Dear Jim,
CIGA here desperately trying to convince family and friends to GOTS, as you say. But they argue that all the banks have ‘so much money they are keeping, not lending (as reported by the financial sites).
So where is the danger of banks having problems that would require the bail-ins? They don’t see the danger. Are we missing something?
CIGA Marjorie
Hi Marjorie,
It is your family and friends that are missing something not you. The danger is real and if they want an example suggest they review what happened to the accounts of the little people in Cyprus.
Finally, just because your family and friends are not listening you should not hesitate to carry out Jim’s instructions immediately. Ask yourself whether you will have a greater peace of mind if you carry out the basic instructions Jim has suggested. If the answer is yes then what are you waiting for?
Can you put a price on peace of mind?
----------------------------------------------------------------------------------------------------------------------
http://www.jsmineset.com/2013/06/24/jims-mailbox-1292/
Dear Mr. Sinclair,
Before I ask my question, I would like to thank you for sharing your tremendous insights, knowledge and experiences with your shareholders as well as the worldwide community. I know you do this at great expense of money and even more burdensome, your personal time and effort. Such leadership is rare in any company and sadly, non-existent in public companies, save a very few. Your efforts will go down in history.
My question concerns the opening of a new brokerage cash equity account, and perhaps a small IRA which I intend to use not to trade on a daily basis, but to take advantage of the tax benefit as vehicle to accumulate more shares.
I am considering Penn trade as I don’t see them on the huge list of bailed-out entities. I know you’d probably not want to get in the business of recommending brokers, however I would appreciate your opinion, non-binding of course, of Penn Trade. I see tremendous opportunity here, but also tremendous risk. While I intend to DRS, using a non-bailed out entity as a broker seems to make sense as it would tend to mitigate some of the aforementioned risk.
May the great mountain bless you and your company.
Warmest Regards,
CIGA Hieronymous Anonymous
Hi Hieronymous,
Jim’s advice is to ensure that your IRA is self directed. You should contact Camaplan for advice on this (http://camaplan.com).
In regards to a broker you should firstly ensure that the broker will directly register shares with the relevant transfer agent or agents for the company or company’s you wish to invest in. You should ask them what the cost of the DRS process will be from their perspective. If the broker does not offer that service shop around as there are many that do.
Lastly, in the light of the Sentinel decision you should exercise a great degree of skepticism in relation to all brokerages as your funds are potentially at risk with any broker in the worst case scenario.
Regards,
Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com
Good morning Jim,
My sisters and I have bullion stored in our names at three warehouses in the NYC area and we pay monthly storage charges. Two of the storage facilities are a part of mega banks, one English and one Canadian. The third storage facility used to be a division of a mega US bank, but is now independent. Is this a safe/safer way to hold bullion or do we need to bring it even closer to us?
See you July 8th in Chicago.
Regards,
CIGA Jeff
Hi Jeff,
The ultimate is to have personal custody of your bullion but that obviously raises personal security issues.
Jim’s advice is that we must exit the Western financial system otherwise we exposing ourselves to unprecedented risk from the effects of the ‘bail in’. Jim’s message is simple and clear, you can not trust any institution with your bullion that is a part of the Western system, except Egon von Greyerz – [email protected].
The alternative that Jim is suggesting is to store your bullion in Singapore. There are a number of entities offering allocated storage in Singapore.
Regards,
Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com
Dear Mr. Sinclair,
As a French reader and Interactive Brokers client, I’m interested in putting my Sprott stocks under DRS.
I read that some reader of your website were successful with that, but I’m not! I don’t know what a transfer agent is in my case and I read all information on IB about that subject, but it’s still not successful.
With a little bit of chance, I suppose this reader is French also, and I would be pleased to get practical information about it. Is it possible?
CIGA Yves
Hi Yves,
Your first step is to contact the issuer of your shares which is the company in question. Ask them for the name and contact details of their transfer agent. Establish that the shares can be directly registered and if so, then contact IB in writing directing them to carry out your instructions. Please check with IB what the cost is and don’t pay more than the industry standard of $50 per company. If IB doesn’t want to assist then there are many brokers out there who will. Do not take no for an answer. Remember, you are the client and they have already made their commission.
Regards,
Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com
Dear Jim,
Thank you for your continued advice and your support not to lose patience with the gold investments. As you can see, I asked my broker regarding direct registration of our shares and his reply. I am not certain of how many share certificates I would require to pay for but it seems the price could be quite high. Any advice?
