Jim Sinclair sounding off: "At $1650 I will take my leave" (OK, whatever guy).

[Guest]

Gee, he sure doesn't sound too positive about silver going in here, eh? A forum member mentioned to me that only a few weeks ago Sinclair opined on his own pages that silver was a monetary metal just like gold. Oh well, when the going got to be a bit of a slog he jettisoned that idea pretty quick. "It's just too heavy" he says. And then "(we will see a) Weimar Republic, but this time it is on a planetary basis.". Oh well, it was a nice story while it lasted.

Posted On: Wednesday, October 15, 2008, 9:28:00 PM EST Upcoming Events In The World Of Gold - Author: Jim Sinclair Dear Friends, There is one simple but extremely dangerous error being made by the man who is the world's greatest expert on the time period and economics of the Great Depression, Dr. Bernanke, Chairman of the Federal Reserve. The Chairman is an expert on the history and consequences of that period. He is being guided by this deep knowledge, yet is totally oblivious to the consequences of the alternative actions he is taking to not make the same errors as the 30s. This is all in his attempt to prevent his president from going down in history along with other failed economic leaders. The unprecedented creation of infinite dollars for the purpose of flooding the world's entire financial system is causing the birth an inflation of types unknown in a modern economy. The test case for the CONSEQUENCES of present united central bank actions is the history of the Weimar Republic, but this time it is on a planetary basis. CONSEQUENCES cannot be avoided by any means. They are economic equal and opposing forces. That is simple fact. In an attempt to avoid what the Chairman see as consequences of incorrect central bank action in the 1929 - 1933 period, he is creating new and infinitely more dangerous, longer lasting, society changing, politically provocative new sets of unexpected economic CONSEQUENCES. The only number that might compare to the nominal value of all OTC derivatives is a count of all the individual plankton in all the oceans of the world and then only maybe. The world will never be the same because of the greed of these 29 year olds and the old goat bosses who sat at the long desk of the board of directors while looking the other way. Upcoming events: As a result of "This is it and It is NOW": US exchanges will be closed. There is a chance all world exchanges will close down. Only gold and currencies which are planetary markets will continue to trade. Retirement programs will not pay off. Medicare and Medicaid will at best buy you a bandage or pay for 1/4 of a visit to a free clinic. Social security, due to the massive upcoming inflation, will provide no security for any society. Money Market Funds will not pay off. A CD is a gift, but not to you. Unified central bank action has a short life. Central banks will soon revert to the strategy of everyone for themselves. 401Ks not self directed are headed for the toilet forever. Exchange Traded Funds will not return the assets upon which it is based to you. Sliver will demonstrate the fact that it is more industrial a metal than precious. Silver is not a currency because it is simply too HEAVY to settle debts or to be universally fungible. Silver performs best when there is reasonable industrial demand and distrust of currency. When this happens rounding up the gang and their money will have a lot to do with which party is elected. Credit card companies are going to have to be bailed out. GE Capital is a nuclear capable entity that has the capacity to take down the good old toaster and refrigerator manufacturer - SIGMA ZERO. GE Capital is a huge OTC derivative dealer but somehow I do not recall that fact being discussed. Gold is the only Honest Money because it has no liability attached to it. Gold coins are the best way to own gold for the average investor. When you select a junior gold, I would look for the highest quality, most bashed, highest short positioned, with real assets and real people devoid of pussy management. The situation is best if it is based in another country than the country you live in while doing business in a third and trading in multiple areas. The benefit is obvious. Nobody ever did or will ever trade items as insurance. That is a form of madness. At $1650 I will take my leave, having been with you to the point I promised. The only place you will find me then is at my place of business on the ground or the web. There is no question that gold will trade at or above $1650 by January 14th, 2011.

[Jim Nickerson]

Re: Jim Sinclair sounding off: "At $1650 I will take my leave" (OK, whatever guy).

It's damned near impossible for me to find anything or to look at any data and be happy from doing so with regard to the future of investments.

This is from Hussman's Sunday night weekly comment.
http://www.hussman.net/wmc/wmc081013.htm

Stocks are now measurably undervalued 10/14/08

Investors will berate themselves for the panic they are now exhibiting. This, from an advisor that has adamantly argued for over a decade (with the exception of 2002-2003) that the stock market was strenuously overpriced and likely to deliver disappointing long-term returns. My impression is that investors who abandon properly diversified and carefully planned investments here, with the stock market already down by nearly half, will regret it as the emotionally panicked decision that wrecked their retirement prospects.

Long-term shareholders will recognize the following chart, which is an update of our 10-year total return projections for the S&P 500 Index ( standard methodology ). The heavy line tracks actual 10-year total returns. Note that the total return for the past decade has been zero, right in the mid-range of what we projected at the time. The green, orange, yellow, and red lines represent the projected total returns for the S&P 500 assuming terminal valuation multiples of 20, 14 (average), 11 (median) and 7 times normalized earnings. Stocks are now at the same valuations that existed at the 1990 bear market low. Relative to 30-year Treasury yields, the S&P 500 is priced to deliver the highest excess return since the early 1980's.

My problem is I don't believe anybody most of the time.

[makkie]

Re: Jim Sinclair sounding off: "At $1650 I will take my leave" (OK, whatever guy).

well, Jim Sinclairs remarks regarding silver are a blast !

