Gold to hit $1650 by late 2010, early 2011, but estimate could be low - Jim Sinclair

As a contra to the dollar the outlook for the yellow metal remains strong

JOHANNESBURG - 

The poor outlook for the dollar continues to provide good prospects for the price of gold.

According to Jim Sinclair, chairman at Tanzanian Royalty Exploration, the price of the yellow metal could reach as high as $1650 by the end of 2010 and moving into the beginning of 2011. But, the man admits that, given recent happenings, this could be a bit of a low estimate.

"My thesis is that gold is a contra to the US dollar and recent statements out of the Federal Reserve that interest rates will remain extremely low until 2012 is really a go ahead single for gold to continue to perform as it has until at least 2012.

Speaking to Mineweb Radio, Sinclair explained his reasoning: "If you look at the way US foreign debt is just about touching $3 trillion and our economy is not responding as China has, we have very serious systemic problems that have resulted in high levels of unemployment and I can't buy on to a new normal economic recovery devoid of hiring people."

He adds that the US is now beginning to apply fiscal stimulus, which has "a habit of sucking inflation out of monetary expansion".

"I do think we are going to see the currency influenced inflation event that is hard for people to understand given the in a difficult conditions in the job market and with the only booming business being Wall street."

Given his view of gold's relationship to the dollar, Sinclair was asked about the dollar's continued status as the reserve currency.

"We can clearly see the dollar is no longer the universal reserve currency it was back in 2000; currency values come from momentum so you don't need heavy selling of a currency for it to decline you just need less buying.

" I would think that the dollar will always be around at whatever value the market makes for it and it will always be part of reserves but it won't be the universal reserve currency. You have a super sovereign currency unit, which is really like the dollar index that will be part and parcel of the IMF which I believe is becoming the central bank."

He adds that, national strength and influence socially and politically has always followed the strength of currencies and it is very clear Wall Street is no longer the financial centre of the world, Asia is rising very sharply and nations that can produce gold at reasonable prices will find out that they are actually mining money.

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responses to this article

"GOLD PRICE WILL GROW HIGH FREQUENTLY" GOLD price will increase frequently.Because the demand of GOLD in the INVESMENT field increases and the purchase of GOLD by Central Banks. The major demand of GOLD is from INDIA. But the heavy investors in GOLD have to be causious, they should . .more have a Sharp and fearful eye on gold, because if price decline continuosly, they have to suffer HUGE LOSS. nhbasheer@gmail.com njellorammel - koduvally- INDIA . .less by BASHEER.N -Koduvally-Kerala-INDIA on November 22 2009, 08:17 Find this comment inappropriate? Report it

gold price Gold is a limited resource that never loses desirability. In the modern economic world of paper assets that have proven in many cases to be worthless, gold will become more and more sought after. Simultaneously, the dollar being merely a . .more piece of paper that is really just an American government promisory note, will become less and less desirable. I predict that gold will reach $2000 dollars an ounce before the end of 2010. . .less by burtfred on November 23 2009, 08:23 Find this comment inappropriate? Report it

oooh... much too conservative a guestimate to be news! No no, Sinclair... Gold will go up to $1,600 within 3-4 months. Why bother WRITING if you are so ULTRA-CONSERVATIVE as to be WHOLLY INACCURATE?.... - NOT NEWS! Wishing you ALL the more ACCURATE analyses and reporting, my . .more dear.... Best. ~A . .less by Angelina Lazar on November 25 2009, 09:26 Find this comment inappropriate? Report it

Let's DARE to be ACCURATE when we SPEAK! And AS FOR THE USD, it shall CEASE TO BE! And NO, will NOT be lurking around in the background as an alternative reserve currency! FAT CHANCE! It DESERVES to be DEAD as the US Gov't USED and ABUSED ALL Foreign Direct Investors, who are JUST NOT . .more TAKING IT ANYMORE! It is EVEN NOW, worth, virtually NOTHING, and on its death bed. But Sinclair does NOT have the GUTS to SAY that! Those are my comments to make this piece ACCURATE. Sinclair is AFRAID to speak the truth. An economist/analyst "of the system". . . . NOT accurate enough to be enlightening..... BUY GOLD NOW if you can find it. GET OUT OF THE USD - in totality. GET OUT OF THE US - if you can. And CREATE YOUR OWN PATH, doing the OPPOSITE of WHAT the ELITE MEDIA says, and you will be ON TRACK and "SAFE'... in a very UNSAFE situation... Wishing you All the Best! Angelina Lazar Economist & Entrpreneur Extraordinaire Defender of Human Rights . .less by Angelina Lazar cont'd on November 25 2009, 10:15 Find this comment inappropriate? Report it

Angelina Lazar is a crook! Angelina Lazar is under investigation by the SEC for fraud, unable to return to the states: http://www.cyberdriveillinois.com by Concerned Canadian on April 24 2010, 15:57 Find this comment inappropriate? Report it

Angelina Lazar is RIGHTEOUS in ALL HER WAYS and the Investigation brought about NO CHARGES as she is... Nice try, Janko! Boy, you're really gonna' find your place in HELL FIRE, of that, you can be sure! I keep telling you: BRING ON THE JUDGMENT! NAIL IT FOR ONCE!!! But ALL YOU CAN EVER DO ON EVER WHICH WEBSITE is try . .more to DISCREDIT ME as ONLY SLEAZY AGENTS as YOU DO. FORMERLY UDBA Agent (STILL ACTIVE, though) and NOW, A MASON and ABSOLUTE PSYCHOPATH, you are GETTING NOWHERE IN YOUR DISINFORMATION and LOW-LIFE ATTEMPTS to DESTROY ME. I, on the other hand, WILL HOLD MY HEAD UP HIGH AT THE LAST JUDGMENT as CHRIST IS MY SAVIOUS and ALWAYS PROTECTS THE RIGHTEOUS - IN SPITE OF ALL SUCH SLEAZY MANEUVERS OF SHADOW COVERT AGENTS and THEIR ATTEMPTS TO MAKE A CASE AGAINST ME! CARRY ON! I'm WATCHING YOU ALL THE WAY AND HOLD YOU ACCOUNTABLE AT THE LAST JUDGMENT; AND DO RETAIN YOUR SIN, AND SO, IT SHALL BE RETAINED. ALL OF IT. Amen. A Blessed Day to All! xo~A Angelina Lazar OXFORD GLOBAL TRADE EXPERT Defender of Human Rights & :Peacemaker WORLDWIDE . .less by Angelina Lazar on June 07 2010, 07:29 Find this comment inappropriate? Report it

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