Jim Sinclair told King World News we have just witnessed one of the most important events in history and it will have a major impact on the gold market. Sinclair, whos father was business partners with legendary trader Jesse Livermore, had this to say in this extraordinary and exclusive KWN interview:
The wire reports on the Cyprus situation are working overtime to try to make the case that 80% of the deposits belong to the people of Cyprus, and only 20% of the deposits belong to the Russians. Thats absolutely false. After 1985, when the Robber Barrons of Russia took over the general economics of Russia, that was the transformation from the KGB to private business. The primary place for exported Russian funds was Cyprus.
Now, there is one leader in the world that would be very dangerous to challenge, and that is Putin of Russia....
Whats just happened is the IMF has backed up, lauded, supported, and publicized, as if it were a victory, the taking of 10% of what really turns out to be 80% of Russian black money. Russian black money is KGB money, now in business. The leader of Russia (Putin) was a former KGB official. Whos money do you think they have taken? This is the biggest mistake the IMF could possibly have ever made.
Eric King: Jim, its unimaginable to me, but, incredibly, just ten days ago you warned that you dont want to anger Russian leader Putin because he and Russia will punish the West in the gold market. Can you talk about how this is going to impact the gold market beginning on Monday?
Sinclair: What would you rather have, an insured bank account by the BIS, FDIC, ECB, when any government can come in and take 10% of your account and treat that as if you are paying a tax for monies that were lost because of devious actions by the banks themselves, or gold?
Eric King: Will the Russians take their revenge in the gold market? Is that one of the places they will seek revenge?
Sinclair: The answer is that this is one of the most important events in modern times for the popularity of holding gold rather than holding fiat money. This is the catalyst that will propel gold through the $1,600 level. To prevent a break above $1,600 in gold would take extraordinary efforts on the part of any manipulator in the marketplace.
Its very dangerous in doing business with the Russians to lose their money. Revenge will be very much a part of the motivation for what happens from this point forward. This type of event will take us out of the $1,500s and we may never see those prices again in our lifetimes.
S&P Futures are also trading and are down 16.4. This may be the catalyst for the market correction.