Gold is moving into the financial system. The demand for gold as a currency will increase as quantitative easing destroys the value of the US dollar, the euro, the English pound and other western fiat currencies.
Mr Sinclair also argues that gold mining stock prices are currently low because of a combination of short stock positions and "long gold short miners" over the counter (OTC) derivatives positions, including "short junior miners" required for OTC derivative hedging. The value of unreported illegal naked short positions is now lower than it has been in the past. The gold price is coming off a base which is entirely different from the 1970s because of new financial positions which previously did not exist.
I acknowledge Jim Sinclair's presentation which is recorded here.
For my argument why the gold price is likely to increase see this recorded excerpt of my presentation.
To understand short selling, and naked short selling, see "What is short selling?"