Jim's Outlook On 2009
Posted: Jan 26 2009 By: Jim Sinclair Post Edited: January 26, 2009 at 12:20 am
Filed under: General Editorial

Dear CIGAs,

1. Before 2009 is out the next major economic shock will become obvious. There is not one major funded retirement program intact thanks to the manufacturers and distributors of OTC derivatives. The unfunded ones are a total loss. Retirement in the future is totally out of the question. Many now retired will end up in the same situation as those trying to live off fixed income. Both categories are being culled from the human gene pool.

2. By my 68th birthday Obama will recognize his position as a bagged President, knowing then that the economic situation does not have any practical solution.

3. By July 4th, 2009 the rally in the US dollar will have become a simple hope for the lows to hold.

4. My long held targets of $1250 and $1650 for Gold that were once laughed at as outrageously high can now be laughed at for being painfully too low.

5. Only gold and related shares are insurance against the economic cataclysm now taking place.

Everyone is looking for where and when the top in gold will come. Will it be Jim's $1650 or Alf Field's $10,000 plus before it comes back down?

To put it nicely, you are all wrong. Gold is going up and STAYING up.

There is no top to look for because like all things people strive for, the top does not exist.

Gold will trade within $200 of a given point as a product of the Master of the Financial Universe, Paul Volcker, taking control when all this is totally out of control. He will instate the revitalized and modernized Federal Reserve Gold Certificate Ratio, not gold convertibility, and not tied to interest rates as an automaticity. Only then can Volcker put in place policy backed by the sitting administration that has a provable history of starting the change from deficit to surplus, his price of saving the world one more time.

The Gold mining business will then be the best business there is and the highest dividend paying monetary utility.

Respectfully yours,
Jim