For those who read JSMineset we have seen this coming for over a year now, most recently with Jim's challenge to readers to calculate the price of gold needed to balance the balance sheet of the USA's foreign debt. Today Jim put a solid number on those calculations, publicly increasing his gold prediction from $1650 to >$12,500!
Sinclair further looks for an explosive upwards move in gold this summer, and states that a "loss of control" could be this summer's event that propels gold to unimaginable heights.
Consider for a minute the implications for silver were gold to reach $12,500. Were silver to merely reach a conservative silver/gold ratio of 10/1, you're looking at $1,250 silver. Thats nearly a 34 FOLD move from current levels.
As we believe there's a decent possibility that silver overruns these historical ratios before this bull ends and actually meets parity with gold (as there are around 1 billion above ground ounces of silver remaining for investment supply, vs ~ 5 billion ounces of gold), we'll let you do the calculations yourself as to the possible implications for silver that a $12,500 price target for gold would make.
Click here for Jim Sinclair's big new prediction:
