Wednesday, April 2, 2008

Jim Sinclair thinks "This is it"

Rithotz's Big Picture picks up another interesting tidbit of information. This time it is a $1M wager from the biggest gold bug on the globe, Jim Sinclair. He bets gold will reach $1650 anytime before the end of 2011 and challenges everybody, from CNBC commentators to the gold bears, to "put up or shut up". While this amount might not be that significant for Mr. Sinclair, the wager gives the story an interesting spin. Back in January he had the following to say:

There is no doubt that the Fed and the Price Protection Team (PPT) are meeting right now. A drop of over 300 points on the Dow after the Chairman of the Federal Reserve speaks publicly presages a 1000 break in the DOW coming quite quickly - if not tomorrow for that matter. Unless the equity markets can be calmed, a panic is about to happen, making my public statement that "This is it" a horrible reality. If the equity markets cannot be calmed then:

1. Gold is certain to rise to $1650 as an almost immediate effect of what will be done to fend off the total panic that is starting to take place in general equities. This will follow through into credit markets of all kinds.

2. The funds and hotshot short term traders in gold shares will be killed by the upward explosion of the gold price that is about to occur.

3. The PPT and the Fed will step out of gold's way because gold is one of the tools used in 1930 by Roosevelt and in 2000 by Bush. It will be used again but now on the upside.

4. Gold is the only insurance there is against all of this mess because a panic in equities will blow the financial system that is already coming apart to smithereens.
There are 12 more poignant observations on this click.

source: The Bet: Gold=$1,650 by 2011; The Wager $1M
Barry Ritholtz

source: Jim Sinclair's MineSet

source: Jim Sinclair - Market Panic Increases Reality Of $1000 Gold

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