One of my close friends is furious with Jim Sinclair. He says, “He’s lost all credibility with me forever.” “How on earth will we ever beat them?” I guess no one has a lock on the short-term price of gold, up or down. Not even Jim, “the greatest gold call of all time” Sinclair. After his $1,650 call, many years ago, Sinclair had attained near-cult status.
I told my friend, “I promise you, if gold takes off in the next week or two, most people will be thrilled; it will have been a very good call. He may not have finished first in the horse race, but there is still time for his call to ‘show’ or ‘place.’” A few weeks late still gets a “pass” from me. Also, I am totally in his camp and do expect gold, when it breaks the grip of the Cartel, to move rather quickly back to the $1800 and higher range.
Yes, he missed his call ($1,600 will be in the rear-view mirror by March 27th), but gold is still hanging around $1,600. If it falls back $10 or $20 and then moves up, as Sinclair predicted, what’s the big deal? Actually, I’m relieved. This forces the people who are looking for a 100% sure short-term psychic will have to step back and do two things: First, understand that in manipulated markets, there is no such thing as a short-term crystal ball and second; the bullion banks and hedge funds that Sinclair constantly takes to the woodshed should be EXPECTED to do everything possible to make sure his prediction does not come true. I saw the same thing happen to Bill Murphy (LeMetropole Café) with Golden Star and every single stock he touted and had large positions in. They were crushed, and this was at a time when a majority of the mining shares were powering ahead.
As always, I ask myself, “What’s changed?” Nothing! No matter how bad the headlines are (and things are always way worse than the headlines) the Dow is unfazed and moves up. No matter what is happening in Europe or here in the US, gold is subdued.
If you are one of those who is worried, “How on earth will we ever beat them?” then you are ignoring all the information that we offer you. You are ignoring the fact that we have been beating them since 2001! The decade-long charts clearly show that the Dow is up less than 10%; gold is up over 500% and the dollar is down more than 35%. The last six months are but a blip on the big picture canvas. And NONE of the issues that fueled gold’s rise have changed or improved. None.
In 2005 I took out a six-figure fixed, interest-only mortgage on the new house we were building rather than sell my gold, at the then-price of $500 an ounce. I just knew that by the time the mortgage came due, in 2015, gold would be worth much more than the $500 I could get for it at that time. Even my most optimistic view would not have priced gold above $1,500 by 2015. We hadn’t even reached the 1980 high of $850. $1,000 was a distant destination that few felt was in reach. Losing the war? How will we every break free? Come on, give me a break and stop being so “doom and gloom” on gold’s future.
I say, “Let’s give the fat lady more time to sing her song before we close the curtain on $1,800 and $3,500 gold.” And when gold DOES hit those numbers, things here and in Europe will be much worse than they are today, so what’s the hurry? Insurance (even financial insurance like gold) is never something you want to collect on. It’s there to help out when things go very wrong. Meanwhile, I am thrilled with the way my gold and silver portfolio’s returns and I can overlook a six-month correction. I can overlook a 12-month correction, should it happen. I will continue to add to my holdings at these undervalued prices. You can do whatever you think best for you, but I am not the least bit concerned or upset. You see, Sinclair will be right. Just give him some time here.
Just like the MSM’s upbeat presentation of the economy, it’s all an illusion…