Here,s the answer.According to Jim Sinclair mindset today:
Investors should avoid margin accounts and instruct their broker dealer to not register stock certificates in 'street name'.
99.9% of brokerage account investors have no idea what is being done to them when their stock certificates are registered in 'street name'.It allows their broker to lend their shares to short sellers,driving down the price of your investment.Additionally,their method allows the broker to "re-hypothecate"your assets and borrow money against your shares so they can speculate in the derivatives market.
Take delivery of your share certificates and direct registration is to protect you from the MF Global fiasco.
The miscreants that permit shorting of gold shares are your gold funds and gold index funds.If they would stop hurting us and themselves to creat more incomes for themselves,the market will turn a lot faster.
It,s time to take back the street.