Posted May 16th, 2013 at 7:29 PM (CST) by Jim Sinclair & filed under Jim's Mailbox.

Dear CIGAs,

This can happen to anyone in the USA today. You have broken no law. Keep all your records on your transactions, and duplicate them. Leave one copy with your attorney.

Next time a banker calls get the number and call them back just to be sure you are talking to a banker. First do a reverse phone number search on Google to make sure the call back number is appropriate.

Just because someone asks you a question does not mean you have to answer it. In fact the less you talk, the better. No banker has the right to that information.

Your information is in no way incriminating of anything. This is what an attorney is for.

Welcome to the New Normal in the land of the Kinda Brave and Sort of Free.

Jim

Hi Jim,

Three days ago something very bad happened to me. The manager from my US Bank branch left me a voice message telling me that my accounts were frozen until I called her and answered some questions.  I called back and was told that I had a number of suspicious transactions and because this was a brand new account she was compelled to investigate.  Specifically she informed me that I had two large wire transfers from Peru and two payments to American Precious Metals Exchange.  She asked me to explain the nature of these transactions.  I asked her if this was part of Patriot Act Compliance and she said that it was.  She acted surprised that I even was aware of this process.  I told her that I thought this was outrageous and that I would not give her this information.  She told me that if I didn’t, that they would likely close my accounts.  Having worked on Patriot Act Compliance in the past myself, I also understood that reporting would be sent to the IRS regarding “suspicious” activity regardless of whether I responded to her questions or not.  I decided to cooperate and told her that the incoming wires were payment from my employer – a major mining company that is in feasibility stage for a large copper project in Peru. Then she asked me what I purchased from APMEX.  I said that she could probably figure that out based on the company name.  She said that wasn’t good enough and insisted that I needed to tell her what I had purchased.  I said coins and that satisfied her.

Obviously, this left me in shock, but it gets worse.  One day later my wife gets a notice delivered by UPS from US Bank.  She has a different last name and the bank is a different branch.  She has had the account open for almost 20 years.  The notice said that they must speak to her immediately.  She called them today and found out that her account had already been frozen and that they need to know why she had received a check from me for $6,000 and why she had written a check to APMEX.  Just like me she was asked to tell them what she had purchased from APMEX and she told him.  She was also asked why I had written her a check for $6,000 and she told them it was to pay bills.  For the record, my wife voted for Obama twice and she is a hardcore Liberal.  She is also public school teacher.  She was almost crying as she related what had happened to her.

It is worth mentioning that this all occurred within weeks of me joining the NRA, National Association for Gun Rights (NAGR), Rocky Mountain Gun Owners (RMGO) and signing a number of petitions and contacting a large number of Senators and Representatives to encourage them to vote against gun control.  In addition I have been selling off my gun collection and ammo on the ARMSLIST website here in Colorado.  Clearly in my mind I have been targeted do to some combination of this activity.

I am now living in absolute fear that I’ve been targeted by the IRS and other government agencies as some sort of Right Wing extremist.  I’m expecting my door to be broken down in the middle of the night or perhaps worse.  I’m really scared for myself and my family.   I am a law-abiding citizen.  I pay my taxes and have nothing to hide.  I have been subjected to both FBI and CBI background checks on numerous occasions connected with my work and for gun purchases and have never had a problem.  What the hell is happening?!!!  This is not America!

I honestly don’t know what to do.  Should I contact the media?  I want to get this out in the open in the hope that this will somehow protect my family.  I’m freaking out!  It’s like a bad nightmare only it’s real.

CIGA

Jim,

I’ve never studied eastern religions but my spiritual beliefs do include a study of the spiritual cycles of the world. And yes, we are definitely in the Kali Yuga!! (boy are we) just not sure how many caught that one. I do believe the Kali Yuga is a time for soul to learn, not a punishment in any way.

CIGA Jerry

Dear Jerry,

There is a need for pain. That need is learning. Once you have learned there is no need for pain or pleasure.

