We think Hommel can be discounted, somewhat. He sent me a silver oz once, no strings, that counts for a lot. NK
Last week, I reported my opinion that the moneylenders in control of the government are both incapable of stopping the silver fraud taking place, and unwilling. Many people think they are deliberately trying to destroy this nation. No, they are not that smart or purposefully devious. They are deliberately trying to line their own pockets, without one care about whether this harms this nation, or not. Or, even worse, they probably think they are doing the right thing, as even criminals justify their behaviors, as even Al Capone, famous bootlegger and crime boss thought he was merely serving the public interest of people who wanted to drink alcohol.
This week, I was given direct evidence that my opinion was right. I received a first hand account by Martin A. Armstrong, who writes from prison to expose the corruption of our financial system. Martin was beaten in his jail cell within an inch of his life, and afterwards, had the courage to expose everything he could.
To characterize Martin's report, it's as if the current financial system is a very large airplane, full of holes, crashing to earth at horrific speed, but those in power continue to wildly shoot their fellow passengers, and tear more holes in the plane, as they continue to jocky for position for the best seats in first class. Nobody in power is even thinking yet of dashing for the few remaining parachutes, being silver and gold.
It's as if those who are in charge are the decendants of the decendants of the decendants who set everything up, and are squandering their inheritance, because they have all totally forgotten that silver and gold are the only real money, and in short supply. They would know that silver and gold are in short supply if they paid any attention to fundamental analysis, but they do not.
Martin writes that the current establishment abandoned fundamental analysis decades ago, which is why so few listen to people like him, or even have the ability to listen to to the fundamental analysis that I have continued to present for the past ten years.
Martin says they care more about the control of predictions, than the reality of the predictions.
With that, here's Martin's report. Please pray for Martin's safety, and for the safety of my family as well. The people in power that Martin exposes are dangerous, and increasingly desperate people, who are even turning on their own.
Please read Martin's 17 page report. It's well worth your time. It's a real eye opener.
Looking Behind the Curtain
The "Real" Conspiracy
April 9th, 2009
http://www.silverstockreport.com/2009/Armstrong.pdf
Showing posts with label hommel. Show all posts
Showing posts with label hommel. Show all posts
25 November 2008
Hommel can be a goose ~ Perth Mint "lies" claim very weak
Well, Jason, the media has not woken up.
"Reportedly, "One European client purchased 30,000 ounces for $33 million." The math is critically important here to show the fraud. That purchase is for gold at $1100/oz.! That's quite a bit above spot! That's $350/oz. above spot!
Either Perth Mint is lying, or there is a very naive investor desperately trying to buy $33 million worth of Perth Mint overpriced gold. Let's assume Perth is telling the truth about this purchase."
Well Jason, last time I looked, the Perth Mint was in Western Australia and it therefore sells Gold in Australian dollars, if such an obivious fact escapes you, how can we credit your analysis.
However, Jason's tirades are having some impact on the Mint's cred and a clear statement of exactly how much leverage/fractional backing is involved in the Perth Mints unallocated certificate program would be timely. The Perth Mint must prove it did not allow itself to be captured by the quants (like everybody else) and demonstrate that a sudden remontisation of Silver defacto or de jure and explosion will not stress its balance sheet. I predict just such an explosion is comming.
Perth Mint Fraud Revealed
At last, the media wakes up.
Silver Stock Report
by Jason Hommel, November 23rd, 2008
Of all the frauds that I work to expose, one of the hardest for people to see is the Perth Mint Fraud. The Perth Mint has issued $1.5 billion in gold and silver certificates, for the express purpose of "working inventory," but it is probably being used for "legacy debt," and so, I believe most of it is totally unbacked, based on customer complaints and reports of how they operate.
Some Perth customers can't see it, because they claim to be able to get silver or gold from Perth on a regular basis. Clearly, banks can continue to operate on a 1% reserve requirement, and continue to pay out depositors, and stay in business, despite not having reserves to back up 99% of depositors. Other customers are clearly able to see the fraud, based on the delays, high costs, and extra fees that the Perth Mint charges.
But a recent press release exposes their fraud even more than I ever did.
