Posts Categorized: Jim’s Mailbox

Posted by & filed under Jim's Mailbox.

Dear Jim,

I starting reading a book today called "Patriots" by James W. Rawles, who founded survivalblog.com. This is a "fictional" story but it is really Jim Sinclair on steroids. I read the first six pages and got terrified. He makes a good point along the way after he mentioned gold going to $5,100. The people who sell out for dollars at that point lose everything anyway to Zimbabwe like inflation. Which makes me wonder what good it will do to sell any of my precious metal investments should the time come. Anyway, it is a good/scary read.

Bob De

Dear Bob De,

Nobody seems to pay attention to what I have been saying for years and what Alf also believes.

This time when gold goes up it stays up and does not do its 1980 disappearing act. There will be no need to sell.

Looking for the top of the gold price is a major waste of time.

Regards,
Jim

Jim,

Who better than those who have lived under communism to fully recognize what is now happening in the United States!

http://english.pravda.ru/opinion/columnists/107459-0/

From the article: "…the American decent into Marxism is happening with breath taking speed, against the back drop of a passive, hapless sheeple, excuse me dear reader, I meant people."

When you eliminate valid business contracts and hand over control of businesses to the government, you eliminate ALL incentive for anyone to invest in anything in your country.

As GM goes, so goes the country. GM is now 75+% owned and run by the current ruling authorities in our government, not by the people who had valid business contracts.

People in this country will one day realize that a country’s currency is nothing more than a piece of paper with the country’s "Brand Logo" on it…

… the "brand" on this current government is losing value at an ever increasing rate, and the problem with brands is that once destroyed they very rarely are able to regain lost prominence.

CIGA Buz

Posted by & filed under Jim's Mailbox.

By subscription and you should subscribe to see the real story.
http://www.shadowstats.com/

– Dollar Debasement Progresses 
– GNP Shows Intensifying Recession 
– Most Economic Data Show Deepening Annual Plunges and Downside Prior-Period Revisions

 

Dear CIGAs,

If you ever consider any of my opinions please consider the following as it is a key constituent in what you read here

I feel so frustrated that people associate hyperinflation as a demand pull phenomenon when it is always a currency event!

Hyperinflation and inflation of prices are two different categories, causative of the same basic result, one more serious and currency related.

Hyperinflation will be delivered to the US by the dollar vigilantes via the instrument of currency OTC derivatives prior to January 14th, 2011. If you doubt my date then take Armstrong’s June of 2011.

In a play on words, mark my opinion.

Dear Jim:,

I got the idea but please note that before the Weimar hyperinflation of 1923, the economy was doing pretty well. So the strategy of the Weimar short sellers made sense at that time as they could find a higher rate on the marketplace than their borrowing rate.

But you tell us that today hyperinflation will happen even in a recession. Is that because of peak oil or food supply problems?

Thank you very much.

Best regards,
CIGA Christopher:

Dear Christopher,

Please be cautioned that when you read economic statistic like personal income that income for those few that had jobs skyrocketed as the Weimar Mark tanked. Take caution when you see consumerism because as the axe was falling those that had eyes to see bought anything with Weimar marks they needed or they felt would hold buying power value in exchange, like breeding chickens.

If you read page 10 through page 16 of the following book, which is online, you will see that things were awful under the Treaty of Versailles and a direct comparison between the consumer of that period and the central bank type activities of the financial mechanism and the US Fed and Treasury right now.

Economics and politics in the Weimar Republic, by Theo Balderston,

I assure you that all hyperinflations take place in dire business and political conditions.

I feel so frustrated that people associate hyperinflation as a demand pull phenomenon when it is a currency event always!

Hyperinflation and inflation of price are two different categories of the same result, one more serious and currency related.

Hyperinflation will be delivered to the US by the dollar vigilantes via the instrument of currency OTC derivatives prior to January 14th, 2011.

As I explained to you before, as the money supply exploded in the republic you borrowed Weimar marks and sold them short in the then market, making delivery and in effect being short to the bank at the rate at which you borrowed plus interest.

