$1 Trillion EU Loan Package & Gold

Eric King: Jim Sinclair commented after hearing of the EU plan “Paper currencies are headed to dust. Regardless of the first knee jerk market reaction, gold is going to $1650 and beyond due to nuclear suggestions of adding more debt to entities failing because of debt.” This event is yet another tremendous fundamental underpinning of phase II of the secular gold bull market.

Bloomberg reported that the EU put together an unprecedented close to $1 trillion loan package to stop a sovereign debt crisis. Here is a quote from the Bloomberg piece “The message has gotten through: the euro zone will defend its money,” French Finance Minister Christine Lagarde told reporters in Brussels early today after markets punished inaction last week.”

Jim Sinclair of jsmineset.com wrote “A nuclear solution to Europe’s debt problems is simply another way of saying "Quantitative Easing to Infinity...This is the EU Helicopter Drop coming up.”

It is important to look at the big picture in situations like this and in that context there is no way to stop the secular bull market in gold. Gold’s bull market is more powerful than every central bank in the world combined and it cannot be stopped. Central banks have fought a skillful tactical and defensive retreat up until this point but in the end rest assured they will be routed.

To read Jim Sinclair’s comments >CLICK HERE.