The website still is alive and kicking, though it would be appropriate to change the title to "Jim Sinclair's MindSet" as he still is very vocal about what's threatening global financial stability and major banking corporations, rather than focusing on mines. In particular his own project: "Tanzanian Royalty Exploration Corporation" is all but flourishing. TRX has dwindled to a penny stock (from around $7 by the end of 2010).
Dear CIGA's (Comerades In Golden Arms) I've got you by the balls for almost a decade.
Re: Jim Sinclair
Posted: 24 Sep 2019, 14:15
Bill Holter and Jim Sinclair: Gold $87000 per Ounce at Least
Legendary investor Jim Sinclair and his business partner Bill Holter say Gold is going much higher. It’s a mathematical certainty. Sinclair says, “You need to look at gold, not a speculation, but as a savings account. If the dollar gets sliced in half, you basically double the value (of your gold) if not more. I think much more.
In the second reset, that will take gold to a price where it will balance the ability to pay global debt. That’s the major move coming forward. Right now, we are definitely going back to the $1,850 and $1,925 area per ounce for gold.
The second reset, you can pick any price you want for gold. Pick a high price.” With the national debt officially at $22 trillion, and the additional “missing” $21 trillion discovered by Economics Professor Mark Skidmore at Michigan State University in 2017, you have a huge amount of debt and dollars floating around.
This fact makes Sinclair’s prediction of $50,000 per ounce gold a few years ago look conservative. Bill Holter has done the math and says it simply must go much higher.
Holter explains, “If you take the 8,300 tons the U.S. supposedly has, and I did this math last year when the official national debt was approaching $21 trillion, gold would need to be $87,000 per ounce to cover just the on books debt.
I am not talking about the “missing” money, not future guarantees, pensions, Social Security and things like that. So, the number is $87,000 per ounce for gold or multiples of that.
Any such calculation is flawed. Even under the gold standard, the total amount of money in the system was inflated by credit.
Any central bank operating under the gold standard has a limited set of policy measures:
They can relax lending standards, reducing the fraction of deposits a bank is required to hold in reserves. This sets the money multiplier. With 20% reserves there will be 5 times more money in the system than there is gold backing but 80% of it will credit. If the reserves requirement is relaxed to 10%, there will be 10 times more money in the system, with 90% of it credit. The lower the reserve requirement, the more vulnerable a gold standard becomes and the more money depositors may lose if banks go bankrupt as a result of credits not redeemable. Lack of deposit insurance and hence bank runs were more common under the gold standard.
Central banks can raise rates to make the money multiplier shrink (gold=money returns to the central bank possibly causing deflation and cooling down of the economy) or reduce rates in as far as the amount of money (M1) in the system does not exceed the gold reserves: the primary money supply (M1) is determined by the amount of gold held by the CB or in circulation.
Operations such as QE are impossible. Government budgets needs to be balanced over the long haul. If the government borrows too much, interest rates rise and there can be a crowding out effect on credit available to the private sector. It is therefore claimed that the gold standard disciplines governments.
Under a gold standard periods of deflation and inflation generally cancel out. With anything else held constant (over the long haul) an increasing gold production tends to raise the price level whereas increasing productivity in manufacturing tends to cause deflation. Credit expansion and contraction however are much more influential and the main drivers of business cycles.
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By now Jim Sinclair is 78 and much less vocal on the JSMineset site than his associate Bill Holter.