Friday, March 27, 2009

Silver Stock Report: Rocklin Coin Shop $1.75/oz. over spot for Rounds

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Rocklin Coin Shop $1.75/oz. over spot for Rounds

(Lowering the Spread!)

Silver Stock Report

by Jason Hommel, March 26th, 2009


Rocklin Coin Shop
4870 Granite Drive, Rocklin, CA 95677

I bought the Rocklin Coin Shop.  I will take delivery on the morning of Tuesday, March 31st.  For the first three days of operation, from March 31 to April 2, we will have a super sale on silver bullion!  $1.75/oz. over spot (of about $13.50 or whatever it may be) on silver rounds and bars.

We are narrowing the spread.  The Rocklin Coin Shop used to sell silver at $3.50 over spot, and did not have much volume in silver sales, and had a hard time finding silver for re-sale. 

I will help to lower the spread on all bullion items as I gain all his existing contacts and suppliers, and bring to the table more of my own. 

Currently, the former owners of Rocklin Coin have 80 ounces of silver rounds, since they were mostly focused on gold sales, and gold sales of up to 100 ounces in a single order.

We will open up the shop with the following inventory:

At least 20,000 ounces of silver bullion bars and rounds.
140 ounces of gold, or more.
450 ounces of palladium.
At least 10 bags of 90%, and mercury dimes.

Please don't call for price quotes, the shop won't ship bullion.   Please come on by for a personal visit if you are in the Northern California area.

For in-person purchases, remember you need to buy more than $1500 to avoid the sales tax.  Cash only.  Except, if you order more than $10,000, be prepared to do a wire transfer, or bring a Cashier's Check or Bank Check.

For bullion that needs to be shipped, please see www.seekbullion.com.  We are lowering the minimum bid on our silver down to $1.75 over spot, starting on Saturday.


Sincerely,

    Jason Hommel

    In case you miss an email, check the archives:
    http://silverstockreport.com/ssrarchive.htm
    www.bibleprophesy.org 

    You can buy silver at my auctions at www.seekbullion.com
    Auctions end M-Th, Sat, At 7PM Pacific, but you can place bids anytime, 24/7. 

    You can also buy silver at www.momsilvershop.com
    Mom will ship overseas, and also in lots of more or less than 100 ounces.


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    Tuesday, March 24, 2009

    Silver Stock Report: Support the Montana Sound Money Bill

    God Bless You! http://silverstockreport.com/2009/montana.html
     
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    Support the Montana Sound Money Bill

    (Honest Money for a Change?!)

    Silver Stock Report

    by Jason Hommel, March 24th, 2009


    http://montanasoundmoney.org/

    It appears Montana may need your help in getting them to adopt the HB639 Sound Money Bill.  Montana needs articulate and wise people to contact a few key legislators to help them understand why gold and silver are important as money.

    Representative Joel Boniek writes that Reps Wilmer and Barrett won't vote for it, and explains their 4 reasons why they won't, as they have been educated against silver and gold:

    Hello all,  I just had a long talk with Rep. Wilmer. I mostly listened, and took notes. I am trying to represent her views fairly.  She will not vote for HB639.  She has some economics training and has been conferring with Rep. Dick Barrett, who has a Ph. D. in economics.  So, I gather, the key to this is Rep. Barrett.  I asked Rep. Wilmer if she had read any Von Mises, Rothbard, Sennholz or Hyeck.  She indicated some knowledge of them.  (?)  She said that Karl Marx had written the best treatise on economics, but people get (diverted) by his politics.  Marx allegedly had a clear understanding that it is labor that makes raw materials profitable, and capital.  These are needed to add value.  Investors are rewarded because they take the risk.  She clarified 4 points of objection to HB639:  (her thoughts follow as I understand them) 1. G/S are just another "in kind" method of payment.  Why not use another?  (chickens, pork bellies)  2. G/S are just a store of value. They do not appreciate.  If you store value, it should appreciate along with the increase in goods and services, and the increase in inflation and productivity.  She allowed that a short term store of value was not bad, but its value depended on the time frame.  She talked about, how does it perform relative to other values, and when you want to exchange it.  She says that G/S have value only because of our beliefs.  Sea shells had value in some economies..  Or wampum.  3. The bill had/  there was no discussion on the role of money/currency.  Money is just a medium of exchange.  (I got the impression that she thought, why not just use paper money?  It is just a medium of exchange?)  4.She objected to the premise that there is something wrong with (our) money.  This refers to Section 1. Findings of the Legislature.  My impression from this was that the idea of political and economic instability, chronic depreciation, incremental confiscation of property, preserving sovereignty, and independence, and promoting the people's welfare, security, and economic prosperity were not  realistic concerns.

         She is in favor of central banks, (since) they are independent of political interests.  Things are more stable if the currency is stable.  ( I know!  Try to be calm.  I was just listening for some way to find clarity in her view)  The value of currency is determined by the Federal Reserve.  Psychology is the biggest factor in market stability.  We have had a century of learning about economics.  (we need to have) confidence in the institutions that manage markets. How to find balance between lessening consequences and increasing competition?  Oligopolies are bad.

         So, I asked, if this bill passes, what do you see as the effect?  She indicated that she saw no effect, just that it would cost thousands of dollars to set up.

        Earlier today she gave me an article from "truthout.org"   "Keith Olbermann gets tough with bailed out banks-Enough!"  You might read it and see the same contradictions that I saw between her thinking and the problems presented in this article, especially  the call to "Break up the banks,"  and "bust the trusts".  On the last page there was a pointed reference to "naked, unhindered robbery of the public coffers" by those in corporate boardrooms.  (Yes, this is child's play compared to the robbery of us by the FRS)

      There you have it.  I am taking these hours to inform you because it is important, not because I have time.  I am way behind getting ready for tomorrow.  I hope you can do something with this info.  Joel  (PS.  As I see it, for some, there is no cause to worry.  Life is good.  Enjoy)

    Representative Joel Boniek
    406-444-4800
    jboniek@mt.gov
    House of Representatives
    PO Box 200400
    Helena MT 59020

    To address 6 points mentioned above by Rep Barrett or Rep Wilmer:

    1.  Silver and gold are useful as money because they are more efficient than other physical things of value. Silver and gold are easy to trade because they are lightweight for the value, they have a narrow spread to buy and sell, they are divisible and fungible so each ounce is like another, nearly impossible to counterfeit, a luxury item, and not perishable.

    2.  Silver and gold are a better store of value now, because they are relatively cheap now than at other times in human history, and thus stand a better chance of going up in value in the future from here.  Silver is less easy to sell than gold, but even Warren Buffet was able to sell his 130 million ounces when he wanted to, as I pointed out to Thom Calandra who visited with me this weekend. 

    http://www.stockhouse.com/Columnists/2009/March/24/ThomWatch-Snow-job-stops-here-silver

    3.  The role of money is simple, to encourage trade, which encourages the division of labor, which encourages production, which encourages wealth creation.  When paper money falls in value, it robs productive people, and discourages production, and impoverishes us all.

    4.  Paper money today has no backing of gold and silver at all, and could easily return to the intrinsic value of the cost to create it, which is 3 cents to make a $100 bill.

    5.  Nobody, not even central banks, should have a monopoly on making $100 bills for 3 cents.  Nobody should be able to do that.  Central banks that have the government granted monopoly power to make a $100 bill for 3 cents, and then loan it out at 6% interest, for $6 per year, is indeed the biggest political interest that exists in our day.

    6.  I believe the primary effect of this Bill will be to bring real wealth to the people of Montana, which will help them out economically speaking, while the dollar continues to fall in value due to the massive bail outs that have nearly doubled the money supply of the U.S. in the last year, as the total cash and bonds in the banks, M3, was $14 Trillion, and the bail out promise a total of over $10 trillion so far. 

    The side effect of increased monetary demand for silver will help the price of silver go up a bit, and increase the stability of the value of silver.  Currently, investment demand for silver is about 50-100 million ounces per year, out of about 600 million ounces of mine supply, and a total market of about 900 million ounces if you include all scrap and government selling.  I would give a wild guess that if Montana adopted this bill, it would cause a demand of very roughly about 5 million more ounces of silver per year, and would have an almost negligible effect on the price of silver, but would put a bit of a strain on the U.S. mint, and their suppliers which made about 20 million ounces of silver in the last year.  Currently, in the past year, the U.S. Mint has had trouble getting enough blanks from their suppliers to meet demand of 20 million ounces, and so the U.S. Mint is rationing silver Eagles.

    How to contact Rep Wilmer (D):
    http://leg.mt.gov/css/Sessions/61st/leg_info.asp?HouseID=0&SessionID=94&LAWSID=5155
    franke.wilmer@gmail.com

    How to contact Rep Dick Barrett (D):
    http://leg.mt.gov/css/Sessions/61st/leg_info.asp?HouseID=0&SessionID=94&LAWSID=6453
    rnewbar@gmail.com

    Others to Contact, as listed here:
    http://www.campaignforliberty.com/blog.php?view=13278

    Members of the House State Administration Committee:
    Rep. Himmelberger---Chairman---TOP PRIORITY
    Rep. Wilmer----PRIORITY
    Rep. Washburn
    Rep. Van Dyk----PRIORITY
    Rep. Phillips-----TOP PRIORITY
    Rep. Malek----PRIORITY
    Rep. Maclaren
    Rep. Ingraham
    Rep. Hendrick
    Rep. Hands----PRIORITY
    Rep. Calf Boss Robs----PRIORITY
    Rep. Caferro----PRIORITY
    Rep. Brown---already supports HB639
    Rep. Boniek----already supports HB639
    Rep. Belcourt----PRIORITY
    Rep. Bean
    Rep. Dickenson----priority
    Rep. O'Hara

    Look up the priority names above here:
    http://leg.mt.gov/css/About%20the%20Legislature/Lawmaking%20Process/contact%20legislators.asp

    Larry Parks of http://fame.org/ replied:

    Re: Representative Wilmer's reference to Karl Marx

    Even Karl Marx was vehemently against paper money, because it violated his Labor Theory of Value (LTV). The premise of the LTV is that things have value because of their labor content.

    Since it takes no more labor to create a $100 bill as compared to a $1 bill, Marx took the position that there is no  value in paper money. In fact, he was in favor of gold-as-money partly because of the labor necessary to get gold out of the ground and refine it.

    The reason gold is chosen as money (when it is available) cross-culture and cross-time is that gold minimizes the transaction costs of transferring wealth over time. Moreover, the monetary metals, gold and silver, are the only commodities for which there is more than a year's worth of production above ground. Up until the middle of the 19th century, there were no industrial uses for silver. Today, silver is largely an industrial metal.

    Gold, on the other hand, has minimal industrial uses, and there is 60 year's worth of production supply above ground. Thus, gold is the only commodity for which pricing arrangements remain stable into the future regardless of whether the mines close down or new gold deposits are discovered.

    In addition, as Paul Volcker so eloquently pointed out, "a global economy requires a global currency." Volatility in foreign exchange rates destroys the international division of labor, which reduces everyone's standard of living. Gold-as-money solves this problem.

    Best,

    Larry Parks

    ==========

    Videos of HB639 hearing:

    http://www.youtube.com/watch?v=7s1bGv6CIJM  -----part one
    http://www.youtube.com/watch?v=wLjJLw5_GB4  -----part two
    http://www.youtube.com/watch?v=b7DFYpxKMCE  -----part three
    http://www.youtube.com/watch?v=7gKwvEVK99g  -----part four
    http://www.youtube.com/watch?v=4L171xn9suo  -------part five
    http://www.youtube.com/watch?v=pqHKGBA2hhU  ----part six
    http://www.youtube.com/watch?v=6_V6s1i179o  --------part seven
    http://www.youtube.com/watch?v=BlGrds2LQkQ  ------part eight
    http://www.youtube.com/watch?v=zaBEIjEYlN0  --------part nine
    http://www.youtube.com/watch?v=ZbWbfTyt5rE  -------part ten


    Sincerely,

      Jason Hommel

      In case you miss an email, check the archives:
      http://silverstockreport.com/ssrarchive.htm
      www.bibleprophesy.org 

      You can buy silver at my auctions at www.seekbullion.com
      Auctions end M-Th, Sat, At 7PM Pacific, but you can place bids anytime, 24/7. 


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      Friday, March 20, 2009

      Silver Stock Report: The Obama Deception

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      The Obama Deception

      (Thank God that God's in Charge!)

      Silver Stock Report

      by Jason Hommel, March 20th, 2009


      I finally watched "The Obama Deception" tonight after at least 20 people asked me to.  I don't like to waste a good 2 hours learning what I already know.  It was not that bad.

      http://www.youtube.com/watch?v=eAaQNACwaLw

      The best part of the film is that they mention that unpayable debts are like slavery, they hammer that theme again and again.

      Let me summarize this film by Alex Jones.  Obama's a lying puppet.  He does not care at all for the people, but works for the money masters.  They want to bring about a New World Order, gain even more control than they have already, and enslave us all.

      I suppose the new plans from those who want to impose their New World Order on us all, by the Private Federal Reserve who controls America, include hundreds more taxes, especially carbon taxes to "save us" from the hoax of Global Warming.  I agree Global Warming is a hoax, I've written on that in the past, (see point 10) and a conveniently fabricated false "reason" for a "Global Solution" like the New World Order Global Totalitarian Government.

      I was particularly disappointed that among the action plans called for, as mentioned as ways to oppose the globalist bankers, there was not one call of action to buy gold or silver.

      Doesn't Alex Jones know that if a mere $1 billion of paper money were to be converted into silver money, that the value of silver would probably double overnight, and that the value of the dollar, and thus, the power of the Federal Reserve would be cut in half overnight?

      Isn't buying silver the easiest way to "Fight the Fed"?  I've understood this for 10 years now, why don't other people get it?

      I see all those other people calling for Congress to "End the Fed", but what then?  Can congress wave a magic wand, to pay off the debt to the Fed and make the dollar as good a gold again?  No.  Congress would have to print up $10 trillion to end the public debt, but they just did that, to end the debt of private corporations like AIG who owed money to the people like J.P. Morgan and Goldman Sachs who may partly own the Fed!

      So even if congress had a clue, which they don't, Congress could back all dollars with all gold, but if they did that, they would only have enough gold to back about $60,000 dollars with every one oz. of gold that they had.  And if they offered gold at $60,000/oz., nobody would buy any, because you can get it much cheaper.  And that's only a theoretical limit, in case the gold price really took off, they could, in theory, cap it there, but only if they stopped printing money immediately now, and in the future, and if they really didn't just promise another $10 trillion in spending in the last year for all the bail outs. 

      Including the recent bail out money, and it's more likely $100,000 per oz.  And if the gold price were to rise so high, not even a government promise of gold would likely to be believed, and surely, the government will be printing orders of magnitude more paper money between now and then, so the price will ultimately be orders of magnitude even higher than $100,000/oz.

      I've been trying to enlighten Alex Jones to basic monetary facts for years, but he refuses to respond to any of my attempts to have me on his show.  I'm sure he's just too busy, like I'm often too busy to respond to everyone who contacts me.

      Is the gold and silver market so small, that none of us in this business have been able to get the basic facts of supply and demand out to this mildly powerful man in alternative media, and that none of the people that I have educated over the years has been able to share anything of substance with this man?  I suppose so.

      For years people have been telling me to get on Alex Jones.  For years, people have been telling me they have contacted Alex Jones about me on my behalf.  Makes me wonder if HE's working for THEM.

      After all, part of what THEY do, is set up and fund the resistance!  After all, THEY control everything! 

      Are we really so fractured?  Is truth really so hard to see?  Maybe so.

      When I get upset about the sorry state of the world, I don't really worry so much, because I remember one thing.

      If God wanted it any other way, he would simply enlighten more people.

      In fact, since even so few Christians are enlightened, it makes is rather easier for us, in some ways.  It may have been hard for me to get here, but now that I'm here, things are getting easier for me, and it's much easier for others to follow my example.

      From my experience, when it was me not listening to God, it's like this:  people often just don't want to understand, they would rather get angry instead.  Besides, learning often takes months to change people.  I had to research evolution about 6 months after college before I was granted with the enlightenment that I needed to realize that I didn't need to "find the right religion," but I simply had to "take the Bible seriously."  See, when I was mad, I thought I had to "find the right religion," as that's what THE RELIGIONS tell you that you have to do to "get right with God".  And me being mad prevented me from seeing their lie, but rather, I believed the lie, which prevented me from understanding anything about God. 

      So, I still think most all religious groups are a waste of time, and not worth wasting time trying to talk to, because they have deaf ears.  After all, which one tells their flock to buy silver and gold to avoid supporting the Fed, to avoid societal slavery, because after all, God calls us to freedom, which is mentioned in the First of the Ten commandments!?

      And God spoke all these words:
      "I am the LORD your God, who brought you out of Egypt, out of the land of slavery.
      "You shall have no other gods before me.

      So, because other people are mad at God, they even complain to me about mentioning God, as if that's the reason why people don't buy silver!  Like I'm the guy keeping people away from silver because of that?  Once again, anger getting in the way of reason.  But most people who read me are sincere Christians, and I mention God repeatedly both to Honor Him, and reach out and connect with real truth seekers.

      And often light shines into the darkness, and the darkness does not understand.

      Let us be thankful for the beauty of silver, as it is a totally non violent solution.  Nobody needs to fight the Fed, or end the Fed, or revoke their power, or do any "demonstrations"; instead, people just need to avoid being deceived by the Fed.  Just buy silver.  The power in that is 100,000 times as powerful, politically speaking.  After all, if force is used to end the Fed, then the people will not understand, and they will just go into silver and gold debts again just as quickly, or trust in gold and silver paper promises like the ETFs and Futures Contracts and Silver Certificates (debts of others), and nothing will ever truly change for the better.

      Related News Items:

      U.N. panel says world should ditch dollar
      http://www.reuters.com/article/newsOne/idUSTRE52H2CY20090318

      China and other emerging nations back Russia's call for a discussion on how to replace the dollar as the world's primary reserve currency
      http://www.reuters.com/article/usDollarRpt/idUSLJ93633020090319

      Russia News Source actually investigating Gold
      Modern gold rush under way -- Adrian Douglas
      http://www.youtube.com/watch?v=to0RjwUFAHg

      They want to replace the dollar, but they don't know what to replace it with, except a "basket" of other currencies.  It's like they are in the darkness, groping for the light, seeking any way out of the cave, and they don't know where to turn, but at least they are looking!

      That they are looking shows there are potential lights in the darkness! 

      And the darkest place, seems to be showing some of the brightest promise, in a way:

      Gold For Bread - Zimbabwe; the poorest people in the world are finally turning to grains of gold as a way out from the horror of hyperinflation that resulted from total government give a ways and too much government theft.
      http://www.youtube.com/watch?v=7ubJp6rmUYM

      Will the masses of the people in America have to suffer such pain, before learning the lessons, waking up, and turning to silver and gold?

      If not our nation, there are others who might wake up, or who are already awake.  India imports up to 800 tonnes of gold per year.

      While there is not yet a "New World Order", there are potentially many sovereign nations that could begin to seriously introduce silver and or gold as circulating money.

      This is why I wrote:
      How any government can issue silver as currency
      http://silverstockreport.com/2009/currency.html

      Here's my action plan, my "call to action".

      Pray for any sovereign world power, or even a dictator, to be enlightened so that they will choose to introduce silver and gold as money.  If people are to be enlightened in the world, they will need your prayers, and God's help. 

      1 Timothy 2:1-4 First of all, then, I urge that entreaties and prayers, petitions and thanksgivings, be made on behalf of all men, 2 for kings and all who are in authority, in order that we may lead a tranquil and quiet life in all godliness and dignity. 3 This is good and acceptable in the sight of God our Savior, 4 who desires all men to be saved and to come to the knowledge of the truth.

      If God can convert and enlighten a Christian-killer on the road to Damascus to become the most prolific writer in the New Testament, with no preaching at all from any man, then God can enlighten anyone he wants to.  Ask God for this, and the world might begin to become a better place, that much faster.


      Sincerely,

        Jason Hommel

        In case you miss an email, check the archives:
        http://silverstockreport.com/ssrarchive.htm
        www.bibleprophesy.org 

        You can buy silver at my auctions at www.seekbullion.com
        Auctions end M-Th, Sat, At 7PM Pacific, but you can place bids anytime, 24/7. 


        If you found this email useful, please Forward this email to your family and friends.

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        silverstockreport.com | 15527 Brooks Road | Grass Valley | CA | 95945

        Wednesday, March 18, 2009

        Silver Stock Report: Rounds at $2/oz. over spot

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        Rounds at $2/oz. over spot

        (Convert cash to silver rounds at $2.00 over spot of $12.87)

        Silver Stock Report

        by Jason Hommel, March 18th, 2009


        Convert cash to silver rounds at $2.00 over spot of $12.87.

        We are lowering our prices for our silver at auction, down to $2/oz. over spot.

        Our ship has come in!  And we can now pass the savings on to you!

        Our suppliers have now pre-shipped 1000 oz. bars of silver to our location, 150,000 ounces!

        This means we can now ship up to 30-40,000 ounces of silver per day, if only we had enough employees to handle the packaging of that much.

        Our shipping department can easily handle 10,000 to 20,000 ounces per day.

        We now have, for immediate delivery, 50,000 oz. of rounds!

        You can bid at auction, at seekbullion.com, lots of 100 ounces and 500 ounces.

        All "reserve" prices are now only $2/oz over spot, which, tonight, was set at $12.87.

        In addition to that:

        If you would like 1000 ounces or more, you can "buy it now" from the following list:

        2000 Obamas  WORST SELLER!
        2000 Pirate 2's Skull/Palm
        1000 Pirate 4's Ship/Compass --Hot seller!
        8000 29BF
        1000 Bulls
        1000 New World Orders --Hot seller!
        2000 CFTC's
        3000 Do you Love God Best Seller!
        2000 Snake

        To "buy it now", send me an email telling me how many you want, to J@SILVERSTOCKREPORT.COM OR BIBLEPROPHESY@YAHOO.COM  I'll email you back the the latest spot price, +$2/oz. plus wire instructions.  If that's good, wire me the money in 24 hours, and we'll send you your silver the same day we get the wire.

        I was going to send out an email tonight saying "buy the dip", based on today's huge price move down about 90 cents per ounce.  But the price then moved back up!  So, its too late for that "news flash". 

        Besides, the real "news flash" is that PRICES ARE NOT SUPPOSED TO MOVE THAT MUCH IN A DAY! 

        The volatility we see is a function of the paper money madness that has swept the world.  It's also a function of the relative small size of the silver market, or in other words, too low prices for silver, and this move is a sign of the failures of the ongoing price manipulations.  Any one of 1000 different billionaires could move the tiny silver market up by 100% in a single day, if only if it were even possible for them to find a billion dollars worth, or a half a billion dollar's worth, of silver to buy!

