Many pundits will throw out future gold price targets without substantiating their predictions. Sinclair is one of the few who have provided some rationale to his targeted gold price through his simple formula:

Target Gold Price ($12,000) = Foreign US Federal Debt ($3.125 trillion) / Official US Gold Holdings (260 million oz), with some reasonable trend analysis included. This is the same formula that he used in the 70's for his $900/oz gold prediction.

Although that $12,000 value may seem improbable now, I remember feeling the same way about $1000 gold six years ago when some like Embry predicted it by the end of the decade.