-- Posted 4 March, 2009 | | Discuss This Article - Comments:
(Do you Love God?)
Silver Stock Report
by Jason Hommel, March 4th, 2009
Last week, we could barely sell 1000 ounces of silver per day. On Monday, we sold 2000. Tuesday, 4900 oz.! I was very happy to be able to provide that silver, "on a dip", now that I have procedures in place to replace it, and make more! So tonight, we will offer at least 7500 oz. for sale, which is about our top capacity, and would be 150,000 oz./month!
Our silver is up for auction at www.seekbullion.com
As the market churns through our silver, the most popular stuff will go first. But that's ok, as we will use your preferences to teach us to always produce more of the best sellers.
Tuesday was a big day for silver:
1. It was our first day honoring the Lord with our hard hitting overtly Christian rounds that ask "Do you Love God?". It continues and says, "God says to use Honest Weights and Measures" "This is 1 troy oz. .999 fine silver", and quotes Leviticus 19:35 on the back: "Ye shall do no unrighteousness in judgment, in metyard, in weight or in measure".
I have a little story behind this round. About 9 years ago now I attended a large Presbyterian Church in Menlo Park, California. Every week, the message was "Jesus Loves You". I began to feel bad about that, because I felt like that was half the gospel. It's our response that matters. I began crying, literal tears on my cheeks, in Church, as I was silently praying fervently for the Lord to send his angels to do something. I felt like I could not communicate my concern to the Church, because "Who would listen to me?" as I was an outsider. I felt like I was in the Laodician Church of the lukewarm. It was disturbing to me, and I didn't know what to do but pray and leave it in God's hands. But in a few weeks, my prayer was answered. The pastor spoke as if he felt a message came from God pressing on his heart, and he preached the same message; that he felt as if his Church was too much like the lukewarm Church of Revelation 3, and he preached this very message, "How much do you love the Lord"? It was a great sermon, and I suppose it's taken me this long to find my voice for the same message. It's a powerful message.
2. Yesterday was the first day after our TV ad ran at Bloomberg on national TV, 4 times during the day.
3. Silver Manipulation and CFTC incompetence hits Prime Time:
Get the CFTC "appreciation" medallions to commemorate the news coverage of this historic incompetence.
4. Also, Jim Cramer from Mad Money said "buy silver". Admittedly, his timing is better than mine, as I was 9 years too early, but he's so late to the party that his actual advice can be catastrophic.
Silver Shimmers in Otherwise Dark Market
Quote: Cramer likes the iShares Silver Trust as the best silver investment.
Quote: Coins often get marked up 15% to 30%, but people compelled to buy them should look to the Canadian Maple Leaf and U.S. American Eagle, sold at these countries' respective Mints.
I replied to the show: MadMoneyReplies@NBCUNI.COM, firstname.lastname@example.org, email@example.com
Thank you for recommending SILVER.
Regarding the ETF. I know all the top 5 silver experts in the U.S.: Ted Butler, David Morgan, Sean Rakhimov, David Bond, Charlie Savoie, and about 5 more guys. All of them note serious problems with the silver ETF, such as, they allow naked shorting of the ETF, which thwarts the theory of 100% silver backing. J.P. Morgan is the key custodian of the silver for the ETF, and J.P. Morgan is the bank in the U.S. with the largest derivatives book about $80 trillion, which is hurting everyone, and J.P. Morgan has also been identified as the key bank that has a huge short position in COMEX silver futures, which is clearly a conflict of interest.
See more here:
Risks of Investing in GLD ETF
Regarding coins. You are right that silver coinage costs up to 15-30% over the bullion price. That's because silver is so cheap, so you are right to recommend silver. In the depression in the 1930's, silver was 29 cents per oz., and the U.S. government turned 1 oz. of silver into 14 silver dimes, worth $1.40, which was a substantial markup, called seniorage, which was about 500%, which was much more than today, showing that today's markup is cheap by comparison.
I've actually minted over 300,000 oz. of silver in the last year. The mints that charge 50 cents per oz. to mint it are backlogged, with bad excuses, and are likely charging too little, and floating on customer money, as they could not mint silver even after 8 weeks time. Mints that charge $1.25/oz. over spot can mint on time. Other costs are .20/oz. to acquire silver bars, .15 to ship to the customer, .20 for packaging and labor, .10 for auction site listing fees, .25 to cover price variations and/or be the profit, plus about .20 to design a coin and produce the dies, which brings the total price to about $2.55 over spot, which is cheaper than the U.S. Mint can mint silver. I have to charge $2.75 in a rising or volatile market, to prevent losses in the event that silver moves up 25 cents per day. Other risks are default by the person who sells the silver bars, default by the mints, loss in transit from the refiner to the mint, loss in transit from the mint to me, and loss in transit from me to the customer. All of those default risks also add to the price by way of forcing me to earn "something" for the risk.
But the much bigger risk in the coin market is not the 15-30% premiums. The big risk is ordering from customers and companies that are bankrupt, like the mint that cannot mint silver even after 8 weeks, or the coin dealer who says delivery is 4 months out from his supplier.
That's why you want silver, to protect against such defaults, or failure to deliver.
The ETF is not immune from such failures to deliver, and is technically not "silver".
People may be wondering what machines it takes to make silver rounds these days:
Crucibles, extrusion machines or continuous casters, rolling mills, annealing ovens, punchers, rimmers, burnishers, stampers, wrappers, etc. None of that includes the die making process, and machine shop machines needed to keep it all running.
See a 5 minute video on making silver rounds, here:
Yesterday, many people alerted me to a virus in my email. But my email was clean.
Here's what happened:
Ebay links are often "spoofed". In other words, the scam is that you get an email pretending to be from ebay, and it's not ebay. Or a link that appears to send you to ebay does not send you to ebay, but another site, where they create a "false" ebay site, to try to scam you.
My email provider tracks the clicks on the links, and thus, they "re-work" the links behind the scenes, using cookies.
That was misinterpreted by many spam filters as a "Trojan" virus, aptly named, because what looks like something, is really something else.
But there is no virus. My email provider is good, they are a public company, working with 100,000 or more email lists.
The trouble is with the virus detectors, they are "overzealous". Nothing in my email can harm your computer.
As always, never click on attachments from "suspect" sources.
Yesterday, I also mentioned that Chinese "fake" silver coins are silver. Not always! Some do not have silver, and it's generally obvious when they are not, because the size is different and the weight is off.
A more astute reader wrote:
I recently purchased a "5 oz silver round" on EBay. When it arrived it was not silver. Not sure what it was, but its density seems to imply silver-plated zinc or nickel. I got my money back, including all return postage costs and I reported the seller to EBAY, along with several other people whom I contacted. We also reported him to USPSP for mail fraud.
However, there were a lot of people giving this guy (tikkara1) positive feedback on EBay with comments implying that they did not know what they were getting or think to weigh the bars and rounds. All the "silver" in question had Chinese character printed on it.
Counterfeit silver, or more accurately "bogus silver", is definitely being produced in China and is finding its way into the US market. No experienced silver purchaser or vendor would be fooled (and that surely includes all your subscribers), but if silver takes off as we all expect then lots of neophytes will get in on it and some will be fooled.
It would not be a bad idea to publicize this so that other are aware of what happens and can alter their less experience acquaintances.
I just got the best bit of customer feedback, you can't make this stuff up:
Date: Mar. 03, 2009 17:55:03 | Type: sale | From: poorpaul (1) | Auction ID: 102158 | [ Details ]
I have bought a lot of silver lately. Everyone else has screwed me. One order of US Silver coins, I paid $13,800 for mercury dimes, and got Quarters instead, another dealer I ordered 250 OZ of Vienna philharmonics, ande received A-mark bullion coins after a 2 1/2 month wait, I ordered 250 oz of silver coins from another Bullion exchange, and got 50 coins and two 100 oz bricks instead. Jason Hommel delivered my 100 oz of Buffalo-Indian coins, shipped next day, at a great price, I am making it my business to write or visit all my friends to tell them about this beautiful small miracle.
I give this honor to the Lord, for teaching me what I needed to know about freedom and honesty first, over the course of many years, so that I could apply principles of honesty to my business.
-- Posted 4 March, 2009 | | Discuss This Article - Comments: