In The News Today

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Jim Sinclair’s Commentary

Mr. Faber’s comment: "You keep your dollars and I’ll keep my gold. Let’s see which goes to zero first."

 

Jim Sinclair’s Commentary

Here is the best advertisement for the Animal Channel. I always leave it on for the puppies if I am out.

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Strange times are these in which we live when old and young are taught in falsehood’s school. And the one man who dares to tell the truth is called at once a lunatic and fool.
— Plato (429-347 BC)

Jim Sinclair’s Commentary

Urban defense against banksters returning from a wonderful day of rape, murder and pillage: a 50 cal. hot dog.

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Jim Sinclair’s Commentary

Tired of our totally criminal world of finance? Need a smile? Try being covered with puppies.

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Gold Bug Hedge Funds Collectively Report Over $183mm In New Call Option Positions On Miners
May 18, 2013 | By Tekoa Da Silva

While mainstream news sources continue the war against gold and gold-related investments, three of the world’s top performing hedge fund managers have been busy at work building speculative gold positions during the first quarter.

George Soros, John Paulson, and Steve Cohen, who in aggregate control over $60 billion dollars, have been aggressively buying the most speculative vehicles associated with gold: call options on gold mining stocks.

Starting out with, George Soros, billionaire financier and chairman of Soros Fund Manangement LLC, was the target of bearish gold commentary this week issued by Bloomberg. While Bloomberg journalists correctly reported that he’s been cutting his stake in gold, what they failed to mention (which was articulated here on May 16th), was how he reallocated the proceeds.

Soros indeed cut his stake in the GLD gold fund by about $2.5mm—a paltry sum, especially given the fact that he simultaneously purchased a massive $25mm in call options on the GDXJ Junior Gold Miners Index. This purchase outweighs the physical gold sale by a factor of 10—suggesting he expects much greater gains ahead to be had in the junior mining stocks.

Reported exclusively here on February 19th, was Steve Cohen, founder of SAC Capital Partners LP, purchased a $60mm option “straddle” position on the GLD during Q4 2012, which represented the expectation of an explosive move in gold—either up or down in price. Indeed, that is exactly what occurred, and during Q1, SAC Capital Partners closed out that $60mm straddle position (no doubt at a staggering profit), while at the same time buying $66mm in call options on a major gold & copper producer. The firm also maintained over $76mm in long positions on mining equities during Q1.

The largest of the trio in terms of gold positioning for the quarter, was John Paulson, founder of Paulson & Co., which reported owning over $4.389 billion in total gold holdings. Paulson held firm his $3.3 billion stake in GLD, and further added a shocking $92mm in call options on two major gold mining companies.

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Muddled Israeli-US policies on Assad set stage for Golan offensive against Israel

Four days after a “senior Israeli official” warned Assad through The New York Times of Wednesday, May 15 that he risks forfeiting power if he retaliates for Israeli attacks on weapons supplies to terrorists, “Israeli officials” were telling the London Times of Saturday, May 18 something quite different: “An intact, but weakened, Assad regime would be preferable,” they said. “Better the devil we know than the demons we can only imagine if… extremists from across the Arab world gain a foothold there.”

The night before this report, Fox News aired footage appearing to show Israeli commandos inside Syria racing back on foot to Israeli territory. Without going into whether the two sets of “Israeli officials” were one and the same, their utterances are clearly making Israel’s policy-makers and defense leaders look muddled and uncertain – or, worse, unable to think clearly – about how to cope with the menace building up on the Syrian Golan. This could take the form of a Syrian war of attrition and/or a Hizballah offensive against Upper and Western Galilee. At all events, the Syrian civil conflict appears poised ready to spill over to one or more of its neighbors, starting with Israel as a result of six factors:

1. President Barack Obama’s inability to make up his mind on whether the US should intervene militarily in Syria – even in a limited way, such as the imposition of no-fly zones or finding a way to supply non-Islamist Syrian rebel groups with sorely needed weapons.

