Sinclair – Shorts Are About To Get Mauled In The Gold Market
March 11, 2013
Today legendary trader Jim Sinclair told King World News that when it comes to gold, “… the crowd has an opinion, the crowd is bearish, and the crowd is never right.” Sinclair also stated that the crowded short position in the gold market is going to get mauled.
Eric King: “Jim, the situation that’s going on right now in the gold sector, it really reminds me of when Warren Buffett purchased a large stake in the Washington Post in the 1970s. The press ended up going to him after about 18 months because he was down 40% on his investment in the Post, and they asked him, ‘What are you going to do now?’ If I remember correctly Buffett said, ‘Nothing.’ It turned out to be one of his greatest investments of his life. Buffett’s gain at one point in the Washington Post was a staggering 15,336%. I wanted to ask you today how Buffett’s experience relates to what is happening in the gold market?”
Sinclair: “It’s a mirror image. Buffett knew what the true value was. He knew what the long-term prospects were, and he knew without a doubt that he was going to do extremely well on that investment. This is especially true of a man who is holding a long position and says something like that in response to a question from the press. And of course Buffett knew what he was talking about….