Silver Stock Report: 8200 Buffalo 1 troy oz. Silver Rounds

http://silverstockreport.com/2009/8200rounds.html http://silverstockreport.com/2009/8200rounds.html

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8200 Buffalo 1 troy oz. Silver Rounds

(At www.seekbullion.com)

Silver Stock Report

by Jason Hommel, January 31, 2009

8200 Buffalo 1 oz. Silver Rounds
Pictures here:
http://silverstockreport.com/2009/buffalo-rounds.html

PM tonight, at seekbullion.com

I don't think anyone else has 1 oz. rounds cheaper.  Most still don't even have 1 oz. rounds.  Why not?  Not sure.  But we do.  Get them while they last.  We will continue to ration our silver via our auctions at www.seekbullion.com.

We have:
9 listings of boxes of 500 Buffalo rounds.
37 listings of boxes of 100 Buffalo rounds.

Why the odd amounts?  Because that's what we have that is packaged up, ready to ship out Monday, and left over in our vaults from the 20,000 we had at the start of this week.  We are getting in 13,600 more Buffaloes soon, but they are not packaged up yet.  It's slightly disturbing that we are not getting another 20,000 ounces, but I hope we can get another shipment by Wednesday.

RESERVE PRICE: Our minimum reserve price is $2/oz. over spot.  Spot was established this weekend at $12.71.

We placed two proxy bids in the name of "Jason Hommel" and "Jason Hommel Final Bid" to get the final reserve price of $14.71/oz. to show up, because too many people were confused about proxy bidding.

Yes, we are listening to feedback, improving our processes daily, to eliminate all confusion.

The auction site at www.seekbullion.com uses proxy bids, so you don't overpay.  When you bid, say $1500, you may pay up to, but not over, $1500, and will win all bidding up to that amount.  You will pay the minimum bid increment over the second highest bid up to $1500.  So, right now, if you bid $1500, and nobody else bids, you would end up paying $1472.

Our "reserve proxy bids" were confusing, because our final proxy bid was not clearly evident to all bidders who didn't do the math, which includes most people.  But some people thought we were continuing to bid up the price as automatic proxy bids were placed up to our reserve, but that was not the case at all.  In all cases, we announced in advance what our final bid would be, and we bid in our own name, so there was no shill bidding, despite the slanderous comments of other people who support other businesses who cannot deliver silver within 30 days.

So I just realized that we actually goofed in the tiniest way.  Since our "final reserve" must be $1471, we really should have bid up to $1470, because, that way, the next highest bid would then be $1471, as intended.  Again, we are still figuring some of this stuff out.  But why quibble over $1, when these are the cheapest rounds I can find on the internet, and when free shipping and insurance is included; there are no extra costs added.

Other details: 

Wires only, in 24 hours.

No foreign wires, they take up to 3 days.
NO cashier's checks, too much problem with delays and fraud.  (I will have to return 2 Cashier's checks on Monday.)

Wires must be in US Dollars (Federal Reserve Notes), drawn on a US Bank, and sent by 2pm Pacific, next day after the auction, or Monday, since this is Saturday.

We are happy to report our increasingly positive reputation of 100% positive feedback of 99 ratings. 

http://www.seekbullion.com/user_reputation.php?user_id=100037

We have now had 410 auctions won and packages sent out.  On Thursday, we sent out 44 packages, our biggest day ever.  And since silver went up by 20 cents per ounce, we made almost no money, and we were happy with that.

Again, with such slim margins, we must have a reserve price, we must have wires the next day.  I hope my explanations help you understand the nature of this business.

We are not making 20% with every sale (15.7%, now with silver at $12.71, and our minimum at $2 over spot, because 2/12.7 = 15.7%).  It's more like 2% at this level (25 cents per oz.), where minimum reserve bids are required, and are being hit.

So, again, even with the "safety net" of a reserve price, we stand to lose money in a rising market! 

And unfortunately for us, our turnaround times to make new product are still about 1 month, but they will hopefully get shorter. 

That's about 27% return in a year for us, if we can turn our inventory monthly, and if our math is right, and if we don't make too many mistakes, and if silver does not rise too quickly, and if nobody defaults on us, like we know some are defaulting on some of our competitors.  Lot of "ifs".

We invite all critics to enter this business if they think we are charging people too much.

We know we are helping many of our customers who are dealers make a higher rate of return than us, on smaller amounts of capital, as they quickly re-sell our products at ebay, and we are very happy with that, too.  It's actually one of our goals, since we know that's the nature of how compounding works, as I wrote years ago.

Smaller Things Grow Faster June 19, 2006

Some are now complaining, and unsubscribing, because my emails contain "less commentary" and more "auction ads".  Fine.   My portfolio was slaughtered by the market manipulation and credit crunch, and forced margin call induced futures contract selling in the silver market. 

Now I have to work for a living.  The good part is that now I know a lot more.  I could have never given you commentary about the silver market before, like in this email above.  I will be explaining a lot more about the nature of the minting business in the weeks and months ahead, and I will continue to lower costs, and I will strive to be the lowest cost leader in the industry, with ever increasing volumes. 

Already, we are leading the industry in fast "next day" outgoing shipping, and many days, on prices, too.  We know less well capitalized coin shops who trade in person make more than we do.  Trust is hard to establish in this industry online, and the competition is much more fierce. 

We wonder if some of the competition actually pays people to slander us, because our super fast shipping makes them look so bad by comparison.  How can people say the things like they do over there:

https://www.kitcomm.com/showthread.php?t=33360

Fortunately, most people don't buy into the slander, and are beginning to see who is worthy of being trusted.

(To answer their one question: we do not own any part of www.seekbullion.com.)  We believe their site is simply worthy of being utilized, and promoted. 

Trust in God.  Trust in silver.  And trust those who have a reputation that they can deliver promptly.



Sincerely,

Jason Hommel
www.silverstockreport.com
www.bibleprophesy.org

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Silver Stock Report: 12,500 Academy 100 oz. Bars at $1.25 over spot

12,500 Academy 100 oz. Bars at $1.25 http://silverstockreport.com/2009/academy-bars.htm

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12,500 Academy 100 oz. Bars at $1.25 over spot

(About $170,000 worth of silver!)

Silver Stock Report

by Jason Hommel, January 29, 2009

12,500 Academy 100 oz. Bars at $1.25 over spot

It's about $170,000 worth of silver "on the block", available NOW!

It seems as if you ask, you shall receive.

Yesterday, I explained my long turn around time to re-purchase bulk silver to make silver bars and coins. 
http://silverstockreport.com/2009/turn-around-time.html
(see pictures of the bars at the bottom of yesterday's email)

My turn around time should get shorter!  My bulk supplier said they will start to pre-ship to where I need it to go!

This is awesome because:

I can offer more.

I can offer it cheaper!

Tonight, we have, at seekbullion.com

20 auctions of 500 oz. (5 Academy bars)
25 auctions of 100 oz. (1 Academy bar)

All auctions are 1 minute apart, running 45 minutes.

If some silver does not sell at our reserve, it will be re-listed with the same reserve at the conclusion of the auctions.

Our reserve is the lowest it has ever been, now at $1.25 over spot, and spot will be determined about an hour before the auctions begin closing.  So, I will place my final reserve bid at 6pm, and the auctions start closing at 7PM Pacific.

If anyone cannot afford 100 oz. at a time, please visit my www.momssilvershop.com  Mom has many ebay listings selling 1 oz. silver rounds of various kinds in lots of 1 oz., 5 oz., 10 oz., and 20 oz. at a time. 

For now, Auctions are available for people with shipping addresses in the USA only.  Wires must be NEXT DAY, which also usually requires a U.S. bank account in dollars, only.

We ship SAME DAY wires come in, via UPS. 

Why should you buy silver?  Please review a few articles from my archives:
http://silverstockreport.com/ssrarchive.htm

Silver's so Cheap, it's Practically Free! August 21, 2008

Why Paper Silver is not as good as Physical Silver August 12, 2008
The Money Charts August 8, 2008
FAQ (Frequently Asked Questions) July 13, 2008
Silver has been Exploding for 5 years now July 11, 2008
Bar Graphs of Silver vs. Money July 10, 2008

4 Fundamentals of the Silver Price June 5, 2008

The 600 year price chart says so much:

Final note.

Last night, only half my auctions sold, so I sold 2700 oz out of 5000 oz.  It's typical that buyers start to vanish at the bottom of the market, right before a big move up.  That's what creates bottoms -- no buying.  And then, at the top, people are buying in a frenzy.  I know.  I reported on this repeatedly over the last year.  In 2008, the sea change hit when gold passed $850 and went to $1000, and silver hit $20.  The overall buying is still higher than in 2007, as still, very few are selling to the coin shops.  Furthermore, people start subscribing to my letter in droves at the top, and the emails to me drop off at the bottom.  This feels like the ending of the bottom to me.  Prices are now lower, more silver is available, and fewer want it now, than at $20, when you could not get any.  Thus, now is the time to be wise, and buy.

I'm not a "seller".  I'm a "holder" right along with you, turning out my own silver inventory, and buying more the next day, as I've repeatedly explained, demonstrated, and proven.  That's why I have new product now, and why I'm one of the few who can ship immediately.  We have it, because we like to hold it!



Sincerely,

Jason Hommel
www.silverstockreport.com
www.bibleprophesy.org

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Silver Stock Report: The Turn Around Time

The Turn Around Time http://silverstockreport.com/2009/turn-around-time

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The Turn Around Time

(Why so Many Dealers are Broke, or maybe morally bankrupt at the least.)

Silver Stock Report

by Jason Hommel, January 28, 2009

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.

http://www.seekbullion.com/user_reputation.php?user_id=100037

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. 

Please place a bid at www.seekbullion.com tonight.  Registration is an easy 2 minute process.

Don't forget to hit "refresh" on your browser during the auction process to see the latest bids, and latest listings.  I may re-list a few bars towards the end of the auction if they don't sell, so you can get a second chance if you miss them.  Auctions start closining at 7PM, and run about an hour.


Sincerely,

Jason Hommel
www.silverstockreport.com
www.bibleprophesy.org

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Silver Stock Report: Lower Reserve Silver Auctions & Guest Essay

Lower Reserve Silver Auctions & Guest Essay http://silverstockreport.com/2009/reserve.html

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Lower Reserve Silver Auctions & Guest Essay

(We goofed, so you benefit!)

Silver Stock Report

by Jason Hommel, January 27, 2009

Silver Bonus: Lower reserve prices today.

Tonight, at www.seekbullion.com, we have another 5000 Buffalo rounds up for auction.

Pictures here:
http://silverstockreport.com/2009/buffalo-rounds.html

We made two slight errors in our 6 listings for 500 rounds, with lower reserve listings than we intended, which can benefit you.

Our latest format change has been to list both "variable" reserve and "fixed" reserve auctions.  An early fix is usually 25 cents per oz. more ($2.25 over spot vs. $2.00 over spot), to compensate for silver's volatility between the auction listing and closing time, and payment time, a day later. 

And the variable listing is supposed to start out at spot, and move up to $2/oz. over spot at the last hour, which can be  25 cents less due to decreased volatility risk, but the mistake in listings tonight is that they also start out at the same reserve price.

So the reserve for all 500 oz. auctions tonight is at $12.15/oz. + $2.00 = $14.15 x 500 =  $7,075, and we'll live with that mistake.

But our listings for all the 100 oz. lots are as they should be, variable or fixed.

Here is another variable we just decided to do.

In the event that the silver price drops, and nobody bids on the auctions if the reserve price is too high, then, before the conclusion of all the auction listings, we will quickly re-list a few of the lots of 500 ounces. 

So, big buyers, don't tune out until the end.  We've also sped up the process again to 2 minute price gaps, so the whole thing is done in 26 minutes, plus maybe a few more minutes at the end.

People were wondering how this could all work if the silver price drops, and we just figured it out!  Yes, we're slow that way, but on the other hand, nobody suggested this to us, either, so we just continue to pioneer and develop the best and most fair free market processes we can think of.

If you are looking to buy less than 100 oz., please see my Mom's Silver Shop.  After all, I can't do everything, and she needs a job, too.

Bookmark her site:
http://www.momssilvershop.com/
http://shop.ebay.com/merchant/jkesilver

And by the way, mom will be at the upcoming show in Phoenix, where I will be a speaker.

Feb 21 & Feb 22, 2009
http://www.cambridgehouse.ca/

I will be giving at least 2 speeches, and maybe be on a panel discussion.  It's possible that Jon Nadler will be on such a panel as well, we'll see.  Please email Jon to encourage him to do a panel discussion, or maybe a moderated debate.  jnadler@kitco.com

==========

Guest commentary by Isaac Kahan

Attention: Physical Silver Investors: You have an edge over the Wall Street trader!

First: Let me define over whom you have an edge.

In every trading market there are different categories of people trading it. They include:

In the silver futures market, there is the scalper or floor trader:  This is the trader buying & selling the item with no attachment to the product itself.

What this trader is concerned with is the difference between the bid & the ask. To explain these terms, know that every tradeable entity really has two prices.

The bid, which is what you get if you sell the item now & the ask, which is what you can buy the item for.  For example, If silver is trading at $10.50, the 'real' number if you want to sell it would be $10.495 & if you were to buy it you would have to pay $10.505.

This half penny in ether direction is the spread that represents the money the floor traders make when they buy from one person & sell it to another. This same system happens with everything such as wheat, sugar & even treasury bonds, etc.

The next kind of trader is the hedger. This trader can be from a gold & silver mining company to a dealer in metals.

For example, a dealer in metals gets an order and sells some coins & bars. He needs to replace this inventory that he just sold & buying from the market is the best & cheapest way to cover his position. The same thing happens when a dealer buys coins & bars but has no customer for it. He will go out & sell a contract on the market so as not to lose money should the market go against him.

The speculator. This trader buys or sells for any number of reasons. It might be that he or she is following the trend or any other system that they have. It might be that they have a gut feeling. It really doesn't matter what the reason is. What does matter is that these are the people that are out there buying & selling & causing the market to move.

These people are helpful in the marketplace as they are providing liquidity & allowing for the markets, such as silver, the ability for the spread between the bid & ask to be only half a penny.

The concern with the different types of traders is that in most cases they don't care about the underlying market. All that the floor trader cares about are making the half penny spreads between the bid & ask & to be able to do it many times in a day. The more such trades he makes, the more times he can earn the spread. All that the hedger cares about are that he can cover his exposure to the market so if he bought the actual silver then he needs to sell it at the best price. In most cases the hedger is not a true hedger in the sense that if he bought silver at 10.5 & now silver is at 10.51 he will try to squeeze out a little bit more & wont sell it till it gets a little higher. By the end of the day these people will try to be flat in the market.

What about the "speculator"? This person is buying or selling for his own undisclosed reasons. He or she feels that the price will go up or down. This is the person that really interests us. Why? Simply put, it is this type of trader who really moves the market.

In the end, the scalper is just trading for the ½ cent the dealer hedger is covering the base so in reality nothing that he is doing is moving the market all that he is doing is buying in one place & selling in another.

But the speculator is the only person that is causing the market to move. How? The speculator is the only one who is really holding a position.

What causes the speculator to cover their position? There are three reasons.

1) To take profit.                  

2) To cover losses.

3) Found a better market.

For reasons 1 and 3, you can't predict where & when the speculator will get out of their position. The speculator might be using a specific dollar amount & since it is not known when he got in the market it can't be determined what will compel him to get out. The speculator might also be using any number of technical tools available to him. He might be using trend lines, overbought & oversold levels or even just round numbers (for some reason people like to use all round number such as 10 dollars 10.50 & 11 and son on).

Don't worry; we are starting to get closer to disclosing where you have an edge.

To some extent the speculator will have to cover losses. This is done in one of two ways:

1)     Essentially, the opposite of taking profit. The speculator says that he has had enough of losing & just bails out of the position.

2)     The speculator has a certain dollar amount that they are willing to lose. Now, remember, since it is not known what that amount is nor is it known where they got in, we simply can't know when they will get out.

Now let me interrupt with a little story. It was back in 2002 & a customer/friend of mine comes up to my office & shows me his brokerage statement. His final balance was a little more than one million dollars. I don't remember how long it took him to make this but it wasn't more then three or four months. I told him to be careful because by this time I was already trading for 15 years & I knew that trading with a gut feeling cannot achieve such returns in the long run. Anyway, to make a short story even shorter, it wasn't more then one month later, and he was back ashen faced. When I asked what was happening, he whispered "margin."  To this day I don't know why I had not warned him of this as I should have known that this was the only way for him to make so much in so little time. You see, the margin is a silent killer. Just the mere fact of getting a call from your broker saying that you have to pay up or else . . .

This changes the way your thought process works. From having a rational train of though of where you want to buy or sell you go to thinking what can I do to get this guy off the phone! Another thing is that for some reason or other the margin clerks only call you when the extreme is happening. I feel that if I had the ability to take the other side of any trade that is happening because of a margin call I would be extremely rich.

Now back to the program.

All three classes of traders that I spoke about before have margin issues. The least is the scalper because he isn't really holding any positions it doesn't really matter to him. Nevertheless, in order for someone to make a lot of money as a scalper he needs to trade on a large scale. So if a scalper trades 10 times a day with one contract of 5000 ozs silver, then each ½ penny that he makes comes to only $25.00. I don't know anyone in this business that will be happy to earn $250 a day & remember the 5000 represents $50,000 of underlying value. Also keep in mind that no person is right all ten times. So what does the scalper need to do? He has to over trade so instead of trading just 1 contract he has to trade several.

Now the hedger has things a little better because since he has the underlying stock, his margin requirements are lower than that of a speculator. So let's say a dealer sold his silver at $10.00 and re-buys it on the Comex. There should not be any problem because he has the money from the sale to cover any margin requirement. But what if the dealer bought some silver & sold it on the Comex as a hedge? Now he spent money to buy the silver & he needs to have extra money to cover initial margin. If the market moves against him, he will have to cover even more money. Now granted he has not lost money because the silver is his and he now has the choice of going un-hedged or he can sell some of the silver that he has at any price to give him some money to pay the margin clerks.

This brings me to another category: the silver investor.

I will not talk about selling silver short because since silver can go up & up your risk is unlimited.

But the silver buyer that is buying silver with his or her own money & owns the silver will never be forced to get out of the silver position because of the silver market. Silver can go up, down or even stay at the same price. There is no interest to pay because you have not borrowed to buy it. No margin clerk will ever call nor will any broker call you because he has found a better investment.

You remain in complete control of your investment. No one can ever tell you to get out of it. Also, since the silver remains in your possession, there can be no possibility of a bank default that should affect you.

It has been valued since the beginning of time & at no time did it make more sense to own it than today.

About the company: Bullion Trading LLC accepts orders of any size and processes orders using the spot price. Bullion Trading LLC only sells from their active inventory and only stocks in-demand grain, coin and bar products. Come visit our website and see for yourself at: http://www.bulliontradingllc.com/index.php      

 

Sincerely,

Jason Hommel
www.silverstockreport.com
www.bibleprophesy.org

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http://silverstockreport.com/2009/buyitnow.html http://silverstockreport.com/2009/buyitnow.html

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Buy Silver Now!

(While supplies last.)

Silver Stock Report

by Jason Hommel, January 26, 2009

Adam Hamilton writes an excellent report on why the deflation argument is in error.

Big Inflation Coming, Jan 23, 3458 words

http://www.zealllc.com/2009/biginf.htm

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:
http://www.lbma.org.uk/london/accounts

Unallocated Accounts

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 'allocating' 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. 

http://news.silverseek.com/TedButler/1232994713.php

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
http://www.cambridgehouse.ca/

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.

http://www.cambridgehouse.ca/

This will be my first show in over a year, since my son Jude was born on July 16th.

Sincerely,

Jason Hommel
www.silverstockreport.com
www.bibleprophesy.org

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Silver Stock Report: 5000 Buffalo Rounds at seekbullion.com

5000 Buffalo Rounds at seekbullion.com http://silverstockreport.com/2009/buffalo-rounds.h

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5000 Buffalo Rounds at seekbullion.com

(While supplies last.)

Silver Stock Report

by Jason Hommel, January 23, 2009

Auction, Saturday Night at www.seekbullion.com

Due to popular demand, and to appease the critics, half of the auctions have a fixed reserve price.

Due to my preferred way of doing things, to set the most accurate and thus lowest reserve price possible, I have listed the other half of the auctions as a "variable reserve", with a note that I will bid "around the last hour", at spot, plus $2/oz.

But since silver prices are now fixed for the weekend, the variable reserve bids are now set at $1405 for 100 oz. and $7025 for 500 oz.
Note, the fixed reserve prices are higher (and I can't change them) at $14.21/oz.

Proxy bidding:  My bids of $1405 and $7025 on the "variable reserve" auctions are proxy bids, like all bids.  This means that the computer program at www.seekbullion.com shows the lowest possible bid needed to win, and does not reveal my bids of $1405 and $7025, which is why I'm telling you both here, and in the listings as "spot plus $2/oz.).

All of my main competitors are SOLD OUT of all rounds, or they have never had them in months.  Or, they are back ordered, or they have less than 100 available.

I suggest that you pre-register, and set up your account at www.seekbullion.com if you have not already done so, for the auctions that end this Saturday.  Premiums are very low now, and we've actually had a few auctions this week that were not bid by anyone.

Yet, the silver price just jumped 60 cents/oz. today, and may be ready to take off, having closed for the weekend at $12.05/oz.

Pretty pictures follow:
 

Smaller quantities of rounds, such as between 1-20, and many Obama rounds, can be found at my mom's ebay shop:

http://shop.ebay.com/merchant/jkesilver

=============

I will be be speaking at the
2009 Phoenix Resource Investment Conference & Silver Summit
Feb 21 & Feb 22, 2009
http://www.cambridgehouse.ca/

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.

http://www.cambridgehouse.ca/

This will be my first show in over a year, since my son Jude was born on July 16th.

Sincerely,

Jason Hommel
www.silverstockreport.com
www.bibleprophesy.org

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Silver Stock Report: I'll be at the Phoenix Show, Feb 21-22

God Bless You!   You may unsubscribe if you no longer wish to receive our emails.

I'll be at the Phoenix Show, Feb 21-22

(That's a month from now.)

Silver Stock Report

by Jason Hommel, January 22, 2009

I will be be speaking at the
2009 Phoenix Resource Investment Conference & Silver Summit
Feb 21 & Feb 22, 2009
http://www.cambridgehouse.ca/

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. 

If you have never attended a resource show, I highly recommend it, you will learn so much.   

The show is FREE. 

Register online, today.  And don't forget to book your hotel rooms early.

http://www.cambridgehouse.ca/

This will be my first show in over a year, since my son Jude was born on July 16th.



Sincerely,

Jason Hommel
www.silverstockreport.com
www.bibleprophesy.org

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Silver Stock Report: Barack Obama One Troy Ounce Silver Rounds

Barack Obama One Troy Ounce Silver Rounds http://www.silverstockreport.com/2009/obama-silver

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Greetings!

Barack Obama One Troy Ounce Silver Rounds

(Obama Silver)

Silver Stock Report

by Jason Hommel, January 18, 2009

We have new Barack Obama 1 Troy Oz. Silver Rounds.  I've checked around, and as far as I know, we are the first who are able to offer 1 troy oz. Barack Obama 1 troy oz. .999 fine silver rounds.

Most other Barack Obama coins for sale are merely gold plated, colorized, old 90% silver half dollars worth about $2.50 per coin or less, that sell for $9.95, nearly 4 times over the spot price of silver.

We have these just in time for Inauguration Day, January 20th.

My readers are generally not supportive of Barack Obama.    I do not support any policies of socialism, or forcible wealth re-distribution, or heavy taxation. 

I know my readers are concerned about confiscation of silver.  How would, or could, a government justify the confiscation of silver rounds containing the image of our next President?

But one thing I know is that those who don't know anything at all about silver, love Barack Obama.  Therefore, think of these rounds as a marketing tool, not for Barack Obama, but for silver.  Those who might support Barack Obama might not know the silver price, and they might be more willing to pay a significant premium for these coins.

Please don't take too much advantage of the Barack Obama supporters as you resell these rounds for a quick profit.

There are two different designs.  One is traditional, the other is modern.  Mom has 2000 of the first design, and 10,000 of the second, modern design.

 

You might be able to find these rounds in two locations, offered by my "Mom's Silver Shop".

http://momsilvershop.com/

See her ebay store, or her listings at www.seekbullion.com

Sincerely,

Jason Hommel
www.silverstockreport.com
www.bibleprophesy.org

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Silver Stock Report: Even my mom does not understand!

Even my mom does not understand! http://silverstockreport.com/2009/mom.html

God Bless You with wisdom, insight, discernment, prosperity, health and all the blessings of the Kingdom of God!   You may unsubscribe if you no longer wish to receive our emails.

Even my mom does not understand!

(And mom taught me so much!)

Silver Stock Report

by Jason Hommel, January 16, 2009

There are a lot of people who DO understand what I'm doing with silver auctions, and I fully appreciate all of your support.  But many don't, and I'm here to explain to help them.

I mean no disrespect to my Mom.  I love her.  And she's an extremely bright lady.  She was an A student in school, she scores 130+ on IQ tests, tops on her real estate exam, and she was in the top 4% of real estate agents in Sacramento.  She even became a Real Estate Broker and Mortgage Broker.  She was even sought out to do radio shows for a while for her expertise in real estate.

Tonight, my mom wrote to me:

It is because there are not enough buyers at www.SeekBullion.com to absorb that many ounces of one product that fast. You have to list some each day, instead of all at one time for once a week deals.  I know that makes it easier for you, but not for the customer.  Also there is a lack of interest in the 100 ounce bars in general right now.  By the way your photos are good. Try giving me a few to list on eBay!  I haven't had any of the bars I have listed expire unsold. My latest one sold for $1295. You also turned off a lot of people by the practice of bidding on your own auctions. I read your rationale, but even I have a hard time buying it.  Just list them higher like I do. Or take what you get. It is hard to have it both ways, and people know it.  Love, Mom

To top it off, my mom tonight called me to ask, "What's proxy bidding?"  Thank God she is asking.

First, to explain proxy bidding:  All bids placed at seekbullion are the maximum bid you are willing to pay.

However!  You only need to pay the minimum bid increment higher than the second highest bidder to win, and the web site software automatically places the smallest possible bid for you, like a smart R2-D2 robot would.  That's called a proxy bid.  In essence, the site bids for you, in your place.  So, if someone else had already placed a bid of $1200, and if you bid 1300, your bid is entered at $1201 automatically, if the minimum incremental bid is $1.  And if the minimum bid is $10, like my mom's auctions, then your bid would be $1210. 

So, next, if someone else comes along, and bids $1250, their bid is instantly outbid, and your next proxy bid is instantly entered in at $1251, (or $1210, depending) by the computer, by proxy, without you having to do anything.

Next issue.  My mom thinks I'm selling in "once a week" deals.  I'm not.  I'm selling almost 5 days a week, in the evenings, Monday, Tuesday, Wednesday, Thursday, and Saturday.  This week, I only missed Monday.  We will also miss Saturday, because Monday is a holiday, and I don't want to be exposed to price changes in silver until Tuesday.   

Next, once again, I need to explain why I place a reserve bid on my own auctions.

I list my auctions usually a day or two in advance.

During that time, even one day, the silver price changes.  I'm sure everyone can agree with that.

Now, if I list a reserve of "spot plus $1.50" from one to two days prior to when the auction closes, one of two things are likely to happen, both bad.

1.  The silver price moves down.  If that happens, it's bad for the customer/bidder.

2.  The silver price moves up.  If that happens, it's bad for me, which is ultimately bad for the customer/bidder.

Thus, it's best for everyone, the market, for me to determine "spot" as close as possible to the end of the auction, yet still well before when the majority of the bids take place.  This is why I must place my reserve bid about an hour before the auctions close, and I disclose what my price is, and that I'm the one bidding to set the reserve price.

This is NOT a shill bid, which is a bid by someone anonymous or under a hidden name.

This is not really any different than how stocks trade.  People place bids, and they place asks.  An "ask" is when a person lists the price they are willing to accept, and the amount of stock they have for sale.  I'm doing the exact same thing, within the auction format. 

It's not really that complex at all.

It's simply a reserve price, written in advance as "spot plus X", and placed in the last hour.

It's a reserve price that's more true, more accurate, than a reserve price set too early, since my reserve price may go up or down, with changes in spot price, as market conditions determine.

Think of it like this.  It's my silver.  Agreed?  I don't need to sell it.  I'm happy to be a silver investor, happy to hold it.  But I will sell it at a set price above spot.  And so, I do.

Here's another way to put it.  Yes, I could just start my listing with one reserve price.  However, if I have to compensate for an extra day or two of silver price volatility, my price will have to be higher.  Nobody wants that.

I want to sell at the lowest price that is profitable, and I'm still willing to take a loss, as the price may STILL change between when people bid, and a day later when they wire!

But I am not willing to sell out way too low, and I'm not willing to do "backroom" deals for rich multi-billionaires who can buy out my entire inventory and all the inventory of my suppliers in the same day.  I want everyone to be able to have an equal shot at buying my silver--that's the free market.

Nobody should be excluded from bidding, not even me.

Here's another way to explain it all.  Futures contracts are the opposite of silver.  Futures contracts are paper promises.   Silver is  payment in full.  Futures contracts are binding.  Futures contracts guarantee losses for one of the two gamblers.

I avoid futures contracts, as much as is practical, to strive to participate in the free market as much as possible.  I refuse to participate in futures contracts, to every extent possible. 

To minimize my own futures contracts, I deal as close as possible to the "here and now" when I trade.  I don't want to set prices long in advance, that's a futures contract, which is everything I'm striving to avoid.

I suppose I could place an auction, 5 days in advance, and set a reserve price of "spot plus $5/oz., plus $1.50".  The extra $5/oz. is to compensate for the volatility, but I think that's enough to make the point. 

Futures promises don't work.

I aim to work as close as possible to the spot price.

I don't know how other bullion dealers can accept checks, and then have hold times of up to 10 days.  Do you know how large my vault would have to be to store every order for up to 10 days?  And that would be a very complex vaulting operation.

And any dealership that is 1 month behind on orders is clearly just scamming people.

Interestingly, I receive the harshest criticism on the forum run by a bullion dealer who is over a month behind on orders, still, and still has no 1 oz. rounds for sale.

https://www.kitcomm.com/showthread.php?t=31755

Excerpt:

01-09-2009, 09:17 PM
tardyviking
  
Join Date: Dec 2008
Posts: 2

Default Kitco Shipping

Hi. Last month was the first time that I ordered from Kitco. Today I received the invoice for both of my transactions in the mail, but no product. Is this common? I searched the threads and could not find anything specifically related to this. I am eager to get my hands on my coins! Seems to me like the invoice and product would come together on the same day.

Old 01-10-2009, 01:47 AM
aceswired
    
Join Date: Dec 2008
Posts: 26
Default

I too placed a first order almost a month ago. Waited the three weeks (plus a bit) for the check to clear from the date they posted receipt. Still no shipping date posted. I emailed and asked when I'd get that, got a curt note telling me to check the account.

Nothing there. No shipment date, courier, number, or anything. Less than impressed with service so far, to say the least.

========

Meanwhile, my harshest critic on the Kitco forums, is anonymously stumping for Kitco. 
Or perhaps a better word, is that they are a Kitco SHILL!

 Got Goldies  Got Goldies is offline
Member
    
Join Date: Oct 2006
Posts: 16,568
Default
Why do you need delivery if they aint got none? Go with pool. They'll give part of 1000oz bar. Free storage, makes sense.

========

Finally, some people continue to ask me why I'm selling if I'm bullish on silver.

Very simple.  I deal in bulk.  Very few can.  And so, I do.

I can buy 1000 oz. bars at the spot price plus shipping costs, and have them made into 100 oz. bars and coins.  Very few people can do this, due to the very large capital requirements.  I own nearly 200,000 ounces, yet I can barely sell 5000 ounces per day, see?  In fact, very few people did this for nearly 15-20 years!  Most silver rounds that I've seen were made in the early 1980's. 

I've long preached that silver could go up 50% per year for 15 years to reach $8000/oz., based on there being that much inflation that will show up in rising silver prices.

There's another way to make 50% per year.  Make 1% per week, dealing silver.  Actually, that will help you make more like 60%.

Thus, it pained me to see silver premiums at 50% over spot.  I had to start selling, for two reasons.  First, to help people get into silver more cheaply, and second, to help myself make some money! 

Every single owner of silver ought to be a dealer of silver, ought to advocate silver, and to help other people who may want to buy silver.

And that's also how silver will begin to circulate. 



Sincerely,

Jason Hommel
www.silverstockreport.com
www.bibleprophesy.org

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