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
Showing posts with label perth mint. Show all posts
Showing posts with label perth mint. Show all posts
25 November 2008
22 November 2008
Mint suspends orders amid rush to buy bullion
(When I said Gold was the only way to go safety wise in 2003 until now I was told I was naive and out of touch, a doom and gloomer, a loser. No job in finance for the loser gold bug, they said. well I tell ya, he who laughs last, laughs hardest!)
FEARS of the unknown long-term effects from the global financial crisis have sparked a new gold rush.
With retail and wholesale clients around the world stocking up on the precious metal, the Perth Mint has been forced to suspend orders.
As the World Gold Council reported that the dollar demand for gold reached a quarterly record of $US32 billion ($50.73 billion) in the third quarter, industry insiders said the race to secure physical gold had reached an intensity that had never been witnessed before.
Perth Mint sales and marketing director Ron Currie said the unprecedented demand had forced the Mint to cease orders until January, with staff working seven days a week, 24-hour days, over three shifts to meet orders.
He said Europe was leading the demand, with Russia, Ukraine, Middle East and US all buying -- making up 80 per cent of its sales. One European client purchased 30,000 ounces for $33 million.
"We have never seen this before and are working right at capacity. And we are seeing it from clients in the shop buying one ounce, right up to 30,000 ounces from overseas clients," Mr Currie said.
Robert Jaggard, manager of bullion and rare coins dealer Jaggards, said business had picked up strongly and he expected it to increase further.
"All around the world there has been a heavy run on physical gold and there is a shortage of supply," he said.
Mr Jaggard, who has been dealing in gold for 40 years and is an agent for the Perth Mint, said some clients were buying up to $1million worth of gold, paying a premium above the spot price.
Late yesterday afternoon, spot gold in Sydney was trading at $US747.30 an ounce, up $US8.15 on Thursday's local close.
"Professional business people who have previously bought small amounts now want more gold because they are suffering in other markets," Mr Jaggard said.
At a conference this week in Munich, delegates were lined up 30-deep to purchase physical gold. And reports out of the Middle East suggested that there had been unprecedented gold buying in Saudi Arabia during the first half of November, with an estimated $US3.5 billion purchased in recent weeks.
The World Gold Council, releasing its global demand trends yesterday, said identifiable investment demand, which incorporates demand for gold through exchange-traded funds and bars and coins, was the biggest contributor to overall demand during the quarter. It was up to $US10.7 billion, double last year's levels.
The figures showed retail investment demand rose 121 per cent to 232 tonnes in the third quarter, with strong bar and coin buying reported in Swiss, German and US markets.
The quarter also witnessed widespread reports of gold shortages among bullion dealers across the globe, as investors searched for a haven. Overall, quarter three saw Europe reach an all-time record 51 tonnes of bar and coin buying. France became a net investor in gold for the first time since the early 1980s.
World Gold Council chief executive James Burton said gold's universal role as a store of value had shone through during the quarter, helping attract investors and consumers to all forms of gold ownership.
"The rise in demand for gold bars and coins has been impressive," he said.
Demand in India, the largest market for gold, recovered during the third quarter, encouraged by lower gold prices, a good monsoon and the onset of the festive season. At 250 tonnes, total consumer demand was 31 per cent higher than the same period last year. In value terms, demand hit the record quarterly sum of $US5 billion.
FEARS of the unknown long-term effects from the global financial crisis have sparked a new gold rush.
With retail and wholesale clients around the world stocking up on the precious metal, the Perth Mint has been forced to suspend orders.
As the World Gold Council reported that the dollar demand for gold reached a quarterly record of $US32 billion ($50.73 billion) in the third quarter, industry insiders said the race to secure physical gold had reached an intensity that had never been witnessed before.
Perth Mint sales and marketing director Ron Currie said the unprecedented demand had forced the Mint to cease orders until January, with staff working seven days a week, 24-hour days, over three shifts to meet orders.
He said Europe was leading the demand, with Russia, Ukraine, Middle East and US all buying -- making up 80 per cent of its sales. One European client purchased 30,000 ounces for $33 million.