Mint suspends orders amid rush to buy bullion
http://www.theaustralian.news.com.au/business/story/0,28124,24687337-643,00.html
Reportedly, the Perth Mint has suspended orders until January. But, despite having $1.5 billion to be used for working inventory so that they can fill orders, they cannot fill orders.
That should be enough to settle the matter. It shows that if you have any Perth certificates, you should GET OUT.
But there's more evidence:
Reportedly, "One European client purchased 30,000 ounces for $33 million." The math is critically important here to show the fraud. That purchase is for gold at $1100/oz.! That's quite a bit above spot! That's $350/oz. above spot!
Either Perth Mint is lying, or there is a very naive investor desperately trying to buy $33 million worth of Perth Mint overpriced gold. Let's assume Perth is telling the truth about this purchase.
It actually costs the SAME amount to mint gold, as silver. The only difference is that you need more capital costs, more gold, to mint gold, because some gold is always "in flux" in the minting process. But with the Perth Mint having a reported $1.5 billion in silver and gold to be used for that, at zero interest rate, thanks to the certificate holders, this is not a cost for them.
So, if we assume $1/oz. in costs, then Perth has earned, on that one reported gold deal, at least $349 x 30,000, which is $10.4 million dollars. This is important to note, because it's enough to fund the development of from 20 to 40 new mints with all state of the art equipment. Therefore it's telling for me to read that they are working "non stop" to fill orders. Why can't they spend money to expand capacity 20 to 40 fold?
I think it's because $10 million is not enough to pay back a $1.5 billion legacy debt.
What's more revealing is what I exposed in my last report:
Where's the Abundance of Perth Mint Rounds?! September 6, 2008
I noted: "If only 1/10th of the $880 million of gold and silver certificates is in silver (and they don't reveal what percentage it is), then that would be $88 million. Divide by $13 = 6.8 million ounces of silver. If that much were minted monthly, that would come out to 81 million one ounce rounds, which would be 4 times as many coins minted by the U.S. Mint."
Since that report, Perth revealed that their certificates are $1.5 billion, not the $880 million as of last year.
Again, let's run some math. If we assume 1/4 of the $1.5 billion is in silver, that's $375 million, at $10/oz, that's 37.5 million oz. If we assume a minting turn around time of a full one month, that amount of "working inventory" could be used to mint (37.5 x 12) 450 million ounces per year.
The ENTIRE SILVER MARKET FOR INVESTORS IS ONLY 75 TO 100 MILLION OZ./YEAR!
The U.S. Mint only makes 20 million oz. per year, since doubling capacity in 2008! Clearly, the Perth Mint is practicing "standard fractional reserve banking" type fraud, since they need to shut down because of too many orders.
This shows that probably 99% of Perth Mint issued certificates are fraudulent, and backed by nothing more than a promise to repay.
Why is this important? Because $1.5 million worth of investment demand was siphoned away from gold and silver and into Perth Mint gold and silver certifiate fraud instead. If $1.5 million went into silver, instead, the silver price would probably be more than $25/oz. That, according to Ted Butler, could have added about $10 billion worth to the existing stock of real silver, and another $10 billion in market cap to the silver stocks. Fruad hurts more than just the people defrauded, it hurts the entire industry. It also hurts the entire world.
I'm surprised that more people are not outraged by this fraud.
To see more of my reports on the Perth fraud, see here:
Where's the Abundance of Perth Mint Rounds?! September 6, 2008
Nadler, Kitco, Perth, Matthey; Sold Out! September 3, 2008
Perth Mint Crisis Watch 5 June 6, 2008
Perth Mint Crisis Watch May 23, 2008
Perth Mint Crisis: Solutions and Ramifications May 23, 2008
To the largest newspapers in Australia May 22, 2008
To the government of Western Australia May 21, 2008
Poor Prospects for Kitco/Perth/Matthey May 19, 2008
Kitco / Perth Mint / AGR Matthey / Bullion Bank Connections May 17, 2008
Will Kitco Sue me?! May 16, 2008
Silver Shortage Drives Men Nuts March 31, 2008
Perth Mint and Kitco Scheme Exposed March 26, 2008
Sincerely,
Jason Hommel
www.find-your-local-coin-shop.com
www.silverstockreport.com
www.miningpedia.com
www.bibleprophesy.org
"Reportedly, "One European client purchased 30,000 ounces for $33 million." The math is critically important here to show the fraud. That purchase is for gold at $1100/oz.! That's quite a bit above spot! That's $350/oz. above spot!
Either Perth Mint is lying, or there is a very naive investor desperately trying to buy $33 million worth of Perth Mint overpriced gold. Let's assume Perth is telling the truth about this purchase."
Well Jason, last time I looked, the Perth Mint was in Western Australia and it therefore sells Gold in Australian dollars, if such an obivious fact escapes you, how can we credit your analysis.
However, Jason's tirades are having some impact on the Mint's cred and a clear statement of exactly how much leverage/fractional backing is involved in the Perth Mints unallocated certificate program would be timely. The Perth Mint must prove it did not allow itself to be captured by the quants (like everybody else) and demonstrate that a sudden remontisation of Silver defacto or de jure and explosion will not stress its balance sheet. I predict just such an explosion is comming.
Perth Mint Fraud Revealed
At last, the media wakes up.
Silver Stock Report
by Jason Hommel, November 23rd, 2008
Of all the frauds that I work to expose, one of the hardest for people to see is the Perth Mint Fraud. The Perth Mint has issued $1.5 billion in gold and silver certificates, for the express purpose of "working inventory," but it is probably being used for "legacy debt," and so, I believe most of it is totally unbacked, based on customer complaints and reports of how they operate.
Some Perth customers can't see it, because they claim to be able to get silver or gold from Perth on a regular basis. Clearly, banks can continue to operate on a 1% reserve requirement, and continue to pay out depositors, and stay in business, despite not having reserves to back up 99% of depositors. Other customers are clearly able to see the fraud, based on the delays, high costs, and extra fees that the Perth Mint charges.
But a recent press release exposes their fraud even more than I ever did.
Mint suspends orders amid rush to buy bullion
http://www.theaustralian.news.com.au/business/story/0,28124,24687337-643,00.html
Reportedly, the Perth Mint has suspended orders until January. But, despite having $1.5 billion to be used for working inventory so that they can fill orders, they cannot fill orders.
That should be enough to settle the matter. It shows that if you have any Perth certificates, you should GET OUT.
But there's more evidence:
Reportedly, "One European client purchased 30,000 ounces for $33 million." The math is critically important here to show the fraud. That purchase is for gold at $1100/oz.! That's quite a bit above spot! That's $350/oz. above spot!
Either Perth Mint is lying, or there is a very naive investor desperately trying to buy $33 million worth of Perth Mint overpriced gold. Let's assume Perth is telling the truth about this purchase.
It actually costs the SAME amount to mint gold, as silver. The only difference is that you need more capital costs, more gold, to mint gold, because some gold is always "in flux" in the minting process. But with the Perth Mint having a reported $1.5 billion in silver and gold to be used for that, at zero interest rate, thanks to the certificate holders, this is not a cost for them.
So, if we assume $1/oz. in costs, then Perth has earned, on that one reported gold deal, at least $349 x 30,000, which is $10.4 million dollars. This is important to note, because it's enough to fund the development of from 20 to 40 new mints with all state of the art equipment. Therefore it's telling for me to read that they are working "non stop" to fill orders. Why can't they spend money to expand capacity 20 to 40 fold?
I think it's because $10 million is not enough to pay back a $1.5 billion legacy debt.
What's more revealing is what I exposed in my last report:
Where's the Abundance of Perth Mint Rounds?! September 6, 2008
I noted: "If only 1/10th of the $880 million of gold and silver certificates is in silver (and they don't reveal what percentage it is), then that would be $88 million. Divide by $13 = 6.8 million ounces of silver. If that much were minted monthly, that would come out to 81 million one ounce rounds, which would be 4 times as many coins minted by the U.S. Mint."
Since that report, Perth revealed that their certificates are $1.5 billion, not the $880 million as of last year.
Again, let's run some math. If we assume 1/4 of the $1.5 billion is in silver, that's $375 million, at $10/oz, that's 37.5 million oz. If we assume a minting turn around time of a full one month, that amount of "working inventory" could be used to mint (37.5 x 12) 450 million ounces per year.
The ENTIRE SILVER MARKET FOR INVESTORS IS ONLY 75 TO 100 MILLION OZ./YEAR!
The U.S. Mint only makes 20 million oz. per year, since doubling capacity in 2008! Clearly, the Perth Mint is practicing "standard fractional reserve banking" type fraud, since they need to shut down because of too many orders.
This shows that probably 99% of Perth Mint issued certificates are fraudulent, and backed by nothing more than a promise to repay.
Why is this important? Because $1.5 million worth of investment demand was siphoned away from gold and silver and into Perth Mint gold and silver certifiate fraud instead. If $1.5 million went into silver, instead, the silver price would probably be more than $25/oz. That, according to Ted Butler, could have added about $10 billion worth to the existing stock of real silver, and another $10 billion in market cap to the silver stocks. Fruad hurts more than just the people defrauded, it hurts the entire industry. It also hurts the entire world.
I'm surprised that more people are not outraged by this fraud.
To see more of my reports on the Perth fraud, see here:
Where's the Abundance of Perth Mint Rounds?! September 6, 2008
Nadler, Kitco, Perth, Matthey; Sold Out! September 3, 2008
Perth Mint Crisis Watch 5 June 6, 2008
Perth Mint Crisis Watch May 23, 2008
Perth Mint Crisis: Solutions and Ramifications May 23, 2008
To the largest newspapers in Australia May 22, 2008
To the government of Western Australia May 21, 2008
Poor Prospects for Kitco/Perth/Matthey May 19, 2008
Kitco / Perth Mint / AGR Matthey / Bullion Bank Connections May 17, 2008
Will Kitco Sue me?! May 16, 2008
Silver Shortage Drives Men Nuts March 31, 2008
Perth Mint and Kitco Scheme Exposed March 26, 2008
Sincerely,
Jason Hommel
www.find-your-local-coin-shop.com
www.silverstockreport.com
www.miningpedia.com
www.bibleprophesy.org
3 October 2008
Hommel: Weird shit in the silver market
How to make $100 million in less than a year from $500,000
(Bar Premiums Reveal U.S. is a Banana Republic)
Silver Stock Report
by Jason Hommel, October 2nd, 2008
The most important and most neglected news item of the last week is the increasing premiums for 100 oz. silver bars.
There are several reasons why this is the most important news item:
1. The profit opportunity, as mentioned in the title above.
2. The potential to destroy the silver manipulation once and for all, by bankrupting COMEX of silver.
3. This reveals the "two tier" structure of a US dollar exchange rate; the official dollar rate at COMEX silver, and the unofficial rate in the physical bullion market. This two tier structure is telegraphing and predicting and signaling that the dollar can lose about 40%-50% of its value fairly quickly; in perhaps about a year or so.
Here's the indisputable facts:
As of 2pm Thursday afternoon, Kitco.com silver price (reflective of COMEX 1000 oz. bar prices) is:
$10.87/oz.
As of 2pm Thursday afternoon, Amark.com 100 oz. silver bar price is:
$1571.
That's a $4.84 premium per ounce!
What a premium! How much? Let's see: Go to:
http://www.smartmoney.com/compoundcalc/
That's a 44.53% premium! (In the last 2 days, it's been rising. And AMARK is reported to be out of silver!)
But AMARK is the largest bullion distributor in the U.S., or they were, before they ran out of silver, as they were Johnson Matthey's primary distributor.
What does this mean? It means that if a person can buy 1000 oz. bars, and turn them into 100 oz. bars in a week, (at no cost) they can make 44.53% on their money! That's a fairly high rate of return, isn't it?
Annualized, given 52 weeks in a year, that's a return of 4,758,150,000% per year!
In a mere 20 weeks, a person could turn $1/2 million into a billion dollars!
There are a few problems, of course.
1. Can you even get the 1000 oz. bars?
2. What is the actual manufacturing capital cost?
3. What is the actual per-bar manufacturing cost?
I've gotten estimates on these things over the last month. Capital costs range from $100,000 to $500,000. Manufacturing costs range from $.50/oz. to $.75/oz.
With a manufacturing cost of $.75/oz., subtracted from $4.84, leaves $4.09/oz. profit, which is a 37.6% premium.
That leaves a return of only 454,672,000% per year.
And finally, what is the size of the market to sell into? The potential buyers are spending about $1 billion on silver per year, and 100 oz. bars are probably only about 1/10th of the overall silver market. Therefore, the current maximum market is about $100 million per year right now, but rapidly growing, of course.