        Prices for silver will be more stable at higher prices, when more people own silver. 

        A lot of people wonder if 1 oz. rounds will "work" if paper money fails; since they could be worth a week's wage.  Similarly, people worry that a 100 oz. bar of silver will be "untradable" when silver is worth so much.  Don't fear.  There are always richer people than me and you in this world.  The refiners make hundreds of the 1000 oz bars every day.  Penoles refinery makes about 70 million oz. per year.  Divided by 250 days/year, that's 280,000 oz. per day.  PER DAY!  Don't forget about the importance of relative size.  Not everyone works from day to day, with no savings, for a living.  And 280,000 oz. x $13/oz. = $3.6 million.  Thus, the billionares have it much harder than you do, when it comes to protecting one's wealth with silver, in an age of monetary fraud like today.  What's a billionaire to do?  Sometimes, it's harder to keep it, than to make it.



        Sincerely,

          Jason Hommel

          In case you miss an email, check the archives:
          http://silverstockreport.com/ssrarchive.htm
          www.bibleprophesy.org 

          You can buy silver at my auctions at www.seekbullion.com
          Auctions end M-Th, Sat, At 7PM, but you can place bids anytime, 24/7. 


          If you found this email useful, please Forward this email to your family and friends.

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          Tuesday, March 17, 2009

          Silver Stock Report: How any government can issue silver as currency

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

          How any government can issue silver as currency

          (A shockingly simple formula for national wealth: honesty!)

          Silver Stock Report

          by Jason Hommel, March 17th, 2009


          There are basically two ways for a government to issue silver as currency.  One relies on force, or government decree, and is easier and more profitable for the government.  The other way is the honest free market way.

          Let's start with the first way; through government decree.  This way, the government buys silver on the open market, mints it into coinage (or contracts that out), and spends that silver into circulation by adding a 50% to 500% fee called seniorage. 

          Thus, a government would buy silver at roughly $13/oz., and stamp on it a nice round number, something like $20 to $50 on each 1 troy oz. coin, and force the market to value it at the new level, using that silver to pay government employees or contractors, or welfare recipients, etc.

          The benefits and problems with this method are clear.

          The benefits are that this "coin making business" is extremely profitable for the government, and it can issue ever more silver into circulation using this method, because it is always profitable to force other market participants to over value the silver being issued.

          The problem is the flip side.  People don't like to receive silver when it is over valued, and so this kind of silver is not easily accepted by the people, because the people are basically being stolen from, through the excessive profits that go to the government.  Over valued silver is also quickly spent, or "dumped" by people, and so it cannot be successfully used as a store of savings for the people for long term wealth creation.

          The second problem is that silver tends to rise in value, higher than what is stamped upon it.  So, if silver is stamped with $20, then when silver costs more than $20/oz., that silver is then hoarded, and it does not circulate as money, because it's more profitable to hold it, than to spend it, so the entire reason for issuing silver as money is then ended. 

          So, what about the honest method?  How would any government honestly issue silver as honest money?  Basically, the government would buy silver on the open market at $13/oz., and not mark any currency value on it.  Instead, they would mark it only with what it is, such as the purity and weight, such as "1 troy ounce of .999 fine silver" and then offer it, as a payment option, to all who wanted it, at a relative value of no more than the cost of it, and to make it. 

          Then, people who choose to take silver, can spend it, or hold it, as they wish.  Prices in society may slowly begin to be quoted in terms of government currency, or silver ounces, or both. 

          The job of the central bank, under those conditions, would be to make silver available to anyone they pay, and even investors who wanted to convert currency to silver.  Also, the government would need to accept and take in silver and give out the old paper currency, as needed or desired by the people of the nation.  In such a way, silver would be able to circulate side by side with paper currency, as the market chooses, or not.

          Such silver would always be able to be traded or hoarded, (and not just hoarded) because it is valued by a different measurement method, as an ounce, and its value would change according to market demand.

          If the government were to try to encourage and support silver as money, to encourage the use of silver as money, the government could do two things, both of which tend to interfere with the free market, and thus, have slight drawbacks. 

          First, a government could help narrow, or even eliminate, the spread on trading silver.  Thus, if the government noted that the "free market price" of silver is $15/oz. after minting fees and replacement prices, then that would be the government fixed price, whether a person was buying silver, or selling silver.

          But that is a slight problem as people would tend to want to exchange worn out coins with less silver in them, for new coins.  And so, perhaps a slight fee should be charged, based on the weight, and a reasonable re-coinage fee.

          Second, a government could help reduce silver's price volatility.  So if the silver price rose to $50/oz. very quickly, and then dropped, the government could hold silver's price steady for redemptions, so that people could still trade silver back to the government always at a floor price that never declined.  Hugo Salinas Price in Mexico is a champion of this idea.  This is similar to stamping a currency value on the coin itself.  When that is done, the value of that silver in trade is never lower than the price on the coin.  So, even in a "free market" changing price for silver, the new silver currency's price should never be allowed to go down in terms of the issuing nation's paper currency.  By reducing the price changes, by letting every price change only be upwards, and always be a new floor price, and never letting the price go down, a government would encourage people to trust and use silver as money.

          That method also creates a slight problem, as the government might have to print up a lot of paper money in case silver's price dropped dramatically, and the government might end up with a lot of over valued silver that their own population does not want.  Thus, I consider that method to be like price fixing, which does not work, or, at least, has drawbacks.

          But this would be a mix of the two methods, one part government decree, and one part the free market approach, which is why it has a slight problem.

          The specifics on how to implement any of these methods require buying silver coins from a mint, or building your own mint and buying silver bars from a refiner.  The challenges there are basically trying to avoid default of your suppliers, as refiners and mints have gone bankrupt in the past, and currently, some refiners and mints are in trouble today, as they have long delivery times.  Fortunately, there are several silver minting experts to consult with to avoid such problems, such as:

          Jim Pavlakos at Superior Sources superior@earthlink.net
          Bob at  http://www.medallic.com/
          John at http://www.columbiamachine.net/
          or myself,
          Jason Hommel j@silverstockreport.com

          Or, contact the owner of any successful coin shop which manages to maintain an ample inventory of product available for immediate delivery on a "cash and carry" basis.

          Some of the main reasons why the U.S. Silver Eagle program have failed to cause silver to be circulated as currency in the U.S. are as follows.

          1.  The U.S. Mint stamps the 1 troy oz. coins with $1, which is confusing.

          2.  The U.S. Mint does not issue the silver coins as currency to anyone that they pay in the normal course of activity, meaning that they do not offer them as a means of payment to any government employees or contractors.

          3.  The U.S. Government does not accept their own silver coins as a means of payment for taxes or fees.

          Lately, the U.S. Mint has created another opportunity, by another failure.

          4.  The U.S. Mint has been rationing silver coins, as their own suppliers, the mints they are contracting with to make blanks, cannot make enough blanks to meet demand.  This last problem has raised the cost of obtaining U.S. Minted silver coins, which means that anyone else who can issue silver coins can make a greater profit by doing so, even at market rates.

          Which ever method any government decides to use to issue silver currency, their central bank has to essentially do two things.

          1.  Mint silver into 1 oz. silver pieces and "spend" them into circulation.

          2.  Redeem and buy back the silver pieces when people pay taxes or desire to engage in world trade with other nations that do not accept silver as money.

          And finally, I believe it would be best to make silver coins that are the world standard weight, which is the 1 troy ounce weight, and to avoid marking them with any paper currency value. 

          Later, as silver rises in value, it becomes more practical to start making fractional ounce coins, but today, that's just not really needed yet.

          There are other bigger problems, of course.  The biggest problem is that such a nation would have to risk being branded as a member of the "axis of evil" by nations such as the U.S. government, who is currently being ruled by the paper money mob of world bankers, who hope to strip all nations of their sovereignty, and bring about a world government.

          Then again, perhaps the ultimate goal of the paper money mob is to bring about a world government by bankrupting the nations, and by bringing back silver and gold as money, which would tend to unite the people of the world, until they could be enslaved by usury again, one last time.  For more info on this, see:  http://newworldorder.org/

          Either way, any people using honestly valued silver, as honest money, has the opportunity to become very wealthy compared to the rest of the world that tries to store wealth in the form of fraudulent paper lies.

          Currently, there are several States in the U.S. that have "honest money" bills in progress.  See:

          Indiana:
          http://www.indianahonestmoney.com/

          Georgia:
          http://www.constitutionaltender.com/

          Missouri,
          http://www.house.mo.gov/content.aspx?info=/bills091/bills/hb561.htm

          Colorado:
          http://www.leg.state.co.us/clics/clics2009a/csl.nsf/fsbillcont2/107A082F6E9A3E098725753E005BDC18?Open

          They real key to making things like this happen is to reach out to those people who might be willing to be open to the possibility, and who are within your sphere of influence.  I just did.  See if you can spread these ideas to people within your area of influence. 


          Here are three very important recent Silver Articles that give an extremely good overview of the silver market:

          Extraordinary Stress in the Silver Market - March 15th
          http://goldmoney.com/en/commentary/2009-03-15.html

          Crunch Time? - March 16th
          http://news.silverseek.com/TedButler/1237228354.php

          Gold bullishly buoyed by news: Got Gold Report
          Silver taking cues from gold
          http://www.stockhouse.com/Columnists/2009/March/16/Gold-bullishly-buoyed-by-news--Got-Gold-Report




          Sincerely,

            Jason Hommel

            In case you miss an email, check the archives:
            http://silverstockreport.com/ssrarchive.htm
            www.bibleprophesy.org 

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            Auctions end M-Th, Sat, At 7PM, but you can place bids anytime, 24/7. 


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            Sunday, March 15, 2009

            Silver Stock Report: 29 Questions for a Silver Futures Broker - Answers

            God Bless You!
             
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            29 Questions for a Silver Futures Broker - Answers

            (6 Futures Brokers Answer)

            Silver Stock Report

            by Jason Hommel, March 15th, 2009

            On February 19th, I issued a challenge to futures brokers to answer 29 questions, and in return for their answers, I gave a futures contract of my own.  I said I would publish them, here, to my 80,000 readers, which would give them publicity.  Six Futures Brokers rose to the challenge.  I was going to publish just the best answers of each, which I do below, but I decided it would be best if I published everyone's full sets of answers.  And so, I forced myself to take the time to format everyone's full sets of answers, and this report links to 6 more full reports of answers.

            Their answers are in bold, so you should view this report online, and not in email, in case your email does not read html.
            See this report, here:
            http://silverstockreport.com/2009/futures-answers.html

            Here's my original 29 Questions
            http://silverstockreport.com/2009/futures.html

            This is probably some of the most important reporting and commentating that I have ever done, or seen anywhere else. 

            This really cuts to the heart of the matter of what is wrong in America today.  Many people know that it's the money powers that are controlling our politicians.  The Achilles heel to the money powers is physical silver, because there is so much less of it than gold. 

            To manipulate silver, and keep it suppressed, they use futures markets.  One bank now, likely JP Morgan, has an overwhelming short position in silver.

            These brokers who answer below, work, indirectly, for those money powers that are wrecking everything.  They help divert investment demand away from physical silver, and into the paper products of the money powers that control everything.  They may not be consciously aware that that's what they are doing, but then again, that's just my perspective.

            The answers these industry professionals give are just fantastic for the insight they bring to the table, mostly, how unaware they are of the data that I present to them that indicates the scope of the financial fraud in the industry in which they work. 

            Some of them seem unconcerned about defaults, and some do recognize the possibility.  Overall, I was shocked by their answers.  They seem generally so unaware, and unconcerned, except a few of them, just a little bit concerned.

            They just don't seem to be aware of the data.  Most have never heard of the CPM Group, a key industry group that gathers and publishes statistics on silver in an annual yearbook, that I continue to hammer home to my readers. 

            Also, since they don't know the data, they seem to be mentally incapable of analyzing the data, to be able to compare the values of key numbers, such as the total amount of annual physical investor demand for silver, (50-100 million ounces) with the total number of short positions (up to 800 million ounces).

            They don't seem to realize that diverting investment demand away from physical silver, and into paper, is price suppressive of the physical price.

            They don't seem to realize that the physical silver market is $1 billion annually, and the paper shorts stand to lose $8 billion if the silver price doubles.

            They don't seem to realize that if all paper longs simply bought physical silver instead, the silver price would be multiples higher than it is today.

            They don't seem to realize that if all paper longs, such as bondholders bought silver, the price of silver would be hundreds, thousands, if not millions of times higher than it is today.

            I was most shocked at how short term most futures trades are, only a few months.  And then, they expire, and have to be sold, for new paper instruments, and each time, they have to pay a commission, to these guys who answer below, to do so. 

            The self-deceiving lies of one respondent shocked me, as he claimed, "everything expires". 

            Silver itself does not expire!  Silver lasts thousands of years, even with a little tarnish that actually protects the silver from further decay.  There is no "time limit" on one's personal savings that may need to last nearly one's entire lifetime, or more, to leave behind an inheritance for one's children's children.  These days, you are likely to outlive and outlast most financial institutions!

            Back about 9 years ago, before I knew much of anything about finance, back when people were first beginning to pay for "clicks" on the internet, some of the highest bids recorded were up to $10 per click, being paid by futures brokers desperately looking for clients.  These guys stand to make more money from your losses than any other financial professional, except perhaps JP Morgan or the Federal Reserve, or a company like MONEX with their own proprietary "futures" "atlas account".  See www.monexfraud.com for more info on that group.

            While the names of the brokers who responded are listed in each report, here also are the names and contact information for each person and company who responded, and key excerpts from their answers:

            ========== Answers #1 ==========

            Yitzchok at 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 & see for yourself at:
            http://www.bulliontradingllc.com/index.php
            Answers #1:
            http://silverstockreport.com/2009/futures1.html

            After he answered, Yitzchok wrote back, regarding his answer to question 12:   I started to write an answer to your questions. As I got to this question & began to answer it I thought that I should just clip this and see what you think.

            12.  What gives you confidence that there won't be a default in silver futures contracts at the NYMEX?

            Futures Broker:

            If any contract would default then this would be a problem for the entire system not just the silver market. When I buy a contract the brokerage firm is garrenting (sic) that I will make good on this commitment. In addition the brokerage firm has its own insurance for this. This is also on top on the margin that I need to hold. In the event that the silver market goes straight up first I would get stopped out because I would not have enough money in my account the difference would then be charged to the brokerage & then the insurance would have to pay the balance. Also the way things are right now the government would then be making some sort of a bail out. If you really think about it & you really believe that there is a short manipulation going on by some of the big firms then you also need to believe that the government would be bailing them out so they really do not need to worry about this short position because the government would need to continue to carry this short position while they bail them out. The government would not close out this short as this would hurt them in a big way sooo I now really do not think that buying silver because of a supposed short position would be worthwhile.

            Yitzchok wrote:  The part that I would like your thought is on the bail out part.

            I wrote back:  There are a lot of issues to what you are saying.  If the government bails out, but as you said, the government might not want to bail out.

            I think you are still stuck in the "paper gains" mode of understanding.  A paper bail out is still not silver.

            Yitzchok wrote back again:  I agree that a paper bail out is still not silver. Nevertheless even if the gov't were to bailout & this would have to be after JP fails. The gov't would now have to make good on the short position. I think that they would keep this position (if it does exist) open; thereby silver would effectively not be changed by such a transaction.  

            I am really glad that I responded to these questions as they clarified some of the nagging thoughts that I had.

            ========== Answers #2 ==========

            Allan Bartlett
            abartlett@excelfutures.com
            Excel Futures
            4440 Von Karman Ave. Ste. # 115
            Newport Beach, Ca. 92660
            Toll Free: (888) 959-9955 / Local: (714) 843-9884 / Fax: (949) 250-8931
            http://www.excelfutures.com
            Answers #2:
            http://silverstockreport.com/2009/futures2.html

            Alan also answered very well.  Here are his best answers:

            12.  What gives you confidence that there won't be a default in silver futures contracts at the NYMEX?

            Futures Broker: There's never been a default on any Commodity Exchange to my knowledge, but I don't have the confidence that they're (sic) couldn't ever be a default.  If there were a default, I guess they would try to cash settle the contracts, but then again, what would that "cash" actually be worth if there were a default.  You ask good questions.

            14.  I'm concerned about default because the open interest is always so much higher than the silver that is in the warehouses, both registered and eligible for delivery.

            As of 2-10, the open interest is 130,692 contracts for 5000 oz. each.
            http://www.cftc.gov/dea/options/deacmxsof.htm
            That's a total of 653,460,000 ounces, is that correct?

            Right now, the silver warehouse stocks, total, registered and eligible, for all 4 warehouses, is 124.7 million ounces.
            http://cmegroup.com/trading/energy-metals/nymex-daily-reports.html
            See "Warehouse Stocks" and then "Silver Stocks" at the bottom of the page.

            That seems to be quite an imbalance, so what is the guarantee that the shorts can deliver silver to the longs?

            Futures Broker:  I think you've answered your own question.  There is no guarantee.   I don't think the shorts can guarantee delivery if everyone who's long right now stands for delivery.  The system has never been "stress tested" IMO to know what would happen in this case if everyone stood for delivery.  Obviously, there is not enough silver in the wharehouse (sic) right now to cover the current outstanding contracts.

