Gold Bullion to $50,000 by 2020, Jim Sinclair predicts - Wealth Managers

Avoid ETFs that own unclaimable derivatives of real bullion, he tells USA Watchdog

Gold ultimately is headed to $50,000 an ounce, bullion expertJim Sinclair of JSMineset.com tells Greg Hunter of USA Watchdog in a recent wide-ranging interview on numerous topics of interest to gold buyers.

Those topics include the Federal Reserve's quantitative-easing program, U.S. debt, the dollar's role as a world reserve currency, the Cyprus bail-ins, China and the other BRICS nations, the Singapore Gold Exchange, the stock market, the modern welfare state, and the difference between physical gold and paper gold like ETFs.

"The exchange-traded funds don't necessarily own physical gold," Sinclair notes. "In fact, they own gold in various derivative forms," and the claims on that derivative gold are exponentially higher than the existing physical supply. Once the demand for physical gold outstrips the ability of exchanges like the COMEX and the London Bullion Market Association to make normal deliveries, the price of physical bullion will explode, Sinclair predicts.

"Gold is insurance," Sinclair says. "I think the dollar gets hammered. I think we are headed toward hyperinflation."

Sinclair calls the collapse of Lehman Bros., the TARP bailout, and the 2008 financial crisis "The Great Flushing." We're next headed into what he calls "The Great Leveling," in which the middle class risks being wiped out. That period from 2014 to 2016 will be followed by "The Great Reset," in which the BRICS nations (Brazil, Russia, India, China, and South Africa) force the U.S. dollar off its pedestal as world reserve currency.

How high will gold go? Asked (at 41:15) for his gold prediction, Sinclair says: Gold is "trying to better $1,650, which is the pendulum point for gold. It will better $1,650 and will rise to $2,400, drop, then rise to $3,200 to $3,500 before we go into the Great Reset" before 2016. "I almost embarrassed to say (how high I think gold can go). ... Physical gold emancipated from paper gold, which I believe will happen, will be $50,000 an ounce."

More information can be found online at http://www.goldbullionadvisors.com