Silver Stock Report: Buying Gold Creates Good, Part II

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Buying Gold Creates Good, Part II

(Genesis 2:12 "The gold of that land is good--")

Silver Stock Report

by Jason Hommel, November 30th, 2009

My article on Saturday was very well received.
Buying Gold Creates So Much Good
http://silverstockreport.com/2009/gold-is-good.html

After listing 13 reasons, I asked my readers to see if they could think of more good that gold buying creates, and this new list incorporates those suggestions, as well as attempts to categorize them.  From this expanded list, from 13 to 40 reasons, you can see the wisdom in many advisers.   You can also get the wisdom of many advisers by attending a Gold Show.

*****************************

Registration starts Tomorrow, Dec 1st, for the Phoenix Silver and Gold Investment Show, Feb 4-5

For a Discount, Use Registration code:  SSR

http://cambridgehouse.com/registration.html

http://www.cambridgehouse.ca/index.php/phoenix-resource-investment-conference.html

******************************


BUYING GOLD BRINGS GLORY TO GOD

1  "What's good for Jesus is good for us."  It is no accident that Jesus was given gold as a birth present.  Also, Haggai 2:8 All silver and gold belong to me, [says the Lord God]

2  When the Lord of Heaven is blessed and glorified with wealth, I don't think it will be paper money:

Revelation 5:12 In a loud voice they sang: 
"Worthy is the Lamb, who was slain, to receive power and wealth and wisdom and strength and honor and glory and praise!"

3  Buying gold highlights, honors, and obeys many of God's teachings.  A key principle is, "You will reap what you sow."

4  Buying gold is being obedient to the command to use "honest weights and measures", as in Leviticus 19:35, Deuteronomy 25:15, Proverbs 20:10.

5  Proverbs 13:22 "If you obey God, you will have something to leave your grandchildren. If you don't obey God, those who live right will get what you leave."


BUYING GOLD IS GOOD FOR THE WORLD

6  Buying gold increases the gold price and thus creates wealth among all gold holders, widely distributing wealth all across the world to many people simultaneously.

7  Buying gold reduces monetary fraud, and fraud is bad.

8  Buying gold increases the gold price and thus makes gold mining more profitable, and thus, increases high paying mining jobs that range from administration, refining, minting, production, mine development, to exploration and much more.

9  Buying gold increases the gold price and thus increases gold mining by-products such as silver, copper, zinc, lead, and many other less well known metals that are needed for modern life.

10  Buying gold does the world good in the sense that it supports an industry geared to producing things people actually need namely sound money and commodities for industry.  Many by-product industries are supported by gold mining, such as heavy machines, engineering, new exploration technologies, tire manufacturing, energy production and road construction.  The actual money produced, when used as money, supports the entire world economy.

11  Buying gold increases freedom among men, specifically by reducing the debt load of people who owe devaluing paper money, which increases humanity's overall productivity, and especially inspires and enhances freedom for yourself. 

12  Buying gold increases wealth among savers and long term planners, which are the best and most productive class of men among humanity.

13  Buying gold saves lives by preventing and limiting wars which can only be funded by paper money.  Nations that enslave one another with tribute are more likely to go to war for freedom.  Nations that deceive one another, or take advantage of one another through paper money are more likely to go to war.

14  Buying gold creates harmony and peace among nations as it provides as an honest medium of exchange between nations, and nations engaged in active trade with each other generally don't war on each other. 

15  Buying gold saves lives by increasing the standard of living of poor miners in many poor nations who can barely afford the basics.

16  Buying gold is more honorable than hoarding food or buying food staples on leverage with futures contracts, which can cause mass starvation by driving up food prices out of the range of the world's poor people, since paper money is worth perhaps hundreds of thousands of times more than the existing food supply.


BUYING GOLD IS GOOD FOR YOUR NATION

17  Buying gold reduces oppressive government power, and it does so without any violence.

18  Buying gold preserves capital in your own hands, your own town, your own nation, so that you, and the people to whom you will give it when you spend it, will all be better off after a currency collapse.

19  Buying gold can prevent mass starvation that can result from a complete economic meltdown that may come. The preservation of capital can be used to purchase and preserve farms or food production facilities or distribution networks that may go out of business in an economic collapse.

20  A nation that uses gold as money has price stability, which allows better longer term planning for all kinds of business projects.

BUYING GOLD  IS GOOD FOR YOUR FAMILY

21  Buying gold allows a man to provide for his immediate and extended family, and children's children. 

1 Timothy 5:8 If anyone does not provide for his relatives, and especially for his immediate family, he has denied the faith and is worse than an unbeliever.

Proverbs 13:22  If you obey God, you will have something to leave your grandchildren. If you don't obey God, those who live right will get what you leave.

22 Buying gold protects the legacy of a man's life for future generations that might not yet even be born, or be too young to actively manage the investments if they were in another form.  Gold will continue to be valuable for hundreds of years in the future, no matter what happens.

BUYING GOLD  IS GOOD FOR YOU

23  Buying gold prevents others from stealing your wealth, and that is a good thing, as it rewards defenders, and thwarts (but does not harm) would-be thieves.

24  Buying gold can lengthen your own life, as it benefits your own personal finances which can enhance the quality of food that you can buy and eat, and it can enhance your notion of personal responsibility for your own health as well as your own finances.

Deuteronomy 25:15  If you weigh and measure things honestly, the LORD your God will let you enjoy a long life in the land he is giving you.

25  Buying gold inspires a person to take greater responsibility for one's own self, ranging from health to self defense.

26  Buying gold gives one an increase in discernment, as one realizes that most mass media is a form of propaganda and lies.

27  Buying gold frees one from the need to pay financial advisors for bad advice.

28  Buying gold reduces the inclination to gamble.  If one wanted to gamble, they could buy futures contracts instead.

29  Buying gold increases a person's sense of esteem and control and safety in a world gone mad with paper money.

30  Buying gold as an investment helps people to understand what money is supposed to be, and why paper money is fraud.

31  Buying gold helps one to learn how to become an honest person.

32  Buying gold helps one to save money, as savings in the form of gold is not as likely to be cashed in for whimsical purchases.

33  Buying gold allows one to be able to be more secure with one's own finances, and thus allows one to more easily give to charities.

34  Buying gold highlights the absurdity of buying a contract for a delayed payment, and thus reveals the fraud of futures contracts, ETFs, debt, and derivatives.

35  Buying gold helps one follow the golden rule, to treat others as you wish to be treated.

36  Buying gold is the opposite of being in debt, when you must always pay your excess money to service debt payments.

37  Buying gold helps you to be content with what you have, rather than lusting after what belongs to others as is accomplished through the use of futures contracts, debt, and leverage.

38  Buying gold helps prevent you from lusting after money, which is the root of all evil, so buying gold must be the root of all good.

39  Buying gold helps your money serve you, rather than you becoming a servant to debt.  Matthew 6:24, "You cannot be the slave of two masters! You will like one more than the other or be more loyal to one than the other. You cannot serve both God and money."

40  Buying gold is interesting.  Gold was used to line the walls of the temple of God.  Today, our bodies are a living temple of God.  Gold is thus given by God, for us, to help us glorify him, through us. 

41  Buying gold is the ultimate manifestation of "delayed gratification" since gold is a pure luxury item, yet you can do nothing with it.  It thus satifies none of the lusts of the flesh, but represents that you have NOT bought anything, since it is savings.  Psychologists have identified that one of the most important character qualities to develop that marks the difference between success and failure in life is the ability to delay gratification.  Delayed gratification requires self control. One of the fruits of the Holy Spirit is self control.  Buying gold is thus the ultimate manifestation of fulfilling the desires of the Holy Spirit.  No wonder God tells us directly to "buy gold refined in the fire", in Rev 3:18.

==========

If buying gold is noble, virtuous and good for so many reasons, then buying silver is perhaps 10 to 60 times as excellent, beneficial and uplifting for mankind. Why? Because of the leverage inherent in silver's smaller market. Silver's smaller market means that the price of silver is more easily moved upwards with every purchase.

Insight of the day:  I've always thought it was a bit of a mystery why gold and silver have so many "eternal" qualities, yet silver values dropped a nominal 90% from 1980 to 2000, from $50/oz. to $5/oz., or an inflation adjusted 95% or more!  How can we explain that in "Biblical" terms if the metals are supposed to have a stable long lasting value?  I've always wondered where all the moral greats were that should have been championing gold during the last 3-4 decades.  Why are the Churches mostly silent, besides being 501c3 incorporated?  I think I just discovered a Biblical example that might be a parallel example.  When the Israelites left Egypt, they were to immediately take the land of Canaan, or Israel.  But they did not.  They sent in 12 spies first.  Ten spies gave a discouraging report, saying it was impossible to take the land of giants.  Two spies said that the land was plentiful, and that with God on their side, they could not lose.  The Israelites believed the bad reports due to a lack of faith in God's promises, and thus, had to wander the desert for 40 years.  Perhaps we are ending a similar time period of wandering in the desert of low gold prices.  Many today have a similar lack of faith in God's economic principles.  Even major religious leaders of the last 40 years do not trust that God's economic model will bring prosperity.  Many today seem to indicate that the Federal Reserve and giant corporations cannot be beaten.  But they are being beaten.  They say, "don't fight the Fed" but the rule should have been, "don't fight the market".  Just buy gold, because they are not doing so, and they will fall, just like the walls of Jericho.  At least our marching orders to buy gold are not as difficult to comprehend as marching around a city for 7 times blowing trumpets! 


You can buy gold and silver through the JH MINT. www.jhmint.com

Prices:
http://jhmint.com/cgi-bin/ssrbidask

I strongly advise you to get real gold and silver, at anywhere near today's prices, while you still can.

Call us today.

Call the JH MINT, 10AM to 5PM Pacific, Monday to Friday:
100 oz. silver minimum, USA shipping, wire transfer only! 
Janelle (530) 913 0553 silver_support1@vzw.blackberry.net
(530) 273-8175

JH MINT
13241 Grass Valley Ave
Grass Valley, California 95945
http://www.jhmint.com/




Sincerely,

Jason Hommel

In case you miss an email, check the archives:
http://silverstockreport.com/

Or visit www.momsilvershop.com
(Mom will ship in lots of more or less than 100 ounces, and overseas, and take credit cards or pay pal.)

If you are in Northern California, see:
Rocklin Coin Shop
4870 Granite Drive, Rocklin, CA 95677
http://rocklincoinshop.com/

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Silver Stock Report: Buying Gold Creates So Much Good

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Buying Gold Creates So Much Good

(Gen 2:12 "The gold of that land is good--")

Silver Stock Report

by Jason Hommel, November 28th, 2009

One of the ways we know that the gold bull market is just barely getting started is when we find so many myths and errors about gold being reported in the media.  When even a "positive" article on gold comes out, there is usually some sort of comment buried later in the article that slams gold as being inherently "bad".    Multi-generational anti-gold propaganda that people learned in "Fed-funded" Universities, media and culture needs to be opposed and refuted because it is like a cancer on a civilized and free society.

The latest gold myth comes from James Saft, a Reuters columnist, whose opinions are his own.

His article was titled, "Fed audit push gives impetus to gold rally"

http://www.reuters.com/article/governmentFilingsNews/idUSN2326178720091124

The article starts out positive:

"HUNTSVILLE, Alabama, Nov 24 (Reuters) - Auditing the Federal Reserve may or may not be a good idea, but one thing seems pretty sure: just discussing it seriously will tend to drive the price of gold higher."

For the record, I didn't think the Fed audit had a chance, but I support it.  If Government thinks it has the right to probe into every nook and cranny of our finances when it makes us pay taxes, why can't the Fed come clean on its finances?  Kind of a double standard wouldn't you say? 

Later, the invalid anti-gold diatribe comes:

"It has to be said; the very idea of buying gold, which adds nothing to the creation of wealth or innovation and is only conceivably a hedge against bad actions of other people, is dispiriting. If you buy gold you cannot tell yourself that you are doing well by doing good, as perhaps you can with a biotech or fertilizer company. You are simply limiting the damage that can be done to you, and then only in very particular circumstances. What's more many of the people who advocate it as an asset show a disconcerting monomania; the type who if they sit next to you on a commuter train makes you consider pretending the next stop is yours."

Every statement in that paragraph shows a misunderstanding of gold, and it is those misunderstandings that are "dispiriting", and are the cause of James Saft's angst.  He says he would not want to sit next to anyone who advocating gold.   That's perfectly understandable.  After all, it is generally uncomfortable to sit next to someone who continually explains why most of your beliefs are wrong.

He says that buying gold "adds nothing to the creation of wealth or innovation"?  How untrue.

In the last thirty days, gold's rise in price has created $868 billion of new wealth among all holders of gold.  Details to back up that statement?  Gold has moved from a low of $1025.90 to a high of $1194.80, for a gain of $168.90 per troy oz.  It's estimated that there are 160,000 tonnes of gold that have been mined in all of human history and remain on the earth, in many different hands.  There are 32,151 troy ounces per tonne.  That's 5.2 billion oz. of gold in human hands.  The increase of $168.90 per ounce, times 5.2 billion ounces, has thus created a measurable wealth creation of $868 billion dollars, in the last thirty days.  All the world's gold has increased in that much purchasing power in the last thirty days.  If that's not wealth creation, then what is?

