-- Posted 28 January, 2009 | | Discuss This Article - Comments:
(Why so Many Dealers are Broke, or maybe morally bankrupt at the least.)
Silver Stock Report
Anyone who says it will take substantially longer than 30 days to get you silver is likely broke.
My turn around time is as follows.
1. I sell silver to the customer, and ship immediately via UPS, and it takes 1-5 days to arrive, depending on how far from California.
2. Next day, wires come in, and I re-order 1000 oz. bars. (+1 day)
3. Bars take 1-2 weeks to arrive. (+ +/-10 days)
4. One day to take bars to mint. (+ +/-3 days)
5. Mint takes 1-2 weeks to mint. (+ +/-10 days)
6. One day to take bars to packaging facility. (+1 day)
7. Two days to package product (+2 days)
8. I list my products for sale at seekbullion.com, and the process begins again.
9. Two days in vault, minimum, on average. (+2 days)
Total turn around time: 30 days, give or take, and my goal is to work in all areas to speed up this process and remove the worst bottlenecks, which, at the moment, is the shipping time for the 1000 oz. bars. If anyone knows of a good supplier of 1000 oz. bars who can afford to pre-ship to LA, before the purchase, and provide 1000 oz. silver bars at or close to spot on the spot with no delivery charge, please let me know, and I'll buy from 3 to 5 tonnes of silver a month.
The turn around time could be a lot longer if I got bars from COMEX, which take up to 30 days, and then contracted with a backed up mint, some of which have 3-4 month backlogs.
But I don't make my customers wait. Instead, as the capitalist, I believe these are my risks to take. So, I sell my silver, and ship out the same day the customer wires the money. Thus, I try to serve my customers faster than my suppliers can serve me.
True, I could do as others do, and work as a "standard business" that is in debt, and pass on the liability and risks to the customers, and take orders from people, and tell them to wait 30, 60, or 90 days.
And, true, if I did that, I would have a "float" of twice my own capital, and I could sell twice as much silver.
BUT! However, I would be "short" the float, and I would lose money in a rising market, because I would have a silver debt to my customers.
Thus, if anyone says it will take longer than 30 days to get you your silver, they are basically running their business with your money, or they are floating on your money to flip the silver multiple times, or they are broke.
Last time, when I got into these arguments before with various other mints, they told me that I don't understand the minting business.
Well, now that I found an honest mint, that can make for me one troy oz. rounds for resale, I think I understand it better now. Thus, I can more confidently say that many other people in this industry who delay product to customers are broke, or liars, or at least morally bankrupt.
Take your chances with delayed delivery? No thanks!
By the way, philosophically speaking, this also explains why Fekete's "Real Bills Doctrine" is hogwash. There is no need for real bills to finance any business. Business can, and should, be financed by capitalists, not debtors, and certainly not the customers. Why? Because when debtors finance a business, especially a bullion business, that's how people end up getting defrauded.
So remember, next time you hear it will be 30 days or more to get silver, turn around, and walk, or run, the other way.
Tonight, we have 5000 oz. of Academy bars up for auction at www.seekbullion.com
We have received some wonderful feedback on these bars.
THE BARS WERE GREAT QUALITY!!!!! NICE TO BUY SOMETHING AND GET IT SUPER FAST AND NOT BE BACK ORDERED!! IT IS WORTH BUYING MULTIPLE BARS TO SEE THE EXTRODINARY JOB JASON DOES ON PACKING THE BARS!!!!! UNBELIVEABLE!!!!!!!
GREAT BARS!!!! NICER THAN THE OLD JM'S OR ENGELHARD'S!!!!!! PACKING AND SHIPPING FIRST CLASS!!!!
The bars really are much nicer looking than the pictures show. What's really intesting about these bars is the fine quality of the machine work all around, and the rounded corners, so the bars won't ding or gouge another bar if a corner of one bar hits another bar, so these bars will "wear" well long into the future.
The best part of all, for you, is that many of our auctions are now selling at our minimum reserve prices, or they go no bid. Premiums don't get much lower than that.
So, spread your bids around, and don't bid against another bidder, for now.
This is the nature of the free market, it does work both ways, in that when product is scarce, it can get allocated most efficiently to the highest bidder. That, in turn, encourages more product to be produced, which, in turn, when more product is available, lowers the price for everyone.