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Aug
9, 2012
For
a long time, in the Graceland Gym section on the site, I've
maintained a little category on physical
stock certificates [best way to
hold shares in a corporation],
direct registration [better],
and street form [in street form
at your broker - risky].
You
should not assume that just because I use certain brokers and
banks, that they are "super-safe". Physical
gold bullion is the backbone of my stock protection program,
not brokerage x, y, or z. Is it yours?
I
don't care what the transfer agent or
[mining]
company that issued you the physical cert says; If
you own no physical gold, you are not fully insured against a
brokerage system meltdown. Period.
Still,
just as I'm a buyer to zero on the price grids, so I
employ many "account protection actions". For
example, you can't short a stock or commodity without a margin
account. So, I have a block of margin accounts. On the other
hand, brokerages can definitely use
hypothecation when you use a margin account. So, keeping some
stock in a cash account can add a degree of
account protection. [I do this. I
have only about 5% of my stuff in a margin account. -FNC]
When
MF Global blew up, 20,000 weeble-wobbles rushed forwards to
appoint themselves hypothecation experts. The reality is that
when you [a brokerage]use 30:1
leverage to bet ALL customer funds on greek OTC
derivative-type investments, like Jon Corswine the maggot from
Hades did, then customer accounts are at huge risk. [But]
If you [another brokerage] use
light leverage and buy US govt t-bills with customer funds,
then I'm not very concerned about the risk to my accounts.
I
hold some assets in physical stock
certs. [I haven't done this -yet.
This has to be for an asset you're putting away for, say, more
than 5 years. -FNC] That won't matter if the T-BOND is
imploded, along with a hundred trillion dollars of OTC
derivatives. There won't be anything left of the financial
system if that happens, and my stock certificates would
probably be worth less than my toilet paper is. C'est
l'account protection vie!
Investors
often want a one-shop answer, to carry
them through this super-crisis, and that doesn't exist.
Direct registration of inner or
outer core position shares is a viable strategy, depending on
your pgen [He's referring to how often
you may be buying or selling.] increments. Keeping
some funds in very large "too
big to fail banks" is a
good idea, but so is keeping some in small conservative banks
that you believe can be trusted. Can they really be trusted?
Are big banks really too big to fail? You can't know
the answer. But you can seek a degree of risk
reduction with your actions.
Some
of you have noted huge costs with direct
registration. Sometimes you can demand lower fees and
get them. Sometimes you can't. Accept that fact.
I
use all of the above strategies, not one of them. One
brokerage in Canada offers access to buying physical gold
directly from the Royal Canadian Mint, and the mint itself
holds it in safekeeping. Obviously that's a viable option, but
not one where you should hold 100% of your assets. [I
use GoldMoney for this
sort of function. Your main risk in either case is political
rule-changes that would tax or otherwise steal your gold. One
by Canadian Government, the other by a clampdown on one
(Jersey) of the Queen's pirate islands. -FNC]
You
can also arrange to do a private
placement (PP) with some mining companies, to take
delivery of stock certs. That funds the treasury (or the
president's coke habit), and gets you
your certs for free.
Keeping
some gold at home is another option, but how much you
hold there depends on your personal situation. There is no
such thing as 100% safe. One acquaintance had an alarm system
installed. When the technician left, he realized the
technician had stolen all his gold, which was not insured. To
accumulate his gold, instead of an arithmetic or HSR pgen, the
teckie operated a steal-gen. Are you prepared?
Professionally
vaulted physical gold and holding allocated gold funds like
SGOL, PHYS, GTU, and BULL are also options. [This
(GTU and PHYS) is my major choice. -FNC] There is no
100% security. There is only partial
risk reduction, and a super-crisis that rolls on and on!
I've
predicted QE3 by Oct1. But I've also stated that it could be
food & war-oriented energy prices, not QE3, that takes
gold up and out of the super-wedge.
On
that note, please click
here now. Wheat may have broken out upside this morning
from a possible "super-flag" pattern.
Option
players should 70-80% calls, and 20-30% puts. Heroin addicts
should take out a 2nd mortgage to buy those
options.
The
super-flag could be real, and if so it would create
astronomical pressure on gold. (Despite Dr.
Pinocchio's promise to team amoeba that droughts make food
prices fall down). But the banksters could paint the chart
into a huge head & shoulders continuation pattern too.
I'll review that in this morning's video update on wheat.
I
booked light HSR Pgen profits on sugar shorts into the light
HSR zone I showed you yesterday in the sugar video, and rang
the register gently on oil longs yesterday, while making a
paper airplane out of my QE3 prediction, for the kiddies to
play with. Prepare to buy to zero, not for QE3, to
emerge in the honey pot zone as a winner, rather than as a
carcass.
I
don't short anything that I'm not holding a bigger long
position on it, unless it's with ultra-microscopic gambling
money. I do carry huge short positions at times, but that fact
defines my long position as at least three times the size of
that short position. Assets are wealth. Shorts are bets, and
financial and emotional risk management tools. Know the
difference.
Congratulations
to Martin "The MartyMan" Armstrong are in
order, for noting that the only possible reason the banksters
could actually be working to hold the gold price down is
so debtors have to pay the banksters with gold, not fiat. The
bottom line is that you better hope the banksters are
manipulating the price of gold higher (which they are, albeit
in a way that commands us to carry vomit bags at all times),
not lower,because if they are manipulating it lower, then
they are planning the greatest transfer of gold to themselves,
and enslavement of the global population of debsters, in the
history of the world.
A
bankster move to force debtors to pay what they currently owe
in fiat, with GOLD, turns every bankster into the grim
reaper on steroids. Luckily for the world's debtsters,
that isn't the plan.
Armstrong
is the greatest major market timer in the world, and he shares
my view that the Dow may have bottomed in June.
If
any year was destined to be a dud for 'Dow crash season' fans,
this one is it. If the Dow crashed now, guess who gets blamed
for the crash?
Correct:
Ben Bernanke.
If
the market crashed now, right before the US election, a full
gold reval, and the firing of Ben by the US govt, would be on
the table of real possibility.
Gridtime! Update
on the "Triangularization of Gold": Please click
here now. Note where the upper supply line is on the
triangle. Now, please click
here now. Note I've tentative redrawn the supply line. The
same thing happened with the super wedge itself. If that's
valid, now we need a breakout over $1630. I'll cover this
situation more in video. It's neither bullish nor bearish. What
it's doing is illustrating the degree of volatility that is
coming!
Thanks!
Cheers
St
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