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James E. Sinclair,
Chairman & CEO,
Tanzanian Royalty Exploration Corporation |
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December 07, 2008
Jim Comments On Alf Field's Gold Price Predictions
Dear Friends,
I recently completed the same mathematics that helped me so much in 1980 to determine the price that would be required to balance the international balance sheet of the U.S.
Balancing the international balance sheet is gold's mission in times of crisis.
I recently did the math again and was sadly shocked to see what the price of gold would have to be to balance the international balance sheet of the USA today. That price for gold is more than twice Alf's projecte... (16 KB) |
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December 07, 2008
The Follow the Money Concept
Dear Friends,
Let's put on our practical thinking hats. I am inviting opinions from both our academic readers as well as those that believe answers are more accurate when derived by the "follow the money" concept.
The Fed says and statistics support that the majority of the $8.5 trillion in funds injected into the economy in various ways was to protect the US financial community. This has given comfort to the establishment intellectuals who claim there is no inflationary implicati... (11 KB) |
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December 05, 2008
Barrick Denies Rumours About Quitting Tanzania
Dear Friends,
This will clarify the unfounded rumours that Barrick was set to quit Tanzania because of high operating costs.
Respectfully,
Jim Sinclair
... (2 KB) |
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December 05, 2008
Information on Tanzania, My Favorite Country
Dear Friends,
1. Today's news on the cost of mining and infrastructure is in my opinion posturing for meetings between the Chamber of Mines and the Presidential Committee on Mining Revenue next week.
2. High costs can be a product of a company having sold the gold production of their mine forward 10 years in order to obtain non-recourse loans. The price of gold would then be delivered against those sales forward and used in the calculation of income in order to derive costs of mining accor... (2 KB) |
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December 04, 2008
The Necessary Grovelling of the Auto Industry
Dear Friends,
First Bernanke then Paulson speaks about helping mortgage holders.
During all of this Robert Nardelli, CEO of Chrysler, was forced to grovel in public for the measly fee of about $14 billion.
The net result was at the end of Motors being grilled by our beloved clueless legislative, the Dow once again regurgitated.
What a difference between how Washington treats Wall Street and Main Street. Wall Street gets the silk glove treatment while Main Street gets the ... (4 KB) |
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December 02, 2008
Bailout of Global Financial System Will Cost Trillions
Dear Friends:
My good friend, Monty Guild, offers us a profound knowledge of economics and markets.
There are good people and there are great people but few good great people. Monty is one of them.
Regardless of your present feelings, we must keep in mind that the stock market rally after the crash of 1929 came out of nowhere before it all caved in again.
Dollar depreciation then was the key element of a temporary but large shift in public and professional perspective of th... (9 KB) |
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December 01, 2008
Why was Comex Gold Taken Down Sharply Today?
Dear Friends,
I would like to encourage you to read this excellent piece about today's action in the gold market by my good friend, Dan Norcini, a professional off-the-floor commodities trader based in Houston, Texas.
Sincerely,
Jim Sinclair
... (9 KB) |
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December 01, 2008
The Exchange Stabilization Fund Today
Dear Friends,
In all probability, today's action in gold confirms that the Fed's last real meaningful weapon to fight deflation is coming into play very soon.
This effort is to disqualify gold as a currency. I question the intelligence of this from the deflationary/inflationary perspective that is so important to the Fed right now.
As I have told you multiple times, there is no such thing as the Exchange Stabilization Fund in the sense of employees with real names, faces and a... (2 KB) |
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December 01, 2008
Academic Versus Practical Sterilization
Dear Friends,
The minus $42 we are seeing in gold so far this morning is a gift from the Comex and will be proven in time. Aren't you tired of being had on a constant basis? If so, then do something rather than simply complain.
I disagree that the Fed has sterilized, in a practical sense versus an academic sense, much of its recent explosion in monetary policy.
The buyer of the T-bills has been primarily China, while 90% the liquidity has been injected into US entities.
Be ... (3 KB) |
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November 26, 2008
Volcker issues dire warning on slump
Dear Friends,
As you may know, it was Chairman Paul Volcker who predicated the Hunt loan on my availability to advise on the liquidation of the Hunt brother's metal position.
I know him to be a brilliant realist.
In 1979, he had a totally different situation and the full backing of the Administration. This time his job is the absolute opposite of what it was in 1979-1980.
This time I know his advice will be friendly to gold and most certainly on the subject of the Federal Res... (4 KB) |
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