Respectfully,
Jim

 

Jim Sinclair’s Commentary

The Gold Council seems like they will never change. The Gold Council, which is a mouthpiece for the major producers, reflects the degree of understanding of what gold is that the management of the majors ascribe to. Remember it was the majors that lost their rears betting against gold through their short of gold OTC derivatives, making the richest corporation in the world one of the major gold holders as the buy side of ALL those short.

The figure on China’s gold demand does not jive, and the Chinese central bank buying was NOT all from their in-country mining activities.

Gold is the primary currency when other currencies fail. Trinket gold only counts when the dollar is in a long term bull market.

Gold buying in Asia is not for the purpose of toe rings. It is the Asian personal central bank.

Gold jewellery is bought and sold by weight and little if any value is given for artistry. The artists work for peanuts there anyway.

An old friend I believe is holding a primary position there. Frank, you know I am right. When will you and the Gold Council get on the right page with gold?

Jim,

I’m sure you have already seen the article below. What I find quite interesting is the World Gold Council’s analysis for China consumers in the first quarter 2009.

“Gold demand in China in the first quarter rose to 114 tons, up 2 percent over the same period last year, solely boosted by an increase in jewellery demand," according to the latest Gold Demand Trends report for the first quarter of 2009 published by the World Gold Council”.

The others interviewed in the article seems to be at odds with the WGC’s findings. Even the picture in the article seems to omit one piece of jewellery.

Best,
CIGA Bernie

Gold fever grips Chinese investors
By Wang Ying (China Daily)
Updated: 2009-05-29 09:38

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Bitten by the gold bug, Chinese investors are now rushing to hoard the yellow metal as fears over the global recession deepen.

The increased sales of gold bars and gold jewelry in Shanghai, Beijing, Guangzhou and other large cities are reflected in the precious metal’s price surge on the Shanghai Gold Exchange (SGE), which trades in gold contracts for forward deliveries. Gold prices quoted on the SGE have increased by an average 6.74 percent in the past month to the current level of about 209 yuan a gram.

"Gold demand in China in the first quarter rose to 114 tons, up 2 percent over the same period last year, solely boosted by an increase in jewelry demand," according to the latest Gold Demand Trends report for the first quarter of 2009 published by the World Gold Council.

More…

Jim,

The recent home and real estate reports reflect a continuation of already dismal trends. These trends should temper the “green shoots” rhetoric. The real estate malaise is merely a symptom of large problems frequently discussed on jsmineset.com.

New Home Sales:
http://www.facebook.com/photo.php?pid=1715088&l=d546c108e1&id=557304509

Real Median Home Price:
http://www.facebook.com/hoto.php?pid=1715089&l=c0ab73878c&id=557304509

Building Permits:
http://www.facebook.com/photo.php?pid=1715086&l=1100583cfb&id=557304509

Median Home Price per Months Supply:
http://www.facebook.com/photo.php?pid=1715087&l=fff9df401b&id=557304509

CIGA Eric

Posted by & filed under Jim's Mailbox.

Dear Jim,

This article from Bloomberg reinforces the point that I made yesterday in our weekly email that banks will be forced to buy government bonds to help the government get rid of them. The forced bond purchases may happen in several countries, not just the US.

Respectfully yours,

Monty Guild
www.GuildInvestment.com

Dear Monty,

I will give you three guesses as to why the Fed/Treasury is reluctant to take back TARP money. You will get it on the first guess.

The problem is the size of the US Treasury markets. It will take a few trillion dollars of bond buying in FRONT door (The Federal Reserve buys Treasuries) or BACK door (Fed/Treasury forcing banks to buy Treasuries with Federal bailout money) Quantitative Easing to offset the long dated Treasury bear market. Whether they can offset it is a big maybe.

Jim

BOE’s Tucker Says Regulators Should Require Bond Bank Buffers
By Svenja O’Donnell and Jennifer Ryan

May 28 (Bloomberg) — Global regulators should force banks to hold assets such as government bonds as a buffer after the financial crisis exposed a “shocking” lack of liquidity at some U.K. lenders, Bank of England official Paul Tucker said.

