1. gold is not a very good inflation hedge. Gold performance is more positively correlated with true interest rates. Studies/researches show that 2% real interest rate is neutral for gold. Below 2% real interest rate, gold generally goes up, and if real interest rate is above 2%, gold will decline. So the key is neither inflation or deflation as such, but real interest rate: nominal interest rate - inflation rate.
2. Jim Sinclair called the 1970s gold bull market very accurately, and he also predicted the current one very early on. He predicted USD$1650 by January 2011 as early as 2003. He was six month too early on gold's reaching 1650.
sometimes you need more than pure luck to be right for that kind of long time period.
It is not his gold price forecast that made him a true legend but rather, his economic analysis espoused through his website.
