The Cartel And Hedgies Are Short Paper, But Long Physical Gold

The following bulletin from Jim Sinclair explains where gold is headed and who will benefit.  In typical fashion, Sinclair’s information is superb but his writing style isn’t exactly clear.  In fact, after reading it, my wife asked me what he meant by “7 touches”?  (See following bulletin)  Half a dozen years ago it was fashionable within the gold community to point out that a few bullion banks (Goldman Sachs, JP Morgan and a few friends) were always “short” gold. Sinclair stated then, that the bankers weren’t stupid and as the bull market advanced, the same bankers that were “short” would be the ones who were “long” and they would make a fortune on their gold holdings.  That’s right, they would be “long,” not “short!”  At the time, not many people believed him – but here he is, in the bulletin below, once again pointing out who is accumulating gold.  Low and behold, it’s the very same bankers that are being blamed for being “short.”  Of course, they are “short,” short paper gold and “long” the physicals.  That is exactly what Sinclair is alluding to.  But it’s not just the bankers that are accumulating physical gold; it’s also “big money.”  They are starting to protect their wealth against the coordinated central bank (QE) money debasement from the Fed, the ECB and Japan.

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