Tuesday , 21 May 2024

Goldrunner: My Interpretation & Assessment of Jim Sinclair’s Recent Comments (+2K Views)

Jim Sinclair is as good a source of the market fundamentals as anybody out there.  Some of his comments can be a bit confusing, though, but that usually is the result of his attempt to economize words.  I don’t intend to be negative, but sometimes Sinclair leaves things vague enough that it can be interpreted in more than one way.  Let’s take a look at some important comments that Sinclair has made recently.

So writes Goldrunner in his latest note to subscribers posted on www.munKNEE.com with his kind permission.

Someone recently asked me why I often note things that Sinclair has said, and why I have recently seemed to become less positive about some of his comments.  The reason I often refer to what he says is simply that he is as good a source of the market fundamentals as anybody out there. That being said, I guess that practically anything I say about him can be seen as negative but I certainly hold Sinclair in the utmost regard so here goes.


Sinclair says: “As the premium on physical gold remains above the cash spot futures contract including shipping and insurance to destination, the demise of paper gold is certain. The emancipation of physical gold from fraudulent paper gold is in process right now.

Emancipating physical gold is freeing gold. Free gold is the final product of this transition. Forget argumentation as the phoneme in process has its foundation in granite. This process is taking place in the world markets, today, right now!

It is an undeniable fact and shock to the paper trader as they manipulated the paper price of gold sharply lower kick starting this major monetary shift. These paper traders have initiated the transition to Free Gold. The paper gold traders have fashioned their own economic demise. For the COMEX that is what would be expected.”

Sinclair is simply saying that it is time for Gold to go into free-rise late in the cycle, like 1979. Sinclair uses the word “manipulation” of Gold and Silver where we use the term “complete management of the markets.”  That complete management extends into practically everything including interest rates, unemployment figures, the inflation rate- everything, one way or another.  I don’t like the term “manipulation” because it seems to refer to only one thing.


Sinclair says: “The Comex will not fail. What will occur will be similar to what happened during the Hunt crisis in 1980. The change will be in the delivery mechanism of gold on the Comex. The change will be to cash settlement and or 100,000 share lots of GLD. This will have the effect of changing the price identification mechanism for gold to the physical metal away from no gold paper gold. this is a very important as it represents the freeing of physical gold from manipulation via fraudulent people and paper.”

We have maintained this all along.  The COMEX Futures Exchange is NOT a Gold market, but a paper market that can at any time see a paper expansion in supply to manage the price of Gold.  The paper gold market has always been this way.  Thus, one buys a lotto ticket with a price and date stamp; but “price” can be jimmied into any time period.  It might be worse now that Glass Steagall has been repealed.  In 1980 the paper gold silver and futures market changed the rules to “no new long positions.”  The paper Gold and Silver futures market settles mostly for Dollars, anyhow, so I am sure that they have that legal option, too.  I don’t see the big deal, here.  Gold is going vastly higher in price, and we know the reason why.  Nobody has to “force Gold higher” for Gold to go parabolic.  If anyone were to force Gold to go parabolic prematurely, it would probably be the end of life as you know it!


Sinclair says: “No civil suit concerning OTC derivatives can survive the daylight of open court. All settle because a close look at the instruments would reveal fraud in terms of the impossibility of them to perform as advertised to the buyer.”

More complete management/ manipulation, here, as well.  In fact, the OTC Derivatives were sewn in place to force Europe with only 2 choices; 1) Austerity 2) Debt monetization/ QE.


Sinclair says:

“First the Great Flushing -2009.

Second is the Great Leveling – 2016.

Third is the Great Reset – 2020.

Biden was speaking about number two, the Great Leveling.

The elite do tell you ahead of time what they intend to do if you have ears to hear.”

No doubt that the great flushing into late 2008 was created so the Fed could gain the right to print to infinity via debt monetization/ QE.

I am not so sure about “the great leveling into 2016” being about “bail-ins.”  It seems to me that the “great leveling is through Dollar Devaluation from late 2008, on.”  If so, then the “Bail-in” is more about psychological control than anything else– yet, we will have to wait to see.  So far, it appears to be another form of deflation psychology, rather than actual fact.

The great re-set has always been expected.  It simply means that some form of “value” must return to the paper currencies if the Paper Currency Cycle is to continue.  If the “value backing” is of a paper nature, then the free-floating paper currency system will essentially remain intact- ready for da boyz to continue to run the cycle.  Yet, it is reasonable to expect Gold to remain relatively permanently high in price with that re-set.   The real re-set in the great re-set will be the permanent devaluation in most asset classes that comes with the great paper currency devaluation.   In effect, the great re-set in terms of value will likely compare to that of the 1929 Era, percentagewise.


