Russia & China Loot Western Gold While JP Morgan Sells Silver

April 3, 2013

Today Jim Sinclair told King World News that Russia and China are looting Western gold while JP Morgan sells silver. He also said that all of this chaos is taking place as central planners conceal serious financial problems from the general public. Below is what Sinclair, who was once called on by former Fed Chairman Paul Volcker to assist during a Wall Street crisis, had to say.

Sinclair: “If you watch the market throughout the night and into the morning, as we have to, there is only one conclusion you can come to, and that conclusion is that this takedown has been totally orchestrated. It has been executed using tremendous strategy, and it was perfectly timed.

This has involved entities acting in unison for the purpose of affecting price and psychology, while at the same not necessarily selling volume. This has been a pure operation....

“As an example, gold was at $1,603 on Monday night and very near $1,600 in early US trading on Tuesday. Gold was then taken down nearly $25 in the normal manner that we have seen in previous operations.

There was nothing happening in any related market which would justify such a move. This type of operation was very reminiscent of the ‘Hail Mary’ play such as the one just seen in Cyprus. But the truly disturbing thing we are witnessing at this time is the sheer amount of effort being put into making everything appear just fine.

A contrarian would have to come to the conclusion that there are some very frightening and serious problems being hidden from the general public. Regardless, what we have seen in the recent takedown in gold is without any doubt a coordinated operation, and all of this in an effort to make the US dollar look better.”

Eric King: “Jim, with regards to gold sentiment we now have 45% less bulls than what was seen at the peak in 2011. Silver has a staggering 53% less bulls than its peak in 2011. When you see this type of active government intervention in these key markets, with that sentiment as the backdrop, what do you make of it?”

Sinclair: “From an investment standpoint, fortunes have been made when items have been purchased that are out of public favor. Meaning items which had the same type of bull/bear comparisons.

But I think what we have to consider here is there are major sovereigns in the gold market. You have both Russia and China with a very significant interest in terms of accumulating physical gold, or what true wealth still remains in Western central bank vaults. At the same time you have the West which has a significant interest in depreciating the price of gold. So you literally have a war going on in the gold market.

The real turn in the gold market, which I think is not far away, will occur when either Russia, China, or both, feel that the West is depreciating gold to a point where they would simply take everything in the market that was for sale. I no longer believe the gold market is a group of wealthy players, but, instead, it is now very much a political game, and the various players have as much money as they want to create for this game.

So it’s going to be very interesting to see if the Russians, having seen what has taken place in Cyprus, will take abuse in the gold market and back away quietly. I think it’s going to be determined this week whether China and Russia are in accord with the depreciation of the price of gold, which has clearly been an operation from $1,900 down. This has been a strategized operation, and something that if we were to engage in with a common stock, we would be arrested.”

Eric King: “Jim, I wanted to ask you about silver and what is happening in that market?”

Sinclair: “You can clearly see that from the day the JP Morgan suit on silver manipulation was basically thrown out for the second time, the silver market has seen an explosion of selling and it has been trading very heavy.

So the volume of selling has risen constantly since that plaintiffs against JP Morgan attempted to have the suit reinstated, but it was thrown out for a second time. People have to remember it is easier to push the gold market around if you can make silver look weak. But I still believe we have seen the lows already in the silver market.

People that watch the gold and silver markets have to understand that silver is more widely owned than gold. So you can create a significant amount of negative public sentiment more so in the silver market by making it look weak, rather than in the gold market.

The gold market is like a joust. It’s like the knights of old, fighting. Yesterday, three banks downgraded gold. This went along with the push to the downside. So, again, the takedown was totally coordinated. Yes, these operations are completely illegal and totally unethical, but that doesn’t matter in what has now become our brave new world.”