- Dear Comrades In Golden Arms,
- Things are now "Out of Control."
- This international financial crisis is now out of control
as the world asks if the USA has two presidents, one president or no president
- It would appear that Paulson is in financial control
with Bernanke as his second.
- I warned you by personal email long before the statement
was proven totally correct that "This is it." That was followed
by "This is it, and it is now." Many people laughed it off.
- This is it, and it is now.
- Now it is out of control.
- Now we enter the Collapse of Confidence period.
- Then we begin the Weimar Experience.
- It has all hit the fan, and still the absolute majority
have no clue. The OTC derivative dealers broke the system into millions
of pieces of glass. This broken glass cannot be put back together.
- It is heart rending to see a picture of GM autoworkers
holding a prayer meeting for their retirement funds. The retirement money
was never funded. It is a lost hope.
- This is another responsibility the government has undertaken
that is going to go wild.
- Those of you still in freeze frame are headed for lines
around your bank. Your bank will likely be acquired by another bank that
also is in deep trouble.
- The US dollar, like a leaderless company, will lose its
respect and therefore value.
- In order of importance the following MUST be done unless
you want to be one of the suffering masses that will be all too visible
- 1. You must have your assets held anywhere they are in
true custodial-ship accounts. That type of account at a bank or broker
states clearly that the assets held there are not on the balance sheet
of the host financial entity. Those assets are clearly segregated in your
name. This must be reviewed by counsel to be sure you have what you think
you have. Don't cheap out. All you have is depending on the validity of
true custodial-ship accounts.
- You cannot know all the banks are broke, however I feel
ALL banks are broke because finance is an intertwined system that if visible
would look like a spider's web. Problems on the top will materialize all
along the web. Therefore the singular most important step you must take
is the establishment of a true custodial-ship account.
- Do not assume you have this type of account unless a
competent attorney reviews the account papers.
- 2. I am extremely concerned about those of you who persist
in holding certificates for gold rather than holding the actual metal either
delivered to you or held for you in a true custodial-ship type account.
The scams out there in gold are plentiful. The only way to avoid these
scams absolutely is to have your gold in your own possession.
- Every other means of holding gold is steps away from
perfection. Some will be ok, but many will not.
- 3. Why would anyone fail to either take paper certificates
or order their financial agent to make direct registration book entry at
the transfer agent? In most cases you only have until year-end to accomplish
- 4. Withdraw from ETFs.
- 5. If you carelessly keep large assets with your broker
you are as mad as a hatter. The FDIC DOES NOT have the money to guarantee
all they are undertaking. Withdraw excess money constantly from any net
broker. If you are so stubborn that you think you can trade to insure yourself
when your funds are not making money while still getting your money that
counts you are nuts. Admit to yourself you are nothing more than a gambling
addict in a downward spiral.
- 6. Leave no gold or coins with any coin dealer.
- 7. If you can withdraw from your corporate retirement
plan do it.
- 8. Withdraw from credit unions.
- 9. Withdraw from all money market instruments.
- 10. This is it.
- 11. It is now.
- 12. It is out of control NOW.
- The next two months are going to be shocking, but nothing
compared to what you will have to experience in 2009.
- Respectfully yours,
- Jim Sinclair is a precious metals and commodities specialist.
Some of the highlights of his nearly 50 year career include the founding
of Sinclair Group of Companies (1977), which offered full brokerage services.
Mr. Sinclair served as a Precious Metals Advisor to Hunt Oil and the Hunt
family for the liquidation of their silver position as a prerequisite for
the $1 billion loan arranged by the Chairman of the Federal Reserve, Paul
Volcker. He was also a General Partner and Member of the Executive Committee
of two New York Stock Exchange firms and President of Sinclair Global Clearing
Corporation and Global Arbitrage. He has authored numerous magazine articles
and three books dealing with a variety of investment subjects. He is a
regular speaker at various commodities related events. In January 2003,
Mr. Sinclair launched, "Jim Sinclairs MineSet," which now hosts
his gold commentary and is intended as a free service to the gold community.