James Sinclair is a 64-year-old American businessman in a tan blazer
and navy blue slacks. From his manner and dress, he could be host to
an Amway seminar. But when he speaks, he sounds more like a karma
yogi. It's as if you're watching a movie dubbed with the wrong
soundtrack. "Silence is deep rest," Sinclair told me as we waited
for sandwiches at a deli. "It's the only way to restructure
ourselves." Among the most famous gold speculators, Sinclair
proclaimed in the 1970's that gold, then at $150 a troy ounce, would
hit $900. (It eventually peaked at $887.50; he sold his position the
following day, for a profit of more than $15 million.) Then, with
some analysts predicting that gold could go as high as $2,000, he
declared the gold bull market dead. (Within months, he was proved
right.) In 2001, with gold near its bear-market lows, Sinclair told
Forbes magazine that it could hit $430. On the day I met him, gold
was trading at $434.


Sinclair remains a star attraction at gold conferences around the
world, but in the 1980s he sold his brokerage firm and took his
wife and two of his daughters to the foothills of the Berkshires,
where he lives on a 40-acre equestrian compound featuring its own
9,000-gallon water system, its own electrical system and a shooting
range. ("I like to cut a target every now and again," he told
me. "Get out my aggressions.") Sinclair's private office sports
the typical CEO blandishments -- a massive mahogany desk, a wall-
mounted flat-panel computer monitor -- but also a profusion of
religious items. Incense always burns, and a temple gong sits in the
corner, along with a prominently displayed statue of Ganesh. Behind
the desk there is a full-color portrait of Bhagavan Sri Sathya Baba,
whom Sinclair visits frequently in India. "I am an enquiring
soul," he replied, when I asked if he was Hindu. "All the great
minds have wandered the Indus Valley."


Perhaps because he has found spiritual satisfaction elsewhere,
Sinclair regards gold with dispassion. "Gold is not to be loved or
hated, accepted or refused," he said. "Gold is not barbaric or
angelic. It fixes nothing in itself. But it is a mirror." Sinclair
sees the health of the dollar reflected in the price of gold, and
the health of the dollar is now in foreign hands.


"We're not talking about what I want, but about what is," he told
me, as he picked through a tuna salad. "If we go over $529, that is
not good news," he said, referring to the price of gold. "Anyone
cheering for a high price of gold should get on Prozac." Sinclair
says that when the dollar acts successfully as the world's currency,
gold naturally returns to its status as a mere commodity. In the
parlance, it demonetizes -- it loses out to the dollar as the
world's reserve currency. But a mismanaged dollar, he said, could
cause gold to remonetize. Our world would look very different
then. "The first sign is the foreign banks will diversify out of
dollars. Then they will cease buying dollars. And then they will
sell them." What could happen then? "Stagflation. ... Expansion
of U.S. federal deficit. Expenses rise and incomes drop."


Are we talking apocalypse? "The most likely crisis is the collapse
in the common stock of the operating entity. In this case, the
operating entity is the United States, and the common stock is its
currency." We had made our way up a hill, to Sinclair's koi pond
and its accompanying meditation gazebo. As if on cue, what appeared
to be a military airplane flew across the sky. "That's carrying
Iraqi supplies," Sinclair told me. "We have war and monetary
easing at the same time," he said, shaking his head. "Everything
has its season. That includes gold. Do I have a bet on gold? You
know I do. Will I one day unravel that bet? You know I will." 

(The above is an excerpt from an article by Stephan Metcalf in the NYT Published: June 5, 2005)
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Posted On: Thursday, June 15, 2006, 2:47:00 PM EST
.............

As an answer to the defamers who populate the chat groups:

   1. I teach the use of French Curves, Trend lines, Fibonancci, MACD, Momentum, %R and Slow Stochastic. I present these in one form or another every day with a full review on Fridays. It is up to you to use them. I will never pan gold as calling rally tops is not my business. A bottom yes and I believe we have one. Remember the tools are still the final advisors, not me.
   
   2. The first amendment to the constitution, free speech, does not protect you from significant liability when you step over a certain line. Nicknames on the Internet will not hide you from your deeds. Once any server receives a court order you are right out of the closet and fully exposed. Please be advised Barrick knows this, as do I.