[ryph]

Re: Jim Sinclair sounding off: "At $1650 I will take my leave" (OK, whatever guy).

i have been following sinclair for years now, and ive never come across a reco for silver from him.

here's something from a post in early 07:

But with my apologies to the silver producers, silver is a game, gold is a currency.

http://www.jsmineset.com/ARhome.asp?...23&T_ARID=4692

[Charles Mackay]

Re: Jim Sinclair sounding off: "At $1650 I will take my leave" (OK, whatever guy).

Yeah, I find no contradictions in Sinclair's statement. I think this latest upwards correction in the gold/silver ratio supports him.

[Guest]

Re: Jim Sinclair sounding off: "At $1650 I will take my leave" (OK, whatever guy).

Charles - alas, silver is known as the "cantankerous metal". She is a stubborn and contrary mule, who only occasionally turns into a racehorse. The question remains however, as to whether we've ever witnessed a silver price get stretched out beyond the 100 / 1 ratio in ounces compared to gold. I believe the answer to that question historically is "no" and that encompasses a lot of global crises before this one. Will it be different this time? Possible, but not probable. Probability instead would suggest that once the 100 oz. / 1 oz. ratio is reached, it would tend to diminish thereafter, no?

Yeah, I find no contradictions in Sinclair's statement. I think this latest upwards correction in the gold/silver ratio supports him.

[Charles Mackay]

Re: Jim Sinclair sounding off: "At $1650 I will take my leave" (OK, whatever guy).

Hi Lukester...

Yes, I agree with you. We are at that higher band between 80 and 100 on the ratio which is never surpassed ...and I think silver holders are safe from here on out. Not too bad to have some small denomination stuff around and the ratio can't hurt you much from here on out. $3000 gold would imply $30 silver in the worst case scenario and probably more like 50:1 or $60 silver. What other portable non perishable item can you hold that is going to give an x6 ??? :rolleyes:

[Guest]

Re: Jim Sinclair sounding off: "At $1650 I will take my leave" (OK, whatever guy).

Nice chart you posted on EJ's thread Mr. Mackay. We do appreciate your macro calls around here!

[Spartacus]

Re: Jim Sinclair sounding off: "At $1650 I will take my leave" (OK, whatever guy).

is this chart corrected for excessive premia, or is it for 1k oz bars (little premium at the moment, but only if your dealer has any)

Yeah, I find no contradictions in Sinclair's statement. I think this latest upwards correction in the gold/silver ratio supports him.

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[Starving Steve]

Re: Jim Sinclair sounding off: "At $1650 I will take my leave" (OK, whatever guy).

well, Jim Sinclairs remarks regarding silver are a blast !

I just love your picture, so a big hug for you.

[Starving Steve]

Re: Jim Sinclair sounding off: "At $1650 I will take my leave" (OK, whatever guy).

Can you imagine what an appointment of Paul Volcker to head the Fed could do to silver in the next few months? And this is a high probability scenario, especially if Helicopter Ben keeps flooding the world with U.S. dollars and if the economy continues to sink into a black-hole. Rising inflation and economic stagnation (stagflation ) would mean Helicopter Ben is on his way out. And good riddance to another Republican!:p

It is always risky to put numbers on things, but for sure: $6 silver and $600 gold is in the cards, especially if Obama replaces Bush's man at the Fed.

[phirang]

Re: Jim Sinclair sounding off: "At $1650 I will take my leave" (OK, whatever guy).

Can you imagine what an appointment of Paul Volcker to head the Fed could do to silver in the next few months? And this is a high probability scenario, especially if Helicopter Ben keeps flooding the world with U.S. dollars and if the economy continues to sink into a black-hole. Rising inflation and economic stagnation (stagflation ) would mean Helicopter Ben is on his way out. And good riddance to another Republican!:p

It is always risky to put numbers on things, but for sure: $6 silver and $600 gold is in the cards, especially if Obama replaces Bush's man at the Fed.

The Fed giveth and taketh away: those "dollars flooding the market" can just as easily be recalled.

Otherwise, you can continue to follow Jim Rogers' advice... want some Australian dollars?

[LargoWinch]

Re: Jim Sinclair sounding off: "At $1650 I will take my leave" (OK, whatever guy).

I just love your picture, so a big hug for you.

Silver has always been a monetary metal.

If gold hit $5,000/oz, silver will really shine because the populace also needs money.

For now I agree, silver is bulky, BUT to pay for groceries with 0.001g of gold during a high-inflation period will not be of much help. The answer: a silver eagle.

[grapejelly]

Re: Jim Sinclair sounding off: "At $1650 I will take my leave" (OK, whatever guy).

silver always goes up spectacularly near the end of each gold rally. It also reacts more to the downside than gold. It will have its day. When gold is propelled to the stratosphere by the flight into tangibles, so will silver.

Platinum tempts me. I wouldn't mind picking some up.

[Nicolasd]

Re: Jim Sinclair sounding off: "At $1650 I will take my leave" (OK, whatever guy).

Hello Luke,

Jim Sinclair kinda redeems himself tonigth and tries to clarify his opinion to some confused sheeps regarding his comments of late regarding silver by saying not to give a bearish interpretation to his comments.

Sounds like zig and zag to me but since I was not the brigthest bulb on the christmas tree as of late :eek:, it's kinda hard to critique him.