31 August 2015

A rally that is not meant to be sold

In this interview, Jim Sinclair says that “we are going into unprecedented deflation, and it’s the reaction of central banks around the world to the concept of deflation that brings about hyperinflation” and the resulting increase in the gold price is therefore “a rally that is not meant to be sold. What is coming up in front of us is the Great Reset where currencies wear their gold like ladies wear a necklace, and the most beautiful necklace will be the strongest currency.”
 
I find this advice dangerous because many people reading it will go away thinking “OK, so in the next gold bull market I shouldn’t sell”. However, how will you know if the initial bull market is just a speculative bubble that will bust or the start of a hyperinflation?

Secondly, the “great reset” and “beautiful necklace” references are to countries going back to (some) version of a gold standard. Some gold standards involve free trade of gold, but the last one involved expropriation and making gold illegal to hold. If Jim is right and countries want the strongest currency, then that would imply they will want all their citizen’s gold, in which case you get expropriated at some pre-reset price. [read more]

2 comments:

  1. G'day Bron, I had a chat with one of the staff at Perth mint about a month back and was told there was the first 9999 Silver ultra fine one ounce kangaroo( bulk tubes quantities) in the process of being minted in competition to the maple leaf. I was also told they would be in the shops this month.

    I called back yesterday and was told they were put on hold indefinitely. can you please confirm what is happening there?

    kind regards,

    Joey

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  2. They will be released as per schedule as I understand it, but we are under pressure on all silver coin products, demand is just so massive, so we may not have as much stock build up as we were hoping.

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