It's also quite innovative as far as wealth creation goes, because that much wealth did not originate in the hands of the Federal Reserve who will only waste it, but rather, all of that new wealth was created among all the various savers of gold, so the wealth was widely dispersed, instantaneously, like the speed of light, coursing through everyone's ounces of gold simultaneously.   No distribution system yet invented by man has the capacity to distribute so much wealth, so widely, so fast.

Next, James writes, "If you buy gold you cannot tell yourself that you are doing well by doing good."  But there are so many good side effects of a rising gold price, of course you are doing good, in the following ways.

1.  Buying gold creates wealth among all gold holders, widely distributing wealth all across the world to many people simultaneously.

2.  Buying gold reduces monetary fraud, and fraud is bad.

3.  Buying gold reduces oppressive government power, and it does so without any violence.

4.  Buying gold makes gold mining more profitable, and thus, increases high paying mining jobs that range from administration, refining, minting, production, mine development, to exploration and much more.

5.  Buying gold increases gold mining by-products such as silver, copper, zinc, lead, and many other less well known metals that are needed for modern life.

6.  Buying gold increases freedom among men, specifically by reducing the debt load of people who owe devaluing paper money, which increases humanity's overall productivity, and especially inspires and enhances freedom for yourself.
 
7.  Buying gold increases wealth among savers and long term planners, which are the best and most productive class of men among humanity.

8.  Buying gold prevents others from stealing your wealth, ("limiting the damage done to you", and a "hedge against the bad actions of other people" which James thinks is bad?) and that is a good thing, as it rewards defenders, and thwarts (but does not harm) would-be thieves. 

9.  Buying gold preserves capital in your own hands, your own town, your own nation, so that you, and the people to whom you will give it when you spend it, will all be better off after a currency collapse.

10.  Buying gold can prevent mass starvation that can result from a complete economic meltdown that may come.  The preservation of capital can be used to purchase and preserve farms or food production facilities or distribution networks that may go out of business in an economic collapse.  Buying gold is more honorable than hoarding food or buying food staples on leverage with futures contracts, which can cause mass starvation by driving up food prices out of the range of the world's poor people, since paper money is worth perhaps hundreds of thousands of times more than the existing food supply. 

11.  Buying gold saves lives by preventing and limiting wars which can only be funded by paper money.

12.  Buying gold saves lives by increasing the standard of living of poor miners in many poor nations who can barely afford the basics.

13.  Buying gold can lengthen your own life, as it benefits your own personal finances which can enhance the quality of food that you can buy and eat, and it can enhance your notion of personal responsibility for your own health as well as your own finances.

I'm sure if you think about it for just a little bit, you can recognize a lot more of the good that buying gold can create.  Why not pause now, reflect, and email me some of the things that I might have missed.  Email:  j@silverstockreport.com

If buying gold is noble, virtuous and good for so many reasons, then buying silver is perhaps 10 to 60 times as excellent, beneficial and uplifting for mankind.  Why?  Because of the leverage inherent in silver's smaller market.  Silver's smaller market means that the price of silver is more easily moved upwards with every purchase.

So if buying gold is good (and buying silver is better), then lying about gold to prevent men from buying it is bad, as that causes the opposite of every good that I listed. 

Lying about gold thus causes death by starvation & wars, encourages fraud, rewards theft, encourages slavery, destroys productivity & wealth or capital, causes unemployment, causes misallocations of wealth, encourages oppressive government, creates misery, rewards laziness, and ruins lives.

So let's forgive James Saft, the reuters columnist, whose opinions were his own.  I'm sure he didn't mean to encourage all those bad things and destroy all those good things by bad mouthing an inert, innocent substance that can cause so much good.  The learning curve for gold is steep, and none of us have perfect knowledge.  Some of these things are difficult to learn, especially when so few teach them these days.

After all, as the Preacher said, "Without God, we are but dust--"  And as the 4 year old girl asked, "Mommy, what is butt dust?"  Maybe the little girl was thinking of this:
Baby Farts Baby Powder
http://www.youtube.com/watch?v=cJQU6x9qJko

Speaking of which, I hope I have blown away Jame Saft's anti-gold diatribe.

The contact information for James Saft is listed at the bottom his reuters article.

You can contact me at the JH MINT.  www.jhmint.com

Sincerely,

Jason Hommel

In case you miss an email, check the archives, now on the main page:
http://silverstockreport.com/

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Silver Stock Report: $50/oz. drop Late Nite?

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$50/oz. drop Late Nite?

(Come on, you know it's manipulation.)

Silver Stock Report

Jason Hommel, November 27th, 2009

What a gift!  I bought 20 gold Buffaloes, and 2 monster boxes containing 1000 silver Eagles tonight.

On this Thanksgiving evening, all I can say is:

Thanks for the Cheap silver!

I believe we may have about 1000 silver rounds left to commemorate these kinds of gifts, while they last. But our bullion shop at the JHMINT.com is not open until Monday.

Sincerely,

Jason Hommel

In case you miss an email, check the archives, now on the main page:
http://silverstockreport.com/

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Silver Stock Report: Phoenix Show! Feb 4-5! Be There!

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Phoenix Show!  Feb 4-5!  Be There!

(Phoenix!  Feb 4! And 5th!)

Silver Stock Report

by Jason Hommel, November 24th, 2009

Vancouver Resource Investment Conference - January 17 & 18, 2010

Register Online Now - Don't forget!
http://www.cambridgehouse.ca/index.php/Registration-Information/

After you register, email me, Jason Hommel, at j@silverstockreport.com and tell me what topics and questions you would like to see addressed.   Help me provide the content you want.  I show up for you, so what's most important to cover?  Last time, I covered the FAQs, the frequently asked questions I get.  And in a workshop, I covered the basic fundamentals about silver, see here:

Speech: Frequently Asked Questions on Silver February 25, 2009
Speech: Why Silver is Money (Phoenix Show Workshop) February 25, 2009

Topics I was thinking of covering this year include the following:

I thought of sharing information from my experience of opening and running two coin shops and a mint this last year. 

I thought of covering, again, the small size of the silver market.

I thought of covering usury.

I thought of covering price expectations going forward.

Joe Martin, the man who runs the Cambridge House Shows invites me to Phoenix, and asks what topics I was thinking of covering:  Long Term Fundamentals, Blasting Myths about silver, showing why silver will outperform Gold, the usual stuff.  Terbo Ted was excited to be able to capture this 1 minute video, and upload it to Youtube on his iPhone all within about 10 minutes.



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

But what's most important to you?  What are your concerns, questions, and topics you'd MOST like to see covered?  Email me:  j@silverstockreport.com

I have no subscriptions to sell, I have no stocks to pitch, and my bullion business is doing just fine.  The shows help me gain new perspectives, and discover the concerns of people who show up to such industry events.  Shows are also very fun!

==========

Here's some fun:  Saturday Night Live continues to hammer Obama, and nutty US economic policy.  This one is more funny than last week.  China mocks the ability of the US to repay debt, and says don't pay with "klunkers" that we got from our nation's "cash for klunkers" program. 

http://www.breitbart.tv/snl-slaps-obama-over-budgetary-nuttiness/

==========

More fun.  Bill Murphy, who will be at Phoenix, got air time on Bloomberg in Asia!

GATA Chairman Bill Murphy's appearance last night on Bernie Lo's "Asia Confidential" program on Bloomberg Television has been posted at YouTube in three parts here:

http://www.youtube.com/watch?v=rw4T6IdHJ3w

http://www.youtube.com/watch?v=06_NMci4xnw

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

==========

Even more fun: 

A news reporter covered the numbers in the gold market like I do.  His punchline is that if Developing Central Banks increase gold holdings from 2.2% on average, to a mere 5% of reserves, they would spend $115 billion on gold, which makes India's $7 billion 200 tonne purchase from the IMF look like peanuts.

See story here:
http://gata.org/node/8076

Side note, he neglected to mention that the world's gold mines produce about 2400 tonnes of gold per year, which, multiplied by 32,151oz/tonne = 77 million oz. of gold.  This implies that $115 billion spent on gold, if it purchased all new world gold supply, and if nobody else bought any new gold for a year, would drive the price to a minimum of  $115,000/77 = $1,493/oz.

==========

The fun continued:

I attended the San Francisco show this last weekend because my good friend, Thom Calandra, who provided the occasion of a speaker's dinner, and he offered to put me up for the night at his house.  Such hospitality could not be refused.  

I attended the show with my good friend Greg Kyle, my brother, Terbo Ted who ran for congress, and my Mom and step dad, John, who are running www.momssilvershop.com, which handles all shipping orders of less than 100 oz. of silver, and also ships outside of the US, and also takes credit cards and paypal.

The best speech was given by Frank Holmes of US Global Investors, http://www.usfunds.com/ 

Frank Holmes pointed out that mining stocks have been lagging the metals prices, and with good reason.  Miners have issued shares in a highly inflationary way, and each share is continually backed up by less and less gold in the ground.  Mining company management is literally destroying shareholder value! 

That's why you want physical precious metal!  It does not vanish away through the issuance of ever more at high rates!  Newly mined gold only adds 1.5% to world supply each year!

A fun part of the show for me was visiting always gold-bearish Jon Nadler in person at the kitco booth.  See pictures, I think they are worth a 1000 words.



"Excellence within your Reach" -- But don't expect to be able to take delivery?!

I spoke with Jon Nadler, but I didn't know what I should say to a man who is always so bearish on gold, and always mocking gold bulls, especially during this wild bull market.  And I didn't want to be overly confrontational in person.  I actually wanted to just try to practice being cordial.  So I said, "Look, I'm not wearing a tinfoil hat!"  He said, "I never said that!"  Of course not, he never mentions us by name, he's above that.

I asked him how was business, he replied, "Can't complain."  Fair enough.


 

What's with the gambling theme?

Are they saying that investing in a Kitco pool is like Gambling? What an association!

Are they trying to suggest that you will be gambling that Kitco will remain solvent?!

I spoke with Jon Nadler, and I asked him about the theme.  They gave me a free deck of cards.  The least I could do was take a picture of it and share with my readers.  The gambling theme was supposed to highlight a contest you can win if you give them your name, it's merely a common lead capture device.  Oh, ok.  Hey, it was not my idea.

I apologized for poking fun at Nadler, but he makes himself such a target, that I just can't resist.

I tried to be cordial, and so I showed Nadler some of our silver rounds.  So we have at least something in common.  They are making 1 oz. rounds, too, Kitco rounds.

Kitco's prices are about what our prices are.  We each charge around $2/oz. over spot for a generic one oz. silver round.  I suppose we deliver much faster, I don't know if they caught up on deliveries yet.  Anyone order from them lately?

Nadler asked me about my meeting with Perth mint officials last year.  I didn't share details, but as you can see, since then, I've started my own mint, so it goes to show I don't fear that Perth will be able to provide much competition, even though Perth claims to have $2 billion in "working capital" due to their certificate program.  I still wonder why $2 billion in capital is insufficient to provide material to the world wide silver market that demands barely $2 billion in total inventory per year.  It seems to me that their capital should be so suffficient that they would never run out of products, like they did repeatedly last year.

Anyone try to take delivery from Perth in the last year?  I hear they put some money towards working inventory, and I've not received very many complaints about them in the last 12 months, which is unusual, and quite a bonus for silver investors that they would allocate any capital at all towards bullish forces. 

Email me:  j@silverstockreport.com

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

ADS can be difficult to write.  You get much less space to make a point than in a newsletter.  And as you know, I'm long winded--but getting better.

Here's some ad text we will be using in a local "coupon book" ad:


Now is the time to buy silver and gold!

We are seeing 9 times more gold and silver buyers as sellers.

Yet we know that the USA is only buying about 2% of the world's annually newly mined gold, which is only 1.5% of all the gold in the world that has ever been mined.  And the USA is only spending less than 0.013% of the $14 trillion in money in the banks to buy that gold. 

This shows that gold is far from a bubble, but is still at the beginning stages of a wild bull market that should last for decades.

The silver market statistics are even more shocking.  The world's silver mines produce 600 million oz. of silver, and most is consumed by industry, leaving only 100 million oz. for investment demand, or just under $2 billion worldwide.  Fortunately, the USA is buying about 20 million oz. of American Silver Eagles per year, showing that while precious metals demand in America is abysmally low, it is relatively higher for silver compared to the rest of the world, showing that of the US investors, a substantial percent are aware that silver should outperform gold.

Come swap your gold for silver at our coin shops!  Or just buy more silver!


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

Readers have asked me more about reporting requirements.  Here's the text from an IRS form 1099B form.  It indicates that certain transactions (IE, most that we deal with) are NOT REPORTABLE.

From IRS 1099B, page 2.

Sales of precious metals. A sale of a precious metal
(gold, silver, platinum, or palladium) in any form that may be
used to satisfy a Commodity Futures Trading Commission
(CFTC)-approved regulated futures contract (RFC) if the
quantity, by weight or by number of items, is less than the
minimum required to satisfy a CFTC-approved RFC is not
reportable. Further, a sale of a precious metal in any form
that cannot be used to satisfy a CFTC-approved RFC is not
reportable.

