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Jim Sinclair’s Perspective – Scottsdale, AZ.!

July 12, 2013

Approximately 1000 followers of Mr. Sinclair attended his 4 hour presentation today in Scottsdale, AZ. I was one of the attendee’s.  Jim is one of the most knowledgeable pundits on gold, economics, history, and current geo-political trends. His presentation was excellent in that he allowed questions from the audience for the last 3 hours. Jim has recently given these presentations in Chicago, Vancouver, and now Scottsdale. His global following is probably in the millions. Following is a brief overview of his perspective (as given at the Hilton Resort Hotel in Scottsdale, AZ.):

1.  Implosion:  Jim thinks that our current financial system is about to implode and create what he calls a huge Bail-in. Basically, he says that all our savings and retirement funds (those deposited in our commercial banks) are subject to confiscation by the government in the near future. Our current deposits, he says, are technically not ours legally (the bank owns and controls these funds). This means that a situation similar to what happened in Cyprus will happen in America soon. To avoid this situation people need to get their funds removed from the banking system (if possible) to protect one’s options going forward. He outlined numerous options for various personal situations.

2.  Timing:  The next two years are the crucial period. The financial system is collapsing as banks do not have collateral do cover their insolvent positions. Also the 700 trillion derivatives market will likely create loses for commercial banks and force them to seek their depositors funds to survive. Depositors will not lose their funds but the investments (within these accounts) will likely be replaced with Government Securities so that our Treasury can keep the government solvent.

3.  Gold:  Between now and next year (say August, 2014) the price of gold should increase substantially as the current bottom in gold has been mostly reached. We could see $2500 or higher gold by next August. This will help select mining stocks to survive and also create an opportunity for anyone who buys mining stocks and/or physical gold at the current prices.

4.  Silver:  Jim is not quite as optimistic about increases in the price of silver, although he does predict that silver will likely reach $50 by next August. Jim sees silver as more of an industrial metal with some qualities as a precious metal.

5.  Gold/Silver Suppression:  Jim thinks that the recent manipulation of gold and silver prices down will change towards a manipulation of prices up. He also thinks the new physical exchanges in Russia and Singapore will create a new spot price which is based upon the physical demand…and this will eliminate the paper markets influence on price. The new spot prices will be based on physical demand not the paper market. Jim sees the COMEX warehouses as losing all there gold going forward. Watch as a new spot price for gold emerges based on physical trading (not paper trading).

6.  Bail-in:  Jim is convinced that a government Bail-in is certain going forward. This means that everyone needs to seek alternatives outside the Western banking system. Jim prefers the BRICS nations over our Western nations. He advocates diversification with a solid physical gold foundation. He also likes the Canadian dollar and the Singapore dollar as forms of cash during the troubling times that are coming.

7.  Real Estate:  Jim sees advantages for some types of real estate (free and clear of any debt). He is advising everyone to get out of debt and any new debt service situations. The next two years are crucial and then he will re-evaluate events. He seems absolutely certain of his Bail-in philosophy because of the precarious position of our banks. Our banks are in serious trouble given the derivatives bubble and their lack of sound value on their books.

8.  Inflation/Deflation:  Jim is convinced that hyper-inflation is eventually coming. He sees our dollar index going down to 72.00 or lower from its current level of 84.94.  As our dollar declines in value and the velocity of money increases, prices of goods imported will increase substantially…this will lead to hyper-inflation and social upheavals at some point. He does not see Deflation, at this time, as possible.

Basically, I thought that Jim’s presentation and overall perspective was informative and well received by the audience. The questions from the audience were probing and I did learn some new information which was valuable. My sense, however, is that Jim is not fully aware of the Deflationary viewpoint and its reality. I have known the philosophy of Jim for some time as I did listen to his perspective back in the 1970’s at the Jim Blanchard Conferences in New Orleans. He seems to hold a similar perspective today as he did in the 1970’s (with respect to the inflation/deflation issues). Personally, I see a huge deflationary trend developing as our markets implode in the coming months. I don’t think that a future hyper-inflation can occur given the nature of today’s digital markets. Anyway, Jim is certainly a worthwhile pundit to hear on all these issues. Hearing different points of view helps me better understand my perspective better.

You can visit Jim’s website at: and you can contact him at:  It is wise to listen to various and different perspectives prior to making up your own mind on all these issues. Enjoy! I am:

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