Thank you and best regards,
CIGA Roswitha
Hi Roswitha,
We strongly suggest that you call around and get quotes from other brokers. The costs suggested by your broker are outrageous. You are their client and you deserve to be treated honestly and with respect. They have already made money from the commissions and yet they want to skin you alive only because you want to take the prudent action of directly registering your shares.
Regards,
Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com
Dear Jim,
CIGA here desperately trying to convince family and friends to GOTS, as you say. But they argue that all the banks have ‘so much money they are keeping, not lending (as reported by the financial sites).
So where is the danger of banks having problems that would require the bail-ins? They don’t see the danger. Are we missing something?
CIGA Marjorie
Hi Marjorie,
It is your family and friends that are missing something not you. The danger is real and if they want an example suggest they review what happened to the accounts of the little people in Cyprus.
Finally, just because your family and friends are not listening you should not hesitate to carry out Jim’s instructions immediately. Ask yourself whether you will have a greater peace of mind if you carry out the basic instructions Jim has suggested. If the answer is yes then what are you waiting for?
Can you put a price on peace of mind?
Regards,
Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com
Dear Jim,
Every day I go to your web site to read and learn, doing so I had realized just how much more there is to learn. I attended your New York meeting and there you had answered and explained a lot of my questions, but I still have some more gray areas where I would like to seek your advice.
I was born in Poland. I lived there during communism time and I thought I left communism forever and cannot believe that communism is like a nightmare which is hunting me down on this side of the globe. I remember difficult times in Poland during high inflation, when prices in stores were changing daily or when there was a new delivery. I remember marshal law. I know that I have to protect my small assets.
I came to the USA 20 years ago with no English so please excuse my writing, but I have learned English on my own and of course English is my second language.
My questions are:
1. I am 45 years old, me and my wife both work for the government where each of us have six figure 401K (TSP) plans (we got 5% match from government). I do not think we could cash out or move the money somewhere else. Should we stop contributing toward the plan and use the money to purchase physical gold or silver? I already took a 50K loan from my 401K at 1.3 % for 5 years from my account and I’m buying physical gold and silver. (I do not have a problem with payments) I am thinking about doing the same with my wife’s account. I know we will have to pay that money back but at least for now we will have a chance to acquire more physical assets at the low prices. What would you recommended?
2. We have some money invested in ROTH IRA all in gold and silver mining and exploration stocks. I know you do not recommend stocks but maybe some of them are dogs and we should sell them and buy something else? Any recommendations?
I am looking forward to hearing from you. I am a fan of yours and thank you for all the work you do.
Sincerely,
CIGA Jay
Hi Jay,
In relation to your 401k accounts Jim advises that you should contact CamaPlan (http://camaplan.com/). CamaPlan will enable you to self administer your 401k accounts as you must eliminate all parties between you and your investments. You need to take this action so that you can have your shares directly registered in your name with the transfer agents of the company’s whose shares you own. This is a must do and should be done as quickly as possible.
In regards to purchasing bullion Jim agrees that is the appropriate action but ensure that you have the necessary security measures in place. An alternate to storing the gold your self is to consider allocated storage in Singapore. Bullion Star is offering free storage for 2 years https://www.bullionstar.com/).
In regards to your gold shares the present priority for you is to have them in direct registration as discussed above. Jim does not offer direct investment advice. What I will do is send you a separate email with an article from the Mineset archives detailing Jim’s method for stock selection which may assist you in your decision making process.
Regards,
Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com
Hi Jim,
Funny this latest gold smash does not have me as depressed as previous ones. I think it is because of the bond rout and the fact that the market has no further faith in Bernanke. Something is obviously very wrong with the markets and I am shorting the homebuilders and small cap Russell 2000 as their charts warrant it and it makes me feel better, perhaps covering some of my gold stock losses. Anyway what I do not understand is the poor PR job John Paulson and other gold longs are doing to combat the shorts constant gold attacks via the MSM. Why aren’t they suing the CFTC to stop the illegal gold rigging on the COMEX? And why aren’t your rather heavyweight banker friends pulling their personal gold out of the bullion banks that we all know are missing thousands of tons of gold? The gold arbitrage trade should have drained the COMEX long ago. Why don’t the criminal cartels in Mumbai start smuggling gold now that they are going to make an extra 10-12% by not paying the new govt taxes? Surely there are skilled criminals in Mumbai ready to do this. What is stopping them? Gold has the greatest brand on the planet, why aren’t the longs defending themselves? And if the US Fed is behind the gold smash, how are we to believe they are succeeding when they cannot even persuade the bond market with 85 B in fresh cash every month?
Love YOU and YOUR FAITH Jim.
CIGA David
Hi David,
I understand your frustration but there is simply only one thing to do at this time and that is to stand firm and ignore the MSN. This smash down in gold is a manufactured one and only serves to allow the East to purchase even more gold at bargain basement prices. This phase will pass soon enough and gold will resume its upward trajectory once again to challenge the all time high.
Regards,
Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com
Hello Peter,
From my understanding RBC on my instructions can put my stocks into individual paper certificates then send them to Computershare where they then can register into DRS.
If I am correct about RBC procedure, I should just get my stocks in paper certificate format and not worry about DRS?
Do you agree?
Thanks for helping me, everyone else and especially Jim!
CIGA Randy
Hi Randy,
If that is the case with RBC then it would seem to be the way to go as paper certificates are the safest option.
It is a pleasure to be able to assist you Randy. I know Jim is tireless and very dedicated to making sure we are all protected from this crisis. It is up to us to do what is necessary.
Regards,
Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com
Hi Jim,
Thanks for helping us. I put my IRA in Gold and Silver shares, 25% in TRX and I have been holding and taking a beating. My IRA is down almost 48%. How much more pain do you think I can take?
My physical Gold coins I have in safe deposit boxes. Is there a bank out there that I could trust with their safe deposit boxes?
Thanks for your help!
CIGA Ben
Hi Benjamin,
Jim’s advice is that you should seriously consider the self administration of your IRA and to that end you should contact CamaPlan ( http://camaplan.com/ ) The ‘bail in’ will target everything including retirement accounts and to truly protect yourself you must take the steps he has previously advised.
In regards to your stocks you must stand firm and to let go of your precious metals positions. Remember Jim’s golden rule, buy low and sell high, not the opposite as that is the road to financial ruin.
Your investment is poised to be one of the leaders in the sector and will distinguish itself for many reasons including its management and the ounces it has in the ground, much of which are in surface deposits. Stand firm and ignore the mainstream news.
Regards,
Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com
Dear CIGA Sinclair,
Saw the picture you posted Thursday. You really looked played out. Need to be careful. We’re not 32 anymore!
"Yes, the puppies were pissed that the price of dog food is up and gold is down.” This is bad!! You can’t talk to puppies about dog food prices these days – that’s dog abuse .
Regarding your sentinel posting: that is an interesting read. However after everything I have seen so far, I am not really that surprised. My previous inquiry about your thoughts on CEF actually has something to do with this. I have read your advice in trying to get a letter regarding custodian-ship from one’s bank. Though I agree this would be useful under rule of law, I seriously question its present value: the banks will always find some court that will put their interests before that of anything promised to/agreed in writing to the un-enlightened crowd. Hence my idea of getting some holdings converted to CEF shares and get a certificate of those. As long as CEF is not run out of business they are better than cash and less likely to be noticed by people looking for coins. One may also have an easier time getting them through customs. I have never come across someone leafing through a stack of business papers on any of my trips.
Canadian Banks: Last year I read an article that pointed out RBC and TD were bailed out by the US Fed for a similar amount (10s of billions each).
This week’s markets: Since gold and silver reached my targets, I have closed out my silver shorts at very nice profits and used the proceeds to buy PM stocks on the very cheap: one company was trading below cash on hand. I decided not to spend all cash just yet because silver may have overshot its target range to the downside by some cents in late trading. I also came across this article by Chris Martensen (http://www.peakprosperity.com/blog/82210/everything-being-sold).
My guess is that if we get a serious down draft in the stock market shortly, margin calls may force a retest or a bit lower lows though the real downward momentum seems spent.
I happened to come across this last week: http://www.forbes.com/sites/larrybell/2013/01/01/bye-bye-miss-american-pie-pravda-chides-obamas-soviet-mistake/ It’s sad to have to conclude that Pravda gets closer to the truth than MSM. A bit of a reversal from the world I grew up in. Or perhaps I was too young to properly understand what I was told…
Get some good rest this weekend,
CIGA DIY.
Hi DIY,
The Sentinel decision should have sent a clear message to all that funds in a brokerage account are potentially at risk. If we really want to be fully protected we must exit the system and that means all shares should be in certificate form and don’t leave large quantities of cash in a brokerage account or in any bank.
Good work regarding your trading and buying the gold stocks into weakness is a good move too.
Regards,
Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com
Hi Jim,
With regard to potential "bail-ins", let’s assume I have $300K with a brokerage such as Merrill Lynch. $200K in rollover IRA’s, and $100K in non-IRA accounts. 95% of these funds are invested in equities.
Are these funds at risk of a "bail-in" in your opinion?
I am thinking that if these funds were in cash/money markets, that they would then be at (high) risk. But not so if in equities.
Thank you as always!
CIGA Russ
Hi Russ,
The ‘bail in’ definitely places any funds held in retirement accounts at risk. The IMF made a direct reference to the nationalization of retirement accounts in the Cyprus situation.
The Federal Appeals Court decision in the Sentinel case should alert any client with funds being held at a brokerage. (http://www.jsmineset.com/2013/06/21/commentary-on-the-sentinel-decision/ )
Clearly, in the event of failure of a brokerage house or a ‘bail in’ your funds at risk.
In terms of equities, the only prudent course of action in this current climate is to have them directly registered with the relevant transfer agent or agents. Anything less is playing Russian roulette with your assets.
As Jim says, GOTS now.
Regards,
Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com
Hi Peter,
I spoke with a fellow CIGA today and he told me that he has had no difficulty at all with Charles Schwab (www.schwab.com). His experience of the DRS process only concerned TRX but he has never been charged by Schwab and he said it was a seamless process.
I trust this assists you.
Regards,
CIGA Peter
Hi Jim,
I have some questions. What exactly do you mean by diversification? I own shares, coins and money in the bank. If you are talking about banking in Singapore, how do I go about it? I have emailed Egon to find out about how I purchase bullion and store it in a foreign country.
In one of Eric’s writings he talks about a possible bottom as late as 2015. Is that a possibility, of waiting that long?
I have read somewhere where stocks could go down 60%. Does that also mean PM stocks? I feel like I am in a pretty good position to weather the storm. I am just looking to tighten things up a little more. So far I have cashed in my IRA ( although if I waited a little longer my tax event would have been less but I am fine with it as that would have been Monday Morning Quarterbacking), have all but one equity position in certificate form ( the other one is in DRS waiting for the certificates) and have bought more coins with any excess money in the bank. The only thing I haven’t done yet, of which you have suggested, is attend a Q&A. I will complete that in South Florida.
Jim, thanks so much. I would just like, with your help, to have my family be as secure as possible.
Enjoy your Sunday.
Warmest regards,
CIGA Ron
Hi Ron,
The diversification that Jim is referring to is simply to position your assets in different institutions in different jurisdictions but outside of the West in places such as Singapore, Hong Kong and Taiwan.
You are well progressed in your efforts to GOTS in that you have your shares effectively safe from the effects of the ‘bail in’.
Opening an account with a balance below $300,000 will mean you will have to travel to Singapore to personally open an account. DBS does allow you to open an account without a personal attendance but you must deposit at least $300,000.
Egon von Greyerz is about to offer allocated storage in Singapore and Hong Kong.
In terms of the stock market it is Jim’s view that gold stocks will do well even in a market slump as the $ will fall either with the general market or shortly thereafter and the resultant rally in gold will lift the gold shares accordingly. No matter what, the only course of action is to treat your physical gold and gold shares as insurance and ignore the manipulation that is prevalent right now.
Regards,
Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com
Hey Jim,
First of all I just want to thank you for all the work you do.
I have done research and cannot get a definitive answer, so I ask my broker(s) if i can get my Canadian RRSP stocks put into the DRS. They say I can’t.
So I must take the 30% tax hit so as to get my equities out of the system?
Thanks mate,
CIGA Andrew
Hi Andrew,
I am Jim Sinclair’s Communications Assistant and he has asked me to reply on his behalf to your email.
Jim’s advice is that it is simply not true that you cannot DRS your RRSP shares. You can, depending on your circumstances have a self directed RRSP.
Regards,
Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com
Hi Will,
You simply need to only deal with a broker that will do as you direct. If the broker is not carrying out your instructions find another one. You must shop around as there are brokers out there and they want your business. Do not take no for an answer. The statement that they may not accept certificates in the future is an attempt to dissuade you from taking the prudent course of action that you have chosen.
Regards,
Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com
Dear Jim,
Just for the sake of information, when it comes to getting a certificate by way of a Transfer Agent, I have paid at most $16 from Computershare. I have been asked for far more by way of other Transfer Agents (up to $500), but I sold those shares and doubled up on other producing and near production companies that dealt with Computershare.
Respectfully,
CIGA Bavaria Bob
http://www.jsmineset.com/2013/06/24/jims-mailbox-1292/
Dear Mr. Sinclair,
Before I ask my question, I would like to thank you for sharing your tremendous insights, knowledge and experiences with your shareholders as well as the worldwide community. I know you do this at great expense of money and even more burdensome, your personal time and effort. Such leadership is rare in any company and sadly, non-existent in public companies, save a very few. Your efforts will go down in history.
My question concerns the opening of a new brokerage cash equity account, and perhaps a small IRA which I intend to use not to trade on a daily basis, but to take advantage of the tax benefit as vehicle to accumulate more shares.
I am considering Penn trade as I don’t see them on the huge list of bailed-out entities. I know you’d probably not want to get in the business of recommending brokers, however I would appreciate your opinion, non-binding of course, of Penn Trade. I see tremendous opportunity here, but also tremendous risk. While I intend to DRS, using a non-bailed out entity as a broker seems to make sense as it would tend to mitigate some of the aforementioned risk.
May the great mountain bless you and your company.
Warmest Regards,
CIGA Hieronymous Anonymous
Hi Hieronymous,
Jim’s advice is to ensure that your IRA is self directed. You should contact Camaplan for advice on this (http://camaplan.com).
In regards to a broker you should firstly ensure that the broker will directly register shares with the relevant transfer agent or agents for the company or company’s you wish to invest in. You should ask them what the cost of the DRS process will be from their perspective. If the broker does not offer that service shop around as there are many that do.
Lastly, in the light of the Sentinel decision you should exercise a great degree of skepticism in relation to all brokerages as your funds are potentially at risk with any broker in the worst case scenario.
Regards,
Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com
Good morning Jim,
My sisters and I have bullion stored in our names at three warehouses in the NYC area and we pay monthly storage charges. Two of the storage facilities are a part of mega banks, one English and one Canadian. The third storage facility used to be a division of a mega US bank, but is now independent. Is this a safe/safer way to hold bullion or do we need to bring it even closer to us?
See you July 8th in Chicago.
Regards,
CIGA Jeff
Hi Jeff,
The ultimate is to have personal custody of your bullion but that obviously raises personal security issues.
Jim’s advice is that we must exit the Western financial system otherwise we exposing ourselves to unprecedented risk from the effects of the ‘bail in’. Jim’s message is simple and clear, you can not trust any institution with your bullion that is a part of the Western system, except Egon von Greyerz – [email protected].
The alternative that Jim is suggesting is to store your bullion in Singapore. There are a number of entities offering allocated storage in Singapore.
Regards,
Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com
Dear Mr. Sinclair,
As a French reader and Interactive Brokers client, I’m interested in putting my Sprott stocks under DRS.
I read that some reader of your website were successful with that, but I’m not! I don’t know what a transfer agent is in my case and I read all information on IB about that subject, but it’s still not successful.
With a little bit of chance, I suppose this reader is French also, and I would be pleased to get practical information about it. Is it possible?
CIGA Yves
Hi Yves,
Your first step is to contact the issuer of your shares which is the company in question. Ask them for the name and contact details of their transfer agent. Establish that the shares can be directly registered and if so, then contact IB in writing directing them to carry out your instructions. Please check with IB what the cost is and don’t pay more than the industry standard of $50 per company. If IB doesn’t want to assist then there are many brokers out there who will. Do not take no for an answer. Remember, you are the client and they have already made their commission.
Regards,
Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com
Dear Jim,
Thank you for your continued advice and your support not to lose patience with the gold investments. As you can see, I asked my broker regarding direct registration of our shares and his reply. I am not certain of how many share certificates I would require to pay for but it seems the price could be quite high. Any advice?
Thank you and best regards,
CIGA Roswitha
Hi Roswitha,
We strongly suggest that you call around and get quotes from other brokers. The costs suggested by your broker are outrageous. You are their client and you deserve to be treated honestly and with respect. They have already made money from the commissions and yet they want to skin you alive only because you want to take the prudent action of directly registering your shares.
Regards,
Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com
Dear Jim,
CIGA here desperately trying to convince family and friends to GOTS, as you say. But they argue that all the banks have ‘so much money they are keeping, not lending (as reported by the financial sites).
So where is the danger of banks having problems that would require the bail-ins? They don’t see the danger. Are we missing something?
CIGA Marjorie
Hi Marjorie,
It is your family and friends that are missing something not you. The danger is real and if they want an example suggest they review what happened to the accounts of the little people in Cyprus.
Finally, just because your family and friends are not listening you should not hesitate to carry out Jim’s instructions immediately. Ask yourself whether you will have a greater peace of mind if you carry out the basic instructions Jim has suggested. If the answer is yes then what are you waiting for?
Can you put a price on peace of mind?
Regards,
Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com
Dear Jim,
Every day I go to your web site to read and learn, doing so I had realized just how much more there is to learn. I attended your New York meeting and there you had answered and explained a lot of my questions, but I still have some more gray areas where I would like to seek your advice.
I was born in Poland. I lived there during communism time and I thought I left communism forever and cannot believe that communism is like a nightmare which is hunting me down on this side of the globe. I remember difficult times in Poland during high inflation, when prices in stores were changing daily or when there was a new delivery. I remember marshal law. I know that I have to protect my small assets.
I came to the USA 20 years ago with no English so please excuse my writing, but I have learned English on my own and of course English is my second language.
My questions are:
1. I am 45 years old, me and my wife both work for the government where each of us have six figure 401K (TSP) plans (we got 5% match from government). I do not think we could cash out or move the money somewhere else. Should we stop contributing toward the plan and use the money to purchase physical gold or silver? I already took a 50K loan from my 401K at 1.3 % for 5 years from my account and I’m buying physical gold and silver. (I do not have a problem with payments) I am thinking about doing the same with my wife’s account. I know we will have to pay that money back but at least for now we will have a chance to acquire more physical assets at the low prices. What would you recommended?
2. We have some money invested in ROTH IRA all in gold and silver mining and exploration stocks. I know you do not recommend stocks but maybe some of them are dogs and we should sell them and buy something else? Any recommendations?
I am looking forward to hearing from you. I am a fan of yours and thank you for all the work you do.
Sincerely,
CIGA Jay
Hi Jay,
In relation to your 401k accounts Jim advises that you should contact CamaPlan (http://camaplan.com/). CamaPlan will enable you to self administer your 401k accounts as you must eliminate all parties between you and your investments. You need to take this action so that you can have your shares directly registered in your name with the transfer agents of the company’s whose shares you own. This is a must do and should be done as quickly as possible.
In regards to purchasing bullion Jim agrees that is the appropriate action but ensure that you have the necessary security measures in place. An alternate to storing the gold your self is to consider allocated storage in Singapore. Bullion Star is offering free storage for 2 years https://www.bullionstar.com/).
In regards to your gold shares the present priority for you is to have them in direct registration as discussed above. Jim does not offer direct investment advice. What I will do is send you a separate email with an article from the Mineset archives detailing Jim’s method for stock selection which may assist you in your decision making process.
Regards,
Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com
Hi Jim,
Funny this latest gold smash does not have me as depressed as previous ones. I think it is because of the bond rout and the fact that the market has no further faith in Bernanke. Something is obviously very wrong with the markets and I am shorting the homebuilders and small cap Russell 2000 as their charts warrant it and it makes me feel better, perhaps covering some of my gold stock losses. Anyway what I do not understand is the poor PR job John Paulson and other gold longs are doing to combat the shorts constant gold attacks via the MSM. Why aren’t they suing the CFTC to stop the illegal gold rigging on the COMEX? And why aren’t your rather heavyweight banker friends pulling their personal gold out of the bullion banks that we all know are missing thousands of tons of gold? The gold arbitrage trade should have drained the COMEX long ago. Why don’t the criminal cartels in Mumbai start smuggling gold now that they are going to make an extra 10-12% by not paying the new govt taxes? Surely there are skilled criminals in Mumbai ready to do this. What is stopping them? Gold has the greatest brand on the planet, why aren’t the longs defending themselves? And if the US Fed is behind the gold smash, how are we to believe they are succeeding when they cannot even persuade the bond market with 85 B in fresh cash every month?
Love YOU and YOUR FAITH Jim.
