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Comment by Maria De Wind on May 26, 2011 at 5:50pm

Dear Capitalists of the World

(Try to buy silver, just try!)

Silver Stock Report

by Jason Hommel, May 26th, 2011, Grass Valley, CA

The last time I challenged the Billionaires of the world to try to outperform silver, all failed, as I predicted.  No billionaire reportedly doubled his wealth since September, 2010.

In September, silver was under $20/oz.  Today, silver is $38/oz., and on a dip down from $49.50/oz.

I wrote, Dear Billionaires of the World
(The Silver Market is a tiny $1.9 billion)
Silver Stock Report
by Jason Hommel, September 2nd, 2010
http://silverstockreport.com/2010/billion.html

I wrote why silver would outperform, and I sent this information out to the top 25 Billionaires who had contact information via email that was available.

Since that time, billionaire Carlos Slim got into the silver market, but he sold 3 years worth of production already, and will likely miss out on much of the upside, unless he covers, and buys back that silver, on this dip.
http://www.businessinsider.com/carlos-slims-incredibly-smart-silver-sales-2011-5

Also, since that time, Eric Sprott, who manages billions, and who might be a billionaire himself, listed my name, along with David Morgan and Ted Butler as "the smartest guys in the room" when it comes to silver.
http://marcfaberchannel.blogspot.com/2011/01/david-morgan-interviews-eric-sprott-1.html

Why silver?

For over 100 years, silver has been demonetized -- meaning, silver is no longer used as money, which reduces demand, which has reduced value, which makes it a perfect undervalued asset.

For over 66 years, since the end of WWII, silver has been consumed in industry, mostly in electronics, to the point that most of the silver ever mined in all of human history has been consumed.  This reduction and consumption of supply has made silver more rare, and has created a potential natural monopoly for those who buy silver now.

The world mines just under 10 times as much silver, as gold, each year, suggesting a price ratio of 10:1, showing silver may perform 4 times better than gold, given the current price ratio of 41:1.

In sum, the silver market remains very tiny, for billionaires.  World silver mine production is about 700 million oz., yet industrial consumption of silver in over 10,000 different applications continues to increase faster than mine supply. 

World investment demand, which is a small portion of overall demand, has vastly increased, but remains a tiny 250 million oz., which, at $40/oz., is a relatively tiny $10 billion, tiny in the scale of world finance.

By the time even a tiny 1% of U.S. paper money tries to buy silver to protect itself from inflation, that would be $180 billion dollars (1% of $18 trillion), or 18 times as much investment money went into silver last year.

Finally, the silver price has risen enough so that a billionaire now actually can buy $1 billion in real, physical, silver bullion.  

But the logistics of buying that much will remain difficult.  At $40/oz., that would be 25 million oz., which will weigh 1.7 million pounds, or 865 tons.  Or, 865 massive truck loads. That's a lot of truck loads of silver, and a lot of fork lifting that needs to get done, and the construction of the vault needed to store all of that needs to get started on immediately. 

To put 25 million ounces of silver into perspective, that is also about two and a half times as much silver as was produced by the US mint each year on average, which used to be only 10 million oz., until just the last few years where the US mint is on pace to produce about 35 - 40 million oz. this year.

Warning:  Don't store your silver with any bankers or brokers, not anywhere in the world, not even Swiss bankers.  And don't buy any ETF silver, either.  Why not?

The BIS, the Bank of International Settlements, has a report showing that world bankers are short, or in other words, have silver liabilities, or owe other people or entities, up to $130 billion to $203 billion worth of silver.  This is an admission of fractional reserve silver banking, and it's fraud.  (Recently, the $203 billion number was revised down to $107 billion, after I began publishing links to their report!)

This BIS report is perhaps the best evidence of the biggest admitted fraud in the entire world.  No conspiracy "theory" is needed.  This is what the big boys themselves admit freely in their own reports!

Here is the BIS report (they change the location frequently):
Start here:
http://www.bis.org/statistics/derstats.htm
Click here:
http://www.bis.org/statistics/otcder/dt21c22a.pdf

There are two tables.  See the second one, Table 22A.

Table 22A: Amounts outstanding of OTC equity-linked and commodity derivatives
By instrument and counterparty
In billions of US dollars

"Other Precious Metals" (IE, mostly silver, but also platinum and palladium, both tiny markets)

Notional amounts outstanding:
$123 Billion, as of Dec., 2010.

This silver debt cannot be paid back easily, if ever.  As I mentioned, the world only mines 700 million oz. per year, which, at $40/oz., is only $28 billion.  The world banks owe many years of world production of silver, more than could be obtained on the world markets.

Again, it will be very difficult to acquire $1 billion worth of silver, let alone up to $123 billion to $200 billion that the bankers owe. 

Good luck trying to outperform silver!

Against this backdrop of the excellent fundamentals of silver, the United States is printing money like crazy, and the rest of the world is racing to print even more.

Last month, when the news was covering the potential government shutdown, while Democrats and Republican budgets were bickering over a mere $30 billion, while the US government is actually spending a whopping $1,600 billion more than they are taking in, the public woke up. 

Many of our customers at www.jhmint.com said, "They are not remotely close to fixing the problem, and there will be inflation for years to come."  People are waking up.

