$1 million Gold Bet

Jim Sinclair...is this guy that uses to send me unsolicited Gold spam all the time.? He's got some mining operation in Tanzania or something.

If so the guy's a kook. I've read his his stuff.

 

Production and innovation is the backbone of any healthy economy, not consumerism. The reason we are able to maintain a 70% consumer economy is because the rest of the world is still accepting US dollars in return for their goods. Great things are in our future only if our currency holds up, and as it sits now it's at an all time low. Who's going to want to hold depreciating dollars?

On the supply chain argument - an analogy I like is this:

A new economy springs up on a deserted island with 6 people. One person hunts, another cooks, another builds the fire, another cleans the dishes, another builds shelter, and one person (the American) is allowed to eat and live without lifting a finger. Will the other 5 people be worse off if they kick the American off the island? Of course not, they will all get a little bit more relaxation and time to enjoy the fruits of their labor.

Believing that our banking system is so robust and high tech that we're able to create wealth is a complete fallacy. Wealth is created through production and hard work. How long do you think the American will be able to sit on top of the food chain? When will the rest of the world stop funding our consumption?

 

i heard the same argument again and again from my steel worker/agricultural ancestors. wealth is in the mind, wealth is movement of capital, wealth is innovation, wealth is perception, wealth is creation, wealth is ownership. oh, by the way, you forgot to add the american owns the island.

why does gold have value? you can't eat it, there are far rarer metals, et al. it's value is pure perception and the perception has failed. 600 by 4.1.2009

best wishes,

surf

 

you cant eat gold...but with one ounce of gold you can buy $900 worth of food....

 

I met Jim Sinclair personally in the 1970s. He was bullish on gold at the time, all the way to the peak around $880 as I recall. He's as good as they get.

OldTrader

 

has he ever been bearish on gold??

surf

 

I know that he rode the bull market up way back when. Then you heard nothing about him for a very long time. Then suddenly he got bullish again near the bottom. Here was a Forbes article written about him at the time:

http://www.forbes.com//forbes/2001/1210/190.html

 

Gold will drop if/when the fed starts raising interest rates.

 

thanks, interesting!

surf