CIGA David
Hi David,
I understand your frustration but there is simply only one thing to do at this time and that is to stand firm and ignore the MSN. This smash down in gold is a manufactured one and only serves to allow the East to purchase even more gold at bargain basement prices. This phase will pass soon enough and gold will resume its upward trajectory once again to challenge the all time high.
Regards,
Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com
Hello Peter,
From my understanding RBC on my instructions can put my stocks into individual paper certificates then send them to Computershare where they then can register into DRS.
If I am correct about RBC procedure, I should just get my stocks in paper certificate format and not worry about DRS?
Do you agree?
Thanks for helping me, everyone else and especially Jim!
CIGA Randy
Hi Randy,
If that is the case with RBC then it would seem to be the way to go as paper certificates are the safest option.
It is a pleasure to be able to assist you Randy. I know Jim is tireless and very dedicated to making sure we are all protected from this crisis. It is up to us to do what is necessary.
Regards,
Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com
Hi Jim,
Thanks for helping us. I put my IRA in Gold and Silver shares, 25% in TRX and I have been holding and taking a beating. My IRA is down almost 48%. How much more pain do you think I can take?
My physical Gold coins I have in safe deposit boxes. Is there a bank out there that I could trust with their safe deposit boxes?
Thanks for your help!
CIGA Ben
Hi Benjamin,
Jim’s advice is that you should seriously consider the self administration of your IRA and to that end you should contact CamaPlan ( http://camaplan.com/ ) The ‘bail in’ will target everything including retirement accounts and to truly protect yourself you must take the steps he has previously advised.
In regards to your stocks you must stand firm and to let go of your precious metals positions. Remember Jim’s golden rule, buy low and sell high, not the opposite as that is the road to financial ruin.
Your investment is poised to be one of the leaders in the sector and will distinguish itself for many reasons including its management and the ounces it has in the ground, much of which are in surface deposits. Stand firm and ignore the mainstream news.
Regards,
Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com
Dear CIGA Sinclair,
Saw the picture you posted Thursday. You really looked played out. Need to be careful. We’re not 32 anymore!
"Yes, the puppies were pissed that the price of dog food is up and gold is down.” This is bad!! You can’t talk to puppies about dog food prices these days – that’s dog abuse .
Regarding your sentinel posting: that is an interesting read. However after everything I have seen so far, I am not really that surprised. My previous inquiry about your thoughts on CEF actually has something to do with this. I have read your advice in trying to get a letter regarding custodian-ship from one’s bank. Though I agree this would be useful under rule of law, I seriously question its present value: the banks will always find some court that will put their interests before that of anything promised to/agreed in writing to the un-enlightened crowd. Hence my idea of getting some holdings converted to CEF shares and get a certificate of those. As long as CEF is not run out of business they are better than cash and less likely to be noticed by people looking for coins. One may also have an easier time getting them through customs. I have never come across someone leafing through a stack of business papers on any of my trips.
Canadian Banks: Last year I read an article that pointed out RBC and TD were bailed out by the US Fed for a similar amount (10s of billions each).
This week’s markets: Since gold and silver reached my targets, I have closed out my silver shorts at very nice profits and used the proceeds to buy PM stocks on the very cheap: one company was trading below cash on hand. I decided not to spend all cash just yet because silver may have overshot its target range to the downside by some cents in late trading. I also came across this article by Chris Martensen (http://www.peakprosperity.com/blog/82210/everything-being-sold).
My guess is that if we get a serious down draft in the stock market shortly, margin calls may force a retest or a bit lower lows though the real downward momentum seems spent.
I happened to come across this last week: http://www.forbes.com/sites/larrybell/2013/01/01/bye-bye-miss-american-pie-pravda-chides-obamas-soviet-mistake/ It’s sad to have to conclude that Pravda gets closer to the truth than MSM. A bit of a reversal from the world I grew up in. Or perhaps I was too young to properly understand what I was told…
Get some good rest this weekend,
CIGA DIY.
Hi DIY,
The Sentinel decision should have sent a clear message to all that funds in a brokerage account are potentially at risk. If we really want to be fully protected we must exit the system and that means all shares should be in certificate form and don’t leave large quantities of cash in a brokerage account or in any bank.
Good work regarding your trading and buying the gold stocks into weakness is a good move too.
Regards,
Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com
Hi Jim,
With regard to potential "bail-ins", let’s assume I have $300K with a brokerage such as Merrill Lynch. $200K in rollover IRA’s, and $100K in non-IRA accounts. 95% of these funds are invested in equities.
