Silver Stock Report: Breana: Vegas: What a trip!

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Breana: Vegas: What a trip!

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

Silver Stock Report

by Breana Geisick & Jason Hommel, May 20th, 2009

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Brea complains I totally tore apart her essay, so I give you back to her now:
 
Brea continues:  You can buy directly from Jason by calling me on our "Buy It Now" phone line. You will speak with me directly. As soon as I speak with you, I lock in your price right then. From there, you will just need to tell me what you would like; silver or gold, bars or rounds, the quantity, etc. From there, I will make an invoice with your information, the description of what you ordered, the price, and the wire information. A wire transfer is the only payment we will accept. We ask that the wire "hit" Jason's bank by 2 pm Pacific the next day or we will have to reorder everything based on spot at that time. As soon as I see your wire in his account, I literally place a label on your package and it goes out that very same day! We ship it registered, insured, signature required at no extra charge to you! We are well known for our fast shipping and fantastic packaging! We never let you order something that we do not have in stock!
 
 
Sincerely,
Breana Geisick
Shipping Director for Jason Hommel's Silver Stock Report
530.913.4359

If the phone line to Breana is busy, call Janelle.

Buy it now from our shipping department, 10 AM - 4 PM, M - F, Pacific:
(100 oz. silver minimum, 100 oz. increments, USA shipping, wire transfer only!)
Breana    (530) 913 4359  silver_support@vzw.blackberry.net
Janelle    (530) 913 0553  silver_support1@vzw.blackberry.net

Sincerely also,

Jason Hommel

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

Buy silver at our auctions at  www.seekbullion.com
Our auctions end M-Th & Sat, At 7PM Pacific, but you can place bids anytime, 24/7. 

"Buy it now" at www.momsilvershop.com
(Mom will ship in lots of more or less than 100 ounces, and overseas, and take credit cards or paypal.)

See us also at:
Rocklin Coin Shop
4870 Granite Drive, Rocklin, CA 95677
http://rocklincoinshop.com/

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Silver Stock Report: Las Vegas Money Show!

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Las Vegas Money Show!

(Vegas, baby, Vegas !)

Silver Stock Report

by Jason Hommel, May 10th, 2009

I'll be in Las Vegas for the Money show from May 11th to the 14th. 

The Rocklin Coin shop will remain open.
http://rocklincoinshop.com/

And our phone lines will be open during the trip, too.
Buy it now from our shipping department, 10 AM - 4 PM, M - F, Pacific:
(100 oz. silver minimum, 100 oz. increments, USA shipping, wire transfer only!)
Breana    (530) 913 4359  silver_support@vzw.blackberry.net
Janelle    (530) 913 0553  silver_support1@vzw.blackberry.net

Yes, I've been busy buying and opening up a coin shop, and traveling to shows on occasion again. 

I've also been buying and setting up a mint!  But I did not intend to release any information about that until after I set it up.  After all, until then, it's not even a futures contract, and also I don't want to deal with any inquiries about any minting projects until AFTER we get set up.  But Thom Calandra got the scoop!

Thom Calandra Reveals my plans to start up a Mint

Silver Mom sends eBay packing: ThomWatch

http://www.stockhouse.com/Columnists/2009/May/7/Silver-Mom-sends-eBay-packing--ThomWatch

I also discuss the nation's lack of minting capacity in a recent Stockhouse Interview:

Jason Hommel on why he prefers physical silver to silver stocks

http://www.stockhousefeatures.com/gold-and-silver/index.php/2009/05/jason-hommel-on-why-he-prefers-physical-silver-to-silver-stocks/

I believe the nation needs a few more mints to handle the transition from paper money back to silver and gold as money. 

It seems my silver mill is coming together just as premiums for one-ounce rounds are hitting new all-time lows.  So, this is very scary for me, and it might be a temporary failure.  We are spending about $500,000 to build our silver mill to turn silver into strip, and fortunately, we are partnering with a local Mint to reduce costs. 

To duplicate our efforts would require about $3 million today, and perhaps 6 months to a year in lead time.  But it may yet still be a few months before we will be set up and ready to go.

So, unless people start buying a lot more physical silver and gold, the business will be a very difficult start-up.

On a related note, many people who hate gold have desperately tried to "dismiss" the recent news that China has been buying gold, as they say how little gold that China has actually bought in the last 5 years.  But that's part of it.  Yes, China could buy a lot more.  If China diversified a mere 10% of their $1 trillion in reserves, or about 1 year's worth of reserve growth, it would be more than all the gold produced in a year, exceeding 100 million ounces, over 3100 tonnes.

