Dear Jim,

It looks like we are up to 6 already! How about them "Green Shoots!"

F-TV doesn’t want to talk about bank failures. Eventually they will be as meaningless as the Fed-heads testimony.

CIGA Marc

Regulators shut AmTrust Bank in Ohio, 5 others
By MARCY GORDON (AP) – 2 hours ago

WASHINGTON — Regulators on Friday shut down Ohio’s AmTrust Bank, the fourth-largest bank to fail this year. They also closed five others, bringing to 130 the number of U.S. banks to be brought down so far in 2009 by recession and mountains of bad debt.

The Federal Deposit Insurance Corp. took over AmTrust Bank, based in Cleveland, with about $12 billion in assets and $8 billion in deposits. Its failure is expected to cost the federal deposit insurance fund an estimated $2 billion.

About a year ago, the federal Office of Thrift Supervision put restrictions on AmTrust because of concern that its reserves against losses were dangerously low. The regulators told the bank to limit new loans for land acquisition, development or speculative residential construction.

In addition to its branches in Ohio, AmTrust — formerly Ohio Savings — had branches in Florida and the Phoenix area.

More…

Dear Jim,

See Item 3 on your predictions from May 26th, 2009 when spot was $945…

The pause here serves merely to wind the launch spring tighter.

CIGA Zacken.

From “In The News Today” on May 26th, 2009
(Click here to view the original article)

Jim Sinclair’s Commentary

Predictions:

1. Gold reacts as currency support for the dollar enters mid June to a slow decline (that is the official definition of a strong dollar policy, really). 
2. End of 2nd week going into the beginning of the 3rd week of June Gold launches towards and this time through the neckline of the reverse head and shoulders formation. 
3. Gold rises to $1224 where it hesitates. 
4. The OTC derivative market takes on the dollar as short sellers into dollar support. 
5. This OTC derivative currency short position builds. 
6. It is the US dollar where Armstrong will get his WATERFALL. 
7. The main selling takes place when Israel makes a major miscalculation. 
8. Hyperinflation is always and will continue to be a currency event. 
9. Hyperinflation will be a product of the upcoming massive OTC derivative short dollar raid.

Should I be correct in the gold price action going into late June, it will fit Armstrong’s criterion for a move to $5000.

Alf’s work permits an over-run of the gold price to $3500 in the major 3rd phase, indicating overruns into the major 5th.

Jim Sinclair’s Commentary

In answer to a letter today from a friend stating with passion that there would be NO hyperinflation:

My Dearest CIGA D,

Hyperinflation is always and only caused by serious currency problems. It is not a product of economic events, but more of a final loss in confidence in the currency.

A strong dollar equals no hyperinflation.

If the dollar holds .7200 USDX then there will be no hyperinflation, only standard inflation.
If the dollar breaks to .6200 there will be some hyperinflation.
If the dollar trades below .5200 there will be hyperinflation of the century.

Data yields conclusions, opinions yield confusion.

Howard Gold has a nice last name.

Regards,
Jim

Jim Sinclair’s Commentary

The physical market is "out of stock."

The only place there is gold in abundance today is in paper gold on the COMEX.

Jim,

I have rarely, if ever, experienced "Out of Stock" situations at APMEX.

CIGA Marc

Dear Marc,

This week, the U.S. Mint did not release any 2009 Gold American Eagles or 2009 Silver American Eagles, and the 2009 Fractional Gold American Eagles as well as the 2009 Gold Buffalo Coins are in very limited supply and will likely sell out within days.

As a preferred APMEX customer, we want you to be the first to know about this breaking news so you don’t miss your opportunity to purchase these high demand coins while we have them in stock. Our supply of these coins is extremely limited and there is no way for us to know when we may be able to secure these products again for the rest of the year. When our supply is gone, it’s gone. Take advantage of the recent pullback in the market and secure yours today at www.APMEX.com.

*** Please note, if you have already purchased 2009 Fractional Gold American Eagle Coins from APMEX, be assured that these coins have already been allocated to you and will be delivered as promised. Our pre-orders will begin shipping on Friday, December 11th.

Respectfully,
David McCarty
Director of Marketing
American Precious Metals Exchange

Jim,

There are major outflows in the U.S. dollar and Long Bonds. This decline in gold will not last long. I am watching TA on the bond market closely.

CIGA Eric

Click charts to enlarge

Jim Sinclair’s Commentary

Be prepared for a deluge of top callers, mostly the usual suspects.

Mr. Sinclair,

I believe Robert Prechter was recently quoted as saying, "I continue to believe gold is in a long-term bear market. Unless it surpasses $10,000 an ounce, my analysis indicates continued downward pressure on this barbarous relic of the past."

Your friend,
CIGA Frank

Jim,

I really don’t understand the CIGAs screaming "top" in the market, and doing the Chicken Little dance. Was it not JSMineset itself that told everyone months ago that at $1224 there would be a battle royale? I respectfully ask the readers of your site to, in fact, READ THE SITE, and stop hassling you with idiotic e-mails. If anything, the question should be: How did you identify $1224? (cough cough, ahem, er – how DID you?)

Regards,
CIGA Pedro

Dear Pedro,

By the use of a tool, proprietary to Bert Seligman and Jesse Livermore, published in 1921.

The total incoming emails on the $1224 Angel, including your message today, is

2. The number of panicked emails coming in are uncountable.

Regards,
Jim

Jim,

Here is a quick glimpse behind the illusion curtain for those without subscription to stadowstats.com.

• - Birth/death model continues cushion/(skew) the headline jobs number.
• - The employment situation, as reflected average weekly initial state claims (a fairly clean time series), continues to follow the script. 
• - Unemployment rate ticked down from 10.2 to 10%.  Big deal.  Statistically insignificant move.  Besides, this number is so badly skewed that historical comparisons can no longer be done.

CIGA Eric

Jim,

Watergate in the 70s. Jim’s gold call through all its volatility then is dead on…

Climategate now and Jim is still around to guide our wild ride through the Angels to $1650 then beyond to Alf and Armstrong’s numbers!

Here Senator Bunning reminds Bernanke about the creature from Jekyl Island!

CIGA "The Gordon"