Jim’s Mailbox

Posted at 7:23 AM (CST) by & filed under Jim's Mailbox.

To A Strong But Concerned Holder Of Gold Investments:

Your courage to stand firm in the face of this manipulated price action in gold is admirable. I want you to know I remain very bullish in relation to gold, so much so that I am actively buying into this price weakness. If we are not at the low for gold then we are very close to it. Now is not the time to be selling, rather it is a time to buy physical gold or gold stocks without margin.

Jim Sinclair’s Commentary

An inquiring CIGA answers his own question.

“Your points are well made and in many ways you have answered your own questions. This reaction in gold is a manipulated one that will soon reverse and run towards the all time high and beyond to $3500. The following chart as recently published on Jim’s website says it all.”

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Hi Jim,

I read St Paul yesterday before going to bed (below is a key quote) and it helped me. Glad I have foundations (used to be 25% probably more like 50% today) in physical Au and Ag bought over period of 2001-2009. But it is still tough to see so many stocks in the red 30-70%…

I am standing by, frustrated I do not have more spare cash to buy more but with confidence I should be able to hold on for some time without significant selling required.

Business and family duties made me unable to fly from Moscow to meet you at one of your events yet. I was hoping London but not possible (in case, I will be there early in August). I am missing your non-public message to GOTS fast but I think I am getting it anyhow. Big money is leaving the system in the West, and bail-in could hit any day. I am ordering additional share DRS or certificates (already ordered most in 07-08 thanks to your good advice). Thanks to you for carrying on your mission!

Very best,
CIGA Greg B (akaGC)

 

Hi Tina,

Jim’s advice to us all is to get out of the system (GOTS) as quickly as we can. You need to contact CamaPlan regarding your 401k and your relatives IRA accounts. This needs to be done so that you and your family members can administer the retirement accounts yourselves. The rule that you must follow is to eliminate all third parties between you and your investments.

If you buy shares outside of your 401k ensure that your broker directly registers those shares in your name with the relevant transfer agent for the company you have invested in. Before you open a brokerage account, establish the broker’s willingness to do this and the cost, which should not exceed $50 per company.

If you choose to purchase bullion you should be considering allocated bars stored in another jurisdiction such as Singapore.

Regards,

Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com

 

Hi Jim,

Please tell me about true custodian-ship.

I am responsible not only for my investments but those of my parents.  I am terrified of what could happen to their investments.  I flew to LA and am hopeful to get into your Vancouver seminar.  I am completely new to all of this and trying to implement quickly.

Your help is greatly appreciated.  Thank you for all you are doing!

CIGA Tina

Hi Tina,

I am Jim Sinclair’s Communications Assistant and he has asked me to reply on his behalf to your email.

True custodian ship is when you ask for and pay for a letter from your bank that states your assets are being held segregated from the balance sheet of the bank.

If you or your family have shares with a brokerage you must direct that the shares be directly registered with the company or company’s transfer agent. Once that is done you may then have paper certificates issued in your name.

If you or family have retirement accounts Jim’s advice is that you should consider contacting Camaplan http://camaplan.com/ with a view to having a self directed account. You must have complete custody of your financial affairs in order to weather this crisis and avoid the effects of the bail in. It is important that you take these steps as a matter of urgency.

Regards,

Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com

 

Hi Jim,

I tried several times to place my shares in TNX into DRS. I am currently being told that I can’t do it. My broker is Interactive Brokers. They have said that they only do book entry but I have noticed on your last post and several before that some of your other readers have done this successfully if you can’t help can I be put in touch with the people who have been using Interactive Brokers and have successfully transferred their shares?

Thank you,
CIGA Ross

Hi Ross,

You should consider changing your broker. I suggest you contact Sprott Global Resource Investments Ltd and ask to speak to Mishka vom Dorp. Their website is http://sprottglobal.com/

Regards,

Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com

Jim,

Thanks very much for you continued guidance.  I am read you daily.

We have always been "bullish" on QE, no matter what is said and written for the consumption of the masses. In my normal reading yesterday and today, I have been seeing lots of people who are saying that Bernanke has clearly signaled he will pull back QE. Thus, the market correction and so forth. They say, "The party is over", in essence.

Is there any reason to actually believe them? Has Bernanke actually signaled his decision, or intention, to curtail QE? Has anything changed? I still believe that if they do, things will implode. Thus, unless they want to crash the western world, or maybe the entire financial world, they should not stop QE. But if they do not, then they cannot. Am I still on the right track?

Warm regards,
CIGA David

Hi David,

Jim’s advice is that there is no prospect whatsoever that QE will end as to do so will see the stock market drop by 2000 points. Your assessment is correct and in order to maintain your peace of mind regard the MSN as just noise. This manipulation is a ruse to try and separate people from their gold and gold stocks. As Jim says, we must stand firm and bunker down to survive this crisis.

Regards,

Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com

 

Jim,

Can one open a Singapore account in New York? If so, which ones would you recommend?