"We have never seen this before and are working right at capacity. And we are seeing it from clients in the shop buying one ounce, right up to 30,000 ounces from overseas clients," Mr Currie said.
Robert Jaggard, manager of bullion and rare coins dealer Jaggards, said business had picked up strongly and he expected it to increase further.
"All around the world there has been a heavy run on physical gold and there is a shortage of supply," he said.
Mr Jaggard, who has been dealing in gold for 40 years and is an agent for the Perth Mint, said some clients were buying up to $1million worth of gold, paying a premium above the spot price.
Late yesterday afternoon, spot gold in Sydney was trading at $US747.30 an ounce, up $US8.15 on Thursday's local close.
"Professional business people who have previously bought small amounts now want more gold because they are suffering in other markets," Mr Jaggard said.
At a conference this week in Munich, delegates were lined up 30-deep to purchase physical gold. And reports out of the Middle East suggested that there had been unprecedented gold buying in Saudi Arabia during the first half of November, with an estimated $US3.5 billion purchased in recent weeks.
The World Gold Council, releasing its global demand trends yesterday, said identifiable investment demand, which incorporates demand for gold through exchange-traded funds and bars and coins, was the biggest contributor to overall demand during the quarter. It was up to $US10.7 billion, double last year's levels.
The figures showed retail investment demand rose 121 per cent to 232 tonnes in the third quarter, with strong bar and coin buying reported in Swiss, German and US markets.
The quarter also witnessed widespread reports of gold shortages among bullion dealers across the globe, as investors searched for a haven. Overall, quarter three saw Europe reach an all-time record 51 tonnes of bar and coin buying. France became a net investor in gold for the first time since the early 1980s.
World Gold Council chief executive James Burton said gold's universal role as a store of value had shone through during the quarter, helping attract investors and consumers to all forms of gold ownership.
"The rise in demand for gold bars and coins has been impressive," he said.
Demand in India, the largest market for gold, recovered during the third quarter, encouraged by lower gold prices, a good monsoon and the onset of the festive season. At 250 tonnes, total consumer demand was 31 per cent higher than the same period last year. In value terms, demand hit the record quarterly sum of $US5 billion.
10 October 2008
Perth Mint booms amid financial meltdown
http://www.thewest.com.au/default.aspx?MenuID=32&ContentID=100692
Perth Mint has hired more staff and added a third shift to its factory roster to keep up with the demand for gold coins as volatile markets send investors scrambling to buy into the perceived safe haven.
"In the six years I've been with the Perth Mint it's never been this busy," Mint chief executive Ed Harbuz said yesterday. "Demand for our bullion coins has gone through the roof, not only in our shop but in North America, Europe."
Mr Harbuz said Perth Mint's depository held about $1.5 billion worth of gold and other precious metals on behalf of investors.
He estimated that production of coins had doubled in the past six months.
"Eighty per cent of our business is done outside Australia. Most of our demand is in North America, Europe and Asia," Mr Harbuz said. "When there is fear and uncertainty some people go to gold and other precious metals as a safe haven, and it's been like that for thousands of years."
Mr Harbuz said sourcing precious metals was not hard but there had been some strain on coin production.
"There is a lot to making a coin from gold bars to silver bars and we have limitations in equipment and people, but we have managed to keep up reasonably well with demand by putting on extra shifts."
One customer recently went to the Mint with a cheque and was told it would have to clear before his gold could be issued. The customer immediately went to the bank and withdrew $100,000 to buy the gold straight away.
"That was an isolated incident," Mr Harbuz said. "In general we do get customers that seem to be panicking and seem to be desperate to put their money into precious metals."
Gold can be bought as bullion coins and bars or can be invested via depository schemes where the buyer pays to have a certain amount stored securely on their behalf, with the price generally determined by the “spot” gold price at the time of purchase. ...
Perth Mint has hired more staff and added a third shift to its factory roster to keep up with the demand for gold coins as volatile markets send investors scrambling to buy into the perceived safe haven.
"In the six years I've been with the Perth Mint it's never been this busy," Mint chief executive Ed Harbuz said yesterday. "Demand for our bullion coins has gone through the roof, not only in our shop but in North America, Europe."
Mr Harbuz said Perth Mint's depository held about $1.5 billion worth of gold and other precious metals on behalf of investors.
He estimated that production of coins had doubled in the past six months.
"Eighty per cent of our business is done outside Australia. Most of our demand is in North America, Europe and Asia," Mr Harbuz said. "When there is fear and uncertainty some people go to gold and other precious metals as a safe haven, and it's been like that for thousands of years."
Mr Harbuz said sourcing precious metals was not hard but there had been some strain on coin production.
"There is a lot to making a coin from gold bars to silver bars and we have limitations in equipment and people, but we have managed to keep up reasonably well with demand by putting on extra shifts."
One customer recently went to the Mint with a cheque and was told it would have to clear before his gold could be issued. The customer immediately went to the bank and withdrew $100,000 to buy the gold straight away.
"That was an isolated incident," Mr Harbuz said. "In general we do get customers that seem to be panicking and seem to be desperate to put their money into precious metals."
Gold can be bought as bullion coins and bars or can be invested via depository schemes where the buyer pays to have a certain amount stored securely on their behalf, with the price generally determined by the “spot” gold price at the time of purchase. ...
5 September 2008
Hommel yelling about Silver
I do think that a lot of the finance games with silver no longer work in a bull market, that said, I think that the Perth Mint is run in a conservative manner.
Nadler, Kitco, Perth, Matthey; Sold Out!
($500 million silver default?!)
Silver Stock Report
by Jason Hommel, September 3, 2008
In an interesting twist, Jon Nadler posted a report by a blogger two days ago that I could mostly agree with.
http://www.kitco.com/ind/nadler/sep012008A.html
http://goldchat.blogspot.com/2008/08/fud-fear-uncertainty-doubt.html
The blog post is by an "industry insider," who tries to explain the "normality" of the shortages of silver and gold.
I also think it's normal for there to be shortages of silver and gold when inflation is raging out of control, and when the markets are manipulated, but I suppose we don't agree on reasons like that.
I left several comments on that blog, here:
https://www.blogger.com/comment.g?blogID=6089228851855763774&postID=7370174306249188090
My key question: If there is no shortage of actual silver, as opposed to only shortage of "investment silver", where can I go to buy that real actual silver? As of last night, there was no answer.
Today, a reply came, but no answer.
http://goldchat.blogspot.com/2008/09/jason-hommel-has-made-some-comments-to.html
The blogger works at Perth Mint, and writes:
"When I say that wholesale bars are available, it means in wholesale quantities. I cannot speak for Kitco, but I went upstairs and spoke to the Treasurer and he will do deals for a minimum of 20 tonnes of silver and 1 tonne of gold. Call Nigel Moffatt on (08) 9421 7403. Price will be on a deal-by-deal basis."
That's insane. Right downstairs, they often run out of 100 oz. bars, and reportedly have no 1000 oz. bars for sale.
Besides, that's a lie. Wholesale quantities in silver are 1 silver futures contract of 5000 ounces, which is about 1/6th of a tonne, not 20 tonnes!
Further, I note that Nigel did NOT say he would SELL 20 tonnes of silver. He only wants to "deal" in that, minimum. He probably needs to buy that much to pull his fat out of the fire, as I will explain below.
But first, people keep asking me "What's up with Jon Nadler, that guy who bashes metal, yet works for Kitco, who sells metal? I don't get it?"
Kitco runs a "pool" account where they hold the metal for investors, or in other words, they OWE precious metal to their clients.
Kitco also sells Perth Mint certificates, which also represents precious metal owed to clients.
Maybe that explains it?
Usually that's all I need to say to those who ask me, and the person replies, "Oh, of course. Thank you."
Perhaps that's one reason why Nadler posted the article by a Perth guy; they are connected, they both owe metal, and Perth uses Kitco, or Nadler specifically, as a mouthpiece.
If you click on Nadler's bio link at the top of any of his articles, it says that he may have helped government mints, like Perth, in the past:
"He has long-standing ties in the precious global metals community and has consulted on marketing and product development issues to government mints, precious metals retailers, as well as to trade and membership organizations, such as the World Gold Council."
Interestingly, Nadler boasts about his background in banking, and not just for a small banking outfit, but Bank of America, America's second largest bank!
"Jon established and managed several precious metals operations at major USA-based financial institutions (Deak-Perera, Republic National Bank, and Bank of America)."
Bank of America has the second largest derivatives position of all the Banks in America, right behind JP Morgan, at $28 trillion, yes, Trillion, with a T.
http://www.occ.treas.gov/ftp/deriv/dq207.pdf
And, Bank of America was a member of the Silver User's Association, a group devoted to the conflicting goals of keeping silver prices low and keeping silver available for users. Low prices create shortages, of course. And you can't buy silver at Bank of America, of course.
I don't think Jon Nadler is ignorant on purpose. I don't believe anyone can actually be that stupid on a regular basis, so the people who have repeatedly nominated him for the "Moron of the Year" award don't see the big picture. Instead, I give Nadler more credit than that. I think he's a human of somewhat higher intelligence than normal, but his wisdom score is extremely low. Either that, or he has a very high wisdom score, but he just works with black chaotic magic, instead of embracing the light of truth, or something like that. I think he has a clear agenda, he is actively making a war on gold and silver with his words, on a daily basis, and he is paid to do that.
There are more key connections I must reveal, based on reports from out of Australia about two weeks ago.
The Perth Mint owns 40% of AGR Matthey, in Australia.
AGR Matthey supposedly was using some of Perth's silver and gold that backs the Perth Mint silver certificate program, that is sold by Kitco.
Proof: The Perth Mint's annual report discloses the precious metal loan to AGR Matthey, as I reported previously.
"The $880 million of precious metals deposited by Perth Mint Depository clients (note 17) was used in operations by Gold Corporation as inventory ($381 million - Note 8b) with the balance in the refining operations of AGR Matthey (Note 8a).
http://www.perthmint.com.au//documen...ort 2007.pdf
p. 81, bottom
I never took a class in deciphering "Ogre-speak", and certified accountants can't decipher Perth's annual report either, but did Perth Mint mean to say or imply that AGR Matthey has "the balance" between $880 million and $381 million, which would be about $500 million worth of gold and silver backing the certificate program?
Wait, that's not the shocking part, I'm getting to it.
Here's the bombshell shocker:
AGR Matthey closed their silver operations! There is no news of this item, it's only available at the Kitco chat boards directly!
https://www.kitcomm.com/showthread.php?t=21325
Two of my readers reported the same thing. AGR Matthey offices closed. What?? Why?!
AGR Matthey supposedly has all this gold and silver on loan from Perth Mint's certificate program with which to operate and conduct operations, to enable them to have metal for use in refining operations, so that they can take those abundant 1000 oz. bars, and make them into 100 oz. bars, and sell metal to the public, and now, during a time of record demand from the public, when little old me can sell 25 bars at a $4.01 premium to the spot price, when AGR Matthey should be well funded, with plenty of metal, and capable of making a killing on manufacturing bars with their own top industry and famous and desired trademark, they decide to close up shop?
What??!!
Their story makes no sense. It make more sense that they have been operating at a loss for years, and used up the loan of precious metal in operations years ago (a loan that would have been fantastic to have during a bear market in metals, which, if you used accounting gimmicks right, you could say that the loan was brining in "profits", but not in a bull market). So, most likely, the managers recognize that they cannot buy more metal today, and cannot get the metal back to pay back the growing metal loan. It makes more sense that as the silver market is manipulated down, when inflation is raging, and when investors are all buying, and not selling, that they cannot source metal from the public anymore, and so they have closed up shop for that reason.
So, look, AGR Matthey's closure of silver operations might have been a $500 million precious metals default to Perth Mint in the last two weeks. No wonder the Perth Mint wants to deal in 20 tonnes of silver minimum, which would still only be about $10 million worth. (20 tonnes x 32,151oz/tonne = 643,020 oz. x $13? = $8.3 million!)
But hey, I'm sure someone like Nadler can be hired to say things like "move along", "nothing to see here", the business was "just not profitable". Really! Ya think?