But let's continue to put China's actual purchase of about 500 tonnes into perspective. 

China bought about 90 tonnes of gold per year over the last 5 years. 

That's nearly a quarter of the gold that is allowed under the Washington Agreement.
http://en.wikipedia.org/wiki/Washington_Agreement_on_Gold

And how much is that compared to Gold bought by the American Public?

One measure of the amount of gold bought by Americans is Gold Eagle Sales figures.

The US Mint, in 2008, sold 860,500 oz. of gold. 
860,500 oz. / 32,151 oz/tonne = 26.8 tonnes.
http://www.usmint.gov/mint_programs/american_eagles/index.cfm?action=sales&year=2008

The US Mint, in 2007, sold 198,500 oz. of gold. 
198,500 oz. / 32,151 oz/tonne 6.2 tonnes
http://www.usmint.gov/mint_programs/american_eagles/index.cfm?action=sales&year=2007

In other words, the American Public has been buying a lot less gold in American Eagles than China has been buying. 

But perhaps 90 tonnes vs. 6.2 to 26.8 tonnes is a bad comparison?  There is gold that Americans buy other than Eagles.

But I don't count ETF gold, or gold in "over the counter" contracts, because that is not gold, it's paper gold -- it's promises no better than paper money, and is proven to be a fraud by admission of banking participants who admit they charged clients storage fees for metals that did not exist as a "standard business practice" by the entire banking and brokerage industry, and it's also fraud as admitted by the BIS, the Bank of International Settlements, who revealed the oversized positions, which can only be fraudulent by nature.

BIS Admits $190 Billion Silver Fraud  April 6, 2009
http://silverstockreport.com/2009/OTC-silver-fraud.html

But the fraud of fake gold is not the only fraud out there.  There is an entire school of thought devoted to saying why such fraud is actually good!  That thinking is continually debunked by the Mises Institute at www.mises.org and www.lewrockwell.com .

This Video presentation explains why you never hear of the depression of 1920.  The reason is that it was very brief, and it was ended by a wise president who avoided government intervention, and who actually scaled back "government theft" which allowed the economy to grow rather rapidly.

Why You've Never Heard of the Great Depression of 1920
http://www.youtube.com/watch?v=czcUmnsprQI&eurl=http%3A%2F%2Frightwingnews.com%2Fmt331%2F2009%2F05%2Fwhy_youve_never_heard_of_the_g.php&feature=player_embedded

My main point, not made by the speaker in the video, is that when gold and silver become money again, it becomes extremely difficult to tax real wealth that cannot be found or tracked.  Thus, government gets very small, by nature, when silver and gold are used as money.  Thus, the real economy will rapidly grow and prosper by using real silver and gold coins as money.

I don't know why the concept that gold and silver lead to prosperity is so difficult to grasp by so many people. 

Even most silver and gold investors think that if silver and gold go up, it will be an economic calamity, but that's just the lies of the institutions that control our Universities and Mass Media talking.

The truth is that honesty leads to prosperity, while institutionalized fraud and theft lead to poverty.  I suppose people "don't get it" because they have often paid over $100,000 to attend a "prestigious" University, who taught them otherwise, that our economy has thrived because of modern finance.  No, our economy has thrived DESPITE the institutionalized fraud and theft.

People lose nearly $9 billion per year gambling in Vegas.  What a mis-allocation of wealth!  It didn't produce anything, except excessive conference space, and cheap, yet luxurious, accommodations, which I plan to take full advantage of.

I'll be giving people a chance to protect and convert their money into something real next week, by offering real silver and gold at the Money Show at Mandalay Bay.

I'll let you know how it goes.  After all, if you are reading me, "YOU'RE SO MONEY "!

LAS VEGAS MONEY SHOW REGISTRATION LINK:
http://www.moneyshow.com/lvms/main.asp?scode=013903

Sincerely,

Jason Hommel

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

"Buy it now" at www.momsilvershop.com
(Mom will ship in lots of more or less than 100 ounces, and overseas, and take credit cards or paypal.)

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Silver Stock Report: How Investors Get Educated

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How Investors Get Educated

(There's the Easy Way, or the Hard Way)

Silver Stock Report

by Jason Hommel, May 6, 2009

Ted Butler and I occasionally disagree.  When we disagree with people we respect and have learned so much from (as I have read him weekly for years), it's usually a very enlightening experience for both people, as well as other observers.

