GT's EMAIL TO JOHN REGAN, COPY TO JIM SINCLAIR

10/16/08 John, I understand your frustration and there is some justification to your comments. I am a full time gold trader of over 35 years. I have followed Jim Sinclair since 2003 and agree with him completely on his BASIC concepts of what will happen to gold and the economies of the World. I have, however, lost a great deal of my funds putting my trust in Mr. Sinclair's undying faith in gold in the short term. He has the valid excuse of warning us all about MARGIN, in which he is completely justified. Unfortunately, most people don't have the funds to put into CASH GOLD, as they wouldn't amount to much at all, and any appreciation gained would merely allow those assets to keep up with the current cost of needed goods and services. Gold worth $2000 hasn't made a profit if a local pay phone call costs $100 for three minutes. Thus, they are attracted to the concept of margin and the potential profits they might make before THE END of the world arrives, without giving proper understanding to the potential LOSSES that they might suffer. But those with very little to lose are always eager to "get a break" and take the chance to escape the doldrums of the life of the minimally wealthy. While it must have felt good to send your email to Mr. Sinclair, he obviously doesn't truly get your frustration about his failure to address the day to day details of the gold market or he wouldn't have posted your email address on his website. He NEVER said he would address short term moves in the market...another out for him. His putting your EMAIL ADDRESS on his website is nothing less than a MALICIOUS tactic to cause you the grief of being inundated by emails from those who would like to criticize you for your comment. The bright side of the situation is that you will also now have the email addresses of many people who may agree with you and the ability to reach out to many people of like minds. He is a feisty Irishman who loves to get even, as he has so often expressed. Mr. Sinclair has always been noticeably absent in his comments when the gold market goes through a very negative experience like today's drop, which has aggravated me to no end, as I have always been a faithful disciple of Jim Sinclair. He has caused himself unnecessary grief by accepting phone calls from individuals who, no doubt, don't have the sense God gave a goat. He should have instead had pre-written responses to the repeatedly asked questions about specific subjects and had them archived on a knowledge base on his website, thus relieving himself of the obviously taxing duty of having to deal with individuals on the phone and wasting enormous amounts of his time and energy each day in a futile activity. I spoke to Jim several years ago when he called me to respond to an email I sent. He started talking about a very complicated subject (bonds) without finding out first what my level of comprehension was. I attempted to bring the conversation to a more personal level, as he had just lost his wife Barbara in a car accident in India, and I knew he was compensating for his grief by throwing himself into his work. I attempted to explain to him my qualifications and my willingness to help him in any way I could. This was back in 2003. He listened a bit, but then excused himself saying "someone was at the front door"! Bullshit. I didn't appreciated being blown off that way, as I was being sincere and am not a phony in any way. Anyway, it left a bad taste. He also attacked me once on his website in 2003 about an email I sent to him which was without a doubt poorly written and could have been, and was, mis-perceived by Mr. Sinclair. He has a tendency to respond without taking the time to cool off his temper. I sent him a detailed and very intelligent fax explaining my background in communications and offered many suggestions to him to improve his dissemination of the information which he obviously thought was important enough to create a website to share, at great personal expense. I never got a response. Jim suffers from a bit of "self-importance" from his successes in trading gold and tries to compensate for being grammatically and punctuationally challenged by using big words and references, which he doesn't define or explain, and trying to sound too "high falootin" in his use of words and complicated phrasing. He really needs a proofreader/editor, which I would gladly offer to do for him. True intelligence takes into consideration the fact that the recipient of your "intelligence" has to be able to comprehend it. Otherwise it is just so many words thrown against a wall. I hope you aren't being inundated by nasty emails, but I'm afraid that Jim wanted you to get a taste of what he probably gets every day. But he voluntarily exposed himself to that abuse... You didn't, as I'm sure you felt your email would be received as a CONFIDENTIAL communication. Sincerely, GOLDTRADER