiscate physical gold (offering a below market exchange) and outlaw trading (they know you won't give up easy).

Holding silver is a hedge, but pleasepleaseplease understand that the state will sacrifice everything and take anything to preserve itself. That means you must develop a strategy that funds a relocation even if you must actually leave the country with nothing in your pockets.

Or, you can stay and help fund UAW pensions and bailout bonds at the expense of your own family.

Really, really happy I own gold, silver and oil.

There is substantial talk among the tin hat brigade that WWIII is the plan to solve the monetary crisis and usher in the NWO. Luckily, Li'l Kim isn't a big enough fish to warrant WWIII.

May 28 12:51 PM

[Steve in Gr...:]

Number 7 really means the following: Israel realizes they cannot rely on the U.S. to protect them anymore, so they preemptively destroy Iran's nuclear capability. The U.S., EU and UN all express grave concern, but do nothing. The Middle East erupts.

The consequences of the U.S. relinquishing its role as the world's policeman are 1) more war, 2) gold price up significantly (nominal and real) and 3) U.S. weapons manufacturers equities prices up significantly (nominal and real).

May 28 01:36 PM

[doubleguns:]

As I said earlier #7 is my greatest concern, I also think that the minute Iran ceases to exist oil will go through the roof, dollar will surge as every other country seeks safety in us dollar and treasuries. I am not certain what that would mean for gold/silver since my gut tells me that would ba a safe haven play too but as before not everyone with money in the world can buy PM's so dollar might get the bigger bounce initially and PM's could dip down. After wards I think it would depend upon the actual events and duration of the events that followed.

Dollar could be right back in the crapper 5 months out once the short term bonds matured.

I would not give up my metals, I would buy more in a dip.

May 28 01:47 PM

[sandspider:]

It would be settled if the bastards would just do the honorable thing and jump out the frigging window. Otherwise we have to deal with the criminals the old fashion way and go get some rope.

May 28 02:30 PM

[5142152-337:]

sandspider: Your soooooooooooooo right!

May 28 06:06 PM

[TERN:]

All this talk about Israel nuking when and whom it pleases...

Do you only look at this from from the point of view of gold price or the preservation of your wealth??

May 28 09:04 PM

[Panus Skept...:]

As belligerent as the current right wing wacko's are in Israel, I don't believe they will make the miscalculation that this scenario requires. Frankly, they can't get bombers with bunker-busters to Iran without overflying Iraq, and we won't let them do that. Nor do they really know where all the nukes are, so targeting info is completely inadequate.

Noises from Jerusalem right now are intended to do a number on Iran's head. They're not supposed to freak us out here in the U.S., and we shouldn't get confused by it.

This whole Sinclair exercise smacks of Armageddon Theology, which led to Reagan and Bush II's biggest mistakes. All this fear and trembling proves is that a slight fever can be exciting. It doesn't give you any kind of roadmap to riches.

Barrel of salt required.

Jun 01 12:48 AM