Jim’s Mailbox

Posted at 10:38 PM (CST) by & filed under Jim's Mailbox.

Virtuous and Vicious Cycles

Rising social unrest and deteriorating confidence in the periphery economies has allowed the dollar to mark-time despite a generally poor fundamental outlook.  The longer the dollar marks time, the more it encourages additional capital and reinforces existing trends.  In time, these trends appearing to defying economic law confuse and frustrate investors from one generation to the next.

Protest and riots might be non-trending search engine news for most Americans, but that will certainly change as today’s trends buckle under the weight of extreme concentration in the future.  History records the buckling process as economic and financial panics.

Chart: U.S. Dollar Index



How will the Russians stop the bullion banks from crashing (manipulating) the Comex gold price lower, then buying all their physical gold from their new exchange? I thought this happened in China or Hong Kong a while ago, when someone attempted to set up a new gold trading facility?

CIGA Peter

Hi Peter,

The OTC market for gold dwarfs the COMEX. The major physical transactions are conducted in the OTC. Sovereigns do their buying and selling in the OTC market. The paper bear market in gold is simply manna from heaven for the large sovereign interests intent on building their reserves. They can get their gold at a discount to what it would be without this manipulated sell off and they are draining the COMEX inventory at those same artificially depressed prices.

Jim has made it clear, once the COMEX inventory reaches crisis levels it will become a cash market just like the OTC.  The recent announcement out of Russia that it intends to mark its gold inventory to the market price is also ringing the bell for the manipulative paper bears on the COMEX. Jim expresses it best when he speaks of the emancipation of gold from paper.


Peter Mickelberg
Communications Consultant


Hello Mr. Sinclair,

I saw your picture of the giraffe and nearly fell over. I too was at Giraffe Manor.  Her name was "Betty June" and she followed me everywhere! I ran from room to room, upstairs, throwing open shutters and yelling out her name, as she came lumbering around the house (and stuck her head in the tea room). I will never forget that beautiful place, not ever! (My heart belongs to Africa).

Wow, great "travelers" think alike, huh? Thank you for all your wisdom. You are so much like my Dad!
CIGA Brandie

PS. I have sent you 2 of my favorite pictures of her!

clip_image004 clip_image006