“Regulators should define the ‘liquidity buffer’ to comprise high quality securities that can reliably be traded or exchanged in liquid markets, including in stressed circumstances,” Tucker, the bank’s deputy governor for financial stability, said today in Tokyo. “In practice, that would mean focusing on government bonds in many economies.”

Prime Minister Gordon Brown has committed billions of pounds to saving Britain’s financial system as the global turmoil plunged the U.K. into a recession. His government has nationalized banks from Northern Rock Plc in 2007 to Dunfermline Building Society this year, and bought stakes in larger lenders including Royal Bank of Scotland Group Plc.

“It has been shocking over the past year or so to discover how many medium-sized banks and building societies did not hold government bonds or other very high quality assets; or if they did, how many did not have a regular presence in the gilt repo market,” Tucker said. “Turning up in the core secured-funding markets for the first time for years is an absolute giveaway of distress. All that has to change.”

The liquidity squeeze created a “vicious spiral” where the credit famine fed the recession and in the process impaired the quality of banks’ loan books, Tucker said. “It would have been better if, somehow, we could have preserved the liquidity of the markets.”

More…

 

Jim,

North Korea’s threats seem to be timed perfectly with the arrival of Russian warships in the Persian Gulf. Could this be just mere coincidence, or are we on the verge of World War III?

Best,
CIGA Black Swan

Dear Black Swan,

We have been in World War lll for quite awhile now.

The battlefield is everywhere.
The lines of demarcation are nowhere.
The rules of engagement are non-existent.
The strategy is economic, breeding out as well as military.

North Korea and Russia are not the likely culprits to make it more conventional in a nuclear age.

The following is your answer:

1. Israel makes a major miscalculation.
2. Pakistan goes Taliban
3. Turkey is a victim.

Regards,
Jim

Posted by & filed under Jim's Mailbox.

Thanks Jim for your reply,

It looks like miners are changing the rules again. Having paper certificates will not be tolerated comrade – turn in your paper for digits – argh!!! Further insult after a reverse split.

15. Will I receive new paper stock certificates?

At the same time it is implementing the reverse stock split, Coeur is converting to a paperless stock certificate system. As a result, if you are a stockholder of record, you will not receive new, post‐split paper certificates in exchange for your old, pre‐split paper certificates. Instead, you will receive a statement that indicates how many new, post‐split shares you hold through the Direct Registration System ("DRS"). There will be enclosed with your statement a brochure instructing you to access your shareholder account at a secure website with BNY Mellon. The book‐entry system works like a bank, with our transfer agent, BNY Mellon, holding the shares in your account. Each time you have a transaction with respect to your DRS shares, you will receive a new DRS statement from BNY Mellon. If you need information with respect to your DRS shares, you can visit BNY Mellon’s website at www.bnymellon.com/shareowner/isd or call them at 1‐866‐223‐5997 after May 27, 2009. Paper stock certificates will only be issued if requested by the stockholder of record in accordance with the instructions set forth in the DRS statement from BNY Mellon.

More…

Our Wizard of Oz Congress is looking for a brain, a heart and some courage!

Dear Richard,

I do know Jim Sinclair well. I’m glad your friend turned you onto Jim’s site. You will be enlightened about the monetary situation in a very short time. There is a real strong reason for Jim’s belief; most of it has to do with timing, and the fact that all the people making these most recent monetary decisions are the same ones that have created it. Most of America doesn’t understand the situation they’re in because we, as a nation have become lazy. For the past 15 years most investments where done by managers of everyone’s 401k’s. Nobody controls where their retirement accounts are invested. They refuse to do homework on their own. I encourage you to keep ready Jim’s sight. His background has more financial understanding than anyone else I’ve ever read, spoke to, or respect.

If you wish to know more about this man’s background in which you will understand why he knows what he knows, get the book “Our Crowd” from Amazon.com.

This man’s family has been involved with banking here in the USA as long as the Rothschild’s have been involved. I have to go, but I hope you are able to see what’s happening thru Jim’s teaching. Lessons learned from him far exceed those of any classroom I’ve ever been in.