1)      Doom and Gloom sells, big-time, and is the major psychological control device for the Fed.  The Fed has a gazillion accomplices who scream “FIRE” on demand.

2)      The Fed has continued to print while they lied about the fact in order to sell deflation if debt monetization is not accelerated, both here and abroad.  They are selling doom and gloom to get the people to demand to do what they want to do anyhow to gain plausible deniability.

3)      The doom and gloom writers jump on the ship to call for market crashes, for worthless Gold, etc.- time and again.  Investors get scared so they cannot think clearly.

4)      Sometimes Sinclair magnifies all of this at a time of weakness for individuals.  I don’t think this is necessarily healthy, nor does it provide proper leadership.

5)      Sinclair is extremely intelligent, knows the markets as well as anyone, and has deep experience in all life and market matters.  Yet, all of the advice to move your money to “the Bricks, or quasi-bricks”, to move your Gold to foreign lands, or to move yourself to Tanzania; simply comes from a different world than what most individuals could possibly wrap their heads, or family, around.  Thus, I’d like to see Sinclair mix in what the average family in the U.S. and other countries might realistically do.  I know of one man who decided to move far South in order to protect himself from all of this.  His risky plans cost him his life in a foreign land.  Not good.  Very high net worth individuals need to listen to Jim, but they should have the contacts to pull it off.

6)      Sinclair thinks in terms of “worst case scenario”, and I understand that since in daily life, it is the first think I look at.  Yet, what is a realistic concept for the future for the average person in the U.S. to consider?

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Here are my comments to all of the above.

A)      TPTB also looks at worst case scenario and probably took decades to plan to counter it.  Thus, all of the monitoring of e-mails, phone calls, and social media is designed to protect them.  If they can’t control guns, then they control ammo.

B)     We have 2 choices at this juncture, a deflationary depression or aggressively devaluing the paper currencies to morph the K-Winter into a stagflation state.   I much prefer what they are doing to deflation since millions would die.  The time to change the system would come at the end of this cycle.  The above 2 options define our “reference points.”

C)     We know from the fractal historical perspective that most everything in the Western World will be devalued by a further 70 to 75% going forward if the great devaluation is to be successful.  This means that people will lose about 75% of the value of most paper instruments, at least for a short period of time.  Thus, bank accounts, certificates of deposit, life insurance, general stocks, bonds, and on, and on- are included.  If so, then how would a “bail-in” compare to losing 75%?  That is your potential worst case scenario reference point if you keep money in a bank or brokerage.

D)     We have talked about the historical rotations in value at this point in the cycle.  If you want to buy Gold or Silver to protect yourself, then go do it.  The futures paper gold price is helping you at this time.  If a 5 or 10% premium slows you down, then you are completely missing the point.

E)      There is absolutely NO Insurance that will protect your paper assets from a DEVALUATION.  The Fed has you looking left at “bail-ins” while your bank account is to the right- threatened by a gross devaluation.  If you get caught like a deer in the headlights, then you get the devaluation of 70 to 75%.  This, I believe is the real issue.  If you want to protect a whole life insurance policy, then you’d have to move to a term life insurance policy and invest the cash portion into something like Gold that you hold in your hand.

F)      Practically nobody is moving to physical Gold and Silver.

G)     If the Fed is going to ramp up the Dollar Devaluation, then they must force Gold up in price.  If Gold and Silver are going dramatically higher, then the Gold and Silver Stocks are going to go parabolic, also.  I see absolutely nothing to suggest otherwise.

H)     The COTS- There is a lot being said about the paper gold futures positions with a huge number of “Commercial Shorts” gone missing.  Little doubt that the short leg of the spread has been dropped by those driving paper gold shorter, yet as I have noted before, these guys can be short Gold in different markets.  Still, they will always show you what they want you to see, and Europe appears ready to ramp up the QE printing press.  If so, Gold is ready to take off.

