What The Gold Market Is Saying To You

Posted: Apr 08 2011     By: Jim Sinclair      Post Edited: April 8, 2011 at 9:20 pm
Filed under: General Editorial

My Dear Friends,
There are a number of different interests in the gold market. The majority of these interests are satisfied by my publishing of the Angels as their only real purpose to be in this market of "What Is Happening Now" is for profit before they move on to the next.
There is a minority that knows what the gold market is saying to them.
There is a minority that knows the world has changed and the sheeple sleep on.
There is a minority that will take the next step. That minority will truly succeed.
If I have helped you make many millions of dollar, take out $500,000 and get off the grid. Those that remain on the grid have missed the entire program.
Your gold will help you but life in a failed distribution experience will not be pleasant.
Regards,
Jim

A Note From Dean Harry Schultz

Posted: Apr 08 2011     By: Jim Sinclair      Post Edited: April 8, 2011 at 1:48 pm
Filed under: Harry Schultz

Dear CIGAs,
From the April Edition of the Aden Letter, Dean Harry Schultz says:

“This is the first time old friend Jim Sinclair has said hyperinflation is “assured” – IE, certain, not just possible or likely. Jim says: “The madness will not stop. The situation is over the edge. The damage is done. Hyperinflation is assured.” I’m afraid Jim is right. Governments could have prevented it, but didn’t want to pay the price. Fiat currencies will pay the price. The US dollar will both waterfall and lose its reserve currency status which in turn will ignite rampant inflation.
Jim adds: “The new reserve currency will be a virtual currency (an average of the major currencies). It will be (remotely) tied to gold via a worldwide M3 type liquidity. It won’t be convertible (will be used between central banks, not you and I). Today’s existing currencies will continue to be used but valued one to the other. A measure will be created similar to the old M3 (which reveals government pumping) but to reflect their entire past money creation. Upon initiation, the M3 level and the level of gold will be considered as 100 on the virtual index. Contributions of gold to BIS or IMF (agent of the virtual reserve currency) to participating currencies in the index will have to rise to meet rising liquidity. All situations, like now, will resolve themselves via a commodity currency. That is the entire story.”

In The News Today

Posted: Apr 10 2011     By: Jim Sinclair      Post Edited: April 11, 2011 at 1:55 am
Filed under: In The News

Dear CIGAs,
Thinking back to the following post from April 5th:
Expect the Round Number Effect at $1500 for gold, but less severe than the battle at $1400. Angel $1650 is quickly coming into focus.
If we have learned one thing, it is not to get short term focused on this market. Stay focused on what is important and not the noise.
Think for a moment if Armstrong and Alf are right on gold. That would mean the following prices are coming:

$1650
$3000
$5000
$12,500

Silver New Record Near $42/oz – Speculative Sentiment Remains Tame

Submitted by Tyler Durden on 04/11/2011 08:36 -0400

Silver's nearly 3% surge in trading in Asia may indicate that the long expected short squeeze may be underway. Bullion banks with very large concentrated short positions may be being forced to buy back their short positions – propelling silver higher. This could see silver surge over the record nominal high of $50.35/oz in short order. At the same time caution is merited as silver has risen nearly 10% in April so far and over 33% year to date. Speculators need to be very cautious as margin requirements may be increased again and profit taking could lead to sharp falls in price. Leveraged speculation is extremely high risk and should be avoided by investors and savers. Proof of the lack of animal spirits in the silver marker is seen in the data which shows that speculative sentiment on the COMEX (as seen in the Commitment of Traders/ COT data – see chart below) is subdued. While the total silver ETF holdings increased to a record, they are not far above the levels seen in December 2010 (see chart above). Importantly, even at $41.30/oz the dollar value of the total silver ETF holdings remains very small at just over $20.5 billion. To put that number in perspective, today bankers put a prospective value of around $60 billion on Glencore, one of the world’s largest commodity trading companies. BP has set up a fund worth $20 billion to cover legal claims from the oil spill disaster.

Guest Post: The Fed's Most Dangerous Game: Checkmate

Submitted by Tyler Durden on 04/11/2011 10:09 -0400

The Fed now has to choose between two bad options: either keep pushing down the dollar and let oil's inevitable rise trigger a recession, or let the dollar recover and watch stocks crater as the "risk trades" reverse. If the dollar Bears have to cover their short bets, the ensuing rally in the dollar might well be explosive and self-reinforcing. If the Fed lets the dollar depreciate in an uncontrolled fashion, then we may well end up with the hyper-inflation (loss of faith) that many expect. My question remains: what course of action will benefit those issuing the whispered orders to their lackeys and toadies on the Fed and in Congress? Will a disorderly and disruptive collapse of the dollar serve the Financial Power Elites' best interests? I don't see how it would. Rather, I see it wreaking great damage on their holdings. Thus it wouldn't surprise me in the least were the Fed to shock the markets with a "surprise" rate increase within the next few weeks or months. Destroying the real economy to maintain the "risk trades" is a foolhardy way to close down a lose-lose position.

 

 

 

 

Community Health Plummets, Repeatedly Hits Circuit Breakers Following Lawsuit From Tenet Claiming Patient Overbilling

Submitted by Tyler Durden on 04/11/2011 10:43 -0400

Another day, another circuit breaker triggered. But this time not in some cheap Chinese fraud, but in "legit" hospital company Community Health Services, which is plummeting following the announcement of a lawsuit filed by Tenet "claiming the rival hospital operator improperly admitted patients to overbill insurers including Medicare." The stock has now been halted not once... not twice... but three times. And every time it is opened, freefall resumes. The chart says it all: and yes, not even the brilliant SEC contraption of circuit breakers can't do much if anything to prevent reality finally meeting anti-gravity.

 

 

 

Ex-PBOC Official Wakes Up From The Acid Trip: "U.S. Treasury Market Is A Giant Ponzi Scheme"

Submitted by Tyler Durden on 04/11/2011 09:31 -0400

After years of being the primary supplier of funding to the US credit-money shell game, one more ex-PBoC member wakes up from the "great normalization" acid trip, and in a Caixin editorial says what virtually everyone now understands all too well: the Treasury market is one "giant Ponzi scheme." Oh, and it wasn't obvious when China was the biggest holder of debt for years (until the Fed became the biggest monetizer of US Treasuries late in 2010)? Sounds like a rather serious case of buyers remorse is creeping into the buying mindset of America's formerly primary enabler. The $64 trillion question now, as always, is whether China, whose holdings have been flat for a year will follow in Pimco's footsteps and actually commence selling longer-dated paper. If so, and with QE3 now expected to end even if temporarily, the aftermath will not be what Congress wants to see.