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RE: Another View,,gold and the Gman

[beloved]

Jim Sinclair’s $1 million wager: gold at $1,650 by early 2011

This is from April 2008:

He has recently thrown down a challenge to gold bears to put up their money or shut up, and offered a $1 million to anybody who will make him a serious wager that gold will NOT be above $1,650 by January 2011. This will be a legally binding contract, not a cloud of hot air.

Mr. Sinclair’s thesis is that the gold price is presently panning a path consistent with the pattern of the late 1970s, and about to repeat its 1980 spike to an inflation-adjusted $850. He recently recalled a patch in 1978 when gold shares showed similar weakness in relation to the gold price, and this turned out to have been a great buying opportunity.

His particular tip is the gold juniors – which nobody will touch with a barge pole at present because hedge funds have shorted them to death. And as with his gold price wager, he puts his money where his analysis is and has amassed a $23 million stake in one unnamed junior.

Now, this is from last few weeks:

Jim Sinclair is the doyen of gold experts. It is interesting to see a very clear timeframe for the gold price posted on his website today:

1. Gold reacts as currency support for the dollar enters mid June to a slow decline (that is the official definition of a strong dollar policy, really).

2. End of 2nd week going into the beginning of the 3rd week of June Gold launches towards and this time through the neckline of the reverse head and shoulders formation.

3. Gold rises to $1224 where it hesitates.

4. The OTC derivative market takes on the dollar as short sellers into dollar support.

5. This OTC derivative currency short position builds.

6. It is the US dollar where Armstrong will get his WATERFALL.

7. The main selling takes place when Israel makes a major miscalculation.

8. Hyperinflation is always and will continue to be a currency event.

9. Hyperinflation will be a product of the upcoming massive OTC derivative short dollar raid.

‘Should I be correct in the gold price action going into late June, it will fit Armstrong’s criterion for a move to $5,000', adds Mr. Sinclair whose predictions are not always right, and who got similarly carried away last summer.

But there is the old mantra in forecasting that if you repeat something often enough then it will be bound to happen in the end. And to be fair to Mr. Sinclair the gold positive scenario stacking up right now does look unstoppable.