Posted at 7:05 PM (CST) by & filed under Jim's Mailbox.

Extremely intelligent people do not ask stupid questions therefore this question demands an answer determined by assuming a logical thought pattern under circumstance presented based on the premise in finance today, “Never say Never.”

Dear most respected colleague,

That seems quite absurd. However, everything today in markets is absurd. There is a strong premium in the new physical gold markets in the East, which might give rise to such a strange rumor.

I am not sure its would make sense because there is powerful demand for physical in the East (India went to USD $3000). When you stop incoming supply which way internally does any item move? In India gold went to USD $3000 on a lesser event. In China, I would say blockage of gold imports and gold internally goes to USD $5000 there. In the paper market the gold disappears in price, but to what purpose other than one hell of of black market arbitrage. You would have a USD $4090 difference between western paper gold markets and eastern physical gold markets. No power on Earth would stop that arbitrage.

You have to have the physical to make delivery in the newly listed Eastern physical market gold. So inside China physical heads for $5000 is as crazy as that seems. Maybe Shri Modi is taking the position of head of the China central bank.

Comex paper gold is offered at $10 per ounce. Eastern listed physical $5000 bid, none offered. Net Jet business booms. Come warehouse empties, the paper gold market no longer functions.

Comex warehouse collapses in 90 days after Comex contracts unilaterally notated, like during the Hunt Crisis.

The price determination mechanic of gold shifts from paper to physical in 90 days. Massive confusion among gold and silver manufacturers of OTC derivatives. The only result of such an action would be to create one hell of a mess and a Market Reset of the currency system in 90 days with Russia and China in charge.

Then Trump would have the opportunity to move back to the gold standard of a sorts with the paper players having no market to manipulate. That is assuming that there is any gold fungible in the US Treasury holdings.

Regards,

Jim

Message to Modi: Do No More Harm
December 4, 2016

India again posted world-beating growth numbers last week: Gross domestic product grew 7.3 percent in the quarter between July and September. But the question remains, so what? After all, none of this data covers the period after Nov. 8, the date Prime Minister Narendra Modi abruptly declared 86 percent of India’s currency would be withdrawn from circulation.

In the weeks since, the chaos accompanying “demonetization” hasn’t eased up noticeably. It seems likely the disruption to the economy, especially in cash-centric rural India, will hit growth sharply for at least a few quarters. It’s tough to say for how long and by how much; we are in uncharted territory here and guesses have varied widely. But many analysts agree with former Prime Minister Manmohan Singh, who’s predicting the new policy will knock 2 percentage points off that world-beating GDP growth rate.

It’s too late for Modi to backtrack now, not least because demonetization remains, in spite of all the chaos, relatively popular politically. But it’s crucial that the government not compound its mistakes going forward.

More…

Posted at 3:20 PM (CST) by & filed under In The News.

Message to Modi: Do No More Harm
December 9, 2016

India again posted world-beating growth numbers last week: Gross domestic product grew 7.3 percent in the quarter between July and September. But the question remains, so what? After all, none of this data covers the period after Nov. 8, the date Prime Minister Narendra Modi abruptly declared 86 percent of India’s currency would be withdrawn from circulation.

In the weeks since, the chaos accompanying “demonetization” hasn’t eased up noticeably. It seems likely the disruption to the economy, especially in cash-centric rural India, will hit growth sharply for at least a few quarters. It’s tough to say for how long and by how much; we are in uncharted territory here and guesses have varied widely. But many analysts agree with former Prime Minister Manmohan Singh, who’s predicting the new policy will knock 2 percentage points off that world-beating GDP growth rate.

It’s too late for Modi to backtrack now, not least because demonetization remains, in spite of all the chaos, relatively popular politically. But it’s crucial that the government not compound its mistakes going forward.

More…

Posted at 6:25 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

This is no joke, even though Bloomberg reporting is normally soft on gold.

Gold Standard Approved for Islamic Finance, Opening New Market
December 5, 2016

Gold is acceptable for the first time as an investment in Islamic finance after the group that sets standards for the industry adopted Shariah-compliant rules for trading the metal.

The rules approved Nov. 19 allow gold to be used in the $1.88 trillion Islamic finance business, the Accounting and Auditing Organization for Islamic Financial Institutions said Monday in a statement. The AAOIFI developed the standards with help from the producer-funded World Gold Council, which has said the new rules could spur demand for “hundreds of tons” of gold.

The SPDR Gold Trust, the biggest exchange-traded fund backed by bullion traded under stock symbol GLD, will probably qualify, and the standard may open new demand to central banks, Mohd Daud Bakar, a Shariah scholar, said at a press conference in Dubai Monday. Comex gold futures wouldn’t qualify because of a physical backing requirement, he said.

More…

Jim Sinclair’s Commentary

Maybe Modi ought to burn the small bills, not the big ones.

Venezuela Unveils 6 New Bills Amid Galloping Inflation
December 7, 2016

Venezuela has unveiled six new bills set to go into circulation next week.

