Gold $1200 then $1650?

By Jim Sinclair
Let today be your answer to the many question concerning whether gold will ever rise again. The answer is it will to $1200 and then onward to $1650.

I suspect that we could soon have a financial/felony experience that could land on the dollar like a piece of lead. I suspect that the instant the USDX breaks its present up-trend line from .72 to about .89, it will look like the dollar stepped into an elevator door and found no elevator there.

I suspect that the next move in gold will witness the massive short covering in all variety of shares, both majors and juniors. Under no circumstances give away your insurance (gold and all things gold) and if you have then for your sake buy your insurance policy back ASAP (gold and all that is gold).

Gold is a currency that you will see perform as the currency of choice. There is no doubt we are headed into a planetary Weimar experience to some degree.

Dollars are being created faster now than in any other period in history. The Fed and treasury are guaranteeing everything from money market funds to large corporate entities in one way or another.

The first valuation of worthless OTC derivatives via a public sale of these at .0875 to .02 cents shocked anyone with a brain. Now the downturn in business is hitting financial entities and shortly litigation will smoke whatever is left.

The FDIC is already yelling for additional and significant funding from congress as their capital contracts on every Friday’s bailout and their responsibility to cover now goes to GE, a non-bank with no depositors.

People expect things to return to normal in 2010. That is a fairy tale. All these bailouts and Federal guarantees on credit items constitute a white wash on a falling economic structure going out of control and soon. The out of control point of major planetary dislocation is between today and 66 days from now.

Gold is the only viable insurance. The US dollar is not viable insurance because there is simply too much of it and that amount is growing every day. That makes the US dollar untrustworthy.

Gold is the only viable insurance. Clearly equities (with the exception of precious metals shares) are not. Gold is the only viable insurance. US Treasury bills are not because the yelling at all the rating agencies in Washington today just might get US credit downgraded.

General commodities have been viable, but by nature they are too wild and from now on will be selective until Pakistan implodes and Weimar appears Banks cannot offer insurance as they are in the main bankrupt.

Insurance companies cannot offer you sound insurance as they are now broke by OTC derivatives. Money market funds are not insurance, making gold the only viable insurance.

Retirement programs are no longer insurance and with Motor’s bankruptcy pending they can simply disappear into Chapter 11. Pensions are simply too large for the government agency to insure. Jobs are no longer insurance as companies are run by lawyers and accountants. Equity in your home is not insurance because it simply does not exist.

Your family is no longer insurance because they have the same problems you do. The assumption your kids will take care of you in your old age is not viable insurance no matter what you think.

Gold has no liability attached to it and is therefore the only viable insurance as honest money. Gold is universally exchangeable, making it the only viable insurance.

Gold has historically performed perfectly in maintaining buying power, making it the only viable insurance. Gold is the only viable insurance because it is Honest Money without liability or agenda.

Since gold is the only viable insurance and because everyone needs it, gold will trade at levels of at least $1200 and $1650. I could go on but gold is all there is that will protect you from the White Wash being applied to the Walking Dead entities by the Fed and Treasury on a structure that is in fact in a free fall.

I am not the least concerned about gold and believe you should not be either as long as you have no margin and understand what gold really is: the only honest currency and only historically functioning insurance policy. There is no other viable insurance in this most unusual situation.