NEW YORK (Commodity Online): The gold price boom in the last one year has turned several commodities analysts into bullion experts. But when it comes to consistent forecast of gold price, everyone loves to listen to what Jim Sinclair utters. A seasoned gold bull, Sinclair has been arguing all these years that gold is real money and thus gold price is headed for a boom.
Sinclair recently blasted those have been clamouring that gold price was sitting in a bubble. Jim Sinclair is primarily a precious metals specialist and a commodities and foreign currency trader. He founded the Sinclair Group of Companies (1977), which offered full brokerage services in stocks, bonds, and other investment vehicles. The companies, which operated branches in New York , Kansas City, Toronto , Chicago , London and Geneva , were sold in 1983.
From 1981 to 1984, Sinclair served as a Precious Metals Advisor to Hunt Oil and the Hunt family for the liquidation of their silver position as a prerequisite for the $1 billion loan arranged by the Chairman of the Federal Reserve, Paul Volker.
Here are some quotable quotes from Jim Sinclair on the gold boom:
Einstein said there are but two things infinite. One is the universe and the other is man's stupidity. He did however say he was not so convinced about the universe.
Gold goes down and the dollar is bought on news that China has the guts to do the right thing concerning increasing bank reserve requirements. The USA has all but eliminated them.
Note the cause and effect discussion here regarding the renminbi and the direction of the US dollar. China will do the right thing with their currency when they determine it to be the right time and in all probability they will be correct as to timing and price.
The 2006 Formula is at work, and will continue to do so because the Western world central bank intervention is not focused on the real problem. The problem was the fallout and back blast from OTC derivatives.
No fix has occurred whatsoever.
A downward spiral stops only when the intervention is focused on the cause of the spiral, not making people whole who caused it all in the first place.
The yearend dollar rally has no fundamental pulling for it anywhere.
Gold is headed to and through $1224.10 to $1274-$1278 and then on to $1650 and above.
The gold market will always be the gold market, an emotional affair.
China does exactly the right thing to maintain its economy and the China Bashers all yell bubble blown.
The next is even better.
With respect Mr. Junming, a sovereign fund manager (generically, the biggest pigeons in the financials), you are totally wrong. In fact you are absolutely bonkers, more than likely talking your position and quoted for MOPE purposes.
The comments by Peng Junming, who works in the asset allocation and strategic research department at China Investment Corp, triggered a rally in the U.S. dollar.
I think the dollar is at its bottom now. There will be very limited space for the dollar to drop further, he told an academic forum. The yen is what, I think, has the worst outlook. The yen will continue to drop, unlike the dollar, which will not serve for long as a source of funding carry trades.
MOPE finds some obscure Chinese fund manager who hates gold and loves the greenback and blasts it all over the place.
The COMEX crowd grabs the bunks and runs the underfinanced longs. What a joke in light of the fundamentals below.
Gold is going to and through $1224.10, $1274 -$1278 and on to $1650 on or before January 14th, 2011. The US dollar is TRASHED by the many administrations of Keynesians.
Judging from recent criticisms of Greece, close attention to economic statistics and the revisions thereof might be another criterion in maintaining a AAA rating.
Dollar strength, like all currency unit strength, has a direct relationship to the quality of that country's debt. Therefore the dollar rally might be said to also depend on the US cutting the Federal deficit by curtailing Federal spending immediately; an oxymoronic concept in itself.
Once the 28 year up-trend in the USA long bonds breaks down, rallies can be shorted with impunity.
The final Pillar of Gold's major bull market and price appreciation to $1650 and above will be set into place.