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In The News Today Posted: May 20 2010 By: Jim Sinclair Post Edited: May 20, 2010 at 6:24 pm
Filed under: In The News
Thoughts For The Day
1. Gold is going to $1650 and higher.

2. We have seen this so many times since gold was at $248 and every time it was meaningless.

3. If you are trading gold on spec margins you are part of the problem.

4. If you are trading gold on spec margin admit you are not a trader but instead someone with a gambling addiction.

5. Those gold shares that performed well in the recent rally will be the leaders in the next and certainly to come rally.

6. If you are speculating in gold shares you are part of the problem.

7. Spec in Google, not gold shares, where you cannot do damage.

Jim Sinclair’s Commentary
They simply will not stop so they contribute daily to the real reason behind the problem
The West is toast.


Brokers selling synthetic derivatives to PMS clients Mehul Shah / Mumbai May 21, 2010, 0:20 IST
Regulators concerned as no specific rules govern these products.
Some leading brokerages are selling complex derivatives products to their portfolio management service (PMS) clients in the garb of structured notes, taking advantage of the ambiguity in rules governing such products, according to officials familiar with the matter.
Derivatives are supposed to be sold subject to various riders, unlike structured notes. The products in question, say officials, are far more akin to the former than the latter.
Typically, these brokerages are buying synthetic derivatives products on behalf of their wealthy customers from non-banking financial companies (NBFCs) owned by foreign banks.
At present, there are no specific rules in India governing equity-linked structured products sold by brokerages to their PMS clients. This, officials say, is the main reason behind mis-selling of these complex derivatives products.
“Brokers don’t even disclose the agreement signed between them and NBFCs to clients, taking advantage of regulatory loopholes,” said an official on condition of anonymity.
More…





From Russia With Gloves…and Why You Should Be Buying Gold Now!

While catching my breath after a tough workout, I was chatting with Hans. Hans is a German who recently changed residence from Monaco in favor of Uruguay. He lives most of the year in Uruguay but still spends two or there months at his home in the Greek Isles. He has lived part time in Greece for nearly 15 years and the two of us have been calling for calamity and violence since Greece´s debt woes first started to become public knowledge. I was asserting my opinion that in the near future the Euro will reach parity with the US dollar. Hans was expressing his firm belief that the Greeks would throw out their government long before they would bend to the will of Brussels or Berlin, when Polako piped up, ¨Let me tell you one thing. However bad you think it will be, it will be much worse and last much longer¨. Polako then went on to discuss the currency crises he has witnessed first hand. Poland, Argentina, Uruguay and Brazil. Everyone, he explained, even the most pessimistic underestimated how far and how fast a currency can drop once people lose confidence. First it starts with the bankers then it spreads to the people. ¨Once grandma starts bartering for borscht the money is in a whirlpool of death¨ explained the former French Foreign Legion heavyweight champ.
Polako then explained how the best way to preserve purchasing power is to buy ¨real things¨. He said gold is the best if you are rich but if not cigarettes, coffee, tea even roofing shingles are a good way to stay out of the death spiral. Hans agreed and as a savvy international investor with the best paid advisers in Switzerland and Monaco at his disposal, he has been buying gold and gold shares. Naturally, we at Without Borders agree. We have been expecting and profiting from the coming currency and sovereign debt crisis for many months. What is most encouraging is that the man on the street is just starting to take notice. That means the biggest profits are still on the horizon. The average European is taking notice and Americans should because the debt crisis express is heading their way. There is less and less time to prepare for the coming catastrophe. We are glad we own gold and gold companies and we are shifting more of our portfolio into the best quality companies that explore for and own natural resource deposits.





If you read my Blog, then this is no surprise but expected...

US Jobless Rate "Unexpectedly" Increases- Bloomberg



Commercial Property Values Drop as Rebound Stalls- BusinessWeek





Unfunded State Pensions Will Be Federal Issue- Financial Times





Soros Sees No Bottom to World Financial Collapse





The EU is as Doomed as Its Currency





Greece May Have to Quit Eurozone Warns Former Head of Germany's Central Bank





Time to buy your riot gear...

UK Police Body Warns of Riots and Unrest- Financial Times





Fund Managers See Gold Price Doubling to $3K- Daily Telegraph





One financial doomsday scenario.





A surprise jump in UK inflation to 5.3 per cent means that not a single savings account on the market offers an interest rate higher than the cost of living.





Arab world grapples with pending food shortage, and Rising U.S. Corn Exports May Increase Prices