Jim’s Mailbox

Posted at 12:30 PM (CST) by & filed under Jim's Mailbox.

Dear Jim,

To answer Marc’s question about India buying gold, the simple answer is yes they will buy more gold.

The full answer is more complicated. As you know, most gold jewelry buyers in India are the poor and they are price sensitive.

Indians with money usually buy gold bullion or coins in the US or in Europe, because they are worried about taxes and capital controls in India.

So we will see Indian jewelry buying within India remaining price sensitive and total gold buying will be helped by wealthy Indians buying abroad. The government runs deficits so the Indian government does not have a lot of money to buy gold, but they generally favor gold.

When they start to run surpluses I would expect them to be a gold buyer

Respectfully yours,

Monty Guild

Hi Jim,

The dollar has served us well and its passing is so acknowledged accordingly.

Il Silenzio provides that mark of respect.

This is as magnificent a rendition of Taps. This version is played by a young girl at an Andre Rieu concert.


Click here to listen to the WMA audio file…

Dear Al,

Yes, respect is always called for. Playing Taps is quite appropriate.


Hello Jim,

A friendly reminder to the delayed gold buyers, we have a cut-off date for Gold/Silver purchases on May 27th. The next cutoff date will be June 26th. Those who wish to take delivery before the end of this quarter don’t have much time left. We can get COMEX gold at spot price, delivered and insured for about $12 an ounce (give or take the miles from NYC). We have also become sellers of legal tender gold and silver coins and can beat most dealers prices. Get protected or get out of the way, and as always, Happy Trades To You!

Fort Wealth Trading Co. LLC
866-443-0868 ext 104

Dear Jim,

I am certain that someday soon as we already know this headline may read “Chinese gold buying ‘boosting African mining sector.’


Chinese gold buying ‘boosting Australian mining sector’
The news feeds on this site are independently provided by Adfero Limited © and do not represent the views or opinions of the World Gold Council.
Tuesday, 19th May 2009 (78 views)

Increased gold buying by China is dominating the Australian mining industry, a new report has claimed.

According to Companies and Markets, Chinese companies are purchasing stakes in Australian assets as “foreign investment rules are liberal and encourage inward investment”.

A number of approaches from Chinese businesses for Australian assets are being considered by the government, including a AU$2.6 billion (£1.3 billion) bid for Oz Minerals by China Minmetals.

The Australia Mining Report for the second quarter of 2009 also revealed that the country remains a “world leader” in the industry and is the third-largest producer of gold behind China and South Africa.

Some of the biggest names in the global mining sector operate in Australia and Companies and Markets predicted that “the election of a more business-friendly liberal government” that took place in September 2008 will benefit the industry.

Meanwhile, John Burbank, founder of Californian global hedge fund Passport Capital, recently forecast that China will purchase higher levels of the precious metal in the future, as its gold/gross domestic product percentage is currently relatively low at around 0.8 per cent, Manual of Ideas reported.


Jim Sinclair’s Commentary

Courtesy of CIGA Barry.

China on the rise once more across the East
If any more evidence of China’s steady ascent towards Asian regional dominance was needed, the climax of Sri Lanka’s war has provided the proof.
By David Blair, Diplomatic Editor
20 May 2009

An ally of Beijing has fought a bitterly controversial conflict to a final victory, while shrugging off international protests along the way. India, the other Asian giant, is only 50 miles from Sri Lankaacross the waters of the Palk Straits, yet it has been shown to have far less influence on its neighbour than China.

Through a combination of strategic investments in seaports and pipelines, along with direct financial and military support for friendly governments, China is building a web of influence across South Asia. Many of Beijing’s immensely ambitious projects are years away from fruition, yet the repercussions of these ventures are already being felt.

In Sri Lanka, Beijing began constructing a port in Hambantota in 2007 and the scheme is scheduled for completion in 2022. This forms the basis of China’s alliance with President Mahinda Rajapaksa’s government and helps explain the diplomatic support Beijing gave Sri Lanka during the war against the Tamil Tigers.

The official line is that Hambantota is only a “commercial” trading venture and the facility will handle civilian shipping and nothing else. “Any attempt to distort the facts would be invalid,” said Ma Zhaoxu, a Chinese foreign ministry spokesman.


Hi Jim,

Sorry to be pesky. I‘ll be brief.

You said today: “In summary It Is Now and all positions should be held, putting trading on HALT.”

Are you saying to hold onto share positions without trading anymore? No more selling 1/3rd into strength?



Yes, the 1/3 sale would be executed at much, much higher prices, especially among those gold shares of merit with the largest short positions. Let’s assume that I am correct (I do) then you can be sure$1224 and $1650 is in the offering. Would you want to sell too soon?

Do you see my point Gil?

You are not a pest. You are a man seeking clarity. I am here to try and provide that. You honor me by asking.