I would say that when we go to QE3, in the US in 2012, that could accelerate the call for delivery on gold from the New York Fed. It’s exactly what will happen. You see it already in the European press. Accepted media, which is main media over there (in Europe), is discussing it....
That begins to show something that has a great deal more to it than the political motivation of (Venezuela President Hugo) Chavez, who knows very well that leaving his gold with people he calls ‘enemy’ is not the brightest idea in the world. The New York Fed will give back the gold because of the ramifications of not doing it.”
When asked about the calls to provide liquidity to the financial system, Sinclair responded, “We live in a global world, transferred into a global economy, and the only central bank able to create that kind of volume of money, out of thin air, legally, is the New York Fed. QE3 will be global and the Fed is the lender of last resort, not only to its members and the national banking community, but to the entire Western world.
Gold’s bull market in 2012 is a guaranteed event as a product of the fact that central banks have no tool in their tool box other than moving, now, from national to global QE. It’s a done deal."
If the Germans repatriate their gold, things could get very interesting.