With gold getting hit hard today, King World News interviewed legendary trader Jim Sinclair. When asked about the volatility in gold Sinclair stated, “I think from this point forward you are going to see unprecedented volatility. You’ll see $100 swings to $150 swings in a day, and if you go back to 1979 to 1980 we had $150 in one direction. So if we had $150 in one direction back then, what’s to stop this market from doing $300?”
Jim Sinclair continues:
“There is very little understanding of gold anywhere. The primary culprit that is threatening every country and that’s currency induced cost push inflation.
What started all of this was three things. The discussion early on about price controls in China. The discussion in Brazil about currency controls, and then on top of that talk of raising interest rates in China. Then the general commodity market collapsed on itself because everyone is up to their eyeballs in margin debt. (more)
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