Exclusive Interview – Jim Sinclair: “MF Global is A Piece of Dynamite Sitting Underneath the Gold Price”

I had the chance recently to speak with the legendary Jim Sinclair, publisher of JSMineSet.com and CEO of Tanzanian Royalty Exploration Corp. It was an incredible interview—Jim spoke about gold, MF Global, mining shares, risks of the paper gold market and much more.

During the interview Jim commented on how truly misunderstood gold still is, as well as the market being nowhere near an ultimate top. His comments were, “The general thinking amongst the youngsters who run the hedge funds, is not a very pro-gold school, and its very much in error…Gold will ultimately be a top brought about by violence in the most spectactular manner—the idea that gold made a top in the $1900′s could only be drawn by those with no experience in the previous major moves in the gold market.”

When asked about the widening price ratio between gold and mining shares, Jim said, “Many gold shares are selling at a significant discount to the price of gold, but also at a discount to simple logic,” for reasons that, “there are significant competing investments that didn’t exist back in the 70s and 80s, such as exchange traded funds in gold and silver…The largest of these funds, if you read the prospectus, you find out you’re investing in a fund that doesn’t have even the legal obligation to deliver gold itself, and they have the absolute ability to only deal in paper equivalents.”

In regards to the recent MF Global collapse, Jim said, “When problems like this occur, and when investors question whether or not their statements means anything, assets without liabilities attached to them held physically or stored personally by the investor become very attractive.” He concluded by saying, “the MF Global situation—is a piece of dynamite sitting underneath the gold price.”

Jim is known by many as “Mr. Gold,” and his depth of knowledge on gold & the financial markets is quiet uncommon. This is another “must-listen” interview for gold and silver investors.

To listen to the interview, left click the following link and/or right click and “save target as” or “save link as” to to your desktop:

Interview with Jim Sinclair