Mid 2013 - 2017 Jim Sinclair

This will be the entrance to the second phase of the gold market ascendancy. Gold got to $1900 on threatened systemic failure. Gold will go to $3500 and above on pure monetary fiat currency concerns. The actions of the Federal Reserve in order to maintain the extreme health of the US bond market are no different in their implications that Weimar financial moves were to avoid the economic pain of reparations or for that matter Zimbabwe’s constant Federal borrowing. The Fed’s defense of the US bond market is demanded by the huge pile of original and old OTC derivatives that still haunt the monetary system as specific performance contracts with any financing floating in cyber space. This could drop the US dollar below .7200 to .5600 on the USDX in a short period of time. Because the dollar is a reserve currency by default (which means they have it already and are presently in position by historical acts) the potential snowball effect could ignite an inflation that will later be known as currency induced cost push inflation, which is a derivative of hyperinflation. I anticipate that this is exactly what will happen propelling gold to new record heights starting no later than midyear this year and running into 2017. I am sure that this operation to keep a lid on gold is based on those that know what herein is outlined. The second phase of the long term bull market in gold should move faster and higher than any previous experience.