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Silver Rounds at $2.50 over spot
(at www.seekbullion.com )
Silver Stock Report
by Jason Hommel, February 28th, 2009
Why are "rounds" called "rounds"? Because the U.S. Mint reserves the use of the word "coin" for government issued currency.
See: "Do refrain from advertising your replica product as a "coin." "
http://www.usmint.gov/consumer/index.cfm?action=busguide&sub=BusReplicas
The entire reason to buy silver is to get better value for your money.
Government is almost never as efficient as the private sector, which is why we are able to offer rounds below the price of Government issued Silver Eagles.
Why dump government issued overvalued paper to buy government issued overvalued silver?
Instead, you can buy more silver, if you buy it more cheaply, which is our goal to provide, and is the reason why we have produced privately minted 1 troy ounce rounds.
We have reduced the price to $2.50/oz. over spot. Compared with U.S. Eagles at $3.99 over spot, that's a bargain!
Why do they cost $2.50 per oz. over spot? We have a lot of costs.
We start buying silver at $.20 over spot. On top of that, we have additional incidental storage and transportation costs of about another $.05.
Then, we have minting costs of $1.25/oz. Some mints charge as low as $.50 over spot for minting, but their delivery times stretch out beyond 8 weeks, which is unreasonable, and to me, is indicative of a brewing default.
Packaging, including boxes, tape, and labor, costs us a range of from $.20 to $.30 per oz.
Shipping costs us another $.15 to $.20 per oz., or more on 100 oz. packages.
That's a total of about $1.93, but it's not that simple.
We discovered that when we were paying the $1.45 for the silver when silver was at $10/oz., that we "spent silver" to do that. As silver prices rose, we forgot to calculate the cost in terms of 14.5% over spot, which at $14, is $2.03 just to acquire the silver rounds, not including packaging and shipping.
So, for a while, we were losing money.
Further, we cover our silver sales in one day. But when the silver price is running up between 10 cents per day, to 60 cents per day, we have to factor that in, too. So total costs can rise as high as $3.25 over spot!
This weekend, our rounds are 25 cents off, to $2.50/oz. over spot to reflect the price dip, and to try to increase volume. If it does not work, prices will resume at $2.75 in a few days.
I don't know how anyone else can sell 1 troy oz. rounds for less, unless they are floating on customer money, or their mints are doing that.
It is IMPOSSIBLE for us to float on your money, since we ship immediately, as our customers will tell you, below.
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On another issue, please check out our feedback at www.seekbullion.com
http://www.seekbullion.com/user_reputation.php?user_id=100037
151 ratings, all 5 star.
Here's a few comments:
Outstanding. UPS tracking number in no time and product is on the way.
Received silver rounds in great condition, packaged well upon arrival. UPS shipment within 2 days after my wire transfer. Saving to buy more.
Product as described. Packaged perfectly. Simple bank instructions. Quick turn around. I recommend this seller.
Super-fast shipping and excellent communications. Rounds are exactly as described.
Shipped immediately after receiving transfer. Product was packaged securely. Received extra coin! haha thanks
Silver arrived today in good order as expected. This couldn't get much easier or more straightfoward. Thanks, Raldon Smith
Very happy with the transaction. Just what I would expect for someone of Jason's reputation.
Great communication, personal contact on phone to resolve split payment issue, patience with local bank's day of transfer delay, immediate ship once everything cleared, with UPS tracking. Wish every online transaction was this professionally handled, especially bullion.
Jason did what he said. My bid ended on Saturday the 8th, I wired my money to his simple and easy to follow instructions first thing monday morning the 9th, and I received my 100 ozs of pirate silver friday morning on the 13th. The biding was easy, no one was there till the last couple of hours, I put my one top bid in at 1600, and got the rounds for 1540. It was a great exsperience and I am going to do it again as soon as I get the cash. Dom
Simply the best place to buy silver.
Outstanding purchase experience. Wired money on Wednesday, silver arrives on Friday! It doesn't get any better than this. FYI I visited a local coin shop and the best he could do for delivery was 30-60 days, if then, ha! I look forward to doing more business soon.
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WIRES ONLY!
Some people wonder why we cannot accept checks or credit cards. We cannot accept any form of delayed payment. Some have suggested that we could simply delay sending out the silver. Not so. We cannot buy back the silver until AFTER we get your money. Therefore, we take a risk being sellers, because of that delay. Thus, we cannot lock a price, and get a check that is "good" 10 days later, because who knows what the price will be 10 days later!
From Monday to Thursday, and Saturday our auctions start ending at 7pm, Pacific, in about 2 hours from now.
Sincerely,
Jason Hommel
www.silverstockreport.com
www.bibleprophesy.org
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