Jim’s Mailbox

Posted at 6:51 AM (CST) by & filed under Jim's Mailbox.

Good day Jim,

While this is an incredibly painful time for investors, we should keep in mind that QE is the only thing keeping the global ponzi scheme from imploding.  I have a greater chance of being mistaken for George Clooney than there is of QE ending.

CIGA George



Firefox internet browser pleasantly surprised me on its main page today. They are asking all of us to unite together to take a stand against the incremental police state while we still have a voice and some choice of action, even though that voice is being recorded ,stored and analysed by the NSA (Big Brother).


CIG A "The Gordon"

PS – I still do not know the correct spelling of this individual you pointed me to research. Do you have a link or source I can look up.. ?

The Gordon,

Schaeffer was a writer on the subject of gold, hard money and the conspiracy. Spell his name differently in your search of 1968 and 1969.

He got air time out the window of the 16th floor.

All the best,


Dear LT,

I stand with you and other CIGAs resolutely. The dirty tricks continue but no matter, all the people in bailed in Cyprus wish they had cashed out their bank accounts and bought gold before their bail-in. The zeros in the bank accounts are meaningless digital paper with the passage of time… act to GOTS.

We have no financial future in the Western world apart from Gold and Silver!

You were alone in 2003 calling $1650. I have absolutely no doubt your future price expectations will be met in spades.



Dear Jim,

More examples of capital flow restrictions in Argentina. A shadow of what may be coming our way.

Click here to read the article…

CIGA Margaret

PS – Remember the man in London who kept asking "why" buy physical gold?

The value of gold is constant. Its purchasing power does not change. The value of paper currency does change and historically will become worthless eventually. Keep assets in physical gold form until the paper currency race to debase is resolved.

Physical gold retains the same value no matter what the form of paper currency.  For the near future, gold is like the safest deposit for your assets while any current paper money becomes worthless (devalued), and in the future while a new paper currency is implemented.

Through this time of upheaval (chaos) all the value of your assets in the form of physical gold remains the same.  Remember the old story about a good toga suit in Rome cost an oz of gold. Today a good suit costs around an oz of gold. Ditto for the future.



Sure looks like austerity does not work well in some countries. The masses do not adapt easily to accepting less as a natural state.

CIGA Larry

Greek coalition talks collapse on state TV shutdown

Athens (dpa) – The fate of Greece‘s fragile governing coalition was uncertain Thursday after the collapse of crisis talks on the shut-down of the country‘s public broadcaster.

The ruling coalition was shaken by a dispute over Prime Minister Antonis Samaras‘ decision to close public broadcaster ERT on June 11 and fire more than 2,500 staff.

The premier failed to bridge differences Thursday with his coalition partners during their third crisis meeting in less than a week.

Fotis Kouvelis, leader of the junior coalition party, said that no common political ground was found, and he was holding urgent talks with senior officials from his Democratic Left party. His party is expected to announce Friday whether they will remain in the three-party coalition.


Dear Jim,

Some time back in my younger years while working in downtown Chicago I was in the Pittsfield Building. on Washington Blvd. All of a sudden the alarms went off, the doors automatically closed and locked, along with the elevators. The building had a lot of jewelers, and one of them had been robbed, setting off the security system.

Soon the lobby was filled with blue uniforms and detectives. After catching the thieves on the cargo elevator they were brought through the lobby. One of the detectives saw who it was and shouted out, "I arrested you yesterday for a jewel theft." The response back was, "I had to have money to get a lawyer."

This reminded me of the Sentinel Decision, with robbing one to pay off another debt incurred by making bad decisions.  Now they all wear 3 piece suits, instead of "street clothes".

The police got a laugh out of it only because the criminal did get caught, locked up, but the jewelry store did get its merchandise back.

CIGA Bavaria Bob

Dear Jim,

After the meeting in London I am flying (in 2 weeks) to Hong Kong to open a bank account with Bank of Eastern Asia.

I am just a little bit puzzled as Mr. Bernanke would say regarding the overnight lending rates in China. Do I have to consider this as a problem or do I have to take other banks into consideration?

Thank you very much,

Hi Sam,

Jim’s advice is that if you are able to open an account outside of the Western system then you should do so. He is also of the view that the Chinese will do whatever they have to do to ensure their economy remains on track. If you are flying to Hong Kong perhaps you should also go to Singapore and open an account there as well to give yourself even more peace of mind. Singapore is also on Jim’s list and the issues you have identified in Hong Kong are not evident in Singapore.

CIGA Peter Mickelberg
Principal Communications Assistant



Ben Benanke’s “new normal”.

If home rentals keep rising, just cut the size of the home and voila! No more inflation.

I guess they are taking a cue from food products at supermarkets and their own CPI manipulations, which most people are familiar with (if steak rises, then people will eat chicken).

For example, a one pound can of coffee is now filled with only 8-10oz. according to the label.

The audible laughter you may hear in the background is from the holders of physical gold.

They know one oz. of gold will always be one oz., no matter how big or small you make the coin.

CIGA Wolfgang Rech

Dear Wolfgang,

Merkel tells the jobless they should leave Germany. The US Chairman of the Fed tells tge homeless to buy little tiny homes, maybe 10 by 16.

Suggest downsizing as a solution to mortgage problem? That is called in India a "Hutment" as was behind Horwith RR Station in Calcutta.


Micro-Apartments: The Anti-McMansions

Move over McMansions: These days, pint-sized, micro-apartments are all the rage.

Typically ranging between 180 and 300 square-feet, these tiny apartments are becoming increasingly popular among the young-and-single set and even some retirees, seeking affordable places to live in the nation’s costliest cities.

Nowhere is the micro trend hotter than in Seattle. More than 40 micro-apartment developments have been built in the city in the past three years, according to Jim Potter, chairman of Kauri Group, a Seattle-based developer. Many of these apartment buildings offer shared patios, roof decks and even communal kitchens. (Zoning laws in Seattle allow up to eight apartments to share one kitchen).

Other emerging micro-apartment hotspots include San Francisco, Boston, Providence, R.I., New York and Portland, Ore., where Kauri is building a new complex.


Hi Jim,

I contacted my Canaccord broker after contacting Computershare and was quoted between $300 to $500 for each stock in my portfolio. This seems exorbitant for a digital transaction.

All the very best,

Hi Jim,

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 this is "highway robbery". The most you should be paying is $50 per stock.

They are getting that number from  the DTCC web site which is DRS’ direct competition.

You should go back to your broker informing them of this fact and if they don’t choose to reconsider their position perhaps you should consider changing brokers.

Jim thanks you for your support and input. If you have any further inquiries feel free to contact me.

CIGA Peter Mickelberg

Principal Communications Assistant



Gold and silver are down big today at two-year lows. Since gold and silver had crashed, I started re-building my gold and silver assets a couple months ago, explaining to my subscribers that we need to use the next year or two to get those positions up to a reasonable size again (up to 10%-15% of your net worth). I am going to personally take this opportunity to buy some more gold and silver coins and bullion this week, continuing along that playbook of building these positions up over time. Buy low, sell high is the idea, right?


Hi John,

It is Jim’s number one rule in gold, buy weakness and sell strength. Anything else spells financial ruin.

CIGA Peter Mickelberg

Principal Communications Assistant


Greetings Dear Sir,

It’s very interesting that I have been thinking of you all morning (here on the Left Coast) due to the smash down of paper gold prices over the past two days and wondering if you would have advised your loyal extended family members to buy physical at these artificially-depressed prices… and presto! as if by design, you bless us with these fine words today:

For this reason I intend, knowing the system is in collapse, to buy gold with every resource I have at my disposal today and tomorrow.  I suggest those of stout heart do the same. To the others who are committed to their limit, hunker down one more time, knowing that in no more than the summer, a brand new and most powerful bull market in gold will be at hand.

I (and more so my poor beleaguered wife, every time I even hint at buying more precious metals) surely hope you are correct in your assessment that this manipulation cannot last more than another six months.

On another note, I again thank you so much for your effort last Friday to reach me on my home and cell phones.  I had to boast to Kathleen that a multimillionaire who actually owns a gold mine was calling ME!

In any event, I will hold my nose and place a buy order today for 2 ounces (my current budget limit) of what the Incas called "the tears of the sun" and thank you for the depths of my heart for your kind concerns on behalf of us average hard-working Joe’s whose only wish is to live peacefully in a country that uses authentic money and plays by a common, fair set of rules.

Warm regards,
CIGA Robert

Hi Robert,

Jim sends his thanks to you for your kind words. The reason Jim works so tirelessly is to assist people such as you and your family. He is extremely busy at the moment so communications are difficult but please know you can contact him or myself when you have questions.

Jim’s goal is to equip people with the tools to survive this crisis. Buying gold is always best done when it is weak not into strength so your actions are sound and in time will be proven to be profitable. The best advice is to not listen to main stream news as it is just noise, rather, listen to yourself. You know what the correct action is right now and you are doing it.

If you haven’t already done so I would personally suggest that you go to Mineset and order a copy of Jim’s book entitled "A Pocketbook of Gold". It is a brilliant book.

CIGA Peter Mickelberg
Principal Communications Assistant



Fed’s dual mandate:

Not stable prices and low unemployment) as many believe, but:

Strong housing and strong stock market.

The New Normal… “If you feel rich then you ARE rich.” (‘Till you aren’t).

CIGA Wolfgang R



I can’t imagine that the Washington Post would write an article making be truthful of capacity.


Obama hits a wall in Berlin
By George F. Will, Published: June 20

The question of whether Barack Obama’s second term will be a failure was answered in the affirmative before his Berlin debacle, which has recast the question, which now is: Will this term be silly, even scary in its detachment from reality?

Before Berlin, Obama set his steep downward trajectory by squandering the most precious post-election months on gun-control futilities and by a subsequent storm of scandals that have made his unvarying project — ever bigger, more expansive, more intrusive and more coercive government — more repulsive. Then came Wednesday’s pratfall in Berlin.