Ted writes this week that there are no organizations educating investors about silver, as there are about gold, such as the World Gold Council. 

http://silverstrategies.com/story.aspx?local=0&id=16604

Wrong on two counts, in my opinion.  First of all, in my opinion, the World Gold Council is an anti-gold pro-banking establishment player that promoted gold in the last year or so as jewelry for ugly women as a way to "generate", or more accurately, "hurt" sales.  The WGC also ignores gold as an investment.  The WGC also ignores the reality of central bank gold sales which has been suppressing the gold price.  www.GATA.org, a real pro-gold organization, is barely funded, hates the multi-million dollar funded WGC, and the clueless miners who fund them.

Second, there are many organizations who promote silver, starting with Ted's sponsor company, www.investmentrarities.com, a company that sells silver and gold, and his other regular publisher at www.silverseek.com.

Here are more organizations who promote silver:

www.silver-investor.com
www.silverstrategies.com (who also published Ted's Latest rant)
www.gold-eagle.com
www.minersmanual.com
www.silverminers.com

Now let's get to the www.silverinstitute.org.  This is an interesting case.  Yes, they are partly sponsored by silver users.  But their job is not forcasting (and promoting silver as an investment), their job is accurate statistics for industry participants, both users and miners alike.  Statistics are measurements of the past, not predictions of the future.

There is another group that is more interesting that also gathers statistics on silver, namely, cpmgroup.com.  This company's president is Jeff Christian.

Most investment banks who publish statistics on silver, base their own studies, at least in part, on the statistical surveys sent out to the silver miners, refiners, and other silver industry groups, by the cpmgroup.

Even I use their stats regularly, to promote the general bullish case on silver.  For example, the CPM group says about 550 million oz. of silver is mined each year, and the silverinstitute says it's about 650 million, so I just ballpark it and say 600, and cite those two as sources regularly.

The main stats are that total demand is about 900 million oz., with other supply sources being recycling of about 200 million oz., and government selling of about 50 million oz. 

Investor selling, or buying makes up the difference between total demand and total supply.

Right now, investors are buying about 150 million oz/year, while most of silver is going into industry at about 400 million oz., and jewelry of about 200 million oz., and photography of about 150 million oz.

Thus, any significant investor increases must mean either a rising price, or a decline from the other categories.

But what the silver statistic reporting groups don't reveal, which I found recently from an astute reader, is that the BIS reported $190 billion of other precious metal derivatives, which must be mostly all fraud, since the entire silver industry is barely $11 billion per year,  (900 million x $13) and is certainly not all hedged, and platinum and palladium are even smaller industries.

But here's where it starts to get real instersting for the silver market.

The CPM Group is run by Jeffrey M. Christian, who is a liar, as I documented here, late last year.

http://silverstockreport.com/2008/troubled.html

I don't think he's lying about the basic statistics.  He admits in person that he's bullish on silver. 

But Jeff also admits that he was a key player in helping to create silver futures contracts, and so he does not see anything inherently wrong with banks who short up to 130 million ounces of silver in a month that they do not have available to deliver especially not if nobody ever takes delivery. 

It also appears as if Jeff works for many banks or silver dealers or institutions who are short of silver, or who have short positions in silver, and that he puts out "silver disinformation" at his clients requests.

So, it's like he's a Jedi Knight who is working for the Sith.  But the Sith always did pay better.

There are other organizations who promote silver, based largely upon the numbers coming from the cpmgroup, and other groups like the silver institute.

There are plenty of independent newsletter writers who study and promote the bullish silver story. 

Virtually no major news organizations do any investigative journalism anymore, which is why the newspaper industry is hurting so badly.

There are other groups who promote silver as an investment:  Anyone with silver to sell including miners, refiners, mining show event sponsors, bullion dealers, and brokers.

There are about 150 futures contract brokers out there, maybe more.  They all want your business.  Some of them also sell bullion, and some of the bullion sellers will also offer to hold your silver for you or offer their own private "leverage programs" (and those who do are ones to avoid, of course).

There's a group who advertises all over TV who will let you "control $10,000 worth of gold for $3800", which is clearly a scam and is a much worse deal than standard futures contracts which are prone to default at any time now.

And, of course, there is this silver stock report, and my articles are published at up to 15-20 other websites, and at some sites more often than others.

And just as I often elaborate on the works of other writers, perhaps Ted is elaborating on the point I've been making for the last month, that the silver dealer industry is very small, and hardly has the funds for advertising or outreach to educate investors about silver, as silver sales are dominated by silver Eagles, and the US Mint only made about 20 million Silver Eagles in 2008, and at $1 each, that's barely $20 million for the entire silver industry, most of which is consumed by rent and salaries, and so very little of that can be spent on advertising.

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

I would suppose that since Ted Butler is a paid analyst for investment rarities, that Ted's payments are among the largest advertising expenses in the entire silver industry right now.

Many silver mining and exploration companies do try to promote silver, and may spend more on Investor Relations, but they generally try to say why their company stock is a better investment their own product, which, in my opinion, is shortsighted, and a very foolish strategy for long term success.  And by looking at their own balance sheets, which mostly consist of cash, and not silver, they are promoting cash as a superior monetary asset over silver, by their own internal actions, which are very self-condemnatory and hypocritical.

But let's not ignore the best silver salesman of all time, Barack Obama.  Silver investors, surprisingly, hate the man who has helped to generate more silver buying interest than ever by his continued policy of "politics as usual but on steroids" with every increasing bailouts for Wall Street.

Barack Obama has also been hailed as the gun salesman of the year, by another booming industry, as people realize that they cannot rely on the government to protect them, but that they must be responsible to protect themselves from the government.

I disagree that "very few" people will become educated about silver.  As my readers often tell me, in person, they have been reading me for years.  If so, they not only get an education about silver, but they tell me they are very enthusiastic about the many free market principles that I often discuss.

So, while I may disagree with Ted, a bit, the reality is that he is mostly correct.  We in the silver industry have a difficult time reaching the public, and advertising about silver.  I have only found success by advertising under the keywords "silver" and "gold" at google, and even then, only occasionally.  These days, that strategy no longer works, as it seems my advertising reach has reached market saturation levels.

I've probably attained the success I have, to reach up to 80,000 readers, in part, because I was willing to spend up to $330,000 on advertising over the last few years at google.

For new investors to be educated about silver, other creative ways to advertise to larger audiences is needed.  I've been thinking of trying to partner with other, larger influential people in the areas of religion, politics, or investment advice, as Mike Malony has partnered with Robert Kiyosaki of the "Rich Dad Poor Dad" books.  God willing, doors will open.

Then again, the best form of advertising on earth is "word of mouth".  Many of my readers tell me they heard about me from their own friends and family members, and so, for that, I thank you all who are like me, you like to spread what truth you know to those who you can reach.

I have little faith that any mainstream newspaper will ever "investigate" the silver market any time soon, yet marketwatch.com and financialtimes.com and bloomberg.com occasionally do a somewhat surprising job of publishing some of the statistics without too much false information and anti-silver bias creeping in.

Nevertheless, GATA.org, is getting some media coverage right now.

People are getting educated by free market processes that are alive and well.  The market may be manipulated and and market participants might be deceived from time to time, but the market cannot be killed.

Somebody once said:  They can fool some of the people all of the time, and all of the people some of the time, but they can't fool all of the people all of the time.

The reality is that once all of the people learn about the foolishness of paper money, gold and silver will return as money for at least a generation who will never make the same mistake twice in a lifetime.

So, in sum, my opinion is that most people will be educated about silver by hard experience and real free market lessons that they have not yet learned, but they will.

I urge you to learn the easy way from my expertise.  Buy silver.  Buy it now. 

Buy it now from our shipping department, 10 AM - 4 PM, M - F, Pacific:
(100 oz. silver minimum, 100 oz. increments, USA shipping, wire transfer only!)
Breana    (530) 913 4359  silver_support@vzw.blackberry.net
Janelle    (530) 913 0553  silver_support1@vzw.blackberry.net

Our Prices are down to 7% over spot for American Eagles, and 5% over spot for Pamp Bars, $1.75 over spot for 1 oz. rounds and 10 oz. bars, and $1.25 over spot for 100 oz bars, while supplies last.

Our Price list:
http://www.hommel.name/cgi/ssrbidask

Sincerely,



Jason Hommel

LAS VEGAS MONEY SHOW REGISTRATION LINK:
http://www.moneyshow.com/lvms/main.asp?scode=013903

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

"Buy it now" at www.momsilvershop.com
(Mom will ship in lots of more or less than 100 ounces, and ship overseas, and take credit cards or paypal.)

See us also at:
Rocklin Coin Shop
4870 Granite Drive, Rocklin, CA 95677
http://rocklincoinshop.com/

If you found this email useful, please Forward this email to your family and friends. This email was sent to silverstockreport@gmail.com by j@silverstockreport.com. Update Profile/Email Address | Instant removal with SafeUnsubscribe™ | Privacy Policy. Email Marketing by silverstockreport.com | 15527 Brooks Road | Grass Valley | CA | 95945

Silver Stock Report: Precious Metals Investing for the Common Man

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Precious Metals Investing for the Common Man

(Guest Essay by Matthew Vickers.)

Silver Stock Report

by Matthew Vickers, May 3, 2009

I made my first securities trade when I was nineteen years old, about 12 years ago.  My father came across about $100,000 in inheritance, and wanted to play the market in order to avoid a future of more back-breaking, knee-shattering construction work.  But, he didn't want to learn the ins and outs of the stock market.  "Matt, my boy," he said to me one day, "you're nineteen now, and going to college, so if you still want a roof over your head, figure out how to make me money in the stock market, or you're out on the street."  Ah, memories of childhood.  So, following a visceral instinct to not be homeless, I heeded his instructions. 

We didn't do great at first (he dismissed first time small losses by exclaiming that "it costs money to go to school"), but after some time, study and experience, our capital gains started to grow, and my father was able to realize part of his dream, only working about one quarter per year, and letting his accumulated wealth pay for most of his expenses.  And that's how an art student found his way into the world of finance. 

I'm thirty one years old now, and have gained a wide range of experience in securities and retail finance industry from Franklin Templeton, Wells Fargo, Tri Counties Bank, and Citizens Bank of Northern California, before eventually landing in the precious metals market.  The  first thing that I learned from my diverse experience is that companies with the same goals can radically differ in their methodology to obtain those goals.  More importantly, I became increasingly confident that ALL investors should hold a significant portion of their wealth in precious metals.

However, a problem arises with my theory, because when most people think of the precious metals, their immediate reaction is to consider gold.  Now, when I was nineteen years old, buying gold presented a very big problem for me -- I couldn't afford it.  Now, granted, this was when gold was about 25% the value of what it is today.  But even at $250 an ounce, my investment portfolio was only about $3,000 (hey, I was nineteen -- what'd you expect?).  Had I invested my entire portfolio in gold, I could have bought 12 ounces.  Today, those 12 ounces that cost $3,000 would be worth about $11,000.  Not a bad investment, but I'd be putting all of my eggs into one basket, and no wise investor would tell you that was a good idea -- if they do, just smile and politely say that you'll consider their advice.

(Jason notes: I was literally begging, hounding, and harassing my dad to put it all into gold and silver in 1999, but he waited until about 2003 to really jump in.  Had he followd my advice, he would have done much, much, much better, as Matt Notes.)

Truth be told, the average nineteen year old, full-time employed, full time student--does not have $3,000 in risk-tolerant cash to invest.  What about my brother, who, at the time, had about $500 that he wanted to invest?  How does he diversify his portfolio?  Should he not be allowed to invest?  Absolutely not.  For the common man, the answer to precious metals investing is silver.

"But Matt, you fool," my readers may exclaim, "had I invested $500 in gold, I would have had a 357% return on investment over 10 years, versus a measly 249% return on investment in silver.  True, that in that particular time frame, gold has outperformed silver.  My answer, had you invested in ½ gold and ½ silver (one ounce of gold, and 50 ounces of silver), your 10 year return would have been 303%.  That's a: pretty decent return for a safely diversified precious metals portfolio.  But, there is one important factor that few people consider with silver investing--it is more fungible and divisible than the other precious metals.

Why is that important?  Consider this.  If my brother, the $500 investor, had to liquidate a portion of his investment, he would be forced into a 50% minimum value liquidation in gold versus a 1% minimum liquidation in silver.  If, ten years later, he was staring at his now $1,516.50 investment, and had a tax bill of $500.00, he couldn't liquidate 1 Troy Oz of gold at $892.00 and buy back $492 worth of gold (unless he was buying fractional gold, which carries a higher premium).  However, he could liquidate 40 ounces of silver, pay the bill, and still have the full value of his remaining 10 ounces.  In addition, it is much easier for him to buy back his investment at 1 Troy Oz at a time (although he will have to pay a higher premium with sales tax restrictions on bullion purchases under $1,500 in the state of CA)--much more efficient, and requires less discipline than saving money to buy 40 ounces at once.

So, to summarize.  Do I like gold?  Of course, I do.  I just like silver, much, much more.  Why do I like it so much?  Because literally ANYONE can buy it.  Right now, even a kid with a weekly allowance can invest in silver.  Start early.  Buy it.  Horde it away.  Protect it, because in the future, it will protect you.

by Matt Vickers

Silver Stock Report produced by:

Jason Hommel

LAS VEGAS MONEY SHOW REGISTRATION LINK:
http://www.moneyshow.com/lvms/main.asp?scode=013903

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

Buy it now from our shipping department, 10 AM - 4 PM, M - F, Pacific:
(100 oz. silver minimum, 100 oz. increments, USA shipping, wire transfer only!)
Breana    (530) 913 4359  silver_support@vzw.blackberry.net
Janelle    (530) 913 0553  silver_support1@vzw.blackberry.net

"Buy it now" at www.momsilvershop.com
(Mom will ship in lots of more or less than 100 ounces, and ship overseas, and take credit cards or paypal.)

See us also at:
Rocklin Coin Shop
4870 Granite Drive, Rocklin, CA 95677
http://rocklincoinshop.com/

If you found this email useful, please Forward this email to your family and friends. This email was sent to silverstockreport@gmail.com by j@silverstockreport.com. Update Profile/Email Address | Instant removal with SafeUnsubscribe™ | Privacy Policy. Email Marketing by silverstockreport.com | 15527 Brooks Road | Grass Valley | CA | 95945

Silver Stock Report: Logistical Considerations

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Logistical Considerations

(How to acquire and move $700,000 in silver.)

Silver Stock Report

by Jason Hommel, May 2, 2009

Today we had two customers who wanted to buy a lot of silver.  One wanted $500,000, and another wanted $3,000,000.  This article is for them, and anyone else who may want such amounts.  In the future, if paper money collapses, and economies are threatened, and when people might begin starving, such amounts will be able to sustain the economy, and the lives of the people, of a small city of perhaps up to 10,000 to 50,000 people.

David Morgan of www.silver-investor.com made the effective point this week that not everyone can own even "a little" silver, since 50 oz. of silver x 300 million people = 15 billion ounces of silver, which is about all that is left of all the silver that was mined in the entire history of the world, and most of that is consumed in other forms.  The best estimates for what remains is perhaps less than half of one billion oz., worth about $4-5 billion, which remains for investors to buy, and most of that is at the COMEX, or other large banks, and that silver provides the backing for their silver debts that they owe, which is about $190 billion in silver in paper contracts to their ignorant multi million dollar clients who have no concept of the logistics of silver, and who have no idea that they are being defrauded because they refuse to undertake the task of actually being responsible for the logistical movement of their silver.

BIS Admits $190 Billion Silver Fraud  April 6, 2009

A tiny half a million dollar order is more than just about any of even the largest national bullion dealers will carry today.  But they can tap into the major wholesalers who do have access to up to a half billion in precious metals.  At the Rocklin Coin Shop, our largest walk in order in the last month was for 2500 ounces of silver, or about $32,000.  From our shipping facility, our largest order in the last few months was just under $100,000, or about 7,500 oz.

At our coin shop, we inventory about 10,000 oz. of silver, and at our shipping facility, we inventory about 50,000 ounces, and we have about 20-30,000 oz. on account at the mints we use, and we order about 5000 to 10,000 oz. at a time.  The coin shop really only needs about 5000 oz., or less, to run most efficiently.

There are no multi-millionaires who made their millions in physical silver today, except perhaps a refiner or two.  Why hasn't any big money made their millions in silver?  Because silver is too cheap.

Therefore, almost none of the 3 to16 million millionaires in today's world have any idea of the logistical considerations of moving a million dollars worth of silver.

There are perhaps only 25-50 organizations in the USA who really know what I'm about to share with you--perhaps only some of the top national bullion traders, mints, and refineries in the USA.

Basic facts of weights and measures of silver:

There are 12 troy ounces in a troy pound.
There are 16 avoirdupois (regular) ounces in a regular pound.
But since society uses regular pounds, we need to know how many troy ounces are in a regular pound, for the sake of planning and logistics.

1 regular pound = 14.5833 troy ounces

A single 100 oz. silver bar weighs 6.8 pounds.  (100/14.58333 = 6.857)
A 1000 oz. silver bar weighs about 68 pounds, (+/- 10%).
10,000 ounces of silver weighs 680 pounds.
100,000 ounces of silver is 6,800 pounds, or just over 3 metric tonnes.

1 metric tonne = 32,150.7 troy ounces
1 short ton = 29,166.6 troy ounces

We ship silver in boxes of 500 ounces.  The boxes weigh about 35 pounds, which is a managable and convenient amount.  The boxes are double thick walled boxes, with dimensions of 9 inches by 9 inches by 3 inches high.

100 of these 35 lb. boxes hold 50,000 ounces of silver. (at $14/oz. that is $700,000).

We ship these boxes via UPS and the Post Office.  Most postal and UPS workers start to complain if they have to move more than 10-20 of these boxes in a day, which is from 5000 to 10,000 ounces.

A Ford Excursion, one of the most heavy duty private vehicles, has a gross weight carrying capacity of just under 2000 pounds, (more than a Hummer), which will comfortably carry about 20,000 troy ounces, which is actually 1360 pounds.

To effectively and efficiently store, manage, and move this much silver, you need a walk in vault with a smooth threshhold for the vault door, and a packaging facility.  Extra security concerns would include cameras, a recording system, door alarms, and motion detectors.

A general contractor should be able to construct such a vault for about $20,000 to $30,000 and buy any size vault door for about $2500.  Cameras might be about $8000.  Security about $5000.  You can even buy a modular vault: http://www.customvault.com/

Just because you get a vault, does not mean "they" or anyone will know you have silver; vaults are common.  Vaults filled with silver are extremely uncommon.

If you want to ship more than 10,000 oz. of silver at a time, to one customer, you may wish to send it on pallets via standard freight.  To do that, you may need a forklift and/or pallet jack, and a 48 inch high loading dock.

Anytime you ship silver, it needs to be insured, and you cannot tell the shipper what the boxes or pallets contain.

Inside the vault, you will need heavy commercial grade steel shelves that can hold the tremendous weight; as it's just back breaking and too dirty to try to store it on the floor.

One of the best tools is a sturdy "lift table" with a smooth flat top which we found at uline.com that can carry about 1760 pounds.  We found it so useful, we now have five of them.

http://www.uline.com/Product/ProductDetail.aspx?model=H-1783

Call uline at 1-800-958-5463 and ask for item number H-1783

I only wish I had such a cart when I was originally stacking all my silver myself, before I had help.  But now that I'm more efficient, I can help others do it right the first time.

PRICES OF PRODUCTS:  Right now:

Silver Eagles are running about 25% to 35% over spot, and are quite expensive. 
One ounce privately minted rounds, that are easily recognized by 4000 dealers nationwide, cost about $1.75 over spot, or about 14% over spot.
100 oz. bars cost about $1.25 over spot, or about 10% over spot.

Remember, nobody makes 1/10th oz. silver rounds today, and they would be cost prohibitive right now.  So my advice is to just get the silver now, in various forms, and plan to mint the smaller amounts of silver later.  

TIME TO MAKE PRODUCTS:  Right now:

The best mints are mostly caught up now.  They can manufacture up to about 50,000 oz/day, but the bottleneck is waiting up to 2 weeks for the 1000 oz. bars, and shipping can take a week, so plan on about 3-4 weeks in the best case scenario, unless you want to buy existing inventory from someone like me.

On occasion, manufacturing time at the best mints can stretch to 1-2 months if they are fully backordered, but if they are backordered any longer than that, they may be floating on customer money, so be careful which mints you choose, and it may be wiser to test out their speed with smaller orders, and order in large chunks of about 10,000 to 20,000 oz. at a time.

The main long term goal of any significant silver investor should be distribution.  What I mean is the setting up of coin shops, or "silver trading posts".  That's what will add liquidity to your own investment, and drive prices up.  After all, not everyone can buy even 50 ounces of silver; there's not nearly enough silver.

PRODUCT MIX: 

At this time, many customers who come to the coin shop are buying $1500 to get over the "sales tax" limit in California, or others will buy $10,000 in cash to avoid the cash transaction reporting limit, which makes their purchase very anonymous.  At this time, a larger trader's most important job is to facilitate those kinds of orders.  They buy 100 oz. bars, 10 oz. bars, and 1 oz. rounds.

Smaller investors are not "left out"; as they can grow their wealth even faster.  If you only have 50 ounces, sell them one at a time for 20 bucks a pop, and you will make a much wider spread, and compound your wealth that much faster.

Be a capitalist.  Get more than your fair share.  Then start to share the wealth.  That kind of win/win will benefit more than just you.  You may save an entire city.

Of course, some people may scoff and say that these are all reasons why you should stick with gold; as you can be lazy and avoid the hassles of silver.  But a similar dollar amount of gold will never save the lives of the people of an entire city.  How can $700,000 or 700 one ounce gold coins at $1000 each do anything to facilitate the real commerce and regular transfer of wealth in a city of 10,000 to 50,000 people?  But 50,000 one ounce rounds can save an economy.  And in the long run, when silver prices are much, much higher than they are today, it will probably make more sense later to have that silver minted into 1/10th oz. pieces or 1/20th oz. pieces, which would make 500,000 pieces or even 1 million pieces of real silver money.  And that's how you become a true millionaire.

I will be in Las Vegas for the Money show from May 12-14th, with both silver and gold for sale to up to 4000 millionaires.  There is no way we will be able to bring enough product to satisfy everyone there.



Sincerely,

Jason Hommel

LAS VEGAS MONEY SHOW REGISTRATION LINK:
http://www.moneyshow.com/lvms/main.asp?scode=013903

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

Buy it now from our shipping department, 10 AM - 4 PM, M - F, Pacific:
(100 oz. silver minimum, 100 oz. increments, USA shipping, wire transfer only!)
Breana    (530) 913 4359  silver_support@vzw.blackberry.net
Janelle    (530) 913 0553  silver_support1@vzw.blackberry.net

"Buy it now" at www.momsilvershop.com
(Mom will ship in lots of more or less than 100 ounces, and ship overseas, and take credit cards or paypal.)

See us also at:
Rocklin Coin Shop
4870 Granite Drive, Rocklin, CA 95677
http://rocklincoinshop.com/

If you found this email useful, please Forward this email to your family and friends. This email was sent to silverstockreport@gmail.com by j@silverstockreport.com. Update Profile/Email Address | Instant removal with SafeUnsubscribe™ | Privacy Policy. Email Marketing by silverstockreport.com | 15527 Brooks Road | Grass Valley | CA | 95945

Silver Stock Report: Gold and Silver Now

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Gold and Silver Now

(Rather than a promise in the future)

Silver Stock Report

by Jason Hommel, May 1, 2009

Precious Metals Trading is an odd business. In theory, other bullion dealers are my "competitors" and I should not mention them by name. However, when other dealers write things that are so good, I can't help but mention their work, and give them referrals, which may even cause me to do less businss.

I'm not paid to promote them, but Tarek writes something so powerful, so important, so clearly, and I agree with it so much, I had to share. After all, it's more powerful when it's not just me saying it.

Tarek Saab, with goldandsilvernow.com asks why precious metals investors prefer govern-mint coins.

I find it ironic, too. The reason to buy silver and gold is when you don't trust government promises, yet most people seem to prefer government coins.

See Tarek elaborate here:
http://www.goldandsilvernow.com/resources/saab-stories/83-saab-stories

Also, momsilvershop.com is helping the Lydian Mint sell products in smaller amounts, and she wll ship internationally. Yes, Joyce is, indeed my real mom, both by blood, and yes, she raised me.

We are also selling the Lydian Mint's new 1/4 oz. gold pieces at the rocklincoinshop.com. So since we are both selling them, we tested their purity this morning. I'll let Matt explain:

Put to the Test - Verifying the Authenticity of a Lydian Gold Coin

There are four tests that will verify without a shadow of a doubt that a gold coin is real:

Weight, acid score, acid rub, and the ultimate test -- cutting it in half. To prove that our stock of Lydian Gold Coins were good, we took a random coin from the stock. The coin weighed out at exactly 7.775 Grams, exactly ¼ Troy Ounce, as indicated on the coin. Next, we made a small score on the edge of the coin, and placed a drop of nitric acid on it. Nitric acid will not affect gold, and did not affect the area of the coin that was scored. This verifies that the coin is not plated. The acid rub test is a standard jeweler's test, and verifies the karat weight of the coin. In this case, the coin tested at 24 Karat, or .9999 fine, as indicated on the coin. To conduct the final, ultimate test, we cut the coin completely in half to completely verify that the coin was indeed pure "all through."

Yes, I know why most people prefer government coins. They want something that is easy to recognize, that dealers will recognize. Let me share a little hint. The gold test kit costs $400. The paper money bill couner/verifier costs $2500.

It's much easier and cheaper to recognize and test gold than paper money.



Sincerely,

Jason Hommel

LAS VEGAS MONEY SHOW REGISTRATION LINK:
http://www.moneyshow.com/lvms/main.asp?scode=013903

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

Buy it now from our shipping department, 10 AM - 4 PM, M - F, Pacific:
(100 oz. silver minimum, 100 oz. increments, USA shipping, wire transfer only!)
Breana    (530) 913 4359  silver_support@vzw.blackberry.net
Janelle    (530) 913 0553  silver_support1@vzw.blackberry.net

"Buy it now" at www.momsilvershop.com
(Mom will ship in lots of more or less than 100 ounces, and overseas, and take credit cards or paypal.)

See us also at:
Rocklin Coin Shop
4870 Granite Drive, Rocklin, CA 95677
http://rocklincoinshop.com/
(We still do not yet have access to FTP to the AT&T server to update the rocklincoinshop web site.  Thanks AT&T, it's only been a month now!  One more case of a delayed delivery.  Sigh.)

If you found this email useful, please Forward this email to your family and friends. This email was sent to silverstockreport@gmail.com by j@silverstockreport.com. Update Profile/Email Address | Instant removal with SafeUnsubscribe™ | Privacy Policy. Email Marketing by silverstockreport.com | 15527 Brooks Road | Grass Valley | CA | 95945