- Jim Sinclair is a precious metals and commodities specialist.
Some of the highlights of his nearly 50 year career include the founding
of Sinclair Group of Companies (1977), which offered full brokerage services.
Mr. Sinclair served as a Precious Metals Advisor to Hunt Oil and the Hunt
family for the liquidation of their silver position as a prerequisite for
the $1 billion loan arranged by the Chairman of the Federal Reserve, Paul
Volcker. He was also a General Partner and Member of the Executive Committee
of two New York Stock Exchange firms and President of Sinclair Global Clearing
Corporation and Global Arbitrage .
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- He has authored numerous magazine articles and three
books dealing with a variety of investment subjects. He is a regular speaker
at various commodities related events.
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- In January 2003, Mr. Sinclair launched, "Jim Sinclairs
MineSet," which now hosts his gold commentary and is intended as a
free service to the gold community.
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- "Nothing will unnerve the paper gold shorts more
quickly and do more to undercut their confidence than to strip them of
the real metal and force them to come up with more hard gold bullion to
make good on deliveries. "Stand and Deliver or Go Home" should
be the rallying cry of the gold longs to the paper gold shorts." --Trader
Dan Norcini
- Dear Comrades In Golden Arms,
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- Don't you think it is about time GLD and all the other
popular international gold ETFs told its owners exactly what kind of gold
they claim to own?
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- Can you imagine a situation where a person buys a gold
ETF to own "non-gold" but finds out that they in reality own
OTC derivatives on gold? That would be an investment in the same type of
financial instrument (not gold) that one owns gold bullion to protect against.
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- The failure to unearth the Madoff scandal becomes incredible
when one understands that the returns from the market claimed on the size
of the hedge fund were logically impossible.
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- The exact same reasoning screams bloody murder when applied
to the many Gold EFTs in terms of what it is they really own.
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- This begs one major question: From where did all the
gold claimed to be owned by all the gold ETFs come from?
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- Where did funds such as GLD get their additional 45 tons
in the last month?
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- We certainly can forget about that gold coming from the
Comex. 12 deliveries would stand out like a sore thumb.
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- This concept and record keeping eliminates all exchanges
around the globe as the source of bullion delivery in any size to all Gold
ETFs.
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- The physical market is so tight that coin minting has
all but closed down compared to what it was one year ago. It is hard to
accept that the Gold EFTs can buy what the mints can't.
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- A read of the original prospectus removes any thought
that the gold is leased, but leaves one to invite probability.
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- That probability is that the claimed gold can only be
OTC derivative long positions. If that is so then the financial reliability
of the paper stands on the foundation of the balance sheet of the granting
counter party to the OTC derivative. This is true regardless of whether
it is a mine or naked speculator.
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- Don't you think it is about time the gold ETFs told their
owners exactly what kind of gold it is that they claim to own?
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- Can you imagine a situation where a person buys a gold
ETF to own "non-gold" but finds out that they in reality own
OTC derivatives on gold? That would be an investment in the same type of
financial instrument (not gold) that one owns gold bullion to protect against.
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- I think you own an ETF of derivatives, not of gold!
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- If I am correct then there is no clearinghouse guarantee
for the OTC derivative to function.
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- Like so many other surprises of the last two years the
Gold ETF shareholder may actually have no gold at all.
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- A perfect Ponzi scheme would allow you to surrender shares
for bullion. You need only think about it.
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