Jim Sinclair – 1980 Was a Warmup, Gold to Range $400 a Day
February 23, 2012
Today legendary trader and investor Jim Sinclair told King World News that movements in gold will become so violent that gold will become untradable to individuals. Sinclair also said that gold will be the last great bubble as it goes into a geometric uptrend. Here is what Sinclair had to say about what we can expect to see going forward: “Liquidity, it’s as simple as that. All of this is the event that’s taken place many times in history. Many times in history there has been an inflation caused by volatility in currencies called currency induced cost push inflation.”
Jim Sinclair continues:
“The younger generation has no concept of this. They look at inflation as ebullient business and they look at deflation as being a breadline. They don’t recognize that during a period of extremely difficult business conditions, (you see) some of the highest rates of inflation.
It’s a question of whether our indicators will ever show inflation again. But the truth is if you go back to how the inflation was calculated in the 1970s, you get a good look at what’s going on right now….
“This great kick of the can down the road will only be cured by a commodity currency. That’s how it’s been cured all throughout history and that’s how it will be cured this time. 1980 was a dress rehearsal. This time gold is going into the system.
The last man standing will be the standard that will hold the currency and correct the problem, that’s gold. That is the only investment that will make it through this turbulent period, regardless of how volatile it may become.
We opened up the week in which the price of gold has changed $60. But we’ve been changing to $60 during a day’s session. There will be times when it will be in the hundreds (of dollars) during the session. You will easily see a $400 (range in gold) in a day, there is no question about it.
Back in 1980 we had days where gold moved $150. What do you think is about to happen if what we’ve just been through is the beginning of a geometric uptrend? Gold will be untradable to the individual.
There’s no question that every market, prior to reaching maximum valuation will take on a characteristic. That characteristic we’ve defined as a ‘Rhino Horn.‘ There has been no such event in the gold market and in the gold share market even less so.
There is no evidence of a top. Before this market is over, we will see what we’ve seen in all markets that go into it. The last great bubble which will not break is gold.”