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Gold price crash is over Jim Sinclair tells Vancouver meeting

Posted on 11 July 2013 with 4 comments from readers

Veteran gold guru and chairman of the Tanzanian Royalty Exploration Corporation, Jim Sinclair told an audience of 591 in Vancouver today that the gold price correction was over.

‘This is probably a historic day for the gold price,’ he said. ‘With the $1,275 barrier broken we are back on the way up.’

The gold price jumped after Fed chairman Ben Bernanke said ‘highly accommodative’ monetary policy will be needed for the ‘foreseeable future’ following a speech in Cambridge, Massachusetts after US markets had closed.

Gold going up

But Mr. Sinclair noted that technical indicators had been pointing to a change of direction this week. He expects gold to retest its all-time high of $1,923 by August 2014 and advance to $2,400 before succumbing to another correction.

Further out he has $3,200-$3,500 in his sights with much higher prices likely if the physical metals takeover from the futures pit as the price setting mechanism for precious metals, something he says might happen in three months’ time when the Comex inventories get too low for it to continue.

After the four-hour long meeting he sat down with ArabianMoney to give us some additional insights into how the gold market will move in the year ahead, and the full text of this interview and our notes from his main presentation will be available only to subscribers to our sister newsletter (subscribe here).

Mr. Sinclair is one of the most widely followed gold commentators in the world and advised the legendary Hunt Brothers in the late 1970s when they cornered the silver market driving silver to $50 an ounce, a price still unrepeated today. His website is one of the most popular gold resouces.

Posted on 11 July 2013 Categories: Gold & Silver, Investment Gurus

4 Comments posted by readers:

Comment by Darbin Barklin - 11 July 2013

Oh wow… here we go again with the hype, Jim. Jeez! Give it a rest.

Comment by Cliff Hanger - 11 July 2013

I’ve been loosely following JS and his prognostications for the last 4 years and he has been wrong more often than he has been right.

For example, he has repeatedly stated that one the magic $1.754/oz was struck the next move would be $3,000/oz. Well we all know what happened.

I don’t know whether poor Jim is in denial or perhaps getting a little bit senile. Still I am confident that one-day he will be right.

Comment by whitefly - 13 July 2013

my opinion is that it’s a non sense to forecast gold (or any other stock) quotes by some date without proves, without a sort of (numerical) demonstration of what you are asserting. If you have an algorithmic system working good for example on gold series you can say: my system says that… knowing that it works well in, let’say, 80% of cases. If not, your opinion is only a mere hope. How can I trust to invest part of my money, hoping that gold will reach $1,923 by August 2014?

Ed Note: All you need to do is get the asset class and direction right.

Comment by Frank Schneider - 17 October 2013

It has been shown that the $50 silver price attributed to the Hunt brothers was bogus and that they contributed at most 75 cents to the per troy ounce price. I won’t prove it since Mr. Sinclair has never offered a proof of any of his “forecasts” either. In any case it is ridiculous to make these predictions given that the critical variables have little to do with gold and gold mining. There is the world wide derivative problem set to explode in undetermined time – the US bond problem – the pressure the Chinese are putting on the US administration to react – the fed and its unpredictability – Goldman Sachs and its ability to work the Comex vis a vis the Fed – and on and on. In short how much it costs to mine an ounce of gold is largely irrelevant to the world picture today. It is not completely irrelevant but just a mostly irrelevant factor given the need for governments to keep the price down and the completely unknown time when derivatives will come to the surface and change the game. No one knows when just that this event is likely coming up sooner rather than later.

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