Jim

Dear Jim,

Please find below a notice I received today from Scottrade that I thought might interest you. Unless one opts out, any and all cash balances will automatically be swept into FDIC insured bank accounts at unnamed banks at the broker’s discretion. So if those banks go under, one’s cash position of their brokerage account could possibly be "bailed in" to save an unrelated financial institution unbeknownst to the brokerage customer. I’m sure this happens at other brokerages as well. See note below.

Also, this article gives "Zombie Banking" new meaning.

I thought Lehman Brothers was dead? Do we need to drive stakes into their hearts at bankruptcy or maybe use silver bullets?

All the best to you and wishing you a safe trip.

Regards,
CIGA Tom

Dear Tom,

I love your sense of humor when discussing the most evil beings on the planet in its history, our financial leadership.

Even "Vlad the Impaler" was higher class then these guy and gals today.

Jim

Dear Scottrade® Client,

Scottrade is pleased to offer a program that provides up to $500,000 of FDIC insurance protection for your uninvested cash. Our Bank Deposit Program (BDP) transfers available cash in your Scottrade brokerage account and deposits it in one or more FDIC-insured bank accounts. To review the details of the BDP, please review the BDP Terms and Conditions.

What this means for your account: Unless you opt out of the BDP per the instructions below, uninvested cash in your Scottrade account(s) will be automatically deposited, or "swept," into one or more interest-bearing FDIC-insured bank deposit accounts beginning on or after June 14, 2013. When you purchase securities or withdraw funds, the necessary cash will be automatically swept back into your brokerage account. You can easily stay on top of this information through your Scottrade brokerage statements, where balances and activity in the deposit accounts will be reflected. Scottrade Bank, our affiliate, will be one of the banks in this program. Your account will not be charged any fees for the BDP. However, Scottrade does receive a financial benefit in connection with the program which is discussed in detail in Section 8 of the BDP Terms and Conditions.

Your next steps: If you approve of this change, you do not need to take further action. If you choose to not participate in this program, you have two options. You may make this election by logging into your account at Scottrade’s website and visiting the Bank Deposit Program section of the My Account tab, or you may contact your local Scottrade team. You must opt out by June 14, 2013 to avoid being enrolled in this program. If you do not contact us, Scottrade will make the changes detailed in the Terms and Conditions.

Please contact your local Scottrade team with any questions.

Sincerely,
Scottrade, Inc.

Jim,

Well said. Unfortunately, not many people care enough to look under the hood and understand the dire state of affairs. The middle class and poor are wiped out with nowhere to go.  The bankers and elite are dressing up the pig with all the lipstick they can muster.  And the folks who still have assets in the system are partying like it’s 1999, despite seismic shifts in wealth inequity, demographics, and corporate, government, and personal balance sheets.  Let’s continue to enjoy every day as best we can, as if there were no tomorrow.

At times such as these, I recall the picture of your dogs sitting in front of your computer, perhaps sensing an event coming from the heavens. Perhaps they are onto something.  Smart dogs you’ve raised!

As always, all the best,
CIGA Bruce

Dear Bruce,

The New Normal party crowd better understand that this equity market is a illusion of liquidity. The last time such occurred it was recently in Zimbabwe. Even in the Zimbabwe liquidity sponsored run away on the upside bull equity market there were fast hard reactions.

This ladder to New Normal Western Equity Heaven, even if only temporary, will needs a fast, hard and scary rest.

Regards,
Jim

Robert,

Please keep in mind that Petunia is very sensitive.

Jim

Jim,

Right from the article it looks like they are targeting all $$ amount accounts above or below the original $100,000.00EUR threshold.

"The ministers today also signaled a growing willingness to give preference to depositors when assigning losses, putting senior bondholders and other unsecured creditors more squarely in the firing line…"

‘Clear Message’

“With respect to the bail-in, we should try to send a very clear message that deposits will be properly protected,” Guindos said. “If banks suffer a run on deposits above 100,000 euros, the deposits below 100,000 euros will also suffer, so this is a bit artificial and we should try to concentrate on the proper protection of all the deposits.”

More…

Dear Jim,

Here is a laugh for you.

Thank you for all you have done.

CIGA Margaret

Dear Jim,

This is a strong sign that smart money sees big value in the junior mining sector and the bottom is close or already in.

The Mining sector definitely was never called an irrational exuberance

Regards,
CIGA Luis Ahlborn Sequeira

Dear Luis,

Am I mistaken, or did he not permit significant Soros sourced negative PR on gold at the time and as he accumulated this position?

Jim

Soros Reports Over $239mm In Gold Positions, Buys $25mm In Call Options On Juniors
May 16, 2013 | By Tekoa Da Silva

In a 13-F release issued by the SEC after market close yesterday, it was reported that Soros Fund Management LLC, founded and chaired by billionaire financier George Soros, significantly increased its gold related holdings, most notably, through the purchase of over $25 million dollars worth of call options on the GDXJ Junior Gold Miners index.

This stunning move by one of the world’s top performing hedge funds, suggests a powerful surge ahead for gold equities. It should be noted, that in the forty years prior to 2010, the Soros Fund averaged a 20% annual rate of return.

A breakdown of the 13-F data indicates that during the first quarter, the Soros Fund:

1. Maintained a $32mm stake in individual miners.

2. Added a staggering 1.1 million shares of GDX to its holdings, at a reported price of $37.84 per share. Total Soros Fund GDX holdings now stand at 2.666 million shares, at a reported value of over $100,000,000.

More…

Jim,

It looks like someone was able to take delivery.

CIGA Martin

Gold shipment valued at $625,000 goes missing at Miami airport

MIAMI (Reuters) – A shipment of gold with a declared value of $625,000 has gone missing in a suspected heist at Miami International Airport, authorities said on Thursday.

A theft incident report from the Miami-Dade Police Department said the gold, packed in a box, arrived at Miami International early Tuesday morning on an American Airlines flight from Guayaquil, Ecuador.

Miami International serves as a major trans-shipment point for large quantities of gold produced in South America and exported primarily to Switzerland for refining.

The plane’s cargo was unloaded but the box containing the gold disappeared after apparently being loaded onto a motorized luggage cart or tug, the report said.

More…

Professor Sinclair:

We have reached this point in my opinion:

You can chose to ignore reality, but you cannot ignore the consequences of ignoring reality!
– Ayn Rand

Now it is time for me to take Duke for a walk and listen to the birds.

Most respectfully,
CIGA John

PS – I’ve only discussed this feeling with very few people, but personally I’ve never felt more calm regarding the price of gold and world events. Many events are beyond our control but not our understanding. One’s true salvation is to be prepared. I believe that is your singular message and I thank you for that sincerely.

Posted May 15th, 2013 at 4:18 PM (CST) by Jim Sinclair & filed under Jim's Mailbox.

Jim Sinclair’s Commentary

Legacy OTC derivatives still overhang and threaten the financial system. They, by the nature of their construction, never go or fade away. They simply float in cyber space without funding as special performance contracts that have no chance of performing.

The entire impetus behind all the hustle in central banks of late is the legacy OTC derivatives. Financial institutions internationally still have them and they are not valued by any market because there is no market.

If legacy OTC derivatives were adjusted to real value, it would be like the Black Plague in the financial world. That is the root of all the manipulations of every market on the planet.

This is the reason and only reason for QE. This is the event that must not happen.

Dear Mr. Sinclair,

Last week you mentioned OTC derivatives a few times. I have been wondering about those myself lately. I am starting to think that they may be a much bigger part of the puzzle than simply financial WMDs. What if they are the actual wealth transfer mechanism to the ‘earth +5%’ crowd?