If silver is abundant, why can't AGR Matthey use their ($500 million?) pool of abundant and borrowed metal to make 100 oz. bars to sell to the public at a premium, and just buy more abundant 1000 oz. bars with the profits and make a killing?!
I believe that this is the first major "hidden" default, or emerging default, that has the potential to cause the bankruptcy of the Perth Mint, and/or bankruptcy and/or silver default at the COMEX, if they are not all bankrupt already.
The closing of AGR Matthey calls into question the validity of the entire Perth Mint certificate program, and Kitco, and Nadler.
I think Perth Mint certificate holders should either be investigating, or redeeming their certificates for real physical metal, while they still can.
It appears as if the Perth Mint took my advice a few months ago, and bought at least some silver at higher prices to make available to people, to calm down the constant stream of reports of delays of 2 months. But now, it appears as if things are much, much, much worse than a mere 2 month delivery delay.
It seems as if Perth's 2 month delay has turned into Johnson Matthey's 2 month delay!
The other connection and warning that must be made now, is about Johnson Matthey, because AGR Matthey is one of their divisions.
http://www.matthey.com/about/locations.htm
Johnson Matthey, of course, is the largest silver refiner in the U.S., and was 8-10 weeks behind on orders for 100 ounce silver bars, and in the last week or so, stopped taking orders for silver. Matthey has a capacity of manufacturing 300-400 bars per week. 7th Grade Math warning: 400 bars x 100 oz.. each x 10 weeks = 400,000 ounces of silver = 12 tonnes, that JM is behind, backordered.
Interesting that that amount is just under the "minimum deal size" of 20 tonnes as Nigel said at Perth.
COMEX contracts are for 5000 ounces, or about 1/6th of a tonne. Why not just take delivery of 120 contracts Nigel?
But wait, if 20 tonnes is the minimum deal size, does that mean that Perth does not buy any silver when investors buy certificates for less than that, after all, that's their minimum deal size!?
So, it's not we silver investors who need to take delivery of the COMEX contracts. We silver investors already placed the orders. It's them, the companies who owe silver to the investors, who need to take delivery, and apparently cannot.
Johnson Matthey's primary distributor is AMARK. Amark is the largest bullion trader in the U.S. Amark is out of all silver products, so they are essentially "out of business" with a "shut down" silver division too, until they get silver.
Most other major dealers deal direct with Johnson Matthey, or Amark.
Here is another major shocker that I just heard today. CNI Numismatics, at golddealer.com, who is one of the most trusted silver dealers of which I know, verifies and confirms this overall story with a shocker admission from Johnson Matthey.
JM told CNI that JM is "ramping down" production of 100 ounce bars!!!
What? JM is backlogged 8-10 weeks, and refusing orders to try to catch up, yet is "RAMPING DOWN production"? That confirms the AGR Matthey shut down. And that can only mean one thing. There is a shortage of 1000 oz. bars or any other form of silver to make into 100 ounce bars.
This is why there is a shortage, world wide. The largest silver providers can't find enough silver to provide it. And this is why the shortage is denied by those in that camp. Their businesses may well be at risk right now, and the worst lot of them are in desperate need of you to send them money now to wait for silver that has an indefinite wait time attached.
KITCO NOTICE ADMITS THEY WANT TO DEFRAUD YOU BY HOLDING YOUR MONEY POTENTIALLY FOREVER, AND IF YOU ASK FOR A REFUND, THEY WILL CHARGE YOU EXTRA.
IMPORTANT NEW NOTICE: Demand for bullion products has increased significantly in recent days. As a result, we may experience delays in supply and possibly delays in processing and shipping by our vaults. We apologize for this inconvenience and will do everything in our power to service your orders as quickly as possible. While cancellation fees still apply, prices are guaranteed regardless of the length of the delay. We remain committed to providing you the best service no matter what market conditions prevail.
Don't fall for it. Not now.
Be careful out there. Defaults are either ongoing, or imminent.
If you want to help break these guys, there's one key way to do it. Make sure you buy and sell your silver at an ever increasing premium over their "spot" price or paper price. As that starts to happen, the paper hedging contracts cannot be used to purchase silver from the public, because the public's silver will cost too much. And if the paper system cannot provide enough silver either, then their game is over.
We are closer than ever to a major explosion in the silver price. In fact, it's already begun in the premiums for "walking silver" as opposed to "paper silver". What's "walking silver"? The stuff you can walk out of the store with!
Sincerely,
Jason Hommel
Nadler, Kitco, Perth, Matthey; Sold Out!
($500 million silver default?!)
Silver Stock Report
by Jason Hommel, September 3, 2008
In an interesting twist, Jon Nadler posted a report by a blogger two days ago that I could mostly agree with.
http://www.kitco.com/ind/nadler/sep012008A.html
http://goldchat.blogspot.com/2008/08/fud-fear-uncertainty-doubt.html
The blog post is by an "industry insider," who tries to explain the "normality" of the shortages of silver and gold.
I also think it's normal for there to be shortages of silver and gold when inflation is raging out of control, and when the markets are manipulated, but I suppose we don't agree on reasons like that.
I left several comments on that blog, here:
https://www.blogger.com/comment.g?blogID=6089228851855763774&postID=7370174306249188090
My key question: If there is no shortage of actual silver, as opposed to only shortage of "investment silver", where can I go to buy that real actual silver? As of last night, there was no answer.
Today, a reply came, but no answer.
http://goldchat.blogspot.com/2008/09/jason-hommel-has-made-some-comments-to.html
The blogger works at Perth Mint, and writes:
"When I say that wholesale bars are available, it means in wholesale quantities. I cannot speak for Kitco, but I went upstairs and spoke to the Treasurer and he will do deals for a minimum of 20 tonnes of silver and 1 tonne of gold. Call Nigel Moffatt on (08) 9421 7403. Price will be on a deal-by-deal basis."
That's insane. Right downstairs, they often run out of 100 oz. bars, and reportedly have no 1000 oz. bars for sale.
Besides, that's a lie. Wholesale quantities in silver are 1 silver futures contract of 5000 ounces, which is about 1/6th of a tonne, not 20 tonnes!
Further, I note that Nigel did NOT say he would SELL 20 tonnes of silver. He only wants to "deal" in that, minimum. He probably needs to buy that much to pull his fat out of the fire, as I will explain below.
But first, people keep asking me "What's up with Jon Nadler, that guy who bashes metal, yet works for Kitco, who sells metal? I don't get it?"
Kitco runs a "pool" account where they hold the metal for investors, or in other words, they OWE precious metal to their clients.
Kitco also sells Perth Mint certificates, which also represents precious metal owed to clients.
Maybe that explains it?
Usually that's all I need to say to those who ask me, and the person replies, "Oh, of course. Thank you."
Perhaps that's one reason why Nadler posted the article by a Perth guy; they are connected, they both owe metal, and Perth uses Kitco, or Nadler specifically, as a mouthpiece.
If you click on Nadler's bio link at the top of any of his articles, it says that he may have helped government mints, like Perth, in the past:
"He has long-standing ties in the precious global metals community and has consulted on marketing and product development issues to government mints, precious metals retailers, as well as to trade and membership organizations, such as the World Gold Council."
Interestingly, Nadler boasts about his background in banking, and not just for a small banking outfit, but Bank of America, America's second largest bank!
"Jon established and managed several precious metals operations at major USA-based financial institutions (Deak-Perera, Republic National Bank, and Bank of America)."
Bank of America has the second largest derivatives position of all the Banks in America, right behind JP Morgan, at $28 trillion, yes, Trillion, with a T.
http://www.occ.treas.gov/ftp/deriv/dq207.pdf
And, Bank of America was a member of the Silver User's Association, a group devoted to the conflicting goals of keeping silver prices low and keeping silver available for users. Low prices create shortages, of course. And you can't buy silver at Bank of America, of course.
I don't think Jon Nadler is ignorant on purpose. I don't believe anyone can actually be that stupid on a regular basis, so the people who have repeatedly nominated him for the "Moron of the Year" award don't see the big picture. Instead, I give Nadler more credