L’entrepreneur minier et grand promoteur de l’or Jim Sinclair annonçait jeudi dernier lors d’un entretien avec King World News que la chute du prix de l’or fin 2011 était une ‘manipulation’, et qu’il était d’accord avec John Hathaway de chez Tocqueville Gold Fund qu’un corner sur l’or serait imminent. Un extrait de cet entretien est disponible sous le lien suivant :
Tremendous fear remains in the gold market, even as gold has recovered from recent lows to hit the $1,640 level. Today King World News interviewed legendary Jim Sinclair, to get his take on the situation. When KWN asked how his father, Bert Seligman and Jesse Livermore would have known we hit a bottom in gold, Sinclair remarked, “There would be two reasons why: Number one, you can’t identify, especially over the last seven sessions, where that demand was coming from which began to give the gold market an entirely new look. Secondly, they (Bert Seligman and Jesse Livermore) also had a strong feel for tops and bottoms in terms of momentum at extremes.”
Jim Sinclair continues:
“A bottom is always the way it was as John (Hathaway) called it, complete and utter despair in both the futures market and in the share market. In my experience, in all my time I’ve been in markets, I’ve never seen a more negative impact on holders of an asset than what occurred in this last takedown in gold.
This is a very professional market, a market anticipating something of significance, and market which is totally devoid of those who took the psychological collapse.”
Sinclair also had this to say about the end of the year plunge in the price of gold: “It was an operation. Add to that a very determined, strategized operation to profit on the short side.”
When asked about John Hathaway’s call for a short squeeze in the gold market, Sinclair replied, “I think John is absolutely correct. It’s highly technical, it has to do with the lease market and the swap market. It also has to do with the recent setup of the line of swaps between the Federal Reserve and the ECB, the ECB and the European banks and the European banks and the European bond market....
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When asked about to compare the markets half a century ago when he started to today, Sinclair stated, “There’s no comparison. Back then they were mercantile, established, professionally traded, ethically operated. Today, you might as well be in ‘Oceans Eleven’ in a casino.
Even the look on the floor on the exchange, when I was a member of the New York Stock Exchange, you would go over and you would deposit your shoes with the shoe shine fellows, you would have your comfortable stuff for the floor. Everybody would walk around in suits, running around was against the rules. The luncheon club was probably where more business was done than the floor and it was a gentlemen’s club.
I don’t know if you can clean the system up. I don’t know that we are not dealing with an industry made up of sociopaths. If you don’t have a conscience you can’t grow one. You can have all the rules and regulations you want, but that doesn’t mean you are going to have a better world.
The destruction, theft and operation of markets have become so prevalent, that it’s actually become a culture. And you only end a culture in some form of significant and traumatic market event.”
When asked about the eventual mania in the mining shares, Sinclair responded, “It will appear as if there aren’t shares for sale. The reach that will have to be made to cover shorts and to assume a position will make it appear as if you have to take a ticket to get in line to obtain the shares of these companies. That’s what the top of the internet boom was and we have seen nothing like that either in the metals themselves and especially in the companies involved in it.
I think the shorts and the hedge fund operators on the short side of these gold shares have bullied and played and are now out of aces. They are out of aces because the shares are valuations buys. When it gets down to a valuation point, a backfire is absolutely predictable.”
When asked about Rob McEwen’s call for a strong advance in gold when the $2,000 level is breached, Sinclair said, “I think Rob is quite right because when it goes into a phase towards full valuation, for a period of time, it gets the most points over the shortest period of time. So I would say his prediction follows historical precedent.”
Sinclair also added: “The original people from 2003, most of them won’t be around on payday.”
This was an important and timely interview, given the fear that still exists in the gold and silver markets. The KWN audio interview with Jim Sinclair is available now and you can listen to it by CLICKING HERE.
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