Standby for ‘currency induced cost push inflation’ to take gold..
Gold is heading to $3,500 and possibly as high as $12,400 an ounce predicts ‘Mr. Gold’ Jim Sinclair the legendary gold trader who advised the Hunt Brothers in the late 1970s and probably made more money than anybody else of of the 1970’s gold boom.
In his latest missive to his many fans among the gold bugs he also tells investors not to worry about the day-to-day gyrations of the gold price. Mr. Sinclair says that they should instead be focused on what he sees as inevitable and coming next: ‘currency induced cost push inflation’.
As a veteran economics student from the late 1970s this writer can very well remember to what Mr. Sinclair refers. Those were the days of double-digit retail price inflation. The cost of buying basic items of domestic consumption rose month-by-month. I had a Saturday job repricing items in WH Smith and we got a new price list weekly.