Central Bank President Nelson Merentes said Tuesday the new higher-denomination bills would make commercial transactions easier in the country with the world’s highest inflation.

The six new bills ranging from 500 to 20,000 Bolivars will begin circulating on Dec. 15.

Triple-digit inflation and a currency meltdown have left the country’s largest note worth just around 2 U.S. cents on the black market. Currently the largest-denominated bill is 100 bolivars, not even enough to buy a piece of hard candy at a street kiosk.

More…

Posted at 1:08 PM (CST) by & filed under USAWatchdog.com.

By Greg Hunter’s USAWatchdog.com

Economist John Williams has been forecasting a dollar selloff for a few years. It now looks like the manipulators are running out of options to keep propping up the U.S. dollar. Williams explains, “I think we are going to see massive dollar selling ahead. We have problems here not just with the economy, but you have the Fed faced with a circumstance where the U.S. banking system and the global banking system was threatened with collapse in the panic of 2008. The Fed and the Treasury decided they did not want the system to collapse. . . . All they did was buy time. Now, that time has basically run out. The economy has not turned around.”

One major indicator Williams looks at to see if the economy is getting better is the good old fashion help wanted ads that have now moved online. What does Williams see there? Williams says, “Beginning this year, it turned down and is negative year to year. It has just been plummeting, and it took a big hit in November. That is a leading indicator, and it shows that the economy is getting worse, and it is going to be worse in the near term.”

More…

Posted at 12:24 PM (CST) by & filed under Jim's Mailbox.

Bill Holter’s Commentary

Further election update by Dr. Dave. I’m pretty sure the “Russians” can’t be blamed for this but who knows?

Friends,

A quick heads up on the Michigan recount: we are in hand to hand combat with the globalists & the war is being won by The Freedom fighters. At COBO Hall in Detroit tonight guess what happened: Hillary/Stein/Obama/Soros/DNC took a huge hit.

Detroit was won on election night by Hillary by tens of thousands of votes BUT tonight Only 50 ballots were found in a Detroit precinct box sealed & certified as having 306. …. and that finding was the norm and NOT the exception when box after box was opened. The Mich. AG has been contacted by Senator Pat Colbeck to institute a criminal investigation. He outed the corruption earlier today on The Senate floor in Michigan. Earlier in the day this story surfaced:

http://www.theblaze.com/news/2016/12/06/good-news-for-trump-michigan-recount-effort-hits-major-snag-in-detroit/

I believe this is the same model instituted in a number of other cities around the country. The bastards are on the ropes!

Dave

Posted at 3:46 PM (CST) by & filed under Jim's Mailbox.

Bill Holter’s Commentary

Dr. Dave Janda gives us a heads up from Michigan.

Friends,

The weekend after the election on Operation Freedom I discussed the fact that hundreds of thousands of votes were stolen by Clinton in Detroit. Well look what was finally reported this morning. At least half of her votes were fraudulent. I believe the same result took place in Milwaukee, Pittsburgh, Philly, Nashua, Vegas just to name a few. They will never permit a forensic recount.

Bottom line: Trump won in a landslide in The Electoral College and popular vote.

http://www.theblaze.com/news/2016/12/06/good-news-for-trump-michigan-recount-effort-hits-major-snag-in-detroit/

Dave

Posted at 4:14 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

As investors, you, sour on gold, good to great things are taking place in its basic formula.

Erdoğan’s Call To Citizens: Sell Dollars For Lira, Gold
December 2, 2016

President Recep Tayyip Erdoğan called on Turkish citizens on Dec. 2 to convert their foreign exchange into gold or the Turkish Lira, adding that there was no option other than cutting interest rates to spur growth.

Following his remarks in Ankara, the lira saw fresh lows against the U.S. dollar.

“Those who keep foreign currency under their mattress should come and turn them into lira or gold,” Erdoğan said in a speech to mark the opening of an automotive showroom complex in Ankara.

“Such moves will hurt some people’s game. Do not worry. We will destroy this game together. We saw such things in 2007 and 2008. I then said the problems would not affect Turkey. I am now saying the same thing. The problems will not even touch us,” he added.

More…

Gold Standard Approved for Islamic Finance, Opening New Market
December 5, 2016

Gold is acceptable for the first time as an investment in Islamic finance after the group that sets standards for the industry adopted Shariah-compliant rules for trading the metal.

The rules approved Nov. 19 allow gold to be used in the $1.88 trillion Islamic finance business, the Accounting and Auditing Organization for Islamic Financial Institutions said Monday in a statement. The AAOIFI developed the standards with help from the producer-funded World Gold Council, which has said the new rules could spur demand for “hundreds of tons” of gold.

The SPDR Gold Trust, the biggest exchange-traded fund backed by bullion traded under stock symbol GLD, will probably qualify, and the standard may open new demand to central banks, Mohd Daud Bakar, a Shariah scholar, said at a press conference in Dubai Monday. Comex gold futures wouldn’t qualify because of a physical backing requirement, he said.

More…