Here’s my line of reasoning:
Step 1: load up the system with derivatives in a zero sum game – (almost) everyone thinks its harmless on a net basis.
Step 2: flush Lehman Brothers to unbalance the system – everyone is now convinced that net payouts are ‘needed’.
Step 3: make payouts – banks lose their shirt but I have never seen too much published on who won.
Step 4: bail out banks.
Step 5: next crisis – banks lose their shirts again
Step 6: bail in banks.
Step 7: next crisis – banks lose their shirts again
Step 8: bail in/out banks with pension funds.
Step 9: final crisis – banks go under; shareholders lose their shirts
Step 10: money trail goes cold; no one knows where the wealth really went, just that its gone.

Steps 7 and 9 could become one event. I would guess that the beneficiaries of the transfers are shareholders in the big banks, but a cold trail may be worth the write-off to them. After all this is done few people would probably want to do business with those banks anyway and besides, you can
always short the shares in the final descend.

You think this is ‘a tad nuts’ too or is this what is actually unfolding? And in case you were wondering, lately I have spent a lot of time in the garden which is quite relaxing and so these ideas start popping up in my head. And yes, the early vegetables are doing well despite a cold and late spring. So my food security is a bit more out of the system …

Best wishes in tough times,
CIGA DIY

Dear Jim,

I really do not look at these paper scam prices as truth whatsoever. If it is indeed all a paper scam price to begin with, then what purpose does it serve but to those who want it all in the first place? Hence, why you said it will end when Russia and China says it goes boom. It is when the East feels they have taken enough and can no longer take delivery. So we are in a virtual reality of false pricing. Soon the plug will fall out of the socket, simply kicked out. Even in the “Matrix” movie they awaken to the real world at one point.

Definition of virtual reality:

An artificial environment which is experienced through sensory stimuli (as sights and sounds) provided by a computer and in which one’s actions partially determine what happens in the environment; also : the technology used to create or access a virtual reality

CIGA BJS

Jim,

After several years, I wanted to contact you tonight.  I religiously  turn to your website each evening to read your comments.  I am starting to consider you the "Leader of Gold Investor."  Like many of your followers, I have now lost 100′s of thousands in this gold battle over the past 25 months.  I have been a silver and gold stock investor for over 35 years. Every time I become discourage, I wait a few more weeks and have witness gold and silver emerge to new highs. I am 100% invested, otherwise, I would be buying more shares.

Tonight I am asking you to update your future prediction gold chart.  The first one you constructed showed an Angel with a magnet pulling gold up, throughout the years, to $1680. Actually, I printed that chart and increase its size 300% for future reference. However, now that chart has expired and needs updating.

For any serious investor, I can say with over 35 years experience to keep the faith.  I have lost a great percentage of my retirement nest egg recently.  Yes I am concerned; however I still can sleep at night.  I would be more concerned if my money were invested in any other instruments.

Just writing tonight to give you my full support and let you know that my dogs are also treated as dear family members.

CIGA Bruce

Jim,

It looks like the paper ‘raid’ otherwise called April continues into May. Never mind that there is NO depth to the physical precious metals supply any longer, there is plenty of unbacked paper!

While physical demand is on a 1:1 basis, the paper supply is easily 100:1. Let’s skip the cartoon shows called MSNBC, CNBC and their ilk and consider:

- London continues to deliver physical bullion at a blistering pace.
- Shanghai appears to be ‘out’ of bullion.
- GLD has dropped 300 tons YTD.
- COMEX vaults are down 100 tons YTD.
- JPM keeps juggling their ‘eligible’ and ‘registered’ inventory to keep from running out.
- China imported 220 tons in March alone.
- Indian demand is UP, but only 10% of bullion orders are being filled.

To badly paraphrase a wiser head than mine: "If you want to hold paper bullion, why NOT cut out e middleman, save time and money, and just flush your fiat down the toilet?" CIGA Rico

Posted May 14th, 2013 at 3:20 PM (CST) by Jim Sinclair & filed under Jim's Mailbox.

Dear CIGAs,

Silver: May 14 – support held and turn date has passed. Silver bulls can relax for now!  Up next.

Gold: May 14 – the turn date has passed!

