Interview With Jim Sinclair

This interview with Mr. James Sinclair is straight to the point. You will learn the truth first hand about the current state of and the future of the U.S. Dollar, Gold and the current and future outcomes of the credit derivatives crisis.

This is a highly recommended listening event. Enjoy.


Interview with Jim Sinclair

GOLD & SILVER Weekly Charts

Cobalt and Caledonia Mining (CALVF)

Cobalt prices have been on the rise lately. In fact, they have increased from around $15/lb to over $45/lb since November 2006. This chart only shows activity through December 2007, but if you check the current sales price at BHP Billiton, you will see that they are currently making cobalt deliveries at $46.25/lb. Not a bad increase. In a little over a year, cobalt prices have basically tripled. This should be good news for cobalt mining companies or cobalt miners with significant cobalt resources.

(Update 1/10/08, Cobalt price is up to $47.50 today)

One such company is Caledonia Mining (Symbol: CALVF)

CALVF currently trades at U.S. $0.113 per share. Obviously it is a penny stock.

Caledonia has a diverse compilation of properties that include gold, base metals and diamonds.

Caledonia's cobalt property is called the Nama Cobalt Project.

The NI-43-101 technical report concluded that the combined Indicated Resource for Anomalies A and C at Nama is estimated as 121,874,000 tonnes with a weighted average grade of 0.047% Co and 0.043% Cu. The Nickle portion is approximately 0.015%.

This is only one of Caledonia's many properties. This property alone has an estimated resource of 114,561,560 lbs of cobalt, 104,811,640 lbs of copper and 36,562,200 lbs of nickel. At today's prices of $46.25/lb for cobalt, $3.27/lb for copper and $13.26/lb for nickel, this is a total value of $6,126,020,985 U.S. dollars.

Caledonia has fully diluted shares totalling 590,273,165. This would put a value of current resources at $10.38 per share just for the Nama project.

This does not include its currently producing gold mine, the Blanket Mine, that has proven and probable gold of nearly 500,000 ounces with inferred gold resources of nearly as much.

Nor does it include its other gold, diamond, platinum and other base metals projects.

Take a look at this long term chart of Caledonia and you will see it has the potential to explode in price in a short matter of time.



It has had two massive run ups in share price. In 1986 it rose from under $1 to over $7 in just over 1 year. Then in 1994 it rose from under $1 to over $9 in less than 1 year.

The question is, does it have another run coming? I don't know. But, I do own 69,300 shares of CALVF and would love to see it make another big run. Be sure to do your own due diligence as these are numbers that I calculated based on information on Caledonia's web site. Remember to invest at your own risk. Penny stocks can make huge gains but can also make you lose all or substantially all of your investment as well.

I'm Scared

Dollar Falls to 26-Year Low Against Sterling

TOKYO, July 18 (Reuters) - The dollar slid to a 26-year low against sterling on Wednesday due to worries about the U.S. subprime mortgage sector and after British inflation data boosted expectations for higher interest rates there.
Sterling rose as high as $2.0492 , getting a boost after data on Tuesday showed that the annual core consumer price index in Britain rose to a decade-high 2.0 percent in June.

(more...)

Dollar hitting new lows against the Sterling is just one more notch in the dollar decline. Are we due for a short term rally soon? I don't know, but long term dollar fundamentals stink and I expect the dollar will trade much lower than it is now.

Will Higher Rates Sink Gold and Silver?

Check out this Bloomberg article below. The headline speaks for itself. If you have ever read the work of Jim Sinclair, then you already know better :)

Gold, Silver Fall as Higher Interest Rates May Pare Demand
By Choy Leng Yeong

June 12 (Bloomberg) -- Gold fell, resuming its decline to a 12-week low in New York, on concern higher global interest rates will reduce demand for the precious metal as an alternative investment. Silver also dropped.

Gold tumbled 3.9 percent last week, the biggest weekly decline in three months, after the European Central Bank and the Reserve Bank of New Zealand raised rates. Holding gold becomes less attractive when rates rise because the metal has no fixed returns. U.S. Treasury yields rose today after China said prices increased at the fastest pace in two years, renewing speculation rising global inflation will prompt central banks to raise rates. (Read the rest of this article HERE)

Silver Getting Ready to Move Higher

Silver is getting ready to move higher very soon. At least that is what I believe. Silver and Gold have been consolidating their large gains for a long time now and appear to be on the threshold of major moves upward.

It is interesting to note that according to the Resourse Investor, the Silver ETF has already taken 15% of the world silver supply off of the market. This is pretty huge. I don't know if their numbers are correct or not, but the point is that Silver is scarce and getting more scarce.

A second Silver ETF was started in Germany recently. This will take more silver off of the market as well. The last time silver started a major run up from a breakout of a triangle pattern, it moved up 100% over approximately 6 months.

This time may be no different. Physical silver and gold are the safest way to own the metals. Buying an ETF theoretically gives you the same result, but some question wether or not the silver actually exists in the ETF or if they are playing a paper shell game.

Either way, for the next several years I would think either would be a safe bet to own. If you don't have any exposure to Silver or Gold, now is an excellent time to add a position to help combat the loss of purchasing power of the U.S. Dollar as it's value is continually inflated away with large sums of electronically created "Money".

Hang on..... this could be fun!

If Your Not Outraged, Your Not Paying Attention!

