Jim Sinclair continues:

“When you feel the worst, when you get to the point where you say, ‘I can’t take it anymore,’ toughen up.  Everything that you are doing you are doing for good, right and logical reasons.  

Markets are not necessarily illogical.  They can’t hold the negative trend against the fundamentals, as long as they have, without great change coming, almost a transformation.  It will take place in the gold shares and it will take place at a much higher price....

Continue reading the Jim Sinclair piece below...


UPDATE: To hear legendary Jim Sinclair discuss exciting new results from the

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“We are going into overvaluation (eventually), there is no question about it.  And overvaluation in the gold market and in the gold share market will be something to behold.    

But it’s going to be quite different than what happened in March of 1980.  Right now gold is heading into the system and in the period going into March of 1980 that phenomena didn’t exist.

In gold shares, going into that phenomena (in 1980), you didn’t have huge short positions being managed by hedge funds.  You’ve got them now.  When you go into an overvaluation in the price of gold, you are going to see gold shares change their character from one day to the next because of the huge legal and illegal short positions in the shares.

Gold has been purchased significantly by central banks because there is a very strong feeling that gold will be part of the solution.  Being part of the solution, it will create an equilibrium price, possibly 10% to 15% below the high of (the eventual manic) overvaluation.

Capitulation is a normal character of the bottom in anything.  In truth, do you think a major (gold producer) wants to see the value of a junior rise, when it can be obtained at a significant discount to the value of its mineable inventory?  The answer is no.  

It’s a play of the industry.  It’s a play of the hedge funds and it falls into a pleasing (situation) for governments, but it’s not a government play.  This is a market play.  As all market plays change, as everyone begins to get this feeling of I can’t take it anymore, we are (already) very close to, if not past the point of (directional) change.”

When asked about Egon von Greyerz comments, on KWN last week, that European leaders were lying and that trillions needed to be printed and maybe even tens of trillions, Sinclair responded, “Let’s look at the fact that there are significant additional amounts of funds required, other than what’s already been injected into the euro system.  Do you think for one moment the powers that be, that operate the euro economies, don’t know what Egon (von Greyerz) knows?

Whatever is required will be provided.  The mainstream media, the voice to the public, from Big Brother, will be constantly saying we’re going to take liquidity out.  We’re going to drain.  We might not use it.  We’ll think about it, could be, and then, there it comes.  Infinite QE is what’s going to happen.”

This is an extremely powerful and timely interview with Sinclair.  Because of a potential turn in the gold and silver markets, 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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