Wednesday, February 13, 2013

Jim Sinclair: Go All-In On Precious Metals

For the first time ever, Jim Sinclair has advised metals investors to go ALL-IN on further price weakness in precious metals, according to Silver Doctors.

Sinclair advises that "the gold boys" (bullion bankers) will soon flip their naked short positions net long, propelling gold to $3,500 an ounces (Doc’s note: and silver likely to $90).

Note: At the EPJ Daily Aler,t I have been advising that gold has been selling-off because of a flight "away from safety," rather than simply because of short-sellers.  I expect the sell-off to reverse itself once price inflation becomes more obvious---within months. I don't have a specific target for gold but an eventual climb to $3,500 or even, within a couple of years to $10,000, wouldn't surprise me.


12 comments:

  1. I own physical gold and silver and hope the price does not go up! Life will become very difficult for everybody once the price does explode, even for the people holding the phyz.

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  2. I agree with Anon 2:29pm, sadly. I feel good about my metals position and still believe it was the smartest thing possible under the circumstances, but I worry what a world where Gold is 3500 $ + will look like.

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  3. Amazing. Two people had the same thought process as me. I get a sick feeling in the pit of my stomach thinking about where we are headed when the prices go nuts.

    Oh well such is life. Got to take the good with the bad. Unfortunately it apears we have a lot of bad coming our way and really not much we can do about it. Prepare your head to deal with is about it. A few oz of gold isn't going to make it like living easy street, but its better than hoarding paper.

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  4. He's been saying this for so long now ... and for all kinds of reasons, i.e. a Romney Election and gold goes to $3,500; a Bernanke resignation and gold goes to $3,500. He's been saying this $3,500 for years and years ... what makes this time different?

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    1. because although austrians cant really pinpoint exact outcomes, their methodology allows them to anticipate trends i.e. artificially low interest rates stimulate the housing boom, govt stimulus/QE will try to grow the economy, etc. theyve been right so far... if you look at austrian business cycle theory, the bust can be post-poned by additional pumping of cheap money into the system but it cant last forever, eventually a recession/crisis must occur. either deflationary or inflationary. wenzel is betting his money aka gold it seems on the latter, along with peter schiff and other austrians. there are several different outcomes... which do you side with?

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    2. You must not be aware of his $1650 call back in 2003. At the time gold had been in a 20 year bear market. It was trading around $300 and the economy was flying high. People were cashing in on real estate and everything was on the up. No one wanted to hold gold.

      Sinclair called $1650 gold by January 15, 2011. Eight years out and again with gold trading around 300 and below for the previous 20 years. He missed it by 6 months. Give me one example of an investment call with this type of price and date accuracy.

      He made a similar call back in the late 70's with gold. But I believe he "missed" the top by something like $13.

      I follow Sinclair regularly, he did not start calling for $3500 until about 18 months ago. It hasn't been years and years.

      Do yourself a favor, stay away from gold. You know better than a guy who has 50+ years experience and made two great calls in the metal.

      -Craig

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  5. This time isn't any different.

    "In 1977 James Sinclair boldly predicted that gold would rise from $150 per troy ounce to $900. Gold never reached that mark, but it came close on Jan. 21, 1980, peaking at $887.50. The next day, says Sinclair, he unloaded his entire gold position, personally netting $15 million. Pointing to the U.S. Federal Reserve's efforts to fight inflation, Sinclair then predicted at an annual gold conference that the metal would languish for the next 15 years. It did. On Friday, Jan. 20, 1995, it closed at $383.85." --- Forbes, December 10, 2001.

    Around 2005 or 2006, he started saying gold would reach $1650.He remained consistent for years until it did reach $1650.

    About 6 months ago he put a new target on gold of at least $3500. Why? Because they continue to print money, and they can't stop without destroying the system.

    You ignore this decent man at your peril.

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    1. In 2009 Sinclair began hinting that gold would reach $3,500. From 2009 to 2012 he was silent about that number. His first formal declaration of that target occurred on July 4, 2012: "My Dear Friends, Gold will go to and above $3500. This is the most important message I have sent you since 2001. . ."

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  6. Sinclair also called the bottom in 2001. If there's one guy you want to listen to as far as gold's concerned, it's him.

    http://www.forbes.com/global/2001/1210/064.html

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  7. According to Martin Armstrong, Gold is a hedge against government, not inflation. The correlation between gold and inflation is around 15% on a quarterly basis. Less confidence in .gov = higher prices. We are in a period of stagflation, not hyperinflation. Think about it.

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  8. Some questions: What do you do when the price of metals explodes??
    -- you don't want to sell it for worthless dollars? but if you just hold onto it do you gain anything?
    --my thought was to try and purchase land after the prices explode, but wouldn't the price of everything relative to the dollar explode too?? or will the metals act independent of other commodities because of their inherent value?

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  9. Funny how so many here worry about the gold price "exploding". Today gold is down another almost 2% to barely over $1600. The forecast of gold's massive surge looks worse by the day. But I am sure Mr. Wenzel will find some "special factor" or vague government malfeasance to wiggle his way out of it as he has in the past when forecasting increasing "price inflation". Note that the cop-out here is that it's not "obvious". Well, the gold price fall is.

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