Sinclair Gold Theory

  1. 9,081 Posts.
    Is Strategy of Asian and Islamic
    Gold Buying Taking Final Form?

    By James Sinclair

    The key factor in China is not the initiation
    of a gold exchange. That alone would not be
    anything much unless two other events also had
    occurred. The real news is the that the Chinese
    regime is finalizing what in their terms is a
    turn to the right.

    Compare this new environment to Tianamen
    Square so that you will comprehend it in
    terms of motion and trend. The Chinese have
    adjusted their legal code, removing state
    assets from a privileged position above
    private assets in legal protection. That
    translates into the right of private

    The second event, as silly as it sounds, was
    the criminal charge against a famous Chinese
    actress for failure to pay taxes. Until now
    no one of Chinese citizenship or domicile has
    paid taxes. Taxes are part of the Chinese
    legal code but traditionally Chinese citizens
    have not paid much attention to them.

    Like any celebrity criminal case, this is
    simply a message sent to the populace for the
    most significant impact.

    These two events plus the legalization of
    investment in gold and storage facilities
    in China make for a major event. It is major
    because China has a history of currency
    collapse and the cultural memory of the
    Chinese people is infinite.

    We now have in gold:

    1. The five elements of a gold bull market.

    2. The wild card of the Islamic gold dinar.

    3. The longshot of the resuscitation of the
    gold cover clause should the U.S. dollar drop
    below 90 on the USDX.

    In addition to these factors, we now have:

    4. A gold-backed if not convertible Chinese
    currency or measure for inter-Asian trade as
    part of a long-term plan of economic

    The gold dinar might simply be a test with
    quiet Chinese support.

    Therefore China's opening of trading in gold
    is much more than another exchange. It is
    another stitch in the cloth of what this gold
    market is really all about. It is a move
    toward the remonetization of gold by Asian
    and Islamic interests.

    Now do we know the plan of Dr. No and Hung

    I never believed that they were buying gold
    just for economic reasons. Since 1995 they
    have been buying all the gold sold by the
    gold producers, the gold cartel, the central
    banks, and discouraged gold investors. Is
    their plan for huge profit now showing
    itself? Has their almost inexhaustible source
    of funds also been Chinese?

    Time will tell, but my sources will know. I
    may have to take a trip to Asia soon. Stand
    by, because when I am sure of what is
    happening, you will also know, assuming that
    the price of telling you is not too steep.


    James Sinclair is chairman of Tan Range
    Exploration, whose Internet site is
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