CIGA Wolfgang

Wolfgang,

No you must attend to the bank to open an account.

Jim

 

Jim,

I appreciate your encouragement, but what can any of us really do to fight back? Seriously, is there anything either individually or collectively that will offer any resistance against these bastards? Your call to arms kind of feels like sending the Girls Scouts out to fight against an army!

I would also be encouraged to know who our allies are. Besides you, who are the heavy weights in the gold camp fighting the good fight? Is it Eric Sprott, Rick Rule, John Embry, or James Turk? What about John Paulson, Kyle Bass, George Soros, and Jim Rogers? These guys supposedly all have skin in the game. Do they have the wherewithal to make a difference? And if they do then why aren’t they taking action? And if they have made an attempt then it has been to no avail.

It would also be helpful to understand who it is that we should we rooting for. Is it the Chinese Government, Russia, India, Brazil?

And what are the other CEO’s of all other mining companies doing? How are these guys fighting back to maximize shareholder’s profits?

The bottom line here is that we are up against monumental forces. As it is said, do not fight the fed. I am willing to fight but there just isn’t a damn thing I can do. I am a drop in the ocean.

Everything is rigged against gold by the big banks and the regulators are complicit. Isn’t this 1975-76 all over again?

Frankly, wouldn’t it be wisest for us little guys to just step aside until strength returns? Obviously, it is way late in the game and real losses would be result. But it’s better to be late than never in an attempt to preserve what little capital value is left?

CIGA John

Hi John,

Jim’s strong advice is to stand firm in your physical gold and gold share positions.

There is no doubt this is a war and you will not win by giving your positions away at this time. Of course, the decision is yours to make but what we are seeing now is an attempt to separate people from their gold before the market resumes its bull run. If the average investor sells now they will never psychologically be able to buy back in. Now is the time to bunker down and not listen to the news and remember why you bought gold in the first place. It is an insurance policy against the economic madness that is gripping the world.

Regards,

Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com

 

Dear Mr Sinclair,

I just found out that UBP in Switzerland offers DRS. I’ll let you know how much they charge as soon as I find out.

Keep up the good work,
CIGA D

 

Hi Jim,

Regarding:

The necessary is as follows:

1. Email me about true custodian-ship
2. Take your shares out of street name at your broker and instruct them to move them to Direct Registration at the transfer agent for your company.

Can we do this with any brokerage firm?  We have investments in Vanguard and USAA. 

Also, my wife has a 401(k) in Principal Financial.  She turns 59 1/2 in September and I was going to transfer it out of Principal at that time.

How do we protect ourselves?  What do we need to do? 

Thanks,
CIGA David

Hi David,

Firstly, true custodian ship is when you ask for and pay for a letter from your bank that states your assets are being held segregated from the balance sheet of the bank. This would normally be done if you have substantial funds on deposit with a bank.

Jim recommends that you only keep $5000 with your bank to meet your day to day obligations. If you have excess liquidity you should consider opening an account in Singapore, Hong Kong or Taiwan. In order to do this you would need to travel to those places and personally open the account as online and mailed applications are not available.

Any shares you own must be directly registered in your name with your company’s transfer agent. It is your right to instruct your broker to do this and it should cost no more than $50 per stock to do so. If your broker says it is not possible or suggests a higher fee you should seriously consider changing brokers as this process is a must in order to protect your assets. Once you have the shares directly registered in your name with the transfer agent you can then have paper certificates issued in your name if that is your wish.

In regards to your wife’s 401K you can either wait until September and make the transfer ( there may be income tax implications for her ) or you can contact a company called CamaPlan  ( http://camaplan.com/ ) who can assist you to self administer the retirement plan. You should do your due diligence on this issue regarding the taxation implications.

It is critical that you understand that Jim’s view is that you must act now to protect yourselves from the implications of the ‘bail in’. To know how to protect yourselves and yet do nothing will be regrettable. The kind of protection Jim is advocating will give you both peace of mind and that is worth a lot.

Regards,

Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com

 

Hello Jim,

I have been put thru the ringer with RBC Direct Investing. I asked them if they could put my stocks into DRS, they said I must close my account then because they will only hold stocks in the bank’s name, not mine. Can they legally do this? What should I do? I have 52 stocks.

Computershare said to instruct RBC to transfer the stocks to them but RBC now wants $50 for each certificate to send to Computershare to convert into DRS’s.

Is there any way to avoid this $1300 fee? Once my stocks are in certificate form should I just keep them in my name or should I forward to Computershare?

Thanks for all you do,
CIGA Randy

Hi Randy,

Jim’s advice is that a $50 fee per stock for completing the DRS process is reasonable. Once your shares are directly registered in your name with the transfer agent there is no further involvement required from your broker until you decide to sell them.

If they demand that you close your account, then so be it, as you simply open another account with them or another broker when you want to sell or if you wish to purchase more stocks.

Once the DRS process is complete you can then choose to have paper certificates issued in your name.

Regards,

Peter Mickelberg
Principal Communications Assistant
www.jsmineset.com