There he vowed energetic measures against global warming (“the global threat of our time”). The 16-year pause of this warming was not predicted by, and is not explained by, the climate models for which, in his strange understanding of respect for science, he has forsworn skepticism.

Regarding another threat, he spoke an almost meaningless sentence that is an exquisite example of why his rhetoric cannot withstand close reading: “We may strike blows against terrorist networks, but if we ignore the instability and intolerance that fuels extremism, our own freedom will eventually be endangered.” So, “Instability and intolerance” are to blame for terrorism? Instability where? Intolerance of what by whom “fuels” terrorists? Terrorism is a tactic of destabilization. Intolerance is, for terrorists, a virtue.


Dear Little Tatanka,

As you have said, the ones who needed funding last time are the ones in danger of failing this time around… with what you have said, posting this could cause a bank run!

I am withdrawing every last dollar out of any of these banks!


Canada Bank Bailout Cost $114 Billion At Peak, CCPA Says
The Huffington Post Canada  |  By Daniel Tencer Posted: 04/30/2012 10:40 am Updated: 04/30/2012 1:05 pm

By the CCPA’s estimates, that works out to $3,400 for every man, woman and child in the country. On a per capita basis, that’s more than what U.S. banks needed. The most liberal estimates for the U.S.’s Troubled Asset Relief Program (TARP) place the cost at around $3,000 per person.

“At some point during the crisis, three of Canada’s banks—CIBC, BMO, and Scotiabank—were completely under water, with government support exceeding the market value of the company,” CCPA Senior Economist David Macdonald said in a press statement Monday. “Without government supports to fall back on, Canadian banks would have been in serious trouble.”

Over the same period, the CCPA notes, Canada’s big banks recorded a combined total of $27 billion in profits and the banks’ CEOs received an average pay raise of 19 per cent.




Only one gang member to pose with you tonight? Does that mean the rest have abandoned you!! CIGA means we are locked in combat together. We could not ask for a better buddy. This will be looked back as a sick joke very shortly. We have taken every step you have suggested. I have come to accept the rest of my family will not act, but we will be there for them just as you have been with us. Family and responsibility is what this is coming down to and you have shown all how to act in the toughest of times. Peace be with you.

With warmest of regards as usual,
CIGAs Ae Cha and Armistead

Ae Cha and Armistead,

Yes, the puppies were pissed that the price of dog food is up and gold is down.




I’m sure you have many readers of ALL ages.

There is something, about themselves I believe they should be aware of. Youth has agility, while age has stamina and wisdom.

I was a trader in my younger days and I’ve noticed a marked change in my mentality as I’ve aged. That change, for better or worse, was wisdom.

There was a time when I went with the flow, herd mentality if you will. The trick was to be nimble enough to get into a trade quickly and being the first out of it. Fundamentals never mattered. This still holds true today.  Go with what is popular.

However, as I’ve aged, I noticed a marked decline in my trading skills. This came about as the result of accruing an increasing amount of wisdom.  That is to say, knowing what is right and how things should be. This has cost me many a short term profit opportunity. But I am not alone in this camp (note that Jim Rogers’ favorite saying is “I’m a terrible trader.”)  I’m sure he cries all the way to the bank.  So stick with wisdom.

Wisdom will never fail you because you will see the forest for the trees. In my younger days, I would have been short gold because that is the Street’s mentality. Today, I know that the accumulation of gold is the correct “path to prosperity” and Kudlow likes to say.  It may take me longer to get to prosperity, but the path is more certain.

Fundamentals point to the inevitable downfall of the dollar and economic malaise throughout the world.  One needs only look at the discontent arising in Brazil the last few days, or the rumblings of revolution in many European nations. Heck, even the obedient Japanese, despite their massive QE project, are rearing their heads.

– QE = printing money.
– Printing money = fiat debasement
– Printing money = inflation (lagging by as much as 2 years of more)
– Printing money = low interest rates (in the short term) hurting the purchasing power of people (especially those on fixed incomes)
-Lower purchasing power = less goods sold = less jobs = more recession.
– Global recession = more QE by all Central Banks

This is a continual spiral down into the economic Hell not seen since the 1930’s.

Like Wyatt Earp said in Tombstone: 

“So run, you cur… RUN! Tell all the other curs the law’s comin’ [shouts] You tell ’em I’M COMING … and hell’s coming with me, you hear?… Hell’s coming with me!”

Some things just are what they are. They are inevitable, just as night follows day. So I buy gold at every opportunity, regardless of price, because the fury Hell is coming.

I may over pay at times, I may buy too early, but at least I am certain I have it in my possession.  Those traders who consider themselves “fleet of foot” may do better in the short run, but run the risk winding up with nothing, in terms of physical.

Always go with what age has given you… WISDOM. Knowing what is right and what is wrong, and knowing that inevitability beats timing, hands down every time.

CIGA Wolfgang Rech