Re: Question for the forum
in response toby
posted on Jan 15, 2010 10:01AM
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Sinclair says to get your core investment out with gold at 1650, marking your position to zero, then riding the rest to the top.
I could be wrong; wouldn't be the first time.
I read Sinclair's site daily and have for the past three years. Admittedly, I am at times in a rush and do not read every word. But I can't for the life of me ever remember him writing something like that.
I can remember him saying to buy physical gold. I do remember him saying to get stock certificates for all your positions you do not intend to trade or to the extent possible eliminate all possible counter parties between you and your gold shares. To get out of 401K's and retirement funds as these will likely be unable to perform. . I remember the admonition to never use leverage. I believe there were discussions as to possible dangers with money market bank deposits.
I do not recall anything about selling one's gold and getting paper dollars at any set price. Long ago (early 2000's and perhaps before) he picked 1650 and started the website to inform people out of a sense of personal duty. He has on many occasions since then said that his number, established long ago, will prove to be way too conservative but that he will stay with his followers until at least that point. After 1650, he now expects as likely (not just feels it's possible) gold to go on to Alf's and Armstrong's numbers which are in the 5000 range.
Why would anyone sell their "life insurance policy" for a few dollars that will, in all likelihood, be rendered worthless by inflation or hyperinflation. He has also said repeatedly that the gold price will NOT crash again as it did after the 1980 high; but rather will fall off its peak some and then stay in a trading range fairly close to that peak.
Why, if he feels that way, would he recommend anyone sell out any of their position at approximately 1/3 of the way to the peak for paper promises which will have potentially little or no value not long thereafter.
I am at times forgetful, but I cannot recall that statement having been made regarding one's physical gold holdings on jsmineset. Many people recommend that stategy for junior miners and I have no problem with it there as that is speculative money or "play money." One can build up quite a pile of free junior shares with this technique. But gold holdings are not play money. They are assuming an extended future, which I do not believe THIS WORLD will experience, a form of insurance.