Thus, about $100 million worth of silver consuming buying power, buying 100 oz. bars at a significant premium of 44%, is predicting that the dollar will fall by about 40-50% in the next year.
There are several other conclusions to make from this: One or more of the following, might be true.
1. There are no 1000 oz. bars for sale, or if they are, they are in a desperate short supply. This is not 100% true. You can clearly tap into the 1000 oz. bar market from refiners and producers.
2. All the 100 oz. bar manufacturers are being bankrupted by rising silver prices driven by investor demand that they don't want to facilitate, or they are swamped and cannot meet market demand.
3. Amark is merely price gouging.
We can eliminate Amark price gouging, because 100 oz. silver bars are selling at ebay.com now for:
$1615 selling in 15 minutes; 6 bids
$1600 selling in 1 hour; 15 bids
$1550 selling in 2 hours; 17 bids
$1525 selling in 2 hours; 11 bids.
I've never seen so many 100 oz. bars being sold at ebay. More bars sold, yet the price is at record premiums. This validates the market price, and/or that the market demand is far greater than the world's manufacturing capacity for 100 oz. bars.
I spoke to one dealer today who sold a rather large lot of 100 oz. bars at $1700 each.
Finally, all of this validates that the silver market price at COMEX is manipulated.
The CFTC earlier this week announced they would re-investigate. This is like a willfully blind man saying he will begin to think about maybe trying to open his eyes.
CFTC Relents and Probes Silver Market
Persistent Complaints of Foul Play Draw the Still-Skeptical Agency to Investigate
SEPTEMBER 25, 2008
http://online.wsj.com/article/SB122231175151874367.html?mod=testMod
http://online.wsj.com/article_email/SB122231175151874367-lMyQjAxMDI4MjIyNTMyMTUxWj.html
Send your letters of indignation to:
BChilton@CFTC.gov
Ted Butler rightly points out that there is no need to investigate, since the facts are so clear.
Meet The New Boss, Same As The Old Boss?
By: Theodore Butler
29 September, 2008
http://news.silverseek.com/TedButler/1222712899.php
I fully expect that the CFTC will find no evidence of manipulation, once again. How can they? If the one doing the manipulating is the U.S. government, or owners of the U.S. government, such as large banks such as JP Morgan who might be an owner of the Federal Reserve, then the CFTC are merely the employees of the manipulators! They must find nothing wrong!
Next, people are acting to help silver investors and potential 100 oz. bar manufacturers, by creating new bullion auction and trading websites. Here are two; neither is yet operable, it seems:
New Gold & Silver Auction Trading Websites:
https://goldwetrust.com/
http://www.seekbullion.com/
For all those who said there is no shortage, the shortage just got worse, and in gold again:
US Mint suspends sale of 24-karat gold coins
US Mint forced to suspend sales of American Buffalo 24-karat gold coins due to heavy demand
Friday September 26
http://biz.yahoo.com/ap/080926/mint_gold_coins.html
In other neglected news, there was a loud protest of about 500 to 1000 people outside Wall Street.
The people in the protest in the video below are saying:
"You broke it, you bought it, the bail out is bull shit!"
NYC Wall St. Bailout Protest 25 September 2008
http://www.youtube.com/watch?v=XreAnHG8xu4
Finally, let's get to that $700 billion bail out being debated. It Is bull shit. (Please excuse my language, but that is clearly common vernacular now.) Why it is bull shit!?
Because the Fed just loaned $1.3 trillion dollars, which is $1300 billion, to the banks last week!
Fed keeps banks afloat as money market crisis deepens
Thu Sep 25, 2008
http://www.reuters.com/article/ousiv/idUSTRE48O9B920080925?pageNumber=1&virtualBrandChannel=0
NEW YORK/LONDON (Reuters) - U.S. banks and money managers borrowed a record amount from the Federal Reserve in the latest week, nearly $188 billion a day on average, showing the central bank went to extremes to keep the banking system afloat amid the biggest financial crisis since the Great Depression.
$188 billion per day times 7 = $1316 billion!
Therefore, discussion in congress of $700 billion is totally unimportant, except as window dressing and public relations as a publicity stunt.
Yet people are protesting and debating $700 billion. They are so deceived.
