comprehensive jim sinclair interview, page-41

Tetlom

Q1,

The cost of gold extraction varies enormously depending on location, transport, ore quality etc, but assuming it's $800 and gold is $1500, it sounds like a great deal, but it obviously isn't because every single gold index on the planet is plumbing new lows, so someone probably knows something you don't.
As far as cenral banksters are concerned, they can be just as dim as the average goldbug becuase most of them have been buying gold at higher prices than now.

Central bankers are not necessarily smart, like Gordon Brown.
The Russians are smart, they've been selling.

Q2. Gold is not and does not behave like a currency, ask the suckers who owned it in 1980, they ended up poverty-stricken. It is a commodity, albeit one without a P/E. It has no utility, unless you want to escape from North Korea.

Q3. I have my investments spread around in several different currencies to avoid sovereign risk, i.e. war, foot and mouth disease, terrorist attack, and natural phenomena like earthquakes, so if that's what you mean by 'baggage', yes, but they're entirely unpredictable and I don't own gold to mitigate the risk.

Bonus question.

This question doesn't make sense, which country are you referring to? All countries have different economic criteria, but you've obviously been sucked in by the Jim Sinclair theory that gold can only go higher and that isn't necessarily the case, it depends entirely on the next 'greater fool'. If you want to investigate an economist who debunks the 'gold going to the moon' theory, try eminent economist Noriel Roubini, who thinks the goldbugs are cranks.
Roubini has real qualifications, not a degree from the Jim Sinclair university of goldbug conjecture.

It's take to take anyone seriously that's an obvious failure, Sinclair predicting gold $3000-$5000 in 2011.