Sage advice from Mr. Gold

In case you didn't know it, Jim Sinclair is THE AUTHORITY on Gold (read about Mr. Sinclair here). The following is important advice that you should consider carefully. His words carry much weight:

Keep Your Guard Up
Author: Jim Sinclair
Posted On: Wednesday, September 24, 2008, 5:28:00 PM EST

Dear Friends,

There is no hope for the future as long as we have to listen to what we have experienced in the last two days. If the Fed pays “Hold to Maturity” prices in the bailout they are accepting onto their balance sheet all the lies that existed and still exists on and off the balance sheets of the banking and investment industry.

Fabrication has taken the US financial system over the cliff. The bailout of the near and dear fabricated to a spiritual level sets in cement the generational nature of this breakdown, the coming dollar collapse, and the reign of gold.

To categorize this bailout of OTC derivative manufacturers as an asset purchase is so wrong it strains the limits of criminality.

DO NOT LET YOUR GUARD DOWN.

THE BAILOUT ONLY BUYS YOU A LITTLE MORE TIME TO PROTECT YOURSELVES.

You need to distance yourself from your financial agents by:

1. Certificating your gold and silver shares.
2. Opting for direct registration book entry at the transfer agent for your gold and silver shares.
3. For your retirement plan, certificate the shares in the name of your trustee and the retirement plan. The alternative is direct registration book entry at the transfer agent in the name of the trustee and the retirement account.
4. Be sure your account at your bank is a true custodial account which is defined as an account segregated to you, away from the assets of the bank and therefore not on the balance sheet of the financial institution.

I am told where the retirement shares are concerned that Charles Schwab performs this service. Many others likely do as well.

The only way to be sure you really have a true custodial account is to have your attorney review the agreement between you and the institution.

I have personally used the services of Jay Marcus for this of:

Marcus Law Offices
2094 185th Street
Suite 15
Fairfield, Iowa 52556
641-472-5945

Gold is the ultimate answer as to what currency to own. The only way gold functions as insurance is if you hold it in your own hands. ETFs do not do it. Gold shares with the real stuff properly priced will do part, but not all of it. Gold at some coin dealers, segregated or as a certificate, does not do it.

If you have gold at any coin dealer or non-government mint and you want to remain that way please request their certified balance sheet. If a guarantee by some other party is there then get a copy of that guarantee for your attorney to read. The only business, as I have told you often, you should do with any coin dealer is to buy coins.

Do not use margin on anything GOLD. That totally defeats the insurance principle.

Respectfully yours,
Jim

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Potential Infinite Bailouts To Explode Money Supply

By Jim Sinclair

Dear Friends,

1. Today's reported potential infinite bailout of all and any portends, if adopted, is the largest increase in dollars outstanding since the Jurassic Age.
2. It closely models actions undertaken regarding the production of currency liquidity seen in the "Weimar Republic."
3. It is reported now that more than 1000 hedge funds are on the rocks. This has the potential for a significant financial impact.
4. The only way to hide the numbers from the statistics produced by the suspected actions of the Fed is to value the indebtedness purchased at 100%, claiming a wash transaction.
5. The only conclusion is that when the smoke clears and the advertised actions have been adopted, nothing more dollar negative than this has ever occurred due to the potential expansion of T bills and therefore dollar supply explosion.
6. Gold is the only currency with no liability attached to it which, as you have seen recently, will be selected as the currency of the people.

Respectfully yours,
Jim

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