Jim’s Mailbox

Posted at 3:23 PM (CST) by & filed under Jim's Mailbox.

Dear Mr. Sinclair,

I was curious if you would consider posting this link below in regards to the US gold audit petition on the White House’s website. Hopefully if enough CIGAs sign the petition then we will get the required 25,000 signatures.

Click here to view and sign the petition…

Thanks for everything you do.

CIGA Bryan


Hello Jim,

I have had some inspiration from Jesse Livermore, so I have created this visual and some text from his book. I hope this may inspire someone else in your Gold community as you have inspired me all these years.

Thank you and your team of professionals at JSMineset. Keep up the great work!

Your fan and friend,



Dear Comrades in Golden Arms,

Most Americans (outside of San Francisco and Washington, DC political circles) have heard the folk-expression "don’t bring a knife to a gunfight."

It took a pissant Commie banana republic to show the BIG 6 Central Banks what it is like to bring a nuke to their currency war knife fight.

Venezuela just devalued its fiat currency by 46%. So what?

The residents of Venezuela just ‘lost’ 46% of their purchasing power and net worth… unless they held Gold and Silver, in which case it just jumped 46%! And for the rest of the ‘developed’ world this means what? Expect an ‘unexpected’ bank holiday near you…

CIGA Richard S.


Jim Sinclair’s Commentary

CIGA Mike G. shares his research with us on the new items in the trade balance, non-monetary gold.

Dear Jim,

“Non-monetary Gold” is a new term for me.  After reading the first two pages of the attached, I now understand this classification.  Seems like more nonsense to me.  Here’s an excerpt for those who like me didn’t understand the meaning of your comment.  Now I do.

“The Issue

5. The underlying concern in this debate has been to address the perceived distortion of physical trade statistics due to the inclusion of all bullion market transactions undertaken between resident and non-resident counterparties. In the words of Issues Paper 27A, “Inclusion of all gold transactions between residents and non-residents as imports and exports of goods would seriously distort the economic accounts of those countries with large international markets in gold” such as Japan and the United Kingdom.16. As a solution to that problem, there was a proposal for the creation of a new financial instrument classification – Financial Gold – similar in nature to the current SNA concept of Monetary Gold but broader in its scope. Physical gold would then be classified as:

• Commodity Gold if it were held for industrial use or as a valuable;
• Non Monetary Financial Gold, if held by financial institutions and/or bullion traders for market making purposes; and
• Monetary Gold (a subset of Financial Gold) if held by Central Banks as a reserve asset.

Such a delineation would then regard interdealer trading as transactions in financial assets – not purchases and sales of goods – such that bilateral trading positions could

then be netted, and resident/non resident business recorded as net financial transactions, that is as financing entries, rather than as trade in goods within the balance of payments.”

Link to article…



Jim Sinclair’s Commentary

Resistance, a character of courage.


Thank you for your courage. General Guisan, held it together for 6 long years!

Hunkered down,


Here’s my pledge:

"I swear those that have caused the wreckage of all things once held dear to us shall not have my gold or gold share position. Fear is no part of me, and I will face the enemy, confident in our success."

And as Colonel William Prescott said at Bunker Hill… "Don’t shoot until you see the whites of their eyes!”


As one reads the history of that battle, the similarities to our battle with the banksters are quite interesting. Despite a temporary defeat at Bunker Hill "…[the] colonial forces were able to retreat and regroup in good order having suffered fewer casualties. Furthermore, the battle demonstrated that relatively inexperienced colonial forces were willing and able to stand up to regular army troops in a pitched battle."

The reason the patriots ultimately won was they stood their ground.

Jim, thanks again for all you have done for us over the years, and for helping us hold the line at every skirmish we have been through since gold was at $260.  We are the inexperienced colonial forces, you are our Colonel Prescott.



The Revival of Subprime: Will This End Badly?

Of course liquidity/credit for everyone, even those that can’t afford it, will end badly.  Liquidity provides the grease for the wheels of asset inflation.  Asset inflation, or "the wealth effect", in turn, drives spending; spending which account for more than 70% of GDP in the US has become ‘the economy’.  This trend can be found in many of developed economies around he world.

As long as asset inflation drives the economic growth, it looks like a win-win setup for everyone, right? Asset inflation not only makes everyone but those dependent on their labor for income rich but also drives economic activity.  Unfortunately, the vast majority of the world’s citizens are dependent on their labor for income.  Labor which cannot be divided and allocated across gold, silver, copper, corn, oil, real estate, etc.

Moreover, the growth of this income rarely exceeds the cost push inflation of the necessary basics such as housing, food, energy, healthcare, etc.  So goes the old saying the rich get richer, and poor get poorer, and increasingly pissed unless centralized policies support at least a subsistence standard of living.

This explains why socialism despite it’s lethal reliance on ever-increasing amounts of debt thrives – at least for now.  As an increasing number of citizens can’t find a chair when the next cyclical recession stops the music yet again, even an offer of subsistence standard of living won’t be enough.

Headline:  The Revival of Subprime: Will This End Badly?

The sub-prime market – risky mortgage backed securities – is hot again and its revival is exceeding many people’s expectations, the chief market strategist at Rosenblatt Securities says. He believes this will end badly.

The subprime mortgage crisis which led to the financial crash of 2008 involved institutions making loans to those that had difficulty maintaining their repayment schedule.

Source: more


Jim Sinclair’s Commentary

From CIGA Adrian:

“I swear those that have caused the wreckage of all things once held dear to us shall not have my gold or gold share position. Fear is no part of me, and I will face the enemy, confident in our success. [So help me doG.]”



Accumulation Of Loonie Suggest Resource Rally Coming

A rising Canadian dollar (C$) diffusion index (DI) suggests that the invisible hand is quietly accumulating into the fear. While DI has yet to cross 60%, a concentrated bullish setup, its upside acceleration warrants close attention.  Accumulation of the C$, a viable proxy for natural resource demand, increases the probability of a decent oil and natural resource rally in the months ahead.

This developing setup likely signals that that the 800lb gorilla regularly crushing gold at the open and London close is beginning to tired.

Gold’s secular bull, similar to playing of Donkey Kong, is a game of overcoming obstacles through skill and mental discipline.  Keep climbing, jumping, and smashing, because the quantity of barrels thrown at investors should slow soon.

Chart:  Canadian Dollar (FXC) And Canadian Dollar Diffusion Index (DI)


Dear Mr. Sinclair,

You really have hit the nail on the head.  All of us regular folks are facing an enemy of seemingly immense proportions but most don’t even know there is an enemy, never mind naming it (them).  At least Henry V knew who his enemy was and could face them head on.

Memories are short or non-existent.  No one alive today experienced or understands what it was like living with the massive price inflation of the Weimar Republic which helped usher in a monster and an aberration in human history that set the stage for the Stalins et al. follow. 

Very few of us know what it’s like to live in Zimbabwe present day, nor could we ever imagine that the inflation in prices that happened there is very soon to happen here.  Most people don’t know that we have our own present-day monsters stealthily and secretively edging towards destroying all vestiges of the human spirit using the Mussolini/Hitler/Stalin/Mao handbook.  Most don’t know the future financial landscape will soon look like the physical landscape in the movie "The Terminator".

I got goose bumps watching Henry V’s St. Crispin’s Day speech.  It was so inspiring.  That’s the stuff true leaders are made of.  The illusion is that we are vastly outnumbered, but we in fact do have far more numbers and in those numbers lies an untapped, immense power.  Even the small group (comparatively) that are "awake" far outnumber "them".  That counts for a lot.  The troops must be rallied!

Over the last one year, I’ve identified some 663 contrarian websites.  Who knew there were so many?  If each one of them on average has 10,000 readers/subscribers that’s 6.6 million people who know exactly what’s going on and who the perpetrators are.  If each of the 6.6 million people bought even one ounce of gold, that would be 6.6 million ounces.  The average number of ounces in the metric, long and short tons combined is 31,328 ounces, so our 6.6 million ounces becomes 210 tons of gold.  Say only 1/2 of those people bought an ounce of gold, it would still be 105 tons of gold!  There would be no other result except to drive the paper shorts out of the market in short order, destroying their positions totally and causing the rise of the PM prices to their true levels.  It would be game over for the power elites and the entire financial landscape would be changed for the good.  Who would have the power then huh?

I obviously have too much time on my hands, but these are the kinds of calculations I run so that I can have at least a glimmer of hope to hold onto.  It shows me that the people who want sound money truly do have the power.  It just takes us exercising it! 

The fact that you are "all in" in gold with more than $25 million is like listening to the Henry V speech.  Its awe-inspiring…

CIGA Shelley


Jim Sinclair’s Commentary

Courtesy of CIGA Rusty Bayonet.