Silver Stock Report: Silver Market Facts

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Silver Market Facts

(The Basic Facts are so Newsworthy, it's why you never hear them!)

Silver Stock Report

by Jason Hommel, November 14th, 2013

The silver market is tiny.  About 700 million oz. of silver are mined each year worldwide.  About 200 million oz. recycled.  About 100 million oz. from "other" sources, like governments.  That's the supply side.  At $20/oz., this is a $20 billion annual market. 

On the demand side, most all or more of the silver that is mined each year is consumed and used up by industry.  Only 100 million oz. is bought by investors.  At $20/oz., that's $2 billion physical silver bought per year by investors.

These numbers don't change much from year to year, and two companies produce similar numbers, which you can look up at the silver survey companies cpmgroup.com and silverinstitute.com.

I know the 100 million oz. of silver investment demand is real, both from other sources and my own experience.  The US Mint produces about 40 million Silver Eagle coins each year, and Silver Eagles are not even half of the silver that well sell at JH MINT, Inc.  So, about 100 million oz. is about right for investor demand.  Those are real numbers.

(The good news for America is that USA's silver buying is nearly the entire world's silver investment demand -- it's all right here in America.  As silver stays in America, that bodes well for the future wealth of America!)

So, while I trust the data of the silver survey companies, I know that they are biased against silver, because they mis-lable investment demand for silver as "surplus".  But the reality is that "surplus" denotes something like left over war gear, or material produced that is unwanted.  But silver bought by investors is not unwanted, not at all!

The reality is that there is not nearly enough silver for investors.  There is a dire shortage of silver for investors.

The proof is in the numbers from the BIS, the Bank of International Settlements. 
http://silverstockreport.com/2011/BIS-DATA.html

The BIS figures show that BIS banks owe their clients about $150 billion worth of silver, (other precious metals).  This is 75 times as much as annual investment demand.  You might not think that is unusual.  However, in a six month time frame a few years ago, their figures increased from $100 billion to $200 billion. 

There is no possible way on earth, in my opinion, that banks could go out and locate, and purchase $100 billion worth of silver, or 4000 to 8000 million ounces, for their clients who bought that much silver for investment purposes.  That would have been about 7-13 years worth of world silver mine output.  It was well over 100 times as much as real world physical silver investment demand.

Banks such as Morgan Stanley confirmed this.  They were caught not going out into the market and buying silver for their clients, and yet, they were charging clients a 1% annual storage fee on their silver that was not in the vaults, because there was no silver, and there was no vaults.  In their defense, Morgan Stanley said that what they did was nothing unusual, but rather "business as usual" among investment banks.

Again, only $2 billion worth of money is actually flowing into the physical silver market. 

Yet up to $150 billion flows into the paper silver markets as is kept track of by the BIS.  This is the over the counter, non transparent market, not the LBMA market, and not the COMEX markets.  This over the counter market is huge, and before 2009, it seemed that nobody in the gold world knew where to go get some of this data on the opaque over the counter market. 

Don't believe me.  See it for yourself.  Here is the latest 2012 BIS report:
http://www.bis.org/publ/qtrpdf/r_qa1309.pdf
see page 144, Table 22A. "Amounts outstanding of OTC (over the counter) equity-linked and commodity derivatives" "By instrument and counterparty".   See or search the document for "other precious metals".  Look at the "notional amounts outstanding".  See figures range from 123 to 157.  Note, those figures are "in billions of US dollars". 

That means the BIS Banks have derivatives on their books with outstanding values of $157 billion dollars worth of silver, meaning, they owe their clients that much worth of silver, at roughly today's silver prices, or maybe in $30/oz. silver prices back in Dec. 2012. 

In my opinion, no entity on earth can go out and buy $157 billion worth of silver when the real silver market can barely handle the $2 billion of investor demand that exists today and regularly squeezes it, and causes dramatic shortages in supply, and long wait times.

What is a billion?  In context?

The Fed is buying $80 billion worth of bonds each month, to help prop up bond market prices, and to help keep interest rates low.

What do you think would happen if the Fed bought $80 billion worth of silver each month to help keep silver prices up?

What do you think will happen when the public starts buying $80 billion worth of silver each month, to help protect themselves from the inflation that is being caused by the Fed printing up $80 billion each month to prop up the bond market?

We regularly have people calling us up, saying that they want to sell bonds to buy silver.  The banks will use every trick in the book to keep you in bonds.  They will tell you that you can't get a safer investment than bonds.  They will tell you that you will have to take a penalty for cashing in your bonds early (without mentioning what the penalty will be.)  They will tell you that you will have to give up the interest for about a year, if you cash in your bonds early.  If pressed, they will admit that is usually less than 1%. 

Meanwhile silver prices are being artificially created by computers that "paint the tape" on the paper markets, and move by as much as 5% to 9% in one day.  It's almost as if we have a dictator shouting in a shrill voice, "silver prices today will be!..." and smashing a gavel to announce the dictated silver price.  But it's not that obvious, of course.  Silver prices are set by a panel of banks, and by high frequency computer trading by the banks back and forth. 

Therefore, I cannot predict in advance what the silver price will be, nor can I make any short term predictions from 6 months to 2 years, which are all "short term".  I can only know that in the long run, investors will surely wake up at some point, and buy far more than $2 billion of silver, or 100 million ounces per year.  But more like 100 times as much, for starters.

I only know that investors who have only slightly woken up, but who continue to trust their investment banks who lie to them, to buy silver for them, that they are being completely defrauded, and that their investment demand for silver is being fully diverted into paper, and away from real silver.

I only know that at some point, the system will break, and will break hard, and when it does, silver prices will rapidly begin to exceed $500 to $1000 per ounce.

A paltry $180 billion worth of investment demand for silver, which is a paltry 1% of money in the banks, will send the silver price soaring to $500/oz. just to start the major run up in silver prices to come.  (Assume 300 million oz. of silver is bought by that much, and you can see that $180,000,000,000/300,000,000 = $600.)

Silver prices are not being driven by "dollar strength" against other currencies.  Silver prices are not even being driven by investment demand nor industrial demand. 

Silver prices are being driven by the lies told by the liars, the lies they tell on the painted ticker tapes on paper silver trades driven by computers. 

The major driver of silver prices is that well up to $150 billion of actual silver demand, from people who have actually instructed their brokers to buy silver for them, has been diverted away from silver, through fraud.

The major driver of silver prices is that well up to $150 billion of actual silver demand, from people who have actually instructed their brokers to buy silver for them, has been diverted away from silver, through fraud.

Yeah, I re-copied that paragraph twice, on purpose, so you might get the point.  Those are all verifiable numbers, check the BIS link above.

Frauds tend to end suddenly and badly when people wake up to the fraud.

It's been 4 years since I have brought this BIS fraud to the attention to the people who read my email list.  I do not know how else to get this message out, other than by repeating myself to the point where my readers are getting bored of hearing it, while at the same time, my readers are indicating to me that they sometimes still do not understand it.  Some do get it, of course.  The buyers.  But interestingly, not all silver buyers have even heard of these wonderful facts about silver.

Well, those are the big facts about the silver market.  How about some small facts?

In 2003, investment deceivers, such as the shills who work for the investment banks who are all short of silver, were wildly screaming about how silver jewelry scrap would flood into the market if silver prices moved up from $4/oz. to $7/oz. and thus cap the price.  That never happened.

Even today, it can't happen.  Not through my shop.  Take a silver ring, for example.  We don't buy them.  We can't. It's not worth it.  Silver prices are at $20/oz.  A typical silver ring has less than 1/10th of an ounce of silver in it.  Thus, a ring has $2 worth of silver.  If I were to buy it at my standard rates, I'd offer $1.20.  But to be able to pay for the paperwork to handle the trade, the seller of one silver ring would have to pay me $10 just to take it.  Thus, it's completely uneconomic.

Furthermore, a typical silver ring retails for about $20.  This is well over ten times higher than the contained silver value at today's silver price.  The $20 barely pays for the craftsmanship, and the cost of retailing the silver rings, and the actual silver is barely even a cost.  Silver prices would have to exceed $200/oz. for the seller of a silver ring to break even, and that's even if they could sell silver in ring form at spot prices, which is not realistic, because rings are not a fungible shape for silver, like coins are!  And silver prices would have to exceed $400/oz. for the seller of a silver ring to be able to realistically break even if the refineries were giving a 50% pay out on silver scrap.

This is an example, and the reason that silver, in jewelry form, or in tableware form is, for all intents and purposes, "utterly consumed" and completely removed from the silver investment market.  Once silver is sold as jewelry or tableware, it does not come back as scrap for up to ten to twenty years, or even 100!.  Even then, there must be economic ways of recovering the scrap.  And this silver scrap buyer, JH MINT, Inc., does not even waste time with silver rings.  We are happy to buy silver spoons and fork sets at typically 60% of the contained silver value.  Silver handles on knives are not worth the time to recover.  Silver candlesticks are typically not worth the time to recover.  Silver plated items can not be recycled for the silver content. 

Ah, here's another little gem for the silver bugs.  There is no discernible difference between .999 silver and .9999 silver.  I finally have several sources that back up my statement.  First, in any melt bucket, all the impurities in the silver will rise to the top, and can be skimmed or blasted off of the top of the molten silver. But the melt bucket does not refine the silver, that's done through electrolysis. It's therefore the same process for .999 and .9999 silver.  The difference is only in the label and the marketing, in my expert, well researched opinion.  I have tested .999 silver on an x-ray fluorescence tester, and it reads out at .9999 fine.  I have asked several mints and refiners and industry experts all the same question, and they all say the same thing, they don't know of any difference between .999 vs. .9999 silver, because of all the same reasons, because it's all the same process, except for the final stamp at the end of the line.  Maybe .9999 silver is more fraudulent, because they are overselling their product?  Maybe .9999 silver becomes .999 silver if you contaminate it with a thumbprint?  But the melt bucket does not care or distinguish between 999 silver vs. 9999.  I am open to the possibility that I'm wrong, but so far, I have not seen any measurable difference between 999 vs 9999 labeled silver.

What is measurable?

The US Mint says they are making about 40 million oz. of silver Eagles each year, worth less than $1 billion.
The BIS says that BIS banks owe clients about $157 billion worth of silver.

Those are the facts.  You do the math, and you tell me where you think silver prices are headed.

=====

I'm working in my two coin shops five days a week, and I now answer the phones.  Please only call if you are ready to order, because I often do have customers waiting.  The best time to call to catch me for a longer chat is after the morning rush, about 2-3pm, west coast time.

I strongly advise you to take possession of real gold and silver, at anywhere near today's prices, while you still can.   The fundamentals indicate rising prices for decades to come, and a major and relatively permanent value increase up can happen at any time.

JH MINT in Grass Valley
Open 11AM to 4PM Pacific Time, Monday, Wednesday, Friday.
Closed Tuesday, Thursday, weekends and bank holidays.  (Also Closed from Dec. 25th to Jan 1st)
13241 Grass Valley Ave
Grass Valley, CA 95945
(530) 273-8175
www.jhmint.com

Minimum telephone order $5000. USA shipping only.

JH MINT in Auburn
Open 11AM to 4PM Pacific Time, Tuesday, Thursday.
Closed Monday, Wednesday, Friday, weekends and bank holidays.  (Also Closed from Dec. 25th to Jan 1st)
1760 Highway 49 A140
Auburn, CA 95603
(530) 889-1086
www.jhmint.com

You can also buy silver from my mom at www.momssilvershop.com
Mom will ship overseas, even large orders up to $300,000 or larger, and also in lots of more or less than 100 ounces.   
3510 Auburn Blvd #12
Sacramento, CA 95821

Sincerely,

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

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Silver Stock Report: How Will You Sell Your Silver?

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How Will You Sell Your Silver?

(Back to JH MINT, Inc., or to anyone?!)

Silver Stock Report

by Jason Hommel, October 13th, 2013

People ask me, "How will I sell my silver if the dollar dies, or during chaotic times?" Or, "If there are no dollars, what would I sell my silver for?"  Another variation of this question is, "Why would I want silver if I can't spend it?"  And advanced traders ask, "What is the exit strategy?"

Good questions.

I think that part of the reason this is a popular concern about silver is that it's true that we can't spend silver today, but people know that silver should be money and that we should be able to be able to spend it.  But since we can't spend it, then silver is considered useless.

But money (and silver in particular) is more than just a circulating medium of exchange, it's also a store of value. 

And this brings me to supply and demand.  The reason you want silver is that nobody is using silver as money in the form of a circulating currency.  There is no nation on earth that is issuing silver currency that people use to buy things on a daily basis. 

Therefore, monetary demand for silver as a currency is zero.  This form of demand cannot get any worse than it already is.  This form of potential demand, monetary demand, is huge.   This dynamic can only change in one direction, up.  This is an extremely important consideration.  Pause and think about that for a moment.

Increasing monetary demand for silver means that silver prices will move in one primary direction, which is up.  Fluctuations, yes, but up, overall.

Monetary demand will be the biggest driver of silver prices that there can be, and it scares the people who have the right to print our money.  This is why you often will hear disparaging comments about monetary demand for silver, such as, "silver is in a surplus" meaning that investors are buying the difference that industry is not.  Or they will write, "speculators must continue to buy silver to keep prices propped up", as if the paltry $2 billion per year of investor demand for silver is somehow too much. 

As I see it, we will see hundreds of billions of dollars of investor demand by the time a mere 1% of people wake up to the inflation that exists, and begin buying silver, at what I will believe will be the beginning of this unstoppable bull market of all bull markets in silver.

In other words, since you can't spend silver today, since there is no monetary demand (as a currency) at all, then this means that the value of silver is about as cheap as it can get, making silver the perfect undervalued, and overlooked, and unloved and misunderstood investment opportunity.

The additional upside for silver is that industrial demand is huge.  Most of all newly mined silver, or perhaps even more, is consumed by industrial demand.  Investment demand remains lower than even scrap recycling.  The silver scrap market is about 200 million oz. per year, while investment demand remains a paltry 100 million ounces per year.  This means that the world's remaining pile of silver just continues to get smaller and smaller, and silver becomes more and more rare with every passing day. 

That's the perfect set up for massively increasing values for silver.  I write "values" and not "prices" because many people get confused thinking that a high price for silver might be meaningless if there is also a high price for things you need like bread and gas.

A common misconception about silver that people have is that silver is doing what it will always do, which is just "hold value steady", since a quarter is worth about a gallon of gas today, just like in the past, betraying their thinking that silver will probably not outperform nearly all other forms of investment.

But silver must outperform.  Silver is a tiny market today.  Potential monetary demand is lurking and is huge and massive.

Monetary demand will not pour into gas or oil or bread like it will pour into silver, because silver is money, and gas and bread are not and cannot be money.

These are two main forces that will impact silver unlike anything humanity has ever seen before in human history.

Never before in human history has the entire world stopped using silver as money, everywhere, in every nation, all at once, as has happened over the last 150 years, starting with Germany and ending with the United States in 1964, the last year our government printed silver currency.  Since 1964, it's now been 49 years with no silver currency anywhere in the world.

During this time, the other main factor for silver has begun, and there is no historical record of something like this ever happening before in any other era in human history.  In 1945, at the end of World War II, the age of electronics began.  People began buying dishwashers, clothes washers and dryers, electric can openers, and all sorts of electric gadgets.  This increased the industrial use of silver by a factor of ten times greater than just before World War II, to about 6 tenths of an ounce of silver per person in industrialized nations.  This industrial demand has continued to this day, at about the same rate, because even as manufacturers figure out ways to save silver, other manufacturers start using more silver. 

So, silver prices have remained shockingly stable in our era over the last 50 years, as monetary demand has ended, because industrial demand has risen to take its place.

The point is that monetary demand for silver has never hit the silver market at a time when all the world's silver has been consumed by industry.  When investment demand really does hit, the results for the value of silver will be spectacular and astounding.  I don't really think I can write about what it might be like, because it might take more creative capacity than I can conceive of. 

Think about these facts, and this point.  It means that there are no historians who can point to any historic examples of what the future for silver will be like.  There are no monetary experts, no investors, no newsletter writers, no creative writers, who can tell you what it will really be like in the silver market in the future when values for ultra scarce silver are recognized by the masses.  There are no experts of any kind anywhere in the world who can know how spectacular and amazing the future high values of silver will reach.

So, when the inevitable happens, that silver's value becomes well known, then spending silver is not going to be one of the biggest problems.  It might not be "spendable" in the common sense anyway, as silver might become far too valuable.  

But let's consider the present.  Far less than 1% of people are buying silver today; less than 1 in 1000!  When 1% of money in the banks starts buying silver on an annual basis, that will drive silver prices to over $500 per ounce.  At that time, there will be far more coin shops, and more places to sell silver, because between ten to one hundred times more people will be buying silver compared to today.

The current number of coin shops will simply be woefully incapable and inefficient at meeting that very beginning stages of silver demand.

People often hear my argument for $500/oz. silver, and they scratch their heads, wondering, who would buy silver at $500/oz., when they can get it for $23 today?  The answer is in the premise.  About 1% of the money in the banks will be flowing into the silver market to protect itself from inflation!

Perhaps the real question is, why will people be willing to pay $500/oz. in the future, if they can get silver at $23 today? 

Well, nobody has a time machine.  Nobody can travel back in time to get silver at $23, when silver prices will reach $500 per ounce.  The other choices at $500/oz. for silver will be either gold, or copper.  And gold might be $5000/oz,. or higher.  And copper is not a viable alternative. 

See, I have a brick of copper weighing 33 pounds in my shop to make this point.  Copper is $3.24 per pound.  So, that heavy brick of copper is worth $106.92, at spot copper prices.  But I think I paid about $300 for it, because at the time, copper was $4.50 maybe, and there was a hefty manufacturing cost.  Regardless, nobody is ever going to lug those heavy copper bricks to the grocery store to buy groceries.  If the customer does not want to lift it, neither will the grocer want to lift thousands of them. 

People complain about the wide prices to buy and sell silver, that range from 6% to 15%.  The spreads on copper are more like 100% to 200%.  Copper is not money, and never will be.  Pennies?  As ridiculously cheap and heavy as copper is, copper is too valuable to use in US pennies, which have been zinc since about the 1980's.

So, that's why people will pay $500 for silver.  Because by that time, 1% of people will realize that there are no reasonable alternatives; not paper money that's going down, not gold that's too expensive, and not copper that's ridiculously heavy.  Well, there's also oil, and food, and guns, but similarly, those all suffer from the "too heavy to be money" problem.

So, this is the answer to "how will I sell my silver".  You will sell your silver to the masses of people who will be dying to buy your silver because there are no other alternatives for them, that's how, and that's to who.  You won't have to sell it directly, although with ebay, you will increasingly be able to.  There will probably be more and more bullion dealers.  Or more and more retailers will start accepting silver, but probably not until after silver reaches about $500/oz, just for starters.

As far as "exit strategy" goes?  You won't need an exit strategy.  The masses will need an exit strategy for their dying paper dollars.  Silver is the exit strategy.

=====

I'm working in my two coin shops five days a week, and I now answer the phones.  Please only call if you are ready to order, because I often do have customers waiting.  The best time to call to catch me for a longer chat is after the morning rush, about 2-3pm, west coast time.

I strongly advise you to take possession of real gold and silver, at anywhere near today's prices, while you still can.   The fundamentals indicate rising prices for decades to come, and a major and relatively permanant value increase up can happen at any time.

JH MINT in Grass Valley
Open 11AM to 4PM Pacific Time, Monday, Wednesday, Friday.
Closed Tuesday, Thursday, weekends and bank holidays.  (Also Closed from Dec. 25th to Jan 1st)
13241 Grass Valley Ave
Grass Valley, CA 95945
(530) 273-8175
www.jhmint.com

Minimum telephone order $5000 for free shipping, USA shipping only.

JH MINT in Auburn
Open 11AM to 4PM Pacific Time, Tuesday, Thursday.
Closed Monday, Wednesday, Friday, weekends and bank holidays.  (Also Closed from Dec. 25th to Jan 1st)
1760 Highway 49 A140
Auburn, CA 95603
(530) 889-1086
www.jhmint.com

You can also buy silver from my mom at www.momssilvershop.com
Mom will ship overseas, even large orders up to $300,000 or larger, and also in lots of more or less than 100 ounces.   
3510 Auburn Blvd #12
Sacramento, CA 95821

Sincerely,

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

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. silverstockreport.com | 13241 Grass Valley Ave | Grass Valley | CA | 95945

Silver Stock Report: Warren Buffett vs. Hommel on Gold

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Greetings!

Warren Buffett on Gold

(vs. Hommel on Gold!)

Silver Stock Report

by Jason Hommel, September 24, 2013

Warren Buffet explained why he does not see the value in gold in his annual report from 2011.
http://www.berkshirehathaway.com/letters/2011ltr.pdf

http://ivanhoff.com/2013/04/15/warren-buffett-on-gold/
It was republished by ivanhoff, and came to my attention last week, which gave me this occasion to respond.   Here I go.

Buffett:
The second major category of investments involves assets that will never produce anything, but that are purchased in the buyer’s hope that someone else – who also knows that the assets will be forever unproductive – will pay more for them in the future. Tulips, of all things, briefly became a favorite of such buyers in the 17th century.

Hommel:
Buffett is claiming that Gold's value exists only because other people will buy it.  True.  True of all assets.  And this is exactly why gold is a good thing, because of all things, gold is most likely to be valuable in more places to more people than nearly any other item that you can consider, precisely because it is money.  But Buffett presents this as a bad thing, calling gold "unproductive".  Well, let's see, how is gold productive?  It can go up in value, just like stocks or bonds or housing, or any other asset.  People recognize that gold has value not because it gains value, but because it does not decay or rot or go bad.  Food makes a horrible form of money, partly because it goes bad.  One of the longest lasting kinds of food is the wheat kernel, which can last up to twenty years.  Gold lasts 6000 years, with no decay.

Buffett:
This type of investment requires an expanding pool of buyers, who, in turn, are enticed because they believe the buying pool will expand still further.  Owners are not inspired by what the asset itself can produce – it will remain lifeless forever – but rather by the belief that others will desire it even more avidly in the future.

Hommel:  True, gold buyers do not buy gold for what gold will produce, but most of my gold buyers are buying gold because they do believe it will go up in value, because they do believe that others will see what they can see, that gold is special, and cannot be printed to excess like paper money is being created to excess these days.  Gold buyers buy gold also because they recognize that gold does not decay, because it has a very high value for the weight and density which makes it portable, and because it can be hidden.

Buffett:  The major asset in this category is gold, currently a huge favorite of investors who fear almost all other assets, especially paper money (of whose value, as noted, they are right to be fearful). Gold, however, has two significant shortcomings, being neither of much use nor procreative. True, gold has some industrial and decorative utility, but the demand for these purposes is both limited and incapable of soaking up new production. Meanwhile, if you own one ounce of gold for an eternity, you will still own one ounce at its end.

Hommel:  True, gold is not procreative.  But this does not mean that gold cannot go up in value.  Gold does have a use.  The use is as a store of value.  The use is to communicate value over time.  Gold has three primary uses: as a store of value, as a unit of account, and as a medium of exchange.  These days, it is not used much as a medium of exchange, because no government on earth is issuing gold as circulating currency, but because all nations issue paper money.  This is making gold an excellent store of value, because gold is increasing in value more than all the paper money being continually printed.  The key use of gold in our times is not only in that it holds value, but gains value.  This is because the new supply of gold is far less than demand.  The world prints nearly $5 to $10 trillion worth of paper money per year, which is $5,000 to $10,000 billion.  In contrast, the world mines about 83 million ounces of new gold, at $1334/oz, is worth only a mere $111 billion.  Clearly, there will be more and more buyers of gold in the near and far future.

Buffett:  What motivates most gold purchasers is their belief that the ranks of the fearful will grow. During the past decade that belief has proved correct. Beyond that, the rising price has on its own generated additional buying enthusiasm, attracting purchasers who see the rise as validating an investment thesis. As “bandwagon” investors join any party, they create their own truth – for a while.

Hommel:  Gold buyers are derided as "fearful" by Buffett.  And he notes this has recently been correct.  But also wise.  He could have written, "The ranks of the wise will grow".  Perhaps more apt.

Buffett:  Over the past 15 years, both Internet stocks and houses have demonstrated the extraordinary excesses that can be created by combining an initially sensible thesis with well-publicized rising prices. In these bubbles, an army of originally skeptical investors succumbed to the “proof” delivered by the market, and the pool of buyers – for a time – expanded sufficiently to keep the bandwagon rolling. But bubbles blown large enough inevitably pop. And then the old proverb is confirmed once again: “What the wise man does in the beginning, the fool does in the end.”

Hommel:  True, bubbles happened in stocks and houses.  And probably still are in a bubble.  Is gold in a bubble?  When less than $100 billion is being mined each year?  I think not.  His buddy Bill Gates could buy half the world's annual gold production, and would probably become a lot more wealthy if he tried.  I say tried, because there is no way he would succeed, because his stock is not liquid enough to sell that much, and the gold market is too tight to buy half the gold market without pushing the gold price up, too.  My point is that the gold market boom is still in the beginning stages. 

Buffett:  Today the world’s gold stock is about 170,000 metric tons. If all of this gold were melded together, it would form a cube of about 68 feet per side. (Picture it fitting comfortably within a baseball infield.) At $1,750 per ounce – gold’s price as I write this – its value would be $9.6 trillion. Call this cube pile A.

Hommel:  Today, one to two years later, gold prices are down to $1335.  Buffet was right for one year out of a thirteen year bull market in gold.  Buffett will likely be wrong next year.  But 170,000 metric tonnes at $1335/oz. is x 32,151 oz/tonne is $7.3 trillion today. 

The tiny size of the cube of gold in pile A also explains why gold is valuable.  It contains a lot of value in a small space, making it very portable.  Some people wonder why gold should be any different than copper or any other metal, asserting that the other metals could be used just as easily as silver and gold.  Really?  Well, I have a 33 kilo block of copper that cost about $300, about the same as a ten oz. bar of silver.  Which would you rather carry to the grocery store?  Also, the copper has a spread on it to buy and sell of over 50%.  Or, would you prefer a quarter oz. of gold for about $330?

Buffett:  Let’s now create a pile B costing an equal amount. For that, we could buy all U.S. cropland (400 million acres with output of about $200 billion annually), plus 16 Exxon Mobils (the world’s most profitable company, one earning more than $40 billion annually). After these purchases, we would have about $1 trillion left over for walking-around money (no sense feeling strapped after this buying binge). Can you imagine an investor with $9.6 trillion selecting pile A over pile B?

Hommel:  Can you imagine an investor with $7.3 trillion to begin with?  There are no investors who are worth so much, are there Mr. Buffett?  Besides, even if there were, there is no evidence that the entire world supply of gold is being all offered at the current asking price for gold.  The vast majority of gold does not trade each year.  World annual mine supply ads only about 1.5% to the pile per year.  Well, let's calculate it.  http://www.goldsheetlinks.com/production2.htm  170,000 tonnes in existing stock.  World annual production about 2600 tonnes.  1.529%.  Yup, still the same after all these years.

But Buffett's point is that he cannot imagine any investor buying the gold instead of the farmland and oil companies.  But let's compare more clearly, $40 billion x 16  Exxon Mobils is $640 billion, plus the $200 billion from crops, which means the oil companies and land produce about $840 billion.  Well, how much does the pile of the world's gold produce?  Gold is likely to exceed $1900 in the next year or two, from $1336 today.  As it does, the pile of gold will go up from $7.3 trillion to $10.4 trillion.  Now let's compare shall we?  $640 billion gain in the oil companies, and $3.1 trillion, or $3100 billion in the gold pile.   I think I've made my point, but let me go further.  In actual fact, 16 Exxon Mobils don't exist.  It's a pure fantasy choice, as in, "not real".  The gold is real.  That makes the gold choice not only several times better, but infinitely better, doesn't it?

