Nice to see Jim Sinclair give a positive endorsement over the appointment of Paul Volcker as head of a Barack Obama's Special Economic Advisory Board. According to Sinclair, "This time (Volcker's) 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 certanly on the subject of FRGCR. This I know!"

This is good news, since Paul Volcker is said to have stated that when he was head of the Fed during the inflationary crisis of the 70's and 80's, his only regret was that he had failed to cap the price of gold and that the Fed did not intend to make the same mistake twice. I don't know if the tail end of that statement referred to the Fed back then or the Fed since then. Nevertheless, that statement certainly fuels the accusation that the Fed can, did, does, and could well continue to lean on the price of gold when it feels it has to.

Whether Volcker will have any influence in the role of gold in future US economic decisions, as head of an advisory board, remains to be seen. Circumstances over the years seem to have modified or changed his view on the role of gold, at least that is what I glean from Jim Sinclair's comment. However, I have yet to find any reference to any new view of Volcker about gold and its role in government economic policy. Not that there is anything written.

At 81, Volcker is known to be a tough, opinionated old bird. Glad it appears he's now on our side whether he knows it or not.