‘Mr Gold’, Jim Sinclair, who has a huge following amongst the pro-gold sector, propounds some interesting views on where the global economy and the gold price are heading
You can’t accuse Jim Sinclair of mincing his words – nor of not being prepared to go on record with predictions with respect to his analyses of where the gold price is going that other analysts and commentators fear to mouth – whatever they may actually believe.
Sinclair doesn’t care if people think his analyses are seen as far-fetched, or totally over the top. He firmly believes in his personal assessment of what will happen in gold – and you just can’t write off his opinions as deluded ramblings. His experience in the gold market and track record on price predictions makes ignoring what he says unwise.
Even so in a recent interview on King World News in the U.S. in which he predicts that the gold price might move as much as $1,000 up or down in a single day his analysis may seem a little extreme.
In his view it’s a bit like a biblical battle between good and evil – but here it’s down to East vs West in what he sees as a coming gold/currency war as the inevitable forces fighting to bring some kind of order to the global debt situation come up against those desperate to protect the US dollar from sinking into oblivion in a sea of ever escalating debt.
He sees this as causing excessive gold price volatility and while he’s not looking for $1,000 daily swings as the norm, he does feel it could happen two or three times as the battle surges.
But back to the daily $1,000 price moves he points out that back in the bull market, and subsequent price collapse, of the 1970s there were days when the gold price moved 25% up or down – and if this is replicated with a gold price peak level of $4000 then the $1000 move in a day is not out of line with precedent.
Interestingly, though, despite his huge price volatility opinion, his take on where the gold price is headed overall could be viewed as quite conservative in amongst those of the gold price ultra bulls. He talks of $3500 gold or higher perhaps to $4000 or $4400 as where the price is headed, but gives no timescale. This could be seen as modest compared with some of those predicting $10,000 gold.
Sinclair sees price moves of this nature as the inevitable consequence of the global reliance on fiat currencies and escalating debt.
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