Buffett:  Beyond the staggering valuation given the existing stock of gold, current prices make today’s annual production of gold command about $160 billion.  Buyers – whether jewelry and industrial users, frightened individuals, or speculators – must continually absorb this additional supply to merely maintain an equilibrium at present prices.

Hommel:  As we have seen, the existing annual production of gold is now $111 billion, and being purchased not by "frightened individuals, or speculators", but by "wise investors," and even central banks now!  And again, with $5000 to $10,000 billion dollars worth of currency being printed world wide, I think the new gold will have plenty of ready buyers for decades to come.  In fact, Gold is acting not only as a value preserver, but value gainer, for those investors who don't want be robbed by governments.

Buffett:  A century from now the 400 million acres of farmland will have produced staggering amounts of corn, wheat, cotton, and other crops – and will continue to produce that valuable bounty, whatever the currency may be. Exxon Mobil will probably have delivered trillions of dollars in dividends to its owners and will also hold assets worth many more trillions (and, remember, you get 16 Exxons). The 170,000 tons of gold will be unchanged in size and still incapable of producing anything. You can fondle the cube, but it will not respond.

Hommel:  I'd wager that a century from now, none of the world's currencies today will have any value at all, but the gold still will.  Gold is not a choice between oil and gold, it's a choice between paper money and gold.  No investor will ever go out and buy 100 barrels of oil at $103/barrel to store on his lawn, to preserve $10,000 worth of paper money value, because the oil is extraordinarily inconvenient, and expensive to store and ship for the relative value.  But anyone can buy 7 gold eagles that will fit into the palm of your hand for $10,000, which takes up about 1/10th of the space as a stack of 100 of the $100 bills.

Buffett: Admittedly, when people a century from now are fearful, it’s likely many will still rush to gold. I’m confident, however, that the $9.6 trillion current valuation of pile A will compound over the century at a rate far inferior to that achieved by pile B.

Hommel:  In contrast, I'm supremely confident that the world's pile of gold will increase in value far faster than oil.  The reason is that gold has been money for about 6000 years of human history, and mankind has only been using oil for about 160 years or so.  Furthermore, the world's bankers began attacking gold as money about that far back, so the world has never had a good historical gold to oil ratio in place during a time when the world used gold as money!  Therefore, we have to use intuition to determine a proper value for gold as compared to oil, assuming the world returned to using gold as money, and it probably will.  I would supsect that the world's gold production should be valued more than the world's oil production, because the world'd gold production must be spend on more than "just oil".  As it is, oil is no more than 5-10% of the world's economy, but let's assume oil were as much as 50%.  Well, then, the world's gold production would be worth about twice as much as world oil production, because people would need some gold left over to buy everything else.  That would assume a value for gold as follows:

World annual oil production is about 90 million barrels per day.

x 365 days/year x $100/barrel =

That's about $3.3 trillion per year in dollar value, of oil production.

If world gold production of 83.5 million oz. were worth $6.6 trillion per year, that divides out to $79,000 per oz. for gold!

Oh yes, in the last five years, gold and silver have solidly outperformed Birkshire Hathaway stock.

http://finance.yahoo.com/q/bc?t=5y&s=BRK-A&l=on&z=l&q=l&c=slv%2C+gld&ql=1

And I suppose gold and silver have significantly outperformed BRK in the last 13 years.

https://www.google.com/#q=brk.b

Since the year 2000, BRK.B has gone from $40 to $114, an increase of 2.85 times.

Since the year 2000, Gold has gone from $255 to $1314, an increase of 5.1 times.

=====

I strongly advise you to take possession of real gold and silver, at anywhere near today's prices, while you still can.   The fundamentals indicate rising prices for decades to come, and a major price spike can happen at any time.

Please note our new shorter hours, I'm working in each shop every other day.

JH MINT in Grass Valley
Open 11AM to 4PM Pacific Time, Monday, Wednesday, Friday.
Closed Tuesday, Thursday, weekends and bank holidays.  (Also Closed from Dec. 25th to Jan 1st)
13241 Grass Valley Ave
Grass Valley, CA 95945
(530) 273-8175
www.jhmint.com

Minimum telephone order $5000 for free shipping, USA shipping only.

JH MINT in Auburn
Open 11AM to 4PM Pacific Time, Tuesday, Thursday.
Closed Monday, Wednesday, Friday, weekends and bank holidays.  (Also Closed from Dec. 25th to Jan 1st)
1760 Highway 49 A140
Auburn, CA 95603
(530) 889-1086
www.jhmint.com

You can also buy silver from my mom at www.momssilvershop.com
Mom will ship overseas, even large orders up to $300,000 or larger, and also in lots of more or less than 100 ounces.   
3510 Auburn Blvd #12
Sacramento, CA 95821

Sincerely,

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

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Silver Stock Report: Slow Business for Bullion Dealers

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Slow Business for Gold and Silver Dealers

(But JH MINT is OPEN for business!)

Silver Stock Report

by Jason Hommel, September 21, 2013

I am working in my shops due to slow business conditions.  I think I'll have to write more, too!

The JH MINT store in Grass Valley will be open Monday, Wednesday and Friday from 11am to 4pm.

The JH MINT store in Auburn will be open Tuesday and Thursday same shorter hours.

Since I wrote my last article about how the wild price changes are likely designed to convince people to not buy silver and gold,  I heard a large bullion dealer in Colorado was closed for 12 days recently for the same reason--slow business conditions.

Wild Price Changes: Comments  September 16th, 2013 
Wild Price Changes  September 15th, 2013  

I really like how the wild price changes are a confirmation of my closing comments for the past few years, "a major price spike can happen at any time."

An article in resource investor confirms slow business for gold eagle sales, nationwide.

Gold and silver still reel up from ‘shock’
BY JAN SKOYLES
September 20, 2013
http://www.resourceinvestor.com/2013/09/20/gold-and-silver-still-reel-up-from-shock

"Data from the US Mint shows there was a slowdown in coin demand in August. Just 11,500 ounces of American Eagle gold coins were sold last month, the lowest in six years. The number is significantly down from the 205,000 sold in April."

I sincerely didn't think that these days would come, at 13 years into a bull market for gold and silver.  I really thought that the amazing gains in the prices of silver and gold would pull more and more people into gold and silver more and more.  I did not foresee that wild price changes and lack of news coverage on wild government spending would combine to create such disinterest in the beginning of this precious metals bull market that is literally unstoppable.

Yes, the price manipulators can get their way, from time to time, for a few years even, but the only thing more wild than the price swings in silver and gold, is the wild spending and money printing (ok, electronic money creation) by government, that can do only one thing in the long run, and that is, lead to vast increases in the paper prices, and increases in real values, for gold and silver.

=====

I strongly advise you to take possession of real gold and silver, at anywhere near today's prices, while you still can.   The fundamentals indicate rising prices for decades to come, and a major price spike can happen at any time.

JH MINT in Grass Valley
Open 11AM to 4PM Pacific Time, Monday, Wednesday, Friday.
Closed Tuesday, Thursday, weekends and bank holidays.  (Also Closed from Dec. 25th to Jan 1st)
13241 Grass Valley Ave
Grass Valley, CA 95945
(530) 273-8175
www.jhmint.com

Minimum telephone order $5000 for free shipping, USA shipping only.