What is even more neglected in being mentioned in the news is that the bail out or rescue will cost a lot more than $1316 billion, or $1.3 trillion.
If the housing market is a $30 trillion market, and if that is down 30%, then the bail out could cost $9 trillion.
And if the housing market is $40 trillion, and if housing goes down 50%, then try more like $20 trillion.
In case you care to put $1316 billion into perspective, that was actually loaned, that is going to add to the gold price. How much? Let's divide by the U.S. "official gold hoard" of 261 million oz. of gold shall we?
$1,316,000 million / $261 million = $5042. In other words, the Fed just added a potential $5042 per ounce to the gold price!
No wonder they are sold out of gold!!!
If the people had any brains at all, and if there was no delay between money creation and inflation of the gold price, then the gold price would be more than $6000/oz. just today.
The ongoing bail outs are inflationary, which is great for silver, as it is now rising 40-50% higher than the official manipulated silver price.
James Turk explains why this is inflationary, and not deflationary:
We Are in the Sixth Inning
(1 October 2008)
http://goldmoney.com/
There are still a few odd people who are scared of deflation, and/or who think that deflation will cause silver prices to drop, as they did during the depression in the 1930's. Silver prices hit $.25/oz. during the depression, in part, due to a glut of silver on the world market because nations like India stopped using silver as coinage. The reduced demand for silver as a medium of exchange is what reduced the silver price.
But today, with no nation on earth using silver as money, monetary demand cannot go down, it can only change and go up.
I predict that we will have a world monetary return to using silver as money, using the silver one ounce coin as the basis. Already, many nations are making .999 fine 1 ounce silver coins, so there is already a world standard, as follows:
The US. -- the silver Eagle.
Canada -- the silver Maple.
Mexico -- the Libertad.
Austria -- the Philharmonic.
Australia -- the Loony.
For those who are interested in getting 1000 oz. silver bars, while you still can, here are precise instructions:
"How to Take Delivery of a Futures Contract"
Precious Metals in the Physical Realm
By David Morgan
September 25, 2008
http://www.silver-investor.com/davidmorgancommentary/articles/9-25-08_ibtimes31_PreciousMetalsinthePhysicalRealm.html
As always, visit your local coin shop:
http://find-your-local-coin-shop.com/
If you live in the Northern California area, visit my favorite coin shop; Roger at Rocklin Coin.
http://rocklincoinshop.com/
(I just got back from a relaxing one week vacation, and so, this is my summary of the week's events. Also, I should have the "look at my portfolio" updated later this evening.)
Sincerely,
Jason Hommel
www.find-your-local-coin-shop.com
www.silverstockreport.com
www.miningpedia.com
www.bibleprophesy.org
My offer:
For the price of just a few ounces of silver per month, you can look at my silver stock portfolio. Once a month, at the end/beginning of the month, around the 31st or 1st, for paying subscribers, I update the stocks I own and the percent of each stock or position in my portfolio. It's very simple. Very revealing. Very useful. It's not trading advice. It's not a model portfolio. It's my portfolio. Sign up here:
http://silverstockreport.com/customerservice.htm
Paying subscribers also get access to the member's forum where some very, very smart people discuss silver, stocks, economic issues, growth rates, why peak oil & global warming are frauds, and many other things.
(Bar Premiums Reveal U.S. is a Banana Republic)
Silver Stock Report
by Jason Hommel, October 2nd, 2008
The most important and most neglected news item of the last week is the increasing premiums for 100 oz. silver bars.
There are several reasons why this is the most important news item:
1. The profit opportunity, as mentioned in the title above.
2. The potential to destroy the silver manipulation once and for all, by bankrupting COMEX of silver.
3. This reveals the "two tier" structure of a US dollar exchange rate; the official dollar rate at COMEX silver, and the unofficial rate in the physical bullion market. This two tier structure is telegraphing and predicting and signaling that the dollar can lose about 40%-50% of its value fairly quickly; in perhaps about a year or so.
Here's the indisputable facts:
As of 2pm Thursday afternoon, Kitco.com silver price (reflective of COMEX 1000 oz. bar prices) is:
$10.87/oz.
As of 2pm Thursday afternoon, Amark.com 100 oz. silver bar price is:
$1571.
That's a $4.84 premium per ounce!
