- Jim Sinclair is correct. Do not be deceived into thinking the bullion cartel wants to depress the price of gold perpetually. They thrash the price of gold to support their global reserve currency the USD. But their plan calls for the USD to be replaced by a One World Currency backed by gold. They are accumulating physical gold while manipulating the price lower ie. buying at cheap prices. When it is time for the petrodollar to fall, they will switch over to naked long from their humongous naked short paper positions. Gold will roar higher against all fiat currencies. Hyperinflation will kick in!
Change In Spread Management By Bullion Banks Will Send Gold Prices To $3,500-12,400 Says Jim Sinclair!
by Peter Cooper, Arabian Money, via http://www.jsmineset.com/
‘Mr. Gold’ of the 1970s, Jim Sinclair, the one-time adviser to the Hunt Brothers who cornered the silver market then is flagging up an imminent change in the way the bullion banks manage their spreads, something he feels is inevitable from his own long experience of the business.
In his latest missive, Mr. Sinclair explains: ‘You must note how central banks are either buying or protecting their gold reserve positions now. This is total about face two years ago. There is another change coming which is a replacement monetary system and the need for some asset on central bank’s balance sheets to have positive value, especially in the USA. Soon all that is required is a change in spread management by the gold banks and you will have whatever price the gold banks want from $3,500 to $12,400.’
Spread management is rather technical for non-industry specialists. This is the profit per ounce when gold is sold, and the bullion banks juice this profit by taking both long and short positions in the marketplace to improve their real profit.
What Mr. Sinclair foretells is an upcoming move by the bullion banks to dump their short positions and go fully long, remembering how it worked for him at the top of the 70s’ bull market. At that time he instructed his team: ‘Take every short off the spread making us naked long. This was when the gold price broke $400 the second time over, running like a bunny to $887.75.’