Jim Sinclair – Paper Markets To Disappear As Gold War Rages

Posted at 4:18 PM (CST) by & filed under King World News.

Dear CIGAs,

Today legendary trader Jim Sinclair predicted the paper markets would disappear as the gold war intensifies.  Sinclair also spoke with King World News about the “end game,” how various countries are positioning themselves, and how this will impact the gold market.  Below is what Sinclair, who has been actively trading the markets for over half a century and whose father was business partners with legendary trader Jesse Livermore, had to say about what is now taking place as the gold war continues to rage.

Jim Sinclair: “The market character has now changed for gold and very few recognize that.  Gold is a trading market which involves sovereign entities, very serious sovereign entities such as China and Russia.  Recently you can even see the minor central banks such as South Korea purchasing gold. 

The price fixers can manipulate or play the futures or paper markets, but it’s the physical market which will determine the price of gold.  Physically is monetarily.  Paper is casino.  Because the monetary nature of gold is what’s going to create a significant increase in price, the futures markets will start moving towards cash markets….

“As gold rises now from the lows that I believe we are already in, towards the $3,500 mark and above, you will have the futures exchanges increasing margins until they get to where they were when they thought the Hunts were going to take delivery.  That was 100% margin.

A 100% margin is a cash market.  The futures market is not going to explode, it’s simply going to disappear as the futures markets become cash markets.  This will take place as the price of gold rises to $3,500 and above for sound reasons.

These powers that are out there working these markets we would both agree must be respected.  They can make a market sing and dance any time they want.  But there is the offset against the physical demand which has expanded significantly as the market came down, even at the coin level for mints.

Click here to read the full interview on KingWorldNews.com…