Yesterday May 13, marked a turn date. Today and yesterday mark the re-entry long. I bought yesterday and now wait for the next turn date.  This next turn date will be marking the equity market top that leads to a 15-20% correction.  The next turn date and top will be posted publicly the day before on jsmineset.com. This next turn will be the final date I post publicly. I can be contacted privately.

Thank you,
CIGA, Bo Polny

Jim,

I am sorry, I have not seen it, but have had to move the last week. The issue of tapering with no consequences to the stock market seemed hard to fathom as everything in this market has been the last few months. I am attending the LA conference on the 18th. Hope to understand better, but I am still struggling to understand the disconnect between gold and its relation to currencies and the stock market.

CIGA Anonymous

Anonymous,

From day #1 the PR of the Fed has been that QE would be curtailed, or stopped as they have constantly increased it.

Should QE slow down the Dow will drop hard in reaction. Should they stop, the Dow and dollar will drop hard. The net result of either is an economic implosion and after a short rally in time in both cases a very weak US dollar.

Jim

Dear Jim,

If there is one edict that will stand the test of time surely taking possession of your bought gold is one of them.

Regards,
CIGA Gene.

CFTC Charges Florida-Based Precious Metals Firm, Owner With Fraud
By Kitco News
Tuesday May 14th, 2013 9:51 AM

(Kitco News) – The U.S. Commodity Futures Trading Commission sued a Florida-based precious metals firm and its owner, saying the two committed fraud when they accepted more than $800,000 from about nine U.S. customers and misappropriated nearly all the money, the CFTC said late Monday.

The agency said it filed a civil injunctive enforcement action in the U.S. District Court for the Southern District of Florida on Monday against Global Precious Metals Trading Company, LLC of Coral Gables, Florida, and its owner Michael Ghaemi, who resides in Miami, Fla. The CFTC said that since July 2011, Global Precious Metals Trading Company and Ghaemi “solicited and accepted more than $800,000 from approximately nine U.S. customers in connection with illegal off-exchange retail commodity transactions and then misappropriated virtually all of the customers’ funds.”

The CFTC said the firm and its owner claimed they would buy and store physical metal, including gold, silver, platinum, and palladium, for customers. Further, the firm and Ghaemi told customers that there was a $25,000 minimum investment to buy physical metal and that Global Precious Metals Trading Company would arrange a loan where customers would finance the remaining amount of the total value of the physical metals purchased.

More…

My Dear Friends,

Like it or not, Freegold is happening.

Freegold is taking shape right in front of the market’s eyes with market participants and Central Banks without either knowing what Freegold is. I do not think the long time practitioners of Freegold ever realize their dream is is taking shape in basic form by the market’s natural tendencies.

The physical market premium is naturally draining the futures warehouses. Without warehouse stock the COMEX and other futures exchanges become cash exchanges, trading spot with cash settlement only.

Margins will have to be 100%.

The Freegold concept was fact in Rome when the state was transferring itself into an Empire. This is as far from new as ideas can get.

Respectfully,

Jim

Hello Jim,

I use Scottrade, and they do not charge to DRS eligible issues. If a person has an account with a broker who charges for this and would like to avoid the fee, they can open an account at Scottrade or other zero DRS fee brokers, and then do a DTC transfer to the new account. I have not been charged for a DTC transfer, including in and out of a full service house (although your results may vary, but I suspect must be less than $500!).

Also, it is simple to transfer the shares back into a brokerage account when you want to sell them, just bring the statement from the transfer agent to the local branch, and as you wrote it may take a day or so, and technically you may be able to short sale and deliver against this with the shares you are depositing if you are in urgent need of selling the shares.

CIGA Jamie

Dear Jim,

Just to let you know for other CIGAs in Canada, BMO Investorline offers transferring shares from street name to DRS at no charge (I have absolutely no affiliation with BMO). I have contacted several other brokers in Canada (along with my current broker iTrade), all refuse to transfer my shares to DRS.

I am slowly transferring my shares to DRS although it has been a bit complicated, but the alternative, doing nothing and potentially losing everything makes taking action NOW imperative.

Thanks for all you do,
CIGA Jennifer