Sincerely,

CIGA JB Slear

Gentlemen,

You are placing every child in your school in danger of death by your glib decision to remain open. H1N1 can cause death.

Do you realize the personal legal liability of your decision? You will have to spend every hour of the day praying you do not kill a child.

Please forget the CDC and their propaganda. Research H1N1 in Japan and see the closing of everything including fast food establishments where an infection has occurred.

Respectfully,
James Sinclair
Parent

H1N1 Flu Notification from the Superintendent
May 27, 2009

Dear Parents, Students, Faculty, and Staff of the Sherman School,

According to our local health official, one confirmed case of novel H1N1 flu (swine flu) has been identified at the Sherman School. We expect that with time, additional cases may be identified here and elsewhere in the country.

The good news is that the one identified case has recovered.

Information is being sent to all families in an effort to review the Center for Disease Control’s (CDC) recommendations and guidelines in regards to stopping the spread of the virus.

On the afternoon of May 5, 2009, the CDC revised its guidance regarding school closure based upon a better understanding of how this virus is presenting. While the spread of the virus from person-to-person continues, the severity of the virus does not appear to be any more severe than seasonal influenza.

The new guidance from the CDC does not recommend closing schools unless the magnitude of faculty or student absenteeism interferes with the school’s ability to function. Decisions about closing the school will be made after consultation with the local health director. In addition, the CDC places emphasis on parents and school faculty monitoring themselves and the students for any signs of illness and remaining at home when sick. Please assist in the effort to keep the flu from spreading by following these guidelines:

Keep children with influenza-like symptoms (fever with a cough or sore throat) at home.

Keep children with these symptoms out of school for at least seven (7) days, even if symptoms resolve sooner. If children are still sick after the seven (7) day period, keep them at home until at least 24 hours after all symptoms have resolved.

If children have symptoms, they should not be out in the community except to seek medical care.

Students who appear to have an influenza-like illness when they arrive at school or become ill during the school day will be isolated and sent home. Please make sure the school has your contact information and pick up your child promptly when called.

Please monitor your child each day before you send him or her to school. If any signs of illness are present keep them at home.

If your child is ill, he or she should not attend any other alternative childcare or congregate in settings other than school.

Help your child understand the importance of covering his or her nose and mouth when coughing or sneezing. Model this behavior for your child.

Help your child understand the importance of washing hands with soap and water often. This is the best way of helping to decrease the chances of spreading disease. Model this behavior for your child.

Your assistance is greatly appreciated as we combine our efforts to combat H1N1 influenza. We assure you that the school is monitoring CDC guidance and following recommendations to ensure student safety. If you have additional questions, please contact Mr. Michael Pascento, Assistant Principal at 355-3793 ext. 16.

More information, including frequent updates, is available online at:

Connecticut Department of Public Health H1N1 Flue (Swine Flu) web site:http://www.ct.gov/ctfluwatch
Centers for Disease Control and Prevention (CDC) web site:http://www.cdc.gov/h1n1flu

Thank you for your cooperation in keeping our children and our school healthy.

Sincerely,
Joseph Reardon
Superintendent of Schools

Hello Jim,

Today was the last trading day for May Gold purchases. We watched the open interest jump from 7 to 19 in the May contract on the last trading day, the Fort was part of those purchases. We now will focus on the June gold delivery contracts. June will be a rather trying and emotional month. Triple Witch Week is usually the weak point in gold prices but with the possible change of pace and attitude in regards to the Gold Bulls, it promises to be interesting battle indeed.

Maybe it would be good to highlight why Triple Witch Week (TWW) is so important to banks and the markets. The Friday before every TWW, the currencies of the G7 roll into the next contract traded. We are leaving June contracts and rolling out to September during this period. The US Dollar index closes out on the Monday of TWW. All stocks in SP, NASDAQ, Dow Jones, single stock futures, and options all expire during this week. It’s really a giant balancing act, plain and simple. After this TWW is completed, the banks will be giving their profit/loss information to their shareholders.

On top of all this, the short selling rule will be put back in place, as far as being a law (I didn’t get the memo that this was going to be ignored for years by our protectors of the realm). Let’s not forget that interest rates are climbing too. Yes Sir, with all of this going on, I sure feel comfortable resting in physical.

We are here to help you change Fern’s (Federal Reserve Notes) into real physical COMEX metals. Get Gold or get out of the way, and as always, Happy Trades To You…

CIGA JB Slear

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

Hi Jim,

On the verge of a historic breakout?

The UDX to gold ratio has already broken through the 1980 support (or 1980 UDX weighted price of gold). The short term swing low has been breached. This implies that the March 2008 lows (or UDX weighted price highs) will be challenged in 2009 or 2010. Why is the crossing of $1000 any more historic than what has already taken place in terms of the global price of gold?

Regards,
CIGA Eric

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Posted by & filed under Jim's Mailbox.

Dear Jim,

Are you saying that I should wait until sometime in June to buy gold?

Sincerely,
Arlen

Dear Arlen,

Absolutely not. We are in major #3 according to Alf.

The overrun price could be as high as $3500.

The low in June could be from higher levels than today.

Who cares about a few dollars when you might be looking at thousands of dollars of appreciation.

If you are a trader I can’t help you. Ask God, maybe he can shed some light.

Respectfully yours,
Jim

Posted by & filed under Jim's Mailbox.

Dear Jim,

They are finally saying what you have said all along since 2003!

You have my loyalty, gratitude and service.

Best,
CIGA BT

Day of reckoning for the U.S. dollar
Alia McMullen, Financial Post Published: Wednesday, May 20, 2009

The U.S. dollar’s day of reckoning may be inching closer as its status as a safe-haven currency fades with every uptick in stocks and commodities and its potential risks – debt and inflation – are brought under a harsher spotlight.

Ashraf Laidi, chief market strategist at CMC Markets, said Wednesday a "serious case of dollar damage" was underway.

"We long warned about the day of reckoning for the dollar emerging at the next economic recovery," Mr. Laidi said in a note.

Mr. Laidi said economic recovery would weigh on the greenback as real demand for commodities, coupled with improved risk appetite, caused investors to seek higher yields in emerging markets and commodity currencies. This would draw investment away from the U.S. dollar, which was dragged down by growing debt and the risk quantitative easing would eventually spark a surge in inflation.

The U.S. dollar slid against most major currencies Wednesday, hitting a five-month low of US$1.3775 against the euro and pushing the Canadian dollar up US1.21¢ to a seven-month high of US87.69¢.

More…

Dear Jim,

These guys honestly get paid for doing this. Who was watching when the OTC crap was being rated?

CIGA BT

Pound plunges on threat of rating downgrade by S&P
Hugo Duncan
21.05.09

Sterling fell sharply today after credit ratings agency Standard & Poor’s cut its outlook for the UK on fears over ballooning levels of Government debt.

The world’s biggest ratings agency declared that there is a one in three chance of Britain losing its coveted AAA status.

The pound crashed to as low as $1.5514 against the US dollar in the minutes after S&P’s shock declaration at 9.30am, having earlier traded at a six-month high of $1.5817.

More…

Dear Big Tatanka,

Nobody was listening because the then Chairman of the Federal Reserve testified that OTC derivatives transferred risk from the few to the many. When the truth was told, OTC derivatives transferred risk from the few undercapitalized to the less capitalized.

Regards,
Jim

Posted by & filed under Jim's Mailbox.

Dear CIGAs,

While we are primarily a gold-oriented web site, I cannot omit from today’s commentary some remarks concerning the collapse in the long bond. Quite frankly, its weekly price chart has become a technical train wreck. It is less than a full point away from the 100 week moving average. Please note that I wrote, “100 week” and not “100 day”. The weekly chart provides us with the long term trend of a market and I must say, that this market’s price action terrifies me. Since October of 2007, the US long bond has traded just below the 100 week moving average only for a brief period during two separate months before finding buying support and rallying upward. On both occasions we did not get TWO CONSECUTIVE WEEKLY CLOSES BELOW THAT LEVEL. While the technical indicators indicate a market that is severely oversold, its downside momentum looks to be accelerating. This market bears very close scrutiny as a breakdown below this level that is unable to recapture support would indicate that the market has now finished completely with the deflation scenario and is  focused on the upcoming and anticipated wave of inflation unleashed by the mass creation of nearly unlimited amounts of paper US Dollars. In such an environment, gold’s rise will be unstoppable, bullion banks’ selling notwithstanding.

