Ask the Expert – Jim Sinclair (June 2013)

Posted at 6:30 AM (CST) by & filed under Sprott Asset Management.

Dear CIGAs,

In this exclusive interview, Jim Sinclair answers questions from our readers about the gold and silver market and his outlook on the economy.

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Jim Sinclair is the CEO of Tanzanian Royalty Exploration TNX in Canada and TRX in the USA. Being a precious metals specialist and a commodities and foreign currency trader, Jim has authored numerous magazine articles and three books dealing with precious metals, trading strategies and geopolitical events, and their relationship to world economics and the markets. In January 2003, Mr. Sinclair launched Jim Sinclair’s MineSet, which now hosts his gold commentary and is intended as a free teaching service to the gold community.

Listen to the interview here:
Ask The Expert – Jim Sinclair

Transcript

Sprott Money News (SMN): Thank you, listeners, for joining us today on Ask the Expert. My name is Nathan McDonald of Sprott Money News, and we are very excited to have the pleasure of speaking with Jim Sinclair this morning. Jim Sinclair is the CEO of Tanzanian Royalty Exploration, which is ticker symbol TNX in Canada and TRX in the USA. Being a precious metals specialist and a quantities and foreign currency trader, Jim has authored numerous magazine articles and six books dealing with precious metals, trading strategies and geopolitical events, and the relationship to world economics and the markets. In January 2003, he launched JSMineset.com, which now hosts his gold commentary and is intended as a free teaching service to the gold community. With this, I am pleased to welcome Jim Sinclair this morning. Hello, Jim.

Jim: Hello. Thank you.

SMN: Excellent. So, we have a few questions here today from our viewers that they’re interested in. And there’s a definitely a few questions considering everything that’s happening in the gold market today. It’s interesting, to say the least. So, I’ll start off with a quick question, which I’m sure you’ve gotten before, but it’s still important to new viewers and those who are new to the gold market. And that is, for the first-time investor, what is the best way to own gold, in your personal opinion?

Jim: For the first time investor of modest capitalization – one ounce gold coins or a fund representing physical gold.

SMN: So, would physical gold would be your first bet though?

Jim: The first would be physical gold, but there are many ways of buying physical gold. Physical gold is represented, again, as I said, by funds such as PHYS, which holds the precious metals itself. It is also mining companies that have low costs and controlled overhead with filed 43-101 reports showing significant ounces mineable. It’s represented clearly by the physical metal itself. So, according to the character of the investor, any of those three methods would fulfill their requirements. The right way to look at gold is to look at it as a method of savings. Fiat currency is for transactions. Gold is for savings. Throughout all of history, in the last 2,500 years specifically, gold has held value where currencies have risen and fallen on a continuing basis.

So, for the modest capitalized first-time investor, look at gold as a savings account that will not be bailed in and clearly will not need a bailout. Don’t watch the volatility that’s in the marketplace, which is only going to increase, not decrease. Bear in mind that volatility is going to be on the upside as well as you’ve seen it in this reaction. So, physical gold can be purchased in various different ways and means, but physical gold is the first step.

SMN: Excellent. Yeah, I agree definitely. You definitely should have first your position in physical gold before you branch out. And then, obviously, like you said, there is a lot of other great options out there.

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