Jim Sinclair continues:

“But it’s the type of action in their market that bespeaks things to come.  Fundamentally we are locked and loaded to go into the $2,000 area.  Technically this chop is going to end real soon and we’re going to get direction.  And the direction, in my opinion, is not going to be on the downside, but rather on the upside.

The accordion chop is going to launch us into the $2,000 area.  Gold has never been easy to trade and it’s certainly not getting easier.  But there has been a great deal of money made, not by chasing, but by waiting for these drops and taking advantage of them when they come, (and by) laying off a little on the upside.

Gold is cheap relative to the idea that you could have a life’s fortune on a statement from a clearing agent and find out that you don’t have a penny left anywhere.  Which should you have had, physical gold or that clearing house statement?  Gold is cheap because of the condition of other things....

Continue reading the Jim Sinclair interview below...


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When asked about the violent trading in the gold market, Sinclair responded, “You just saw it this morning and it didn’t even take ten minutes for gold to move down 50 points.  So if you don’t think you’re going to see $200, $300 and $400 ranges you’re kidding yourself.

How can you have your money anywhere, Eric, and expect and feel certain that this money will be returned to you when you see the inner workings of finance and Wall Street through the eyes of the collapse of MF (Global)?  Totally shocking.

We are in the midst of a crisis which is so complex that the public generally doesn’t understand it.  This event is so complex that I’m not sure professionals reporting on it or possibly even a good deal of the management of companies operating in it totally understand it.  The derivative is ahead of the client. 

So in the Lehman case the banks just took out Main Street.  When MF Global went down, that broke the mechanism.  The sharks will eat the sharks now because in the case of the clearing house, what you are taking out are the traders and investors who had confidence that a clearing house meant their money was safe and segregated from misuse by the management of the clearing house.  You lose confidence in that, how do you settle trades?

Today it’s not a question of will your investment come out correctly.  Today it’s a question of whether the money you put into the investment will ever come back again, regardless of what the quotation is.  The only money I can count on is the gold I own.  Everything else depends on the system.”

When asked if there was any hope for the current system, Sinclair stated, “There is no one out there who has a plan that has a practical application which can change what is now.  There is no practical solution being offered.  There is no politician who has the courage to do the necessary and if the necessary was done, the system is so fragile that it would totally implode.

There is no solution to the present problems.  What’s done is done.  What will happen will happen.  If you’re not prepared, then you become the road, okay, you become the pavement.  You must be your own central bank because the system is broken.”

This was an extremely important and powerful interview with the man who’s father was business partners with Jesse Livermore.  The above was a small portion of a segment where Sinclair laid out, with remarkable precision, just how dangerous the situation is today. The KWN audio interview with Jim Sinclair is available now and you can listen to it by CLICKING HERE.

© 2011 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

Eric King

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© 2011 by King World News®. All Rights Reserved. This material may not be published, broadcast,

rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

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