When horrible inflation hits, there are very few things to actually buy to protect your money.  See the empty shelves after a currency crisis in Belarus, on May 23, 2011, three days ago, here:
http://www.stevequayle.com/News.alert/11_Photo_of_Day/110524.photo.of.day.html

Most things in the world have a horrible price spread, that is, a wide price between the buy and sell prices. 

Silver and gold are the things to buy.  What else is there?  Copper?  Plastic forks?  Laptop computers that will be obsolete in a year or two?  Food?  No. No. No. And yes, maybe $10,000 for food, or enough for a year or so, enough to protect your life, but it won't protect your wealth.

Silver and gold are real money, even if they are not currently being used as a medium of exchange.  In fact, their lack of use as a medium of exchange make them an even better store of value, because you are buying them prior to when the price goes much higher in value when everyone else will need to buy them to protect from inflation.

Soon, the government will need to discuss raising the debt ceiling.  That debate will be in the news for a few weeks.  People will, again, flock to silver.

Soon, the government will need to discuss a quantitative easing III, because QEII will run out in June, 2011, if it has not run out already.  People, again, will flock to silver.

You will not beat the public to the punch, you are already a bit late to the party, and you will be lucky to get silver below $100/oz. 

Why?  Because the tipping point has already been reached.

Good luck!

Oh, by the way, this email is going out to 82,000 emails, and to the top 25 billionaires in the world.  The 82,000 email recipients have an estimated combined net worth of over $10 billion. 

 

=====

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.

Follow me on facebook   I have 3500 friends, and I hear there is a limit of 5000!
http://www.facebook.com/jason.hommel 

JH MINT & Coin Shop, Grass Valley, CA -- minimum 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)
www.jhmint.com
(530) 273-8175
Kerri handles internet phone orders:
kerri.jhmint@yahoo.com
(530) 273-8822

See also my mom's store in Sacramento, CA, she will also ship overseas, and handle smaller orders.
www.momsilvershop.com

Sincerely, 

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

Comment by truth on May 23, 2011 at 11:01am

China Passes India As World's Biggest Gold Buyer

Comment by Maria De Wind on May 22, 2011 at 12:41am

Republic of Benin makes numismatic history

 

Comment by Maria De Wind on May 22, 2011 at 12:17am

David Morgan on the Global Economy, Inflation, Recession and Where ...

Comment by jenny green on May 21, 2011 at 9:22pm

EXCELLENT Article Dennis!! How true that so many of these currency values are manipulated & coordinated by the Govts!

Comment by Maria De Wind on May 21, 2011 at 12:22am

Silver Shortage Causes Price Disconnect

 

Commodity Prices Disconnect from Physical

 

Physical/Futures price disconnect: two prices of silver NOW EVIDENT...

Comment by Maria De Wind on May 15, 2011 at 10:39pm

Physical Silver is Really $50 per Ounce (80% Premium on COMEX Silve... March 5, 2011 12:21

 

This just in from Harvey Organ's review of the gold and silver market.  

 

Wynter_Benton update on their recent raid With permission, I can update the results of our raid. It was successful beyond imagination but that "success" has spawned even more questions about the price of paper silver going forward. It was reported by SGS that he heard that on Friday Blythe was offering 30-50 percent premium and that at least 4500 hundred contracts will stand for delivery. I am here to give you a more accurate update (and a first hand account of what happened on Friday Feb 25). Our group was detemined to stand for delivery going into Monday because we were not going to take a 30 percent premium on a price of $33.50. It was reported that Blythe offered 50 percent premium. That was not even close in our case. We got over 80 percent premium. That's right. Over $50 per contract on the condition that our group sell all our contracts. Our counterparty even threatened us with the ghost of Herstatt. They openly admitted that they could not deliver even 20 million ounces to us but that if we stood for delivery they would be sure that they make delivery to everyone else before they defaulted on us which would make us 'unsecured creditors'. They told us directly that they could not allow even 5000 contracts to stand for delivery because they could not deliver a mere 20 million ounces. Like Vito Corleone said, "I'm gonna make him an offer he can't refuse." And indeed we did not refuse as this was our intention all along.

 

These sets of facts from our traders lead us to believe that the paper price of silver may have a difficult time surpassing $36 because if the counterparty at the Comex is so willing to pay north of $50 to dissuade people from standing for delivery yet the paper price of silver is still under $35, then we suspect that losses triggered by derivatives is the main reason for the price suppression of silver. We can see no reason why they would not allow the paper price to go up yet are so glad to pay off the comex contracts to show the world that so few are standing for delivery. In our mind, Comex could default with if as little as 4,000 contracts stood for delivery. We are very curious to see how high the paper price of silver actually trades during this run. Posted by Louis Cypher"

 

It should now be obvious to all that silver is a fractional reserve system.  Just like a fractional reserve bank, when there is more demand for the actual underlying good (i.e. silver or money) than there is a real physical supply for, it's called a "run on the bank".  Those who get in line first, get their silver.   Everyone else will end up as an "unsecured creditor", holding a worthless piece of paper when the music stops. 

 

 

 

Comment by Maria De Wind on May 10, 2011 at 12:51am

And So It Continues: Another 92 Thousand Ounces In Physical Silver ...

 

James Turk - “Silver Will Hit New Highs in a Matter of Weeks

Comment by Maria De Wind on May 9, 2011 at 11:29pm

Prices are going up again !

Comment by truth on May 9, 2011 at 11:29pm

Anatomy of Silver Manipulation - How Low Can It Go?

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