For example, Form 1099-B is not required to be filed for
the sale of a single gold coin in the form and quality
deliverable in satisfaction of a CFTC-approved contract
because all CFTC contracts for gold coins currently call for
delivery of at least 25 coins.

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


Please, come join the fun and attend the Phoenix show!  Nadler might be there.  Think of some good questions to ask him, too!

Vancouver Resource Investment Conference - January 17 & 18, 2010

Register Online Now - Don't forget!
http://www.cambridgehouse.ca/index.php/Registration-Information/



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

Our Prices:
http://jhmint.com/cgi-bin/ssrbidask

I strongly advise you to get real gold and silver, at anywhere near today's prices, while you still can.

Call us today.

Yes, we sell silver, and gold at the JH MINT! 
Buy it now! Buy Silver or Gold Now!
Inventory & Price List
Call the JH MINT, 10AM to 5PM Pacific, Monday to Friday:
100 oz. silver minimum, USA shipping, wire transfer only! 
(530) 273-8175
Janelle (530) 913 0553 silver_support1@vzw.blackberry.net
http://www.jhmint.com/

Active, live price quotes list:
http://jhmint.com/cgi-bin/ssrbidask




Sincerely,

Jason Hommel

In case you miss an email, check the archives:
http://silverstockreport.com/

Or visit www.momsilvershop.com
(Mom will ship in lots of more or less than 100 ounces, and overseas, and take credit cards or pay pal.)

If you are in Northern California, see:
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 | 13241 Grass Valley Ave | Grass Valley | CA | 95945

Silver Stock Report: Gold: Expensive or Cheap, it's Rare

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Gold: Expensive or Cheap, it's Rare

(World's Gold fills 2 Pools & the New World Order, Explained)

Silver Stock Report

by Jason Hommel, November 19th, 2009

The best witty observation this week came from Bill Murphy with www.gata.org.  Bill noted the irony of how media pundits who bash gold will argue that gold is in a bubble (gold's expensive) in one breath, and then bash it again by saying it's a bad investment because gold has underperformed (gold's cheap) inflation rates since 1980's peak.  Murphy's main point is, "how can an asset be in a bubble if it's underperforming inflation?"  Or, as I'll put it, how can gold be cheap and expensive at the same time?

If the gold naysayers had the capacity to utilize at least three sets of neurons in their brains simultaneously and engage in rational logical thoughts, they might perceive the contradictory nature of their two arguments, and recognize that at least one of their assumptions might not be true.  In other words, gold can not be in a bubble now.

Therefore, gold must be cheap, which is why it's good to buy as an investment, since investors should want to buy cheap things that have underperformed inflation, which then, later, after buying it, it should then outperform inflation, as gold has been doing quite easily since 2001.

It's also dizzying to hear other gold bashers claim that "There is no inflation, and thus no reason to own gold."  What? 

Well, that's fantastic to hear, because that must mean that all of gold's recent gains from $250/oz. back in 2001, to $1145/oz. today, must be all pure profit, showing that gold's recent 8 year performance is clearly outperforming inflation.

So that brings me to my main point that I've been asking for years.

Why are people happy earning 1% or less in their bonds, when gold has been going up so much for the last 8 years?

How much has gold gone up, on average, per year?

My favorite online compound interest rate calculator does the math.

http://www.smartmoney.com/compoundcalc/

From a $250 initial investment to a $1145 final amount, over 8 years, gold provided a 21% per year average rate of return.

So, which is better, 1-4% in bonds or 21% in gold per year?

You only need half of one synapse firing in your brain to recognize the clear answer to that question.

In case you were not paying attention, 21% per year in gold is better. 

If you don't own gold (or something better like silver) by now, after 8 years, you have not been paying attention.  So, if that includes you, then pay attention to the following.

I'm shocked to hear people think that higher interest rates will slow down this gold bull market.  Do they think that interest rates will exceed 21% anytime soon? 

Wouldn't 21% interest rates bankrupt many public companies who would not be able to refinance their debt, and thus destroy stock values, driving many to zero? 

Wouldn't such rates crush the housing market, as nobody would be able to afford a 30-year loan at 25% interest? 

And wouldn't the transition to such high rates destroy the bond market, as bond values move inversely to interest rates? 

Wouldn't 21% interest rates cause the national debt to increase so fast that they would have to print money to pay the interest which would further destroy the currency at those rates if not higher?

And if stocks, housing, and bond values and the currency are all cratering to zero, wouldn't the only place left to put one's assets be gold and silver? 

Gold will thus be in a bull market until AFTER interest rates exceed 21% again.

I think it would be wise to assume gold prices will continue to increase at much higher rates going forward, because the gold price has been manipulated lower during this recent time frame, through central bank sales and leases, and the sales of many fraudulent paper gold products (such as "gold pool accounts," allocated and unallocated accounts, certificates, and futures and options) which divert investment demand away from the real thing.  But when the manipulation ends, through recognized defaults, the gold price will go much higher, much faster.

Why is gold doing so well?  It's rare.  It's not created as easily as money on a printing press.

Pay attention now, gold is rare.

How rare?  The World Gold Council at Gold.org has estimated all the world's gold that has ever been mined at about 155,000 metric tonnes.

How much is that?  We need context.  It's said that this much gold would fit into two Olympic sized swimming pools.  Let's review the math on that.

"Will all the gold in the world fill 2 Olympic sized swimming pools?"

http://en.wikipedia.org/wiki/Gold

Density of gold: 19.30 g·cm-3

http://en.wikipedia.org/wiki/Kilogram_per_cubic_metre

1 g/cm3 equals 1000 kg/m3

thus:

19,300 kilos per cubic meter for gold

http://www.google.com/#hl=en&source=hp&q=troy+ounce+per+kilogram&aq=0&aqi=g1&oq=troy+ounce+per+kilo&fp=8ec9ea851cee2c5b

1 kilogram = 32.1507466 troy ounce

620,509 troy oz. per cubic meter

1 tonne = 32,150.7466 troy ounce

19.3 tonnes per cubic meter, acts to check and prove the "kilo per oz." and "tonne per oz." math is correct.

19,300 kilos = 19.3 metric tonnes per cubic meter.

155,000 tonnes of gold mined in all of human history
divided by 19.3 tonnes per cubic meter,
equals 8031 cubic meters!

Volume of an Olympic Swimming Pool?
http://hypertextbook.com/facts/2005/JeffreyGilbert.shtml

25 meters by 50 meters by 2-3 meters deep
= 25 x 50 x 2.5 = 3125 cubic meters

8031 cubic meters / 3125 cubic meters = 2.57 pools

Thus, all the gold in all the world, ever mined in all of human history, will fill 2.57 Olympic Sized swimming pools.

Since the depth of an Olympic Swimming pool can be deeper, and since the 2-3 meter depth is a minimum, all the gold in all the world would easily fit into two slightly deeper than normal, Olympic Sized Swimming pools.

==========

The story of Tungsten Filled Gold bars continues to circulate.

http://news.goldseek.com/GoldSeek/1258049769.php

http://fofoa.blogspot.com/2009/11/is-dollar-good-as-tungsten.html

http://www.gold-eagle.com/editorials_08/willie111809.html

I believe I remember reading somewhere, probably at www.lemetropolecafe.com, that central bankers tried to get all the central bankers to agree to keep central bank gold among central bankers, prior to the beginning of their leasing scams.  If so, that would be the ideal conditions to float tungsten filled gold bars into the central banking network who would agree to never melt down such bars for public consumption.  Looks like some leaked out.

==========

I believe silver is better than gold, of course.  Not only it is more rare, but also, likely, more real.

Most silver has been consumed by industry over the last 60+ years, and is not economically recoverable, ending up in landfills at concentrations lower than most mining projects.  Thus, men such as Ted Butler, who have researched the subject thoroughly, believe that silver, in above ground refined form, is more rare than gold.

See
http://www.butlerresearch.com/index.asp

==========

The New World Order silver round appeared on the Jack Van Impe Ministries TV Show.  They seemed to find it alarming.  We emailed them to explain our theological interpretation.

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

On the show, Jack admitted he "re-thought" his prophetic views on the ten horned beast of Revelation 17-18, and now thinks it is a world government based on all the scriptural evidence, and also based on the views of several early Church Fathers.

You can see the New World Order round on TV here:

http://www.jvim.com/tv/
(MP4 file)
See the Nov. 7th episode, 6 minutes into the show

or
http://www.thegospel.com/clients/jvim-jack-van-impe-ministries/media.asp
(Windows Media and Realplayer for Vista and Mac format)
See the Nov. 11th episode (same show) 6 minutes into the show.

Jack Van Impe quotes Dan 8:23 & Rev 13:7

Van Impe says he has new insight, that the New World Order is Global:

In Daniel Chapter 2, it speaks of the statue that represents world kingdoms.  If the two legs stand for west and east, then Western and Eastern Legs imply a world empire.

Also, the rabbis of old, the Early church fathers taught a ten division world empire.  And also, Rev 17:10 is quoted.

We recently re-stocked 1000 NWO silver rounds directly from the source

See:
http://newworldorder.org/
We have 1000 of the NWO silver rounds for sale at our normal bullion prices, at about 11% over spot.  That price includes no extra fees.  Shipping and commissions are included in that price.

Our Prices:
http://jhmint.com/cgi-bin/ssrbidask

I strongly advise you to get real gold and silver, at anywhere near today's prices, while you still can.

Call us today.

Yes, we sell silver, and gold at the JH MINT! 
Buy it now! Buy Silver or Gold Now!
Inventory & Price List
Call the JH MINT, 10AM to 5PM Pacific, Monday to Friday:
100 oz. silver minimum, USA shipping, wire transfer only! 
(530) 273-8175
Janelle (530) 913 0553 silver_support1@vzw.blackberry.net
http://www.jhmint.com/

Active, live price quotes list:
http://jhmint.com/cgi-bin/ssrbidask




Sincerely,

Jason Hommel

In case you miss an email, check the archives:
http://silverstockreport.com/

Or visit www.momsilvershop.com
(Mom will ship in lots of more or less than 100 ounces, and overseas, and take credit cards or pay pal.)

If you are in Northern California, see:
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 | 13241 Grass Valley Ave | Grass Valley | CA | 95945

Silver Stock Report: Why Silver will be a Better Investment than Gold

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Why Silver will be a Better Investment than Gold

(And Both are Better than Dollars)

Silver Stock Report

by Jason Hommel, November 17th, 2009

Recently many of my readers have been asking, "Why is silver lagging gold?"

After all, in March, 2008, gold hit $1020, and silver exceeded $20, yet here we are now, with gold now above $1145, and silver at $18.33, not even at $19!

The really funny thing is the way the popular media spin the price relations.

When silver underperforms gold, they say, "Silver is not confirming gold's rise, therefore, gold prices are due for a fall."

And when silver outperforms gold, they say, "Silver is exceeding gold's rise, therefore, this bull run is overdone, and thus, gold prices are due for a fall." 

In other words, we have a manipulated market.  Not only is the price manipulated, but so is the news coverage!

Of course, the media could give opinions the other way, and say, "With silver lagging gold, it shows that gold has much further to run, and also silver is due to catch up and exceed gold's pace, thus making silver the much better buy now."  Or, after silver outperforms, they could say, "Silver's outperformance has confirmed everything the silver bulls have been saying for the last ten years."  But they never do that, do they?!

As it is, the price ratio changed from 64 on Friday to 62 on Monday, so silver far outperformed gold on Nov. 16th.

Gold moved from $1118.50 on Friday to $1139.80, a rise of $21.3/oz., or a 1.9% increase.
Silver moved from $17.42 on Friday to $18.40, a rise of $.98/oz., or 5.6% increase.

Silver sure didn't lag behind gold on that day!

So, is all news that is bearish on silver evidence of "manipulation?"  Of course not.  Some commentators are not colluding on purpose, they are simply willfully ignorant.

For example, here is an independent Christian newsletter writer named Gary North who writes:
Why Silver Is a Poorer Investment Than Gold (Nov. 14th)
http://www.garynorth.com/public/5700print.cfm

You'd think he could have timed his article better.  He published on Nov. 14th, and was proven wrong in less than 48 hours!

Nearly everything Gary writes in that article is not really the whole truth.  I'm shocked to read his take on silver.  After all, he has written perhaps the most thorough economic commentary on the Bible that exists (very long, quite good, but could use a bit of improvement).
http://www.garynorth.com/public/department57.cfm

So I don't think he's an agent of the banks, so I think it must be ignorance that is distorting his judgment, or perhaps his age.  I've tried to answer his questions on silver over the years, but he has not replied with reason, but rather with emotion, so there must be something more at work here, but I don't know what it could be.  He wrote last year:

Jason Hommel Tells Me Off: I Do Not Understand Commodities, Silver, and Especially the Bible. He Demands That I Answer Him.
http://www.garynorth.com/public/4002.cfm

So, this and his other essays go to show he is not unfamiliar with my work, but rather, he has some sort of emotional rage against it.  This is why I cannot excuse Gary as simply being ignorant of the statistics that he mocks, but rather, he is willingly ignorant.

But that's in the past.  I want to refute his recent article, and get to the recent ten year relative performance of silver vs. gold.  All we need is a gold/silver ratio price chart.

A quick search on google reveals a source.  I trust gold-eagle.com:  Here it is:
http://www.gold-eagle.com/charts/gegsr.html

The silver to gold ratio is the red line.  You can see it topped out at 100 in 1990, when it took 100 oz. of silver to buy 1 oz. of gold.  This ratio dropped to nearly 50 in 1997.  It went back up to 80 both in 2003, and 2009, and now has gone back down to about 64, and now 62 today. 

So, depending on the time frame, silver has out paced gold, or gold has out paced silver.  As the red line goes down, silver is better.  As the red line goes up, gold is better.

But if you use a selective time frame, only 10 years, you can see that the silver to gold ratio was about 60 ten years ago, and is 62 today, showing that gold slightly outperformed during that selective time period in question.  But what is the main thrust of Gary's argument?  That the future must be like the past?  And that the past only consists of the last ten years?  Clearly, neither premise is not even remotely true, and the entire argument would deny the reality of economic cycles.  Clearly, Gary is not ignorant of the economic cycle, so why did he forget that his argument would not be valid?  Did emotionalism get the best of Gary?

As we can see from the big picture, Gold would have been a better investment than silver until 1990, the key turning point.  Gary's claim to the foundation of his "correctness" is being good at making interim market calls, and that he is old.  Did he tell his subscribers to load up on silver in 1990?  I have no idea.  Did Gary tell his subscribers to load up on silver when it hit $8.50/oz. in the last year?  No.  I know.  I've been a paying subscriber of his since he tried to discredit me.  In his own words, "His "market calls" were utterly useless when it mattered." 

Furthermore, the dollar/gold price charts, and dollar/silver price charts do not "tell all" as he claims.  Such charts contain zero information about how many dollars have been printed up in the past, and have yet to show up in futures prices of the metals.  Such charts contain zero information about how much silver has been consumed and lost in the age of electronics that have ended up in landfills at concentrations too low to economically recover.  It is only bad theory that the price charts contain "all the information" you need to know to make a future prediction on prices.

The charts Gary chose to present are not even "objective facts".  All gold/dollar and silver/dollar price charts are misleading, as the dollar is not a constant measuring tool, but a varying one.  What if I showed you a growth chart of my 15 month old boy, but used a ruler made out of silly putty and stretched it at different rates at varying intervals?  Certainly, nobody would call such a chart an "objective fact".  Charts are also not "objective facts" when you can produce them over select time frames to distort the overall picture.  Gary's price charts from the year 2000 are not as useful as the long term ratio chart above, if you want to try to use a chart to make long term predictions. 

Is anyone here planning on living for longer than a time frame of the next ten years?  (Well, Gary might not, he's old, remember.)  If you plan to live longer, you might want to consider longer time frames.  I know I want to.  After all, I'm only 39, and if I live to be 90, I can use an investment that might not pay off in 10 years, or even 20, but should come to fruition within my time frame of up to the next 50 years.  For me, silver is it.

After Gary claims that non-facts are facts, he then tells his readers to beware of statistics, because the long term statistics that the silver bulls have been presenting for the last 10 to 40 years have not yet shown up in relative price performance (even though they have). 

But the facts from the ratio chart prove that silver has been outperforming gold for 19 years now, and thus, perhaps Gary should have been paying attention to both the facts and statistics for silver.

In fact, it might be considered somewhat of a miracle that silver has outperformed gold for the last 19 years, while no nation on earth has yet returned to using silver as money!  Think about that!

Since Gary seems to not want to be bothered with either facts or statistics, I'll just paint the broad picture, with limited numbers, so that maybe he can wrap his mind around the major changes that have happened during his lifetime.

Nearly 300 years ago, back in 1717, the Bank of England started devaluing silver, in favor of a "gold standard". 
http://goldismoney.info/forums/showthread.php?t=401484

This was really a change to a paper standard, since gold was valued in terms of paper money, no longer valued in terms of real silver, but only "token" silver.  This continued until Germany left silver in the late 1800's.  This created a glut of silver, which continued to devalue silver, until all nations on earth stopped using silver as money, and as each one left silver, it created a glut of silver on the world marketplace.  This reduced monetary demand has continued to make silver a bargain for the last 100 years.  The last great mintage of silver coins was in the US in 1964.  After that, the US only made 40% half dollars for a few years, (we have three $1000 face value bags of 40% silver for sale at 6% over spot, that's 295 oz/bag x spot x 1.06).  Call us at (530) 273-8175  to own a true "abomination", a real life example of an "unjust weight and measure" from our own nation's recent history, today!

You can see the declining value for silver over a 600 year inflation adjusted silver chart:

http://goldinfo.net/silver600.html




You may note that this chart is in stark contrast to the flatline chart showed by Gary North.

But something interesting happened towards the end of this multi hundred year long trend of demonetizing silver. 

At the end of World War II, the age of electronics began.  Prior to WWII, most families in the US did not have many electrical devices.  After the second great war, homes began buying things like refrigerators, washing machines and dryers, dishwashers, blenders, toaster ovens, electric can openers, TV sets, air conditioners, and much more, of course. 

If you look at the "statistics" you can see that the per capita consumption of silver in the USA increased by about ten times in about a 3 year period, and it has stayed rather high at about 6 tenths of an ounce per person per year ever since.

Another funny thing happened.  The age of electronics was not limited to the USA, but went out to many nations, even our former enemies in WWII, and even other nations around the world began to industrialize, and they, too, began consuming silver in electronic gadgets.

Gary has written a lot of crazy things like "you can safely ignore" arguments because it would show up in the price if true.  Well, it already has, and it probably continue to do so, even more so, in the future!  Trends well established for over 100 years that get hit by another major counter trend that began over 60 years ago might take a bit of time to show up, and it appears it began to, 19 years ago.  It did show up rather spectacularly in the 1980 spike, where a tiny bit of money from one man who tried to buy some silver on leverage was smashed by the paper money powers.  That was merely the foreshadow warning of what will happen when many billionaires or tens of thousands of millionaires demand real money (silver).

But Gary ignores all that, saying that the only thing that matters is recent price performance over 10 years as measured by a bad measure, the dollar.  Wow.

He also has the gall to claim that men like myself issued no warnings about the decline in the silver price.   Again, another example of his willful ignorance.

I have been warning that the gold and silver markets are manipulated by the selling of paper futures contracts for at least 8 years now. 

In fact, I specifically warned about the manipulation when silver hit $16/oz., on the way down from $20 from early 2008.  The article is very easy to understand, even for an old man, even though it does include a few numbers.

A Tribute to 7th Grade Math August 31, 2008

In that article, I pointed out that two banks sold 40 times as much paper silver as physical investors buy silver, in one month, which crashed the price.  What followed was other paper longs selling out of their positions that continued to crash the price.  This real world market action utterly refutes the textbook lie that futures contracts are supposed to help smooth out market prices.  No, they do not.  In actual fact, and truth, futures markets manipulate prices to great exaggeration, in both directions.

The manipulation of the markets by selling too much "paper gold and silver" is one of my main themes as a writer.  See here:

Controlling Gold with Paper June 10, 2002
The Moral Failures of the Paper Longs Jan 22, 2003
Major Frauds of the U.S. Monetary System Feb 26, 2004
Silverstockreport.com: Silver Users Fear Silver Shortage Oct 27, 2005
The Silver ETF: What's the Deal? Feb 23, 2006
The Money Chart: The Fundamentals of Gold & Silver Feb 25, 2006
No Excitement by $800 gold November 2, 2007
Silver: There's Never Enough! January 15, 2008
I Don't Trade Futures April 4, 2008

Here's another good one for Gary:
Silver Keeping Pace with Gold; Set to Outpace Gold January 9, 2008

The last article, from Jan 2008, makes a good point:

The dollar, as a measuring stick, is broken.  Gold at $850 in 1980 is not a valid price number as a reference, because a dollar in 1980 was worth more than today.  We must adjust for inflation.  And there are two ways to do that, first with lying government "consumer price index" statistics, which would give a price of about $2500/oz., or you can measure by money creation, which gives a price of about $7000 to $14,000.  The $14,000 figure is if you include the recent $11 trillion in government bail out promises.  By the time those prices are hit, adjusting for future inflation might give us even higher numbers. and a higher level of public participation in the gold and silver markets, and thus, higher relative silver prices to gold. 

After all, let's remember that most Americans are trend investors, and gold and silver are putting down a nice, safe, solid, trend!

I'd also like to point out what I was saying in nearly every article I wrote in 2003-4:

"Long before 1% of U.S. paper dollars tries to buy gold, gold will be going up well over $1000/oz., and silver will be headed up over $50/oz."

Now that we are well over $1000/oz. for gold, we can easily measure how much US money is flowing into gold, and, in fact, I just measured that in my recent essays:

Grass Valley Buys 12 Times more Gold than National Average November 9th, 2009
Historic Gold Mine Area Residents Know Gold Prices are Too Low November 6th, 2009

America spends 00.013% of annual wealth (GDP) on less than 2% of the world's annual gold production.!!! 

America needs to buy about 77 times more gold than at current rates, to exceed the spending of 1% of U.S. paper dollars on gold!!!

"One percent of $14.4 trillion is $144 billion.  In a gold market that sees annual production of 80 million oz., such buying could double or quadruple the price, depending on how tight the market gets from competition from other nations buying."

Yes, I see, silver is not over $50/oz.!

But neither has 1% of the money in the USA started to buy gold, we are not even close!  So just wait.

I did not buy silver to wait for the day that 0.013% of USA money would be flowing into gold.  Did you?

No!  I bought silver for the day when the dollar would become like toilet paper, and this implies that well over 50% of dollars will try to buy gold and silver at some point.

In actual fact, gold investors are buying silver.   I know.  We sell silver for gold!  Furthermore, no customers have given us silver asking for gold.  But we have had many customers trade their gold for silver!

I suppose i should not have tried to "tell it to Gary North" as he seems to suggest his retort will be to "tell it Jerome Smith".  I know, I know, Jerome Smith was a silver bull who died.  Maybe Gary is brain dead, too.

Gary is also such a fool that he has no idea that his own recommendation to buy 80% gold, and 20% silver, would cause silver to move up far more than gold.  After all, the gold investment market is a $92 billion market.  (80 million oz. x $1145/oz.).  The silver market is 600 million oz. produced per year, which, at $18.50, is an $11 billion market.  If you spent 1/4 of $92 billion on silver, (20/80), that would be $23 billion. 

Please Gary, please tell us all how $23 billion will fit into the $11 billion silver market without the price moving up far more than for gold?  And let's remember now, that the statistics show that most silver is consumed by industry, so if investors bought $23 billion worth of silver and consumed all new mining production, then no new mining production could go towards any industrial consumption!

The silver investment market is a much tinier $2 billion market (100 million oz. out of 600 million oz. produced x $18.50/oz.).  Gary is suggesting that more than ten times as much money should go into silver as currently does!  If everyone followed Gary's advice, silver would probably have to move up at least five to maybe ten times higher than gold, just to accomodate the 80/20 investment that Gary suggests!  Of couse, that's mine production.  But if we consider above ground supplies, well, I'll let Gary try to research that.  He may well find that above ground supplies for silver are more rare than gold, and I did say I was going to try to stay away from such statistics.  

I'll leave out the numbers, and I'll note that all the gold ever mined in all of human history would fit into two Olympic sized swimming pools.  And probably less silver than that is remaining!

So ironic.  Gary's analysis is so poor.  But if it were any better, would silver prices remain so low?  When men like him continually mock silver, while speaking out of their own ignorance, is it any wonder the price remains low? 

But since I'm a silver investor who has 3 times as much silver as gold, I really can't complain.  After all, if the world knew what I knew, silver would already be several thousand dollars per ounce, or much higher!

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


I strongly advise you to get real gold and silver, at anywhere near today's prices, while you still can.

See the JH MINT, and some of our gold inventory, at Youtube here (we also now have Gold Buffalo 24k coins):

http://www.youtube.com/watch?v=9-ocXNbdEeU

Call us today.

Yes, we sell silver, and gold at the JH MINT! 
Buy it now! Buy Silver or Gold Now!
Inventory & Price List
Call the JH MINT, 10AM to 5PM Pacific, Monday to Friday:
100 oz. silver minimum, USA shipping, wire transfer only! 
(530) 273-8175
Janelle (530) 913 0553 silver_support1@vzw.blackberry.net
http://www.jhmint.com/

Active, live price quotes list:
http://jhmint.com/cgi-bin/ssrbidask




Sincerely,

Jason Hommel

In case you miss an email, check the archives:
http://silverstockreport.com/

Or visit www.momsilvershop.com
(Mom will ship in lots of more or less than 100 ounces, and overseas, and take credit cards or pay pal.)

If you are in Northern California, see:
Rocklin Coin Shop
4870 Granite Drive, Rocklin, CA 95677
http://rocklincoinshop.com/

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