What a premium! How much? Let's see: Go to:
http://www.smartmoney.com/compoundcalc/
That's a 44.53% premium! (In the last 2 days, it's been rising. And AMARK is reported to be out of silver!)
But AMARK is the largest bullion distributor in the U.S., or they were, before they ran out of silver, as they were Johnson Matthey's primary distributor.
What does this mean? It means that if a person can buy 1000 oz. bars, and turn them into 100 oz. bars in a week, (at no cost) they can make 44.53% on their money! That's a fairly high rate of return, isn't it?
Annualized, given 52 weeks in a year, that's a return of 4,758,150,000% per year!
In a mere 20 weeks, a person could turn $1/2 million into a billion dollars!
There are a few problems, of course.
1. Can you even get the 1000 oz. bars?
2. What is the actual manufacturing capital cost?
3. What is the actual per-bar manufacturing cost?
I've gotten estimates on these things over the last month. Capital costs range from $100,000 to $500,000. Manufacturing costs range from $.50/oz. to $.75/oz.
With a manufacturing cost of $.75/oz., subtracted from $4.84, leaves $4.09/oz. profit, which is a 37.6% premium.
That leaves a return of only 454,672,000% per year.
And finally, what is the size of the market to sell into? The potential buyers are spending about $1 billion on silver per year, and 100 oz. bars are probably only about 1/10th of the overall silver market. Therefore, the current maximum market is about $100 million per year right now, but rapidly growing, of course.
Thus, about $100 million worth of silver consuming buying power, buying 100 oz. bars at a significant premium of 44%, is predicting that the dollar will fall by about 40-50% in the next year.
There are several other conclusions to make from this: One or more of the following, might be true.
1. There are no 1000 oz. bars for sale, or if they are, they are in a desperate short supply. This is not 100% true. You can clearly tap into the 1000 oz. bar market from refiners and producers.
2. All the 100 oz. bar manufacturers are being bankrupted by rising silver prices driven by investor demand that they don't want to facilitate, or they are swamped and cannot meet market demand.
3. Amark is merely price gouging.
We can eliminate Amark price gouging, because 100 oz. silver bars are selling at ebay.com now for:
$1615 selling in 15 minutes; 6 bids
$1600 selling in 1 hour; 15 bids
$1550 selling in 2 hours; 17 bids
$1525 selling in 2 hours; 11 bids.
I've never seen so many 100 oz. bars being sold at ebay. More bars sold, yet the price is at record premiums. This validates the market price, and/or that the market demand is far greater than the world's manufacturing capacity for 100 oz. bars.
I spoke to one dealer today who sold a rather large lot of 100 oz. bars at $1700 each.
Finally, all of this validates that the silver market price at COMEX is manipulated.
The CFTC earlier this week announced they would re-investigate. This is like a willfully blind man saying he will begin to think about maybe trying to open his eyes.
CFTC Relents and Probes Silver Market
Persistent Complaints of Foul Play Draw the Still-Skeptical Agency to Investigate
SEPTEMBER 25, 2008
http://online.wsj.com/article/SB122231175151874367.html?mod=testMod
http://online.wsj.com/article_email/SB122231175151874367-lMyQjAxMDI4MjIyNTMyMTUxWj.html
Send your letters of indignation to:
BChilton@CFTC.gov
Ted Butler rightly points out that there is no need to investigate, since the facts are so clear.
Meet The New Boss, Same As The Old Boss?
By: Theodore Butler
29 September, 2008
http://news.silverseek.com/TedButler/1222712899.php
I fully expect that the CFTC will find no evidence of manipulation, once again. How can they? If the one doing the manipulating is the U.S. government, or owners of the U.S. government, such as large banks such as JP Morgan who might be an owner of the Federal Reserve, then the CFTC are merely the employees of the manipulators! They must find nothing wrong!
Next, people are acting to help silver investors and potential 100 oz. bar manufacturers, by creating new bullion auction and trading websites. Here are two; neither is yet operable, it seems:
New Gold & Silver Auction Trading Websites:
https://goldwetrust.com/
http://www.seekbullion.com/
For all those who said there is no shortage, the shortage just got worse, and in gold again:
US Mint suspends sale of 24-karat gold coins
US Mint forced to suspend sales of American Buffalo 24-karat gold coins due to heavy demand
Friday September 26
http://biz.yahoo.com/ap/080926/mint_gold_coins.html
In other neglected news, there was a loud protest of about 500 to 1000 people outside Wall Street.
The people in the protest in the video below are saying:
"You broke it, you bought it, the bail out is bull shit!"
NYC Wall St. Bailout Protest 25 September 2008
http://www.youtube.com/watch?v=XreAnHG8xu4
Finally, let's get to that $700 billion bail out being debated. It Is bull shit. (Please excuse my language, but that is clearly common vernacular now.) Why it is bull shit!?
Because the Fed just loaned $1.3 trillion dollars, which is $1300 billion, to the banks last week!
Fed keeps banks afloat as money market crisis deepens
Thu Sep 25, 2008
http://www.reuters.com/article/ousiv/idUSTRE48O9B920080925?pageNumber=1&virtualBrandChannel=0
NEW YORK/LONDON (Reuters) - U.S. banks and money managers borrowed a record amount from the Federal Reserve in the latest week, nearly $188 billion a day on average, showing the central bank went to extremes to keep the banking system afloat amid the biggest financial crisis since the Great Depression.
$188 billion per day times 7 = $1316 billion!
Therefore, discussion in congress of $700 billion is totally unimportant, except as window dressing and public relations as a publicity stunt.
Yet people are protesting and debating $700 billion. They are so deceived.
What is even more neglected in being mentioned in the news is that the bail out or rescue will cost a lot more than $1316 billion, or $1.3 trillion.
If the housing market is a $30 trillion market, and if that is down 30%, then the bail out could cost $9 trillion.
And if the housing market is $40 trillion, and if housing goes down 50%, then try more like $20 trillion.
In case you care to put $1316 billion into perspective, that was actually loaned, that is going to add to the gold price. How much? Let's divide by the U.S. "official gold hoard" of 261 million oz. of gold shall we?
$1,316,000 million / $261 million = $5042. In other words, the Fed just added a potential $5042 per ounce to the gold price!
No wonder they are sold out of gold!!!
If the people had any brains at all, and if there was no delay between money creation and inflation of the gold price, then the gold price would be more than $6000/oz. just today.
The ongoing bail outs are inflationary, which is great for silver, as it is now rising 40-50% higher than the official manipulated silver price.
James Turk explains why this is inflationary, and not deflationary:
We Are in the Sixth Inning
(1 October 2008)
http://goldmoney.com/
There are still a few odd people who are scared of deflation, and/or who think that deflation will cause silver prices to drop, as they did during the depression in the 1930's. Silver prices hit $.25/oz. during the depression, in part, due to a glut of silver on the world market because nations like India stopped using silver as coinage. The reduced demand for silver as a medium of exchange is what reduced the silver price.
But today, with no nation on earth using silver as money, monetary demand cannot go down, it can only change and go up.
I predict that we will have a world monetary return to using silver as money, using the silver one ounce coin as the basis. Already, many nations are making .999 fine 1 ounce silver coins, so there is already a world standard, as follows:
The US. -- the silver Eagle.
Canada -- the silver Maple.
Mexico -- the Libertad.
Austria -- the Philharmonic.
Australia -- the Loony.
For those who are interested in getting 1000 oz. silver bars, while you still can, here are precise instructions:
"How to Take Delivery of a Futures Contract"
Precious Metals in the Physical Realm
By David Morgan
September 25, 2008
http://www.silver-investor.com/davidmorgancommentary/articles/9-25-08_ibtimes31_PreciousMetalsinthePhysicalRealm.html
As always, visit your local coin shop:
http://find-your-local-coin-shop.com/
If you live in the Northern California area, visit my favorite coin shop; Roger at Rocklin Coin.
http://rocklincoinshop.com/
(I just got back from a relaxing one week vacation, and so, this is my summary of the week's events. Also, I should have the "look at my portfolio" updated later this evening.)
Sincerely,
Jason Hommel
www.find-your-local-coin-shop.com
www.silverstockreport.com
www.miningpedia.com
www.bibleprophesy.org
My offer:
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http://silverstockreport.com/customerservice.htm
Paying subscribers also get access to the member's forum where some very, very smart people discuss silver, stocks, economic issues, growth rates, why peak oil & global warming are frauds, and many other things.
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