JIM SINCLAIR BLASTS HUGH HENDRY, STATES UNLIKE 1930′S, GOLD WILL NOT BE CONFISCATED IN CURRENT BULL MARKET
OCTOBER 31, 2012
The legendary Jim Sinclair has released a rebuttal to hedge fund manager Hugh Hendry’s recent statements that gold mining companies will be nationalized and physical gold will be confiscated as the gold price passes $3,000/oz. Sinclair states that Roosevelt’s gold confiscation of the 1930′s was a means of increasing the supply of money for Fed and Treasury discretionary use- essentially the QE of it’s day.
Sinclair states that neither gold nor gold companies will be confiscated during this bull run: Gold was not confiscated because it was going up in price. Gold’s order of confiscation came as a tool of monetary stimulation in order to create monetary creation in order to attempt to increase employment. The order of gold confiscation had nothing whatsoever to do with punishment of the gold holders. It preceded the then big run up in the gold price. Believers in confiscation, because they are incorrect on its basis, are totally wrong in predicting it.