Today Jim Sinclair told King World News that Russia and China are looting Western gold while JP Morgan sells silver. He also said that all of this chaos is taking place as central planners conceal serious financial problems from the general public. Below is what Sinclair, who was once called on by former Fed Chairman Paul Volcker to assist during a Wall Street crisis, had to say.
Sinclair:
“If you watch the market throughout the night and into the morning, as
we have to, there is only one conclusion you can come to, and that
conclusion is that this takedown has been totally orchestrated. It has
been executed using tremendous strategy, and it was perfectly timed.
“As an example, gold was at $1,603 on
Monday night and very near $1,600 in early US trading on Tuesday. Gold
was then taken down nearly $25 in the normal manner that we have seen in
previous operations.
There was nothing happening
in any related market which would justify such a move. This type of
operation was very reminiscent of the ‘Hail Mary’ play such as the one
just seen in Cyprus. But the truly disturbing thing we are witnessing
at this time is the sheer amount of effort being put into making
everything appear just fine.
A contrarian would have to
come to the conclusion that there are some very frightening and serious
problems being hidden from the general public. Regardless, what we have
seen in the recent takedown in gold is without any doubt a coordinated
operation, and all of this in an effort to make the US dollar look
better.”
Eric
King: “Jim, with regards to gold sentiment we now have 45% less bulls
than what was seen at the peak in 2011. Silver has a staggering 53%
less bulls than its peak in 2011. When you see this type of active
government intervention in these key markets, with that sentiment as the
backdrop, what do you make of it?”
Sinclair: “From
an investment standpoint, fortunes have been made when items have been
purchased that are out of public favor. Meaning items which had the
same type of bull/bear comparisons.
But I think what we have to
consider here is there are major sovereigns in the gold market. You
have both Russia and China with a very significant interest in terms of
accumulating physical gold, or what true wealth still remains in Western
central bank vaults. At the same time you have the West which has a
significant interest in depreciating the price of gold. So you
literally have a war going on in the gold market.
The real turn in the gold
market, which I think is not far away, will occur when either Russia,
China, or both, feel that the West is depreciating gold to a point where
they would simply take everything in the market that was for sale. I
no longer believe the gold market is a group of wealthy players, but,
instead, it is now very much a political game, and the various players
have as much money as they want to create for this game.
So it’s going to be very
interesting to see if the Russians, having seen what has taken place in
Cyprus, will take abuse in the gold market and back away quietly. I
think it’s going to be determined this week whether China and Russia are
in accord with the depreciation of the price of gold, which has clearly
been an operation from $1,900 down. This has been a strategized
operation, and something that if we were to engage in with a common
stock, we would be arrested.”
Eric King: “Jim, I wanted to ask you about silver and what is happening in that market?”
Sinclair: “You
can clearly see that from the day the JP Morgan suit on silver
manipulation was basically thrown out for the second time, the silver
market has seen an explosion of selling and it has been trading very
heavy.
So the volume of selling
has risen constantly since that plaintiffs against JP Morgan attempted
to have the suit reinstated, but it was thrown out for a second time.
People have to remember it is easier to push the gold market around if
you can make silver look weak. But I still believe we have seen the
lows already in the silver market.
People that watch the gold
and silver markets have to understand that silver is more widely owned
than gold. So you can create a significant amount of negative public
sentiment more so in the silver market by making it look weak, rather
than in the gold market.
The gold market is like a
joust. It’s like the knights of old, fighting. Yesterday, three banks
downgraded gold. This went along with the push to the downside. So,
again, the takedown was totally coordinated. Yes, these operations are
completely illegal and totally unethical, but that doesn’t matter in
what has now become our brave new world.”