JH MINT in Auburn
Open 11AM to 4PM Pacific Time, Tuesday, Thursday.
Closed Monday, Wednesday, Friday, weekends and bank holidays.  (Also Closed from Dec. 25th to Jan 1st)
1760 Highway 49 A140
Auburn, CA 95603
(530) 889-1086
www.jhmint.com

You can also buy silver from my mom at www.momssilvershop.com
Mom will ship overseas, even large orders up to $300,000 or larger, and also in lots of more or less than 100 ounces.   
3510 Auburn Blvd #12
Sacramento, CA 95821

Sincerely,

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

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Silver Stock Report: Wild Price Changes: Comments

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Greetings!

Wild Price Changes: Comments

(Great Comments from Readers!)

Silver Stock Report

by Jason Hommel, September 16th, 2013

Here are most of the comments from my readers on this article from last night:
Wild Price Changes  September 15th, 2013 
http://silverstockreport.com/2013/wild-price-changes.html

These comments are especially important on this topic, because the encouraging feedback is important when I'm mostly guessing, and when evidence and facts are thin.  Every comment was encouraging, none disagreed.  Think about that.

=====

>The price swings reinforce that the silver market is tiny, and the
>paper money markets are oversized.

Indeed so.  In fact, the entire financial segment of the US economy
is wildly over-sized.  This is why we are seeing such turbulent
times in the various markets.  There are too many people stirring the
pot and not enough people actually making the soup.  I have
read articles in which various economists opine that the US needs a
financial industry that accounts for about 10% of the business
activity nationwide.  But, do we have that?  NO!  We have a financial
industry that accounts for 40% of the US business activity and
that is 4x bigger than is actually needed.  All this does is
introduce even more distortions into the US economy;  as if the US Gov
and the Fed haven't already done much more of that than is necessary.

>The price swings indicate that the paper money printers are pushing
>the silver price around to keep people away from silver, because
>they fear the inevitable price rises that printing excess money
>always leads to.

Yes, they do and they want silver and gold both to be as unappealing
as possible, so creating a market in which the prices for these
metals are volatile and frightening for the average investor is the
best way that they have to keep the sheep penned up and not trading
their ever-worth-less paper dollars for precious metals.

Fortunately, many of us in the PM camp do not see these as
investments but as financial insurance against the incompetence of
our "leaders".  Far too much money has been borrowed and
squandered.  Far too many promises of additional spending have
been made that it is now becoming clear to John and Mary Average
American that cannot be kept.  Far too much buying power
has been lost from the US dollar in fiat form.  I buy gold and silver
not because of what I fear might happen but because of what
I KNOW IS happening.  Over my lifetime, I have seen the price of
silver go from $1.30 an oz. when it was used as 90% silver in
US coinage to near $50, back to $4, back to near $50, and now hanging
in around $22.  At this same time, I have seen gasoline
go from $0.25 a gallon to $4 a gallon.  But, I also know that a US
90% silver quarter can be sold for about $4 at most coin and
bullion shops.  In terms of silver, gasoline prices have not changed
a bit in the last 50 years.  In terms of fiat, however, they have
increased by 1600%!  Food prices are similar.  When my wife and I got
married in 1969, we would shop for food together at the
local grocery store.  Money was very tight, so we got few
luxuries.  About once a month, I would buy a package of Nutter Butter
cookies for $0.53.  This was a treat and one that I didn't get all
the time.  On a recent trip to our current local grocery store, I
spotted a package of Nutter Butter cookies and the price tag read
$4.49!  This is a rise of 847%.  But, if I take one of my 90%
silver half dollars and sell it, I can get at least $8 for it at the
local coin and bullion shop, so in silver terms these cookies actually
cost less today than they did 44 years ago!  So much for the use of a
fiat currency as a store of value.

>Silver has moved up from about $18.50 to a high of about $24.46 in
>the last month.  That's a gain of $5.96/oz., which is a gain of
>32.2% in about three weeks!

Indeed... and I haven't heard a peep about this on the financial
radio and TV shows.  But, let silver and gold stumble even a little and
that seems to be ALL that they want to talk about.  From 2000 to
2011, gold was up 500% in dollar terms and silver was up 600%.
But was this trumpeted from the roof-tops?  Nope.  Barely even
mentioned in quick blurbs stuck in between "real" stories.  Had a
stock done this, there would have been dancing in the streets of NY
City and 24/7 ranting about it!

>Not really, because the lending market is rigged.

Right... along with most (all?) other markets as well.  If there is
money to be made by rigging something, it is safe to assume that someone
somewhere is doing just that.  Can we say LIBOR?  Why, yes, we
can!  If a multi-trillion dollar system like LIBOR can be rigged for years
and years, what makes anyone think that the gold and silver markets
are not rigged too?  If we know anything about government it is that
it hates competition and, make no mistake about it, gold and silver
are seen by these people as alternative / competitive currencies to the
US dollar.

>It really indicates that the Federal Reserve is trying to hold the
>economy together by pushing cheap money into the economy through
>Federal Housing lenders who are trying to re-inflate the housing
>bubble to keep home prices high.  Again, future generations would
>read that sentence and probably not understand why the government
>would have such a disastrous policy.

Agreed!  In fact, you can also add that if the US dollar was so
great, why does the Fed have to practically give them away to "stimulate"
the US economy?  Nobody even comes close to giving away gold or
silver because no one has to do that for them to be desired.

>After all, if silver moved up at clearly defined constant rates more
>than the lending rate, say, at 5% per year, then any moron or
>nincompoop or fool after a few short years could otherwise see that
>buying silver would be a far better move than keeping savings in the
>bank or buying government bonds.  And if people did that, well,
>paper money values might collapse even faster, driving up silver
>values even faster, and there could be runaway inflation, and paper
>money could just collapse to zero as everyone headed for the safe
>havens of silver and gold.
>
>Clearly, they can't allow that.

No, they can't but the heck of it is that this WILL happen
anyway.  All they are doing is delaying the inevitable with all these market
manipulations, money printing, currency swaps, and trash-buying from
banks dumb enough to have loaded their balance sheets
with all the financial sewage of the past several years.  So, now the
Fed has a lot of that drek on their own balance sheet and is
getting desperate to remove at least some of it, lest they be seen as
complete fools themselves.  Personally, I think that it is
already too late to avoid that.

>(And actually, since 2004, silver has moved up from $4.15/oz. to
>$21.38/oz., over the last nine years, which is a compounded average
>annual gain of 20%!!)

Also studiously unmentioned in the financial press.

>So, to let paper money exist, they must keep a lid on letting silver
>and gold prices rise, and they do.  Or, they need to hide the steady
>average annual gains, behind wild price changes.

Yes, that and a very friendly media that plays along with it.

>So, with artificially low prices, eventually the pressure builds,
>like today, which is why we have had a runaway bull market in silver
>and gold for the past nine to ten years now.