Are these funds at risk of a "bail-in" in your opinion?
I am thinking that if these funds were in cash/money markets, that they would then be at (high) risk. But not so if in equities.
Thank you as always!
CIGA Russ
Hi Russ,
The ‘bail in’ definitely places any funds held in retirement accounts at risk. The IMF made a direct reference to the nationalization of retirement accounts in the Cyprus situation.
The Federal Appeals Court decision in the Sentinel case should alert any client with funds being held at a brokerage. (http://www.jsmineset.com/2013/06/21/commentary-on-the-sentinel-decision/ )
Clearly, in the event of failure of a brokerage house or a ‘bail in’ your funds at risk.
In terms of equities, the only prudent course of action in this current climate is to have them directly registered with the relevant transfer agent or agents. Anything less is playing Russian roulette with your assets.
As Jim says, GOTS now.
Regards,
Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com
Hi Peter,
I spoke with a fellow CIGA today and he told me that he has had no difficulty at all with Charles Schwab (www.schwab.com). His experience of the DRS process only concerned TRX but he has never been charged by Schwab and he said it was a seamless process.
I trust this assists you.
Regards,
CIGA Peter
Hi Jim,
I have some questions. What exactly do you mean by diversification? I own shares, coins and money in the bank. If you are talking about banking in Singapore, how do I go about it? I have emailed Egon to find out about how I purchase bullion and store it in a foreign country.
In one of Eric’s writings he talks about a possible bottom as late as 2015. Is that a possibility, of waiting that long?
I have read somewhere where stocks could go down 60%. Does that also mean PM stocks? I feel like I am in a pretty good position to weather the storm. I am just looking to tighten things up a little more. So far I have cashed in my IRA ( although if I waited a little longer my tax event would have been less but I am fine with it as that would have been Monday Morning Quarterbacking), have all but one equity position in certificate form ( the other one is in DRS waiting for the certificates) and have bought more coins with any excess money in the bank. The only thing I haven’t done yet, of which you have suggested, is attend a Q&A. I will complete that in South Florida.
Jim, thanks so much. I would just like, with your help, to have my family be as secure as possible.
Enjoy your Sunday.
Warmest regards,
CIGA Ron
Hi Ron,
The diversification that Jim is referring to is simply to position your assets in different institutions in different jurisdictions but outside of the West in places such as Singapore, Hong Kong and Taiwan.
You are well progressed in your efforts to GOTS in that you have your shares effectively safe from the effects of the ‘bail in’.
Opening an account with a balance below $300,000 will mean you will have to travel to Singapore to personally open an account. DBS does allow you to open an account without a personal attendance but you must deposit at least $300,000.
Egon von Greyerz is about to offer allocated storage in Singapore and Hong Kong.
In terms of the stock market it is Jim’s view that gold stocks will do well even in a market slump as the $ will fall either with the general market or shortly thereafter and the resultant rally in gold will lift the gold shares accordingly. No matter what, the only course of action is to treat your physical gold and gold shares as insurance and ignore the manipulation that is prevalent right now.
Regards,
Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com
Hey Jim,
First of all I just want to thank you for all the work you do.
I have done research and cannot get a definitive answer, so I ask my broker(s) if i can get my Canadian RRSP stocks put into the DRS. They say I can’t.
So I must take the 30% tax hit so as to get my equities out of the system?
Thanks mate,
CIGA Andrew
Hi Andrew,
I am Jim Sinclair’s Communications Assistant and he has asked me to reply on his behalf to your email.
Jim’s advice is that it is simply not true that you cannot DRS your RRSP shares. You can, depending on your circumstances have a self directed RRSP.
Regards,
Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com
Hi Will,
You simply need to only deal with a broker that will do as you direct. If the broker is not carrying out your instructions find another one. You must shop around as there are brokers out there and they want your business. Do not take no for an answer. The statement that they may not accept certificates in the future is an attempt to dissuade you from taking the prudent course of action that you have chosen.
Regards,
Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com
Dear Jim,
Just for the sake of information, when it comes to getting a certificate by way of a Transfer Agent, I have paid at most $16 from Computershare. I have been asked for far more by way of other Transfer Agents (up to $500), but I sold those shares and doubled up on other producing and near production companies that dealt with Computershare.
Respectfully,
CIGA Bavaria Bob