I should also note that while come of the immediate demand/supply fundamentals of various commodity markets are not particularly bullish, the fact is that the big funds are looking past all of that and are rushing in to buy across the board based on inflation expectations. The grains in particular are attracting huge money flows from the investment funds with wheat now trading above $6.00 a bushel. Perhaps I am dating myself, but I am accustomed to seeing soft red wheat trading closer to $3.50 – $4.00. Then again, soybeans above $10.00 used to be considered expensive. They are trading closing to $12.00 with corn back above $4.00 once again. The laggard is natural gas which continues to be overwhelmed by its massive supply glut but one has to wonder how much longer that market is going to trade so cheaply with all the money flowing into the commodity sector. Simply put – our monetary authorities and the present Administration have unleashed the forces that will usher in the downfall of the US Dollar and set in motion the advent of a severe hyperinflationary event. I keep waiting for some sort of official sector gimmickry to attempt to stem the freefall in the US Dollar but it would seem by their absence that they have no problems with the weaker Dollar. As a matter of fact, they are probably secretly welcoming it in the hopes of gaining some competitive advantage on the export market front.

The commodity currencies are on a tear north as is the Euro, the rise of which must no doubt be attracting the attention of the European monetary and business leaders who cannot be especially pleased seeing this once again. With the Euro back above 1.40, I suspect we are going to be hearing some noise from that sector soon. Then again, with traders focused on the plethora of dollars being printed into existence to fund the US bailout of everything and anything that moved, or no longer moves, what price level on the Euro/Dollar is appropriate? Who knows – maybe at some point, Euro/Dollar at 1.60 will look cheap… As it is, the Dollar is trading less than 80 points above its 100 week moving average. If that gives way, it is going to 76 for starters.

While as a long time holder of gold, I am of course pleased to see the price of the precious metal moving higher, I am also deeply disgusted by those charged with the stewardship of our national currency have done to it. This is our nation’s future we are talking about here and our very quality of life that is being ruined by these short sighted parasites.

Back to gold – looking at the price chart you can see that it knifed through the light resistance level shown there and now has a clear shot at the last line of defense for the bears near the $970 level. Should that level give way on a pit session closing basis, look for the upside move in gold to accelerate as funds will pile in and attempt to shove price back to the $1,000 level. Keep in mind what I have been saying for some time now, the inexorable and relentless rise in the Continuous Commodity Index (CCI) presents the gold bears with a formidable problem. It is difficult to shove the price of gold down for long when the entire commodity world is rising. When you throw in the fact that the Dollar has broken down technically as well as the long bond, it makes the gold price suppressors’ work even more difficult. My guess is that were it not for the holiday weekend and the bout of profit taking from shorter-term longs that surfaced in gold today, it would have made a run to $970. You can see the profit taking in the mining shares occurring judging by the move off their session peaks in both the HUI and the XAU.

If silver can trade in the after hours above $14.80, it stands a good chance of making a run at $16.00 It is fading a bit off its best levels during the pit session trade but is still above $14.60 which is a plus.

Click chart to enlarge today’s hourly action in Gold in PDF format with commentary from Trader Dan Norcini

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Posted 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
www.GuildInvestment.com

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.

CIGA Al

Click here to listen to the WMA audio file…

Dear Al,

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

Regards,
Jim

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!

CIGA JB Slear
Fort Wealth Trading Co. LLC
www.FortWealth.com
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.’

CIGA Marc

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.

More…

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.

More…

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?

Thanks!
CIGA Gil

CIGA Gil,

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.

Jim