Are you paying attention to the amount of value our dollar has lost since 1913? Are you paying attention to the massive deficits that our government is running? How about the fact that our money (also known as Federal Reserve Notes) is nothing more than a promise to pay more worthless Federal Reserve Notes?

Have you noticed that in our current monetary system that all money is borrowed into existence? Do you realize that if all debts were paid back today there would be no money at all? Does this seem like a stable monetary system to you?

Are you aware that the Federal Reserve is neither federal nor does it have any reserves? Do you understand that the power to coin money has been handed over from our own government to a private banking cartel known as the Federal Reserve?

Have you realized the fact that there is no law that requires you or any other American to pay income taxes? Are you paying attention to the fact that if you don't pay income taxes you will most likely be terrorized by the IRS?

Do you realize that all of the income tax that Americans pay goes straight into the coffers of the Federal Reserve to pay for the interest on the money that our government borrows from this private banking cartel? Did you know that our government could change this if it wanted to?

Are you watching as special interest bills get hidden inside of other larger bills even though they have nothing to do with the bills they are attached to? Do you think that the Patriot Act has anything to do with being patriotic or giving you more freedoms?

Did you know that on 9/11, it wasn't just the Twin Towers that came down, but there was a third building? Are you aware that no plane ever struck it? Do you know why?

Are you feeling more secure now that we have the Department of Homeland Security and the TSA? Are you starting to get the feeling that the war on terror is really just the war against our freedoms?

Are you standing by and doing nothing as the corrupt organization known as the FDA makes a final power grab to regulate all mineral supplements, vitamins and any other substance that may have a positive effect on your health?

Are you getting excited about the new National ID card that you and I will be required to carry starting in May of 2008? Do you look forward to carrying around your shiny new ID with an RFID chip inside of it that will house your personal data but be scannable by anyone that is close enough.

Are you ready to become a part of the North American Union? Do you even know what this is and who is pushing for it?

Do you think it is a good thing that our government has a working group on capital markets also known as the plunge protection team? Do you know how much money it takes each day to finance our current account deficit?

Are you happy that we are a war mongering nation spending ourselves into oblivion while we can't even protect our own borders?

Are you paying attention to what the price of gold and silver are telling you? Are you outraged? Or are you even paying attention?

Where does gold go from here?

Silver and gold were beaten down badly last week. Silver lost more than gold percentage wise as is usual. Looking at the weekly gold chart I do not see any real damage on the chart to speak of. The long term uptrend in gold is still in tact. Take a look.

How High will Gold go?

I am one of those who is of the opinion that before this bull market in gold has run it's course, GOLD will better the $2000 mark and that may be too conservative.

This is a great chart from www.usagold.com that shows the inflation adjusted price of gold.

A look at this year in charts

This year has come to an end. What does next year have in store? Let's take a look.

Silver and gold ended the year on a down note.

The Dollar and Bonds ended the year on an upward note.

Inflation is heating up.

The United States continues to print too much money and spend it on useless wars.

The Republicans and Democrats continue to keep a lock on power and corruption as the U.S. citizens are too stupid to figure out that they have been duped for years now. There are no Republicans or Democrats (except for Ron Paul who is a Real Republican). There are only Demopublicans. As long as the two party system remains in place expect more spending, war, entitlements, corruption and a decline in the standard of living of Americans.

A big thank you to Downsize DC and Ron Paul. These are two worthy organizations that are actually trying to do something about our absurd political and economical condition. Please visit them and support them and you can make a difference too.

A happy New Year to all.

Chart Review Below:

Can You Say Flip-Flop ?

Editor: Isn't this the same guy that just told us gold is going down because the economy is cooling? This is some great reporting isn't it?


Gold, Little Changed, May Gain as Investors Bet Against Dollar
By Pham-Duy Nguyen
Nov. 29 (Bloomberg) -- Gold, little changed in New York, may gain after a report showed sales of new homes in the U.S. fell in October, reducing chances the Federal Reserve will raise rates anytime soon.
Higher interest rates make holding gold less attractive. The Fed has held rates at 5.25 percent since June, helping to send the dollar 9.4 percent lower against the euro this year. Gold is still up 24 percent. (read the rest of the story here....)

Editor: What a bunch of crap. I think the wealthy people will be shifting more of their assets into gold and silver to protect their wealth. How about the massive investment demand from ETF's and private investors. For example, GLD has amassed more than 400 tons of gold since its inception. Why is it that Bloomberg seems to see things backwards most of the time?



Gold Drops on Speculation Slowing U.S. Economy May Cut Demand
By Pham-Duy Nguyen
Nov. 28 (Bloomberg) -- Gold prices in New York dropped from an 11-week high on speculation a slowing U.S. economy will reduce demand for the precious metal.
Jewelry demand accounted for 73 percent of purchases last year, according to the producer-funded World Gold Council. Orders for U.S.-made durable goods declined last month by the most since July 2000, a signal that companies are curbing spending.
``The durables are going to put a clamp on gold and other metals,'' said Ron Goodis, retail trading director at Equidex Brokerage Group Inc. in Closter, New Jersey. ``Wealthy people who spend a lot of money on jewelry are going to pull back.'' (read the rest of the story here)

What time is it?

Well, since today is November 15th, 2006, that means it might be time to load up on gold, silver and precious metals shares.

After consolidating for quite a while and then breaking out of a downward wedge, it seems that gold and silver may be setting up for a run quite a bit higher.

It also might be time to look at the pitiful condition of the U.S. Dollar fundamentals and make sure you are prepared for what is heading our way over the next several years.