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Question on Sinclair's MineSet

KUCHKUCH Posts: 1,186
in Precious Metals
First, would like to thank RR for posting Jim Sinclair's Mindset at bottom of blog page. I am impressed by Sinclair's critical thinking.
Question:
On Sinclair's April 6th post, which refers to a lecture given by him, Line item #26 says:

"Hold any stocks you happen to own in certificate form, in your hand."

I was pondering this several weeks ago, that the stocks I own, I do not have a certificate in my possession. Years ago, didn't institutions/companies send you stock certificates?

I'm thinking of calling broker and requesting certificates, please opine.

Comments

  • CaptHenwayCaptHenway Posts: 32,128 ✭✭✭✭✭
    Expect to be charged a fee.
    Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
  • dbcoindbcoin Posts: 2,200 ✭✭
    If its the end of the world anyway, does it matter? The certificate only helps if the financial institution you own goes under and somehow screws you out of your ownership (unlikely). Expect to pay fees of about $50 for each stock you do this for. Expect to pay fees of way more than that if you ever lose those pieces of paper.

    On the plus side, your shares can never be used to short the company you own.

    I wouldn't do it.
  • JustacommemanJustacommeman Posts: 22,847 ✭✭✭✭✭
    I have done it. I would advise in favor of it. Fell free to e-mail Jim Sinclair directly with any questions. He will reply by e-mail or phone.

    Please note that it is sometimes not possible or easy to get possesion of your stock certificates.

    It was a pain, but I would do it again in a NY minute...................MJ
    Walker Proof Digital Album
    Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
  • KUCHKUCH Posts: 1,186
    So: we have 1 vote to get certificates and 1 vote that says it won't matter and 1 vote neutral (expect to pay fees).

    I remember back in 1997 ish, bought a mutual fund and was sent a certificate, no fee.

    I'll just trust financial company on this one.image
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    Having a certificate would be very helpful in the event your brokerage goes down for the count. Sinclair has mentioned in the past on the financial integrity and backing of some of the cost cutting internet brokers. Just how will they fare in a "loss of power" scenario vs. more established brokerages that have been around for decades. I'd be more inclined to trust a TRowePrice or USAA for example than Whiz Bang ABC Internet $5.95 per trade. It will take days, weeks, months to figure out who owns what if the plug is ever pulled for an extended period. And who can say if Joe Six Pack's shares might be conveniently forgotten or "lost" in the mayhem. What if a "worm" rifles through trading files and eats them up so no record exists of your trades? So one has to factor in the odds of such an event happening. Actually in the event of the nation's electronic financial trading system going down for an extended period of time, owning the certificates may be of benefit. In the event the electronic system just collapses for good, well then your paper shares might be worthless as well. This is where physical gold, silver, etc. has an advantage.

    If one is disposed to holding those shares longer term (ie a year or more), it might be a good idea to hold the certificates. After all, Cede and Co. is the "official" owner/guardian of all those certs until they are delivered to you. It comes down to how comfortable are you with the integrity of Wall Street? Expect resistance from your brokerage to hand over the certs. They may even tell you that it's impossible...even if it isn't.

    roadrunner

    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • KUCHKUCH Posts: 1,186
    Without naming names, what about MS? That's who I'm with, honest? forthright? Trustworthy?
  • derrybderryb Posts: 36,795 ✭✭✭✭✭
    Possession of certificates is worthwhile for the hold a long time and wait investor. An exchange or broker may possibly sell more shares than there really are and I believe this is what Jim was getting at. Of course this eliminates any quick sale on your part. Those that hold the actual certificates go to the front of the line if more shares have been sold (Who? Wall Street) than there actually are. Sign of economic times seems to be lend more than you have, sell more than you have, etc. It all boils down to paper promises and the ones with the mulit-colors of ink, according to Jim, are worth a little more.

    Go ahead and take possession, you can always sell them on ebay if they become worthless. Selling them back into the market is a pain in the A$$$$.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

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