Jim Sinclair continues:

“The announcement itself is a game-changer because of the way this game is going to change, Eric.  I think you are going to see a very significant change amongst investors, corporations and companies with extra capital and people of the mainstream.  You’re going to find gold being accepted as a hedge against what’s going on by entities, that up to now, you would think would be the last ones to be buying gold.  How about someone like General Electric?

I used GE as an example because the principal of GE is a major advisor to the government.  That would be the most unlikely thing (for GE to buy gold).  But don’t count it out.  You are going to see a lot of things this year you thought at one time impossible, becoming reality.

I’m going to predict you are going to see a new definition of investors in gold that, up to now, haven’t even been considered.  Up to now there’s been the retail crowd and there’s been the international central bank crowd which have been the primary entities in gold....

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“But you’ve never had mainstream investment, mainstream pensions, mainstream life insurance companies, mainstream health plans, which gather money looking to use a medium in order to maintain the buying power of what they’ve accomplished.  This is a huge change, huge new demand, a total new definition.

You’re going to find out that public companies with significant resources, tech companies (as an example), are going to start to recognize that gold is an important part of protecting what they have.  So I think you’ve identified a game-changer for corporate America and corporate global Western finance, to begin to look at gold as an alternative to the normal cash and debt instruments they would use to hedge themselves.”

Sinclair also added:  “Last year was the year of discussion and confusion.  I’ve labeled this year a year of action.  Not necessarily a year of solution, but a year of action.  Today you saw an action.  The Fed’s swap line is an action.  The IMF’s willingness to seek and to distribute loans, an action. 

Actions have consequences.  So this year is the year in which we are going to be experiencing the consequences.  $1,700 to $2,100 gold is a conservative range.  The reason why you got the breakout today is the light just went on.  So any idea the accordion chop in gold we were in is still on is total nonsense.  

Bear in mind that when gold breaks out above those ranges, it will do it based on a loss of confidence, primarily, in currencies.  And it is the dollar, not the euro, that is the specie in danger as we are having this conversation.” 

This interview with Sinclair is timely and important considering what the Fed did today.  The KWN audio interview with Jim Sinclair is available now and you can listen to it by CLICKING HERE.

© 2012 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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© 2012 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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