Gold confiscation at $3,000 rumour is complete nonsense says ‘Mr. Gold’ Jim Sinclair

Gold confiscation at $3,000 rumour is complete nonsense says ‘Mr. Gold’ Jim Sinclair

By: Peter Cooper, Arabian Money

-- Posted Wednesday, 31 October 2012 | Share this article | Source: GoldSeek.com

The ‘Mr Gold’ of the 1970s and former adviser to the Hunt Brothers, Jim Sinclair is hopping mad over rumours that gold might be subject to confiscation above $3,000, something that happened in the US in the 1930s but would be totally impossible in the modern world. 

‘Apparently the Scottish hedge fund manager Hendrey, who is by his own admission ’short some gold shares,’ is warning about confiscation without remuneration of gold companies above gold $3,000′, says Mr. Sinclair in his latest missive. ‘Either he has never studied gold history, or totally 

misunderstood its role in the 1930s…

Gold was 30’s QE

‘In the 1930s gold was to the monetary system what QE is today, a means of increasing the supply of money for Fed and Treasury discretionary use. The US Secretary of the Treasury and President Roosevelt set the gold price higher at their daily breakfast together arbitrarily. 

‘Higher because to create money then the system required a higher value of gold to have more money outstanding. This is why Roosevelt ordered the confiscation of gold in order to unfold his type of monetary stimulation, his QE. This is what confiscationophiles simply do not know.

‘Your fears and the outrageous untrue statement by the Scottish hedge fund manager are based on totally wrong reasoning and misunderstanding. Gold was not confiscated because it was going up in price. Gold’s order of confiscation came as a tool of monetary stimulation in order to create monetary creation in order to attempt to increase employment. 

‘The order of gold confiscation had nothing whatsoever to do with punishment of the gold holders. It preceded the then big run up in the gold price. Believers in confiscation, because they are incorrect on its basis, are totally wrong in predicting it. Those that predict confiscation of anything gold love sensationalism and benefit somehow from scaring the dickens out of you unnecessarily.

Out of the question

‘Gold companies will not be confiscated any more than oil companies were when oil traded at $145. You think this is some sort of punishment for profit? You are thereby fearing something that simply will not happen. You are like an Apple stockholder fearing that the government will confiscate their company because of the popularity of the iPhone.’

He concludes: ‘Please, my friends, keep your feet on the ground. Fund Manager Hendrey is totally correct on the gold price at $3,000. I might add at $3,000 plus.’