Yes and in fact we STILL have a bull market in both gold and silver
despite these induced price fluctuations.  Many of the people
in the financial media seem completely unaware of the fact that a 50%
pull-back in the middle of a gold bull market is not at all
unusual.  I don't know if this is the case for silver but I suspect
that it is.  This is not a signal that the metals bull market is over.
It only shows that the bull has retraced and is gathering strength to
form higher lows and higher highs.

>Clearly, the people who print paper money at rates of $85 billion
>per month don't want to lose the right to print that paper
>money.  Clearly, the people who print paper money at rates of $85
>billion per month have not yet bought a lot of silver for themselves
>to hoard, since $85 billion / 300 million  ounces would be
>$85,000/300, or $283 per ounce.

No, they do not and if history is any guide, these people are willing
to kill to keep this greatest of all financial prizes.  Abe Lincoln
by-passed the bankers, printed US greenbacks to fund the civil war,
and ended up assassinated for his efforts.  Jack Kennedy
did something similar and he was assassinated.  Five unsuccessful
attempts were made to assassinate Andrew Jackson before
they gave up, likely because he threatened to gather the US Army
about himself and march on them in NY if they did not cease
and desist immediately.  These are evil people who will do and have
done anything to protect their money printing privilege.  It is
unearned and undeserved.  This power needs to be returned to the
people via the US House of Representatives and not held
by a private banking cartel, such as the Federal Reserve System,
which is not a federal government entity and has no reserves.
Never trust anything that has a name that is specifically created to
disguise their true purpose.

>Now, before I get to that, let me address the potential nay sayers
>who may claim that it's "Normal" for silver to move that much,
>because that's what we see.  Well, why doesn't the interest rate
>fluctuate that much?  It doesn't, because it's "fixed" by the
>Federal Reserve, because we live in a financial system of "fixed"
>prices.  If they fixed prices for silver like they do for the
>interest rate for money, they might make silver as stable as the interest rate.

Another argument could be made for comparing the routine changes in
oil and gas prices vs. those of PMs.  My guess is that
PMs are at least twice as volatile as oil and maybe 4 times as
volatile as natural gas.

>First, I think it indicates that the price is a lie.  A
>manipulation.  A false report.  A bogus claim.  The way that prices
>are "quoted" has nothing to do with actual silver being traded, and
>yet, actual traders of real silver look at those quoted prices, and
>often trade accordingly.

Agreed!

>The quoted price is called the "spot" price, and it is a ticker tape
>of paper futures market trades in lots of 5000 oz. at a time.  Each
>lot is one contract, and thousands of contracts trade in a
>day.  Most of these paper contracts do not result in any delivery of
>silver, since they are for delivery "in the future" on the futures markets.
>
>The futures price is pushed around by electronic and pit traders who
>trade both futures and options and puts.

I have no problem with futures contracts or shorting but what we have
seen in the PM markets goes far beyond both of these.
Naked shorting of very large blocks of paper gold and silver in the
thinly traded wee hours of the night have no legitimate
trading or investment purpose.  Their only purpose is price
suppression and it is VERY thinly disguised, IMO.

>But it's those who have the net worth exceeding $100 billion, that
>push the price around, illegally, with no criminal prosecution,
>because they are probably doing it on behalf of the Federal
>Government, with the specific intent to keep people in paper money,
>and out of silver.

Their Get-Out-Of-Jail-Free card has been pre-arranged and is all
ready to help them get out of any legal binds that they may
get into at the lower government levels.  In fact, it is likely that
if a state were to sue these bankers for PM market manipulation,
the US Gov would step in, claim that the banks were working with the
Gov on a matter of "national security", and that any and all
legal action instituted by the state(s) would be declared null and void.

>See, I feel and believe that the government is attempting to make
>silver look "volatile" and shaky and unpredictable, but the truth is
>that paper money is what is truly volatile and shaky.

Agreed.

>See, silver does not come due in a large harvest season.  Mine
>output and refinery output is rather stable in comparison to
>harvesting crops, and should have much more stable prices, day after
>day, month after month.

All true on the production side of the equation but there can be
significant changes on the demand side that can affect prices.
These price effects tend to be over longer periods, though, and not
on a  daily basis.

>The wild price changes are also reflective of the truth that the
>silver market is extraordinarily tiny, and the paper money market is
>beyond massively huge.  Huge paper money trades moving into and out
>of silver push the price around far more than it should otherwise
>trade if the financial system were sound, and soundly backed by
>silver and gold, and if there were no excesses of paper money.

Paper money is prone to excesses.  This is what causes all fiat money
systems to become unbalanced and eventually collapse.
The US dollar is NOT immune to this because it is a function of human
nature and all governments and central banks are staffed
by human beings, so, sooner or later they WILL over-print the
currency and drive its value lower and lower until it is not only worth
less but actually worthless.

>In other words, the major price swings in the silver price are
>actually a forecast for a large price rise in my opinion.

I see these price swings as yet another sign of desperation among
TPTB.  It is clear that the era of fiat currency is ending and
that all fiat currencies will be going the way of the dodo and the
dinosaur... which is to say, extinct.  Real labor should not be
exchanged for fake money and fiat currency is about as fake as money
gets.  Not only do those who print it tell us that it has
value but they also tell us how much value it has.  They can and do
change their minds on this from time to time, devaluing the
currency as seems to fit their political needs of the moment.  Easy
for them to do but very hard on everyone holding that fiat
currency as there wealth can be slashed over-night.  FDR did this
after he called in the gold via EO 6102.  At that time, the
price of gold  was around $20.67.  When they revalued gold, it then
cost $35 an oz.  This is a 70% devaluation in the dollar,
yet this is never mentioned or reported on by the financial
media.  Anyway, this is definitely too ripe a plum not to be taken
advantage of in every way possible... and they are doing just
that.  Over 97% loss in buying power for the US dollar in the
100 years since the Fed came to be.  In the 100 years prior to that,
there was virtually no change in the buying power of the
gold-backed US dollar.  The comparison in the value of US money
during these two periods in time ought to be about as
staggering a financial revelation as anyone can imagine... yet, we
hear nothing about it in our schools, colleges, or universities.
This reminds me of a Mark Twain quote:  "Never let your schooling
interfere with your education".  Many see these as the same
things, yet they most certainly are not.

This is yet another fine article.  Thanks, Jason, for writing this up
and distributing it.  Many of us out here truly appreciate your
efforts to inform people about the inherent values of gold and silver
vs. the inherent instability and declining buying power of fiat
currencies.

        Ed

I replied:
Thank you for your confirming commentary Ed!

=====

Jason,
 
Best message ever...I too have touted the massive daily price fluctuation is silver (picture being wrong, unstability) is due to the market being manipulated and forced down. Silver should be at that rock solid inflation hedge of 0.02% a day as you stated Jason. One day it'll get there and the manipulation will be gone; until then I'm going to keep investing in the "wrong silver picture". I have learned they can make the numbers be anything they want them to be; until they lose control of the monoploy game...which surprisingly they have commanded very well...having a printing press does wonders. Being able to dump in unback paper contracts does wonders.
 
Any time the picture is wrong, fake , synthetic, manipulated...there is money to be made.
 
They can fool 98% of people to remain in dollars- 401k investments....nothing hits hard in life then silver....but you have to pick yourself up and keep moving forward...that's how wining is done (Rocky inspiration).
 
Silver is a moral killer....but if you have a good grasp that the picture is not what it is....the picture being wrong....then it's easier...and a gift at these incedibly low prices to buy more silver.
 
First I bought silver to preserve wealth and become wealthy (me, myself and family)....once I arrived, and the price was still low...I've now had to change my plan.... now I'm buying even more silver to build an empire...so to sppeak...build for generational wealth in my family. Planting a tree is done for someone else's enjoyment...much is the case of my silver lode.
 
I want to make sure....there's no sad bedtime stories in silver in my family...that Grandpa SilverFinger did his job....and saw threw the "wrong picture" they tried to present to everyone....I was not sold on it. Nothing hits harder than silver....that's why I invest in it. Naysayers will have the sad bedtimes stories.
 
Same story will be silver's story too...once it becomes a household name...."Story goes everyone saw it coming (silver), few acted". "Oh, I knew that too but I didn't have any money to act on it". Stories like those will be abundant.
 
take care
 
Regards, M

I replied:
Wise observations, thank you!

=====

you are right Jason.
 
the dominators want a world that fits what is written in Revelations...(Zion protocols, Toronto protocols)
once you have reead this 100 years old paper and compare it to today, ... you wander at their skills...
 
see RFID chips for everyone. (aaron russo)
 
centalized money, electronical
 
removal of silver gold as money
 
they work on their agenda... since 4000 years... they get close.
 
the trouble looks like beeing the chineese and russian that don't want to play that satanic game...
 
the crazy christians (eyes wide shut) try to accelerate the end of times for they own benefits, they want Jesus to come back fast and remove them before
antechrist (Tamus, son of Nimrod and Ishtar) resurects and rules the world for the better!!! HA HA. nuts!
 
while the "so called - khazar jews" (a fake people, benjamin Freedman, see Khazar books) are trying to reconstruct the 3rd temple to invite their
messiah(he did not come 2000 years ago!!!!). (the Jerusalem golden gate must be reopened, the arab cemetery removed, the al aksa mosk destroyed, the temple rebuilt, artwork remanfactured... actually all exists besides the ark! that could lie in the Vatican?!)
 
so those crazy US christian and jewish interests meet in the US / Israel politics into satanic cult of lies, deaths and so on...yes we can rule the world...
Olympics London 2012... a satanic cult with weired symbols.
 
that's my view as a christian, may those people be cursed to the end.
now they lie about Syria... they lied about sadam, they lied about Khadafi...
who will be next. JFK?
 
best regards.
 
BR
 
can you comment on this?

I replied:
Yes, Arron Russo did expose the rfid chip plan in his movie From Freedom to Fascism. 
http://www.youtube.com/watch?v=uNNeVu8wUak
And that is dangerously close, if not identical to the mark of the beast in Revelation 13. 

I know that many people make a lot of the bloodlines of the Jews.  I don't see that it makes much of an issue, because today, the Bible says there is neither Jew nor Greek and that all gentiles can be saved through Jesus, and that we ought not to dispute about bloodlines, not even those of Jesus. 

I see there is much evidence that white people across Europe and the USA and elsewhere are the lost ten tribes, and while I find that interesting, again, I fail to see significant importance for our age.

=====

Hi,

Hi Jason, you and your readers need to know that the gentiles in the new
testiment ARE the lost sheep of Isreal.  Check out this video:
https://www.youtube.com/watch?v=6fCT0n6VxDA

which explains it from scripture quite well.

Take Care,
D

I replied:
Quite a few readers are bringing this to my attention.  Thank you.

=====

Brilliant, lucid analysis, Jason. In the long term, you have to be right. Trouble is, in the long term we're all....

Regards and thanks

Ian

PS Hope you are keeping up the second career option - the Buddy Holly tribute act?

=====

Jason, This is great and I thank you ! Too bad you can not get over 1 million subscribers. This market is tiny and the masses are ignorant ~ well let me say they are just uninformed. It is hard to break through the barrier that shields this truth. I get fustrated too easily !

Just thinking of my experiences, I guess I'm a failure ~ for trying to spread the word on how silver and gold could save their money !

Now I'm 66 and have gave up trying, the people around me do not want to hear it at all. I think they think I'm crazy !

=====

The whole thing is a manipulation to keep everything from collapse, what do you see happening if we go into hyper inflation & collapse of the dollar? I have heard China's currency is becoming the fiat money for 8 other countries now, with more likely to follow--

=====

Hi Jason,

I read your article very carefully and strongly agree with your conclusions. 

I think another important factor to include is the way gains made in the sale of silver are taxed.

I don't remember the details, but I think it puts a major dent in any "profits" from holding and selling bullion.

Regards,  S

=====

Hi Jason

Thanks for another great report.

I totally agree that Silver paper contracts is totally manipulated, which is why I've only ever bought physical.

Having the Perth Mint almost on my doorstep is great as I can go down there readily and get a few items.

Whilst I am down a bit in dollars due to the Aussie dollar going up so much against the USD, I don't mind the Irony of the fact our dollars go further to make further purchases which get cheaper.

I can't imagine ever selling out for paper fiat now, it was originally my goal a few years ago, but the more i learn it's like giving the authorities the birdie and saying "I don't like what you do so am not giving you my dollars to recklessly gamble and give me <4% interest which you tax and inflate the remainder."

I am more concerned about getting Cyprussed these days our banks over here in Australia are heavily involved in house lending and are yet to get their day of reckoning. It won't be pretty when that occurs. They borrowed off the Fed as well so they are dishonest when they keep telling us they are strong and well-capitalised.

One day the media will be calling us hoaders and speculators when i think we should be considered conservationists of scarce resources. They never consider those with $100 billion to be hoarders of money for some reason. Good luck as you say for those with paper fortunes to squeeze back into the real world of hard assets.

God Bless
Sh

=====

been in the market for 40 years and I totally agree with you.

--DM

=====

Very well done, I have contended this scheme for a long time, the feds are in a tight box with no outlet--I'm ready

--CW

=====

A great article on silver by Jason Hommel, an expert on silver, and a Christian!
--LH

=====

I strongly advise you to take possession of real gold and silver, at anywhere near today's prices, while you still can.   The fundamentals indicate rising prices for decades to come, and a major price spike can happen at any time.

JH MINT & Coin Shop
13241 Grass Valley Ave
Grass Valley, CA 95945
(530) 273-8175
www.jhmint.com

Minimum telephone order $5000 for free shipping, USA shipping only.
Open 10AM to 5PM Pacific Time, Monday to Friday, closed weekends and bank holidays.  (Also Closed from Dec. 25th to Jan 1st)
Kerri handles internet phone orders:
kerri@jhmint.com
(530) 273-8822

NEW Location in Auburn, CA!
JH MINT Silver & Gold
1760 Highway 49 A140
Auburn, CA 95603
(530) 889-1086
www.jhmint.com

You can also buy silver from my mom at www.momssilvershop.com
Mom will ship overseas, even large orders up to $300,000 or larger, and also in lots of more or less than 100 ounces.   
3510 Auburn Blvd #12
Sacramento, CA 95821

Sincerely,

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

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