            16.  There is another major market in silver, besides the NYMEX, and I'm speaking of the LBMA, the London Bullion Market Association, which is a group of very large bullion banks that all act as market makers for bullion orders for their own clients.  http://www.lbma.org.uk/members_list.html

            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.  That seems a rather small amount, what do you think?

            Futures Broker:  I think the amount is especially small given that they are one of the largest physical suppliers overseas.  75 million ounces is not a lot inventory if a few large institutional investors came in and bought up all the supply.  

            ========== Answers #3 ==========

            Robert Fuhrmann
            Myfuturesonline.com
            312-726-0500
            Answers #3:
            http://silverstockreport.com/2009/futures3.html

            Robert's answer to point 12:

            12.  What gives you confidence that there won't be a default in silver futures contracts at the NYMEX? 

            Answer:  The exchange makes its money in part by collecting exchange/trading fees on the contracts traded there.  Its like any other product or service, if there is demand for it and COMEX can make money on it they will continue to keep offering it.  I think the question that you are really asking is what happens if the shorts default on their short positions.  The long answer could fill a short book.  The shorter answer is that the COMEX is not the guarantor of the positions, the clearing firms are.  Let's say that UBS has a client that is short silver and the market goes against them.  Any responsible clearing firm and or their brokers would liquidate the positions (forced liquidation) if that client were on a margin call, but lets say that either the market move is so big that the clearing firm does not have a chance to close the position before the client goes debit (with current margin requirements that would be more than a $3.00 move on silver at the very least) or that for some other reason they do not liquidate in a responsible manner.  The account would go debit, the clearing firm still guarantees the position to the counter party, so the COMEX would not have a debit situation, but the clearing firm may.  Worse case scenario is that the debit is so big, and the client cannot make up the debit that it bankrupts the clearing firm (similar to the rogue trader at Barings Brothers Bank depicted in the film "Rogue Trader").  Give me a call if you would like to discus this topic in further detail as there has been a lot of talk of this circulating around the web.

            I think Robert misses the fact that the big short is JP Morgan, not some "client", and that the "client" is most likely the U.S. Government, or a Federal Reserve Bank, or JP Morgan itself.

            ========== Answers #4 ==========

            John C. Jensen
            President, Heritage West Financial, Inc.
            8775 Aero Dr., Suite 302
            San Diego, CA 92123
            800-263-3004
            Answers #4:
            http://silverstockreport.com/2009/futures4.pdf

            John's answer to point 8 is good.  It would take $23 million to buy options a year out, at the position limits imposed on paper longs, but that trade is larger than the open interest!

            8.  I understand there are position limits of 1500 contracts in a given month.  How much money would it take, at a minimum, to buy 1500 silver options contracts, a year out, at the best prices, in your opinion?

            What's the point and purpose of this question?  Is this a math test?  1,500 contracts, that's 7.5 million ounces.  How is this question relevant to your average silver trader/buyer?  Anyhow, simple math: see answer to question #5 ($3.10 x 5,000 ozs. x 1500 contracts) however, this is theoretical there isn't much open interest that far out.

            ========== Answers #5 ==========

            Drew Klein, Greenrush Capital
            Drew Klein, President
            GREENRUSH CAPITAL MANAGEMENT, LLC
            4348 Van Nuys Blvd, Suite 207
            Sherman Oaks, CA  91403
            TOLL FREE - (888) 548-RUSH (7874)
            LOCAL/INTL - (818) 907-9337
            FAX - (818) 907-9233
            www.greenrush.com
            drew@greenrush.com
            Answers #5:
            http://silverstockreport.com/2009/futures5.docx

            Drew also gives a good answer to question #8, at approximately $17 million.

            Key #12 answer:

            12.  What gives you confidence that there won't be a default in silver futures contracts at the NYMEX?

            Futures Broker (Drew Klein, Greenrush Capital): I can't be anymore confident that the NYMEX won't default than I can that the US Government won't default.  It's certainly possible, but my figures don't show it happening any time soon. 

            ========== Answers #6 ==========

            Gil Nyerges
            Morgan Stanley
            55 S  Lake Ave # 800
            Pasadena  Calif  91109
            800-488-1240 x9369
            Answers #6:
            http://silverstockreport.com/2009/futures6.html

            Excerpts:

            12.  What gives you confidence that there won't be a default in silver futures contracts at the NYMEX?

            12. Default.  I don't think anyone  even thinks about it.  It a default occurs, and it has in various commodities in the past, the exchange will settle trades on the day of default and trading will be terminated.  You will be offset at that price for a gain or loss.

            Point 14:

            That seems to be quite an imbalance, so what is the guarantee that the shorts can deliver silver to the longs?

            14. answered above,  less than 2 % will take delivery of any commodity,  and if the exchange determines too many non-commercials want delivery it will be restricted.

            Gil was especially brave to answer, seeing as how he works for Morgan Stanley, a company implicated in wrongdoing in my report.  I hope for his sake that he does not get fired.  But then again, I hope he gets really courageous, enough to just quit!

            If anyone is trading futures here is my simple plea.  Stop trusting the vain promises of what men may give you.  Instead, trust what God has already given you: your reason, and the provision of the world's silver.


            Sincerely,

              Jason Hommel

              In case you miss an email, check the archives:
              http://silverstockreport.com/ssrarchive.htm
              www.bibleprophesy.org 

              You can buy REAL PHYSICAL silver at my auctions at www.seekbullion.com
              WE USUALLY SEND OUT SILVER THE SAME DAY YOUR WIRE COMES IN, SO YOU GET IT IN ABOUT 2-5 DAYS. 
              Auctions end M-Th, Sat, At 7PM, but you can place bids anytime, 24/7. 


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