Loading ...Jim Sinclair’s Market Commentary
March 31, 2021
Gentlemen,
You will note that in the list of potential losers in this massive leveraged failure, you will see many major players in the metal markets. Having been the liquidator working for Volcker in the Hunt situation, I can assure you that when there is an unknown size of loss due to the failure of a party to firms mentioned, they sell anything and everything they can, as the real problem soon surfaces as a liquidity and ratio-based affair.
There is in my mind no question that various of these institutions were in the process of reducing shorts and building long positions in gold and silver, based on the nadir of the five-year bear metals cycle ending between April 8th and early May. It stands to reason that recent weakness in both metals has been exaggerated by the bullion banks seeking liquidity.
Of course, this impacts the bond market, equity market and the dollar market explaining the recent and present market movements.