Sinclair and Norcini Interview on the Miners

Jim Sinclair and Dan Norcini
(June 18, 2011)

I find it interesting that Jim Sinclair is joining Norcini on the weekly metal wrap-up. This will be the 3rd time in 2 weeks he been on kingworldnews. In the past he would go for 1-2 months between appearances.

  • Jim believes hedge funds have been pushing down mining shares and will be forced to cover soon.
  • eventually the fundamentals will reassert themselves
  • Dan believes the mining shares are significantly undervalued
  • Miners are being depressed to such a level that there will be significant consolidation which will happen quickly
  • be believes hedge funds will get to greedy and take a hit on the rebound
  • mindset needs to move from deflationary to inflationary and a drop in the dollar will lead to a mania in the miners as they jump to their true value
  • the majors that are watching the drop in juniors to attractive prices need to be careful of China who is also watching but has a different intent.  That being to increase their gold reserves.  When China takes over a gold miner none of the gold will hit the open market, it will go straight to China
  • Norcini notes that the XAU is at levels of 2008 when gold was $700/oz, for a value investor this should be considered very attractive given we’ve seen a doubling in gold.
  • Eric King compares the current state in gold with oil in the past 
  • Sinclair notes if you could buy a gold miner and access gold at $1000/oz when the spot market is $1500/oz do you think the shares will remain at these prices?
  • Sinclair says don’t let go of the mining shares
  • Norcini notes, do you want to sell the miners where their gold reserves are valued significantly below the market prices?

See full interview here.

This entry was posted in Gold and Silver and tagged , , . Bookmark the permalink.

Comments are closed.