2.  The US president’s refusal to recognize that chemical weapons have already been used in Syria. His reaction to the file put before him in the White House Friday, May 17, by Turkish Prime Minister Tayyip Erdogan – with evidence from physicians treating wounded Syrians – remained dismissive. “The US has seen evidence of chemical weapons being used in Syria,” he said, adding however, “it is important to get more specific details about alleged chemical attacks.”

This comment was interpreted as the US president’s acceptance of the use of chemical weapons in the Syrian war so long as it was on a limited scale. Obama, like Prime Minister Binyamin Netanyahu, has therefore waved away another red line for military intervention in the Syria conflict, by closing his eyes to the evidence.

Former Israeli defense minister Binyamin Ben-Eliezer was more realistic last week when he brusquely brushed aside a radio interviewer’s query by saying: Of course, Assad has used chemical weapons and isn’t it obvious that he has already transferred to Hizballah both chemical substances and other advanced weapons?

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Jim Sinclair’s Commentary

Reputation of management is important to the valuation of a security. The US dollar is the security of the country, USA. Therefore reputation of management will factor into the dollar price regardless of short term shenanigans.

This Is No Ordinary Scandal
Political abuse of the IRS threatens the basic integrity of our government.
By PEGGY NOONAN

We are in the midst of the worst Washington scandal since Watergate. The reputation of the Obama White House has, among conservatives, gone from sketchy to sinister, and, among liberals, from unsatisfying to dangerous. No one likes what they’re seeing. The Justice Department assault on the Associated Press and the ugly politicization of the Internal Revenue Service have left the administration’s credibility deeply, probably irretrievably damaged. They don’t look jerky now, they look dirty. The patina of high-mindedness the president enjoyed is gone.

Something big has shifted. The standing of the administration has changed.

As always it comes down to trust. Do you trust the president’s answers when he’s pressed on an uncomfortable story? Do you trust his people to be sober and fair-minded as they go about their work? Do you trust the IRS and the Justice Department? You do not.

The president, as usual, acts as if all of this is totally unconnected to him. He’s shocked, it’s unacceptable, he’ll get to the bottom of it. He read about it in the papers, just like you.

But he is not unconnected, he is not a bystander. This is his administration. Those are his executive agencies. He runs the IRS and the Justice Department.

A president sets a mood, a tone. He establishes an atmosphere. If he is arrogant, arrogance spreads. If he is too partisan, too disrespecting of political adversaries, that spreads too. Presidents always undo themselves and then blame it on the third guy in the last row in the sleepy agency across town.

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Jim Sinclair’s Commentary

The physical market for gold will drain the warehouses of the futures exchange resulting in the physical market taking over the price setting mechanism of gold.

China’s Gold hunger to continue in 2013

BEIJING (Scrap Register): World’s second biggest gold buyer China’s gold hunger to continue this year, according to the latest reports.

As per latest reports, China’s gold imports from Hong Kong reached a record high in March and country’s yellow metal consumption rose by 26% in the first quarter of this year.

China’s Gold imports from Hong Kong
As per latest figures released by Hong Kong Census and Statistics Department, Mainland China’s gold imports from Hong Kong more than doubled to a record high level in March.

China boosted their gold purchases from Hong Kong by 223,519 kilograms in March including scrap, an increase of 130% compared with 97,106 kilograms a month earlier.

According to Bloomberg, China’s net gold imports reached 130,038 kilograms in March compared with 60,947 kilograms a month earlier.

China’s Gold consumption
The world’s second-largest economy China’s consumption advanced sharply by 26% year-on-year in the first three month of this year mainly due to the strong bullion sales and rising jewelry demand, as per China Gold Association.

According to the Association, China’s gold usage hit 320.54 metric tons in the first quarter of this year. Purchases of gold bars surged 49 percent to 120.39 tons, while jewelry gained 16 percent to 178.59 tons.

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