Sinclair’s Third (and Final?) Warning

This is big.

Jim SinclairI’ve been following what Jim Sinclair (one of my heroes) says since 2005. I see him as one of the foremost experts in the gold and currency/financial arenas.

He’s known as the man who recently bet $1 million dollars that gold would trade at or above $1,650/oz by January 11, 2011 [link].

After Bear Stearns went belly up March 2008, Jim sent out an email alert. He warned all who have followed his predictions for years by saying,

“This is it!” 

Just before Lehman Bros died he recognized what was happening with the US economy and sent out a second email alert. He said,

“This is it. It is now!”

And now, in Feb 2009, he sees other developments that prompted him to send out a third email alert. Here it is, in its entirety. He says,

“This is it. It is now. It’s out of control.”

Dear Extended Family,

I sent you a certain few emails that I consider to be the most important communications issued in my career that started in 1958.

I am the son of what I know to have been the greatest Lone Wolf trader in Wall Street history ever, Bertram J. Seligman. He was a past master at his business and believed to be a market sensitive. I apprenticed to him, learned from him and inherited some of his ability, not all however.

From this background of experience understanding and sensitivity the following flows.

The emails of note:

1. Said, “This is it.”
2. Said, “It is now.”

This communication is to inform you as of 2/13/09, “It is totally out of control.” There is no longer any means of reversal of the beginning of the final phase of the downward spiral now solidly set in motion.

For your sake, protect yourselves immediately.

Be prepared for disruptions in distribution common to hyperinflation.

1. You should have already distanced yourself from your financial agents. If you haven’t you are headed for significant displeasure and strain.

2. Make sure you stay three months ahead on necessary items that could experience distribution delays such as prescribed medicine and preferred foods.

3. Even though real estate is far from a buy, if you can afford a second home outside of major cities it would serve a good purpose.

4. Own gold.

5. Consider that good gold shares of non-US companies incorporated in a non-US country operating in third country, traded on multiple exchanges are a means of money expatriation legally and in broad daylight if required.

6. For currencies, all you can do is own a spread held by a true custodial ship wherever that might be.

Simply said, as of Friday February 13th, 2009 the situation is in confirmed “Out of Control” mode as this well engineered downward spiral enters into a terminal phase.

The motive was profit and degree of the disintegration caused in the pursuit of this goal was not anticipated.

The key event was when Lehman was flushed – all hell broke loose. The hell cannot be contained in any practical manner.

I seek nothing of you, but the protection of yourselves.

Respectfully yours,


7 Responses

  1. Well, it is now beginning of July 2009, and it seems you probably go it all wrong, since everything is fine :-) hehehehe
    Note: Lehman Bros is now an old story and no one mentions it anymore.

  2. Shisha,

    Buy some gold or silver, whatever you can afford & forget about what it is trading for. Precious metals, at the end of the day, are an insurance poilcy.

    Physical gold & silver are best.

    Get yourself a supply of food (6 months +), Get yourself right with the Lord & thats it.


  3. I am really scared, but gold is very high now, it is very speculative to buy no, but myabee it is more speculative to buy not.

  4. Will the U.S. truly have the ability to offload its debt securities onto everyone else. There must be willing buyers as well as a willing seller.

  5. […] Some great bear market investing tips in this post. […]

  6. We´re most definetly in for a tsunami of inflation, however the United States is still unlikely to experience hyperinflation, Wiemar style, precisely because their position as Empire-nexus allows them to export inflation via their trading partners. The dollar will devalue sufficiently when t-bill shedding begins to allow new debt to be serviced. In 2009, I expect 30-40% dollar devaluation (USDX 50s) coupled with the return of double-digit inflation by Q4. For 2010, I expect the DX to hit the 40s or 30s coupled with annual inflation pushing 25%. Hyperinflation would call for 90% devaluation and 25% monthly inflation; it happens in third world countries because they don´t have the privelidge of offloading their debt securities onto everyone else.

  7. As I posted yesterday, my Uncle (the PM trader), said the same stuff mr. senclare said.

    I’m actually getting a little scared.

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