Other Sinclair Views:

1. Jim Sinclair Recommends You View These 3 Presentations on Gold


The 3 videos presented here sum up where we are, why gold was bombed, why technical analysis in gold is a major waste of time and the direction we are, without any doubt, going. They build an argument that screams that you should not sell your physical gold or gold producers with political sensitivity, cheap cost of production, and near surface gold and, instead, either initiate or increase your gold and unique gold producer position. Read More »

2. You’re Being Played! Don’t Sell Your Gold! It’s Going MUCH Higher – Soon!

The paper gold market is being used to shake the bullish tree harder this time than any time before because of what is to come.  Fear is the most powerful emotion in markets and it is being used perfectly to enrich the grand names of finance at your expense. We are right in front of that time when the market performs a classic bottom both in shares and physical. From this point gold is going to and through $3500 [so] if you are unable to buy at this time there is one thing you can do – to get into the fight and out of the stands. That act is do nothing, and do not capitulate. Let them play the price game, but give them nothing whatsoever of yours. Words: 758

3. Sinclair: Silver’s Rise Will Be Orgasmic; Gold Is a Buy Below $3,500


While $500 silver probably won’t happen its rise will be orgasmic – a rapid climax rally followed by a dramatic decline. Gold will be a buy up to $3,500. Read More »

4. Jim Sinclair: This is War – Don’t Play Their Game – Stand Firm – Stay the Course – Gold is Going to $3,500!

There is a nasty game taking place which relies entirely on scaring you out of your wits. Yes, out of your mind, so you sell something of great value for peanuts to the exact party playing with your head via price. When you must look at the action, remember there is a buyer for every seller. That buyer is not scared out of his/her wits if you sell to stop the pain you are in. This period is, in my opinion, the last and largest attack you will see perpetrated on us before gold closes over $3500. This period of pain will not be measured in months, but counted in history as days. Stand firm and stay the course! Words: 787 Read More »

5. Jim Sinclair: Gold & Gold Share Bearishness a Contrarian’s Dream


Gold will not be confiscated because it becomes a major asset of the insiders. Gold producing companies with low cost operation will enjoy the leverage common to that industry in what is about occur. The amount of bearishness now developing in gold and certainly in good gold shares is the ultimate contrarian’s dream about to come true. Words: 968 Read More »

6. Jim Sinclair: ‘The End Is Not Near, It Is Here and Now’

Jim Sinclair is now warning… that ‘The end is not near, it is here and now’ in reference to the global financial system…[and] reiterating his long held view that there will be “QE to infinity” despite the denials of Bernanke and other central bankers.  [He also has some interesting things to say about gold and alarming things to say about the euro. Read on.] Words: 305 Read More »

7. Sinclair: 1980 Was Just a Dress Rehearsal!

In this extraordinary interview Jim Sinclair lays out precisely what investors should expect in the future from policymakers and in the gold market and why. He takes listeners from where gold is trading today, through the rest of the bull market, all the way to the conclusion. Read More »

8. Sinclair: Gold Will Win Out and Rocket Up in Price by 2015

Lorimer Wilson with Gold Bar

Jim Sinclair had an interview with King World News today which a number of friends  of Lorimer Wilson,  editor of www.munKNEE.com (Your Key to Making Money!) and www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) discussed at length with one of them, Arnold Bock, putting together this synopsis of what Sinclair was conveying. Read More »

9. Jim Sinclair Sees Economic Train Wreck Coming – Slowly but Surely!


James Turk, Director of The GoldMoney Foundation, interviewed Jim Sinclair recently at the GATA conference in London about his successful gold price predictions, the U.S. debt problems, how to ride the second phase of the gold bull and the gear change from arithmetic to exponential growth as public perceptions about the safety of the US dollar changes. Below is a heavily edited and paraphrased version of the interview to provide you with a fast and easy understanding of its contents. Words: 1318 Read More »


  1. Why are Central Banks still buying Gold?

    Maybe gold wil be marked to market = freegold

    ==> http://en.wikipedia.org/wiki/Freegold



  2. The majority of the Public will soon wake up and join the rush to return to PM’s, as investors realize that they have been played by the Central Banks in the name of Fiscal Recovery (Theirs Not Ours)…

    I posted this yesterday:

    Beware all those that encourage you to divest your PM’s just because the Central Bankers are fiddling with the charts most use to track the relationship of PM’s to the US$.

    I believe we are seeing a Global effort to drive PM’s downward so that the big Central Banks can scoop most of it up at bargain prices, so they can further promote the use of their own paper money!

    The long view of PM’s is one of security, not PM bashing by those printing paper money…

    and I posted this on 06/01/13:

    f you don’t think that PM’s are now being manipulated by the Central Banks, then I agree that you should not be investing in PM’s!
    If you believe that printing paper money cannot go on forever then what is happening now is nothing but a huge buying opportunity!

    My gut feeling is that when the PM “reversal” happens, it will be so extreme that most small investors will not be able to jump on-board before the prices have skyrocketed relative to where they are currently, due to the market dynamics that favor the really big investors.

    Here is a great PM question for you, Are the Central Banks still buying Gold, and if so why?
    I look forward to your comments!