-- Posted 26 January, 2009 | | Discuss This Article - Comments:
(While supplies last.)
Silver Stock Report
Adam Hamilton writes an excellent report on why the deflation argument is in error.
Big Inflation Coming, Jan 23, 3458 words
The main point of the article, is that inflation and deflation are not "price changes of assets", but rather, are the definitions of either an increase, or decrease in the amount of money. And the point is that there has been massive inflation, as the Fed has exploded the monetary base, M0, from $200 billion to $1500 billion.
My opinion is that the arguments that "there is deflation" are as bad as the arguments over the last 10 years, that "inflation is mild" because those people were looking at price changes, and not the increases in M3, which has more than tripled in the last ten years, from $4 trillion to over $14 trillion. Those bad arguments left people out in the cold, missing the bull market in precious metals so far.
To succeed with investing, your investments MUST outpace inflation in the long run. Silver is poised to do that, and more, as it historically outperforms gold during bull markets in the precious metals. The bull market in silver has just begun.
A lot of my clients are telling me that they also have Perth Mint Certificates, or "silver bullion" accounts at LBMA member banks, or the ETF SLV, or that they have physical stored in safety deposit boxes in banks. In my well researched opinion, none of that is safe. You must get and lift your own silver, in your own safe. That's the entire point of precious metal; it is payment in full, and nobody's promise. If you are trusting a person's promise to pay you silver or gold, you don't have silver or gold, by definition, you have a promise, instead.
In the 2008 CPM Group yearbook, on page 16, they list the Estimated Silver Inventories in London and Zurich at about 75 million ounces for 2006. The CPM group also lists that the LBMA annual trading volumes in silver are 30 billion ounces. How can you use 75 million oz. to trade 30 billion, which is 400 times as much? Personally speaking, I can barely sell 5000 oz./day, when I have nearly 200,000 oz.! With 250 trading days/year, I should be able to sell about 1.2 million to 2 million oz. of silver, tops, annually, which is only about 10 times as much. So either my business is the least efficient on earth, or theirs is the most. But mine cannot be the least efficient, since I'm one of the only people on earth who can ship SAME DAY, so something is amiss at the LBMA!
In my opinion, none of the promises of any major institutions these days is worth anything. How can they be trusted when they all need bail outs? Please read the terms of the LBMA accounts, in their own words:
This is an account where specific bars are not set aside and the customer has a general entitlement to the metal. It is the most convenient, cheapest and most commonly used method of holding metal.
The units of these accounts are one fine ounce of gold and one ounce of silver based upon a 995 LGD (London Good Delivery) gold bar and a 999 fine LGD silver bar respectively. Transactions may be settled by credits or debits to the account while the balance represents the indebtedness between the two parties.
Credit balances on the account do not entitle the creditor to specific bars of gold or silver, but are backed by the general stock of the bullion dealer with whom the account is held. The client is an unsecured creditor.
Should the client wish to receive actual metal, this is done by Ďallocating' specific bars or equivalent bullion product, the fine gold content of which is then debited from the allocated account.
In my opinion, my well researched opinion, if you think you own silver, held for you by another, you are merely helping to suppress the price of silver, as your potential silver demand has been successfully diverted into trusting a promise from a bankrupt institution, instead. So, thank you for helping to suppress the price of real silver, which makes it that much cheaper for everyone else who is smart enough to buy the real thing, today.
Ted Butler, is again hammering the CFTC for not ending the manipulation, a crime in progress.
Good luck to him. I have no faith that the government will act in any way other than to protect their paper money masters. After all, the Bible says that the borrower is the servant to the lender, and the U.S. government is a borrower from the Fed, and thus, takes marching orders from the Fed, and helps to continue to keep the value of the paper dollar strong. Eventually, the U.S. government may turn on the money masters, the harlot usurers, but I see no evidence of that brewing yet.
I suppose I should be angry at the CFTC for not doing its job of ending the manipulation and protecting free markets from manipulation. However, I have a different perspective. Maybe I should send the CFTC a case of fine wine for helping to keep the silver price so low to enable the greatest investment opportunity in all of human history to take place while I'm coming of age just at the right time to be able to take advantage of it. The overall manipulation of our generation continues in the sense that banks will not lend to enterprises who deal in silver, which reduces the competition in the field of bullion dealers and mints. And the manipulation of the U.S. Mint, in failing to meet their mandate to mint enough coins, is again part of the opportunity that exists today.
And so, I'm proud to be able to offer silver at prices lower than those offered by the U.S. Mint., which are often from $4-5 to $10/oz. over the silver price!
Our privately minted rounds are offered at from $2 to $2.25 over the spot price, depending on when the spot price was established.
Tonight, at www.Seekbullion.com, We have 5,000 Buffalo 1 oz. .999 fine silver Rounds, in 26 separate auctions, some with a fixed reserve price, and others have a variable price that will be set around the last hour, which appears as if it will be significantly lower as the price of silver dropped this afternoon. We hope to offer similar amounts, nightly, Monday-Thursday and Saturday.
I will be speaking at the
2009 Phoenix Resource Investment Conference & Silver Summit
Feb 21 & Feb 22, 2009
If you have never attended a natural resource show, it's a great learning experience to hear from some of the best speakers who are newsletter writers and investors in many natural resource stocks. This year's Phoenix show is co-sponsored the Silver Summit, so many silver mining and exploration companies will be there. The show is FREE.
Register online, today. And don't forget to book your hotel rooms early.
This will be my first show in over a year, since my son Jude was born on July 16th.
-- Posted 26 January, 2009 | | Discuss This Article - Comments:
Last Three Articles by Jason Hommel, Silver Stock Report