-- Posted 20 May, 2009 | | Discuss This Article - Comments: Source: SilverSeek.com

(Gold vs. Paper Gold vs. a Casino Chip?!)

Silver Stock Report

I am Breana, I have known Jason for about 5 years and I have been working for him since January of 2009 when Jason‘s business was “BOOMING!“ We were selling out of every product we had. I could barely keep up with it all. Since then, I have learned so much about silver from reading his articles, working for him, and simply sitting down and talking to him.
 
I sat at my desk listening to Jason as he told us about Money shows. He said that the silver and gold would be going so fast that we wouldn't even know what to do.

(Jason explains:  That's the way it was in a few past shows as we heard for other vendors, but not this time at our first major show.)

So, as we were driving down, I was praying that I would be able to keep everything under control and try not to let Jason down. Inside, I was so excited to be in Vegas and to be able to learn so much more! My mind was thirsty for more information. As, I walked into the Exhibit Hall, my jaw dropped. I had not expected so many booths!!! There were booths for everything! From leather belts to children's videos to ETF's to loans. I just stood there and began to soak it all in. I had expected just a few booths and for most of them to be selling gold or silver. We were one of seven selling Precious Metals.

During the show, I was somehow able to talk Jason into allowing me to run around and speak with people. I was able to meet people that I had only heard about from Jason's newsletters or from Jason himself. Investment Rarities, Miles Franklin, and Monex were just a few. Those were also the three that helped me understand just how important it is to invest in precious metals. Physical silver and gold. As a young person, about to get married, and just starting out on my own, I rely on the dollar. It is so important in my generation to “have lots of cash!” But with our economy dropping, I wouldn't be surprised to see dollar bills on the ground just as often as I walk by and see a penny.

In December of 2008, Jason wrote one of my favorite articles called “Trusting God's Life Boat“. In it, he spoke of the joke-parable about the man trapped on his rooftop during a flood. He spoke of precious metals being our lifeboat. I agree with that. With our economy going downhill really fast, I want to be one of the few with a lifeboat, and I want to let everyone I know to have one too. During the show, I was able to speak to so many different people and let them know just how important it is to invest in precious metals. To make sure that they have physical metal and not just a piece of paper. Many people came to me at the show and said that they had gold and silver, they had a piece of paper that stated they did - now it could just be me, but isn't that like carrying around a dollar? You don't know where it came from, how much its worth, or where it is? How can you say that you have PHYSICAL metals, when you only have a paper to prove it?

(Jason explains:  More and more articles are coming out questioning the validity of the ETFs ownership of real precious metals.  See here:

$4bn Swiss Gold ETF: Paranoia premium or plain expensive?  19-May-2009
http://www.trustnet.com/News/DisplayStory.aspx?id=36598&scope=General

“If someone is looking for the best security he looks at our ETF with a spread of 0.5 per cent and he may look at iShares where he's not sure he has full coverage of gold.” Stalder said that this was not his view, but the view of some of ZKB's clients. A spokesperson for iShares would not comment on the claim.

A Problem with GLD and SLV ETFs
http://www.runtogold.com/2008/12/a-problem-with-gld-and-slv-etfs/

"If the Custodian becomes insolvent, its assets may not be adequate to satisfy a claim by the Trust or any Authorized Participant."

Jason continues to explain:  The Custodian of iShares SLV is JP Morgan!!!  JP Morgan has in excess of $80 trillion in notional value of derivatives, yes, trillion with a T, on the books.  That's about 8 times larger than the capitalization of the entire USA, and about 80 times larger than the capitalization of JP Morgan itself, and about 15 times larger than all the gold ever mined in the history of the world.

Someone who works at the OCC sent me this report, which exposes JP Morgan's derivatives exposure:
http://www.occ.treas.gov/ftp/deriv/dq207.pdf

Jason continues to elaborate the point:  JP Morgan is like the head viper in a den of vipers.  You don't store your valuables in its mouth; that's just foolishness or ignorance, but that's standard operating procedure of the world today.  

Jason will quickly conclude his rude interruption of Brea's article with one last observation.  If you are buying gold merely because it is "compact", forget it.  You can go to Vegas and get a $1000 casino chip, or even a $5000 chip that is 5 times as compact as gold.  Gold has a whole lot more going for it than it is a convenient size for the wealth it holds.  Its real.  And paper gold like the ETFs are probably less valid than a casino chip issued by a nearly bankrupt casino.

Jason cannot help but to continue and finally hammer it home:  And just as paper silver certificates (old dollars) are no longer nearly worth a silver dollar, so too, will all false promises to deliver gold that does not exist -- the ETF's will not keep up with the price of the metals.
 
 
Sincerely,
Breana Geisick
Shipping Director for Jason Hommel's Silver Stock Report

Sincerely also,

Jason Hommel

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Last Three Articles by Breana Geisick & Jason Hommel Risks of Silver in an IRA 22 October, 2009 Wisely Avoid Paper Silver Fraud 12 October, 2009 The Tiny Silver Market, Part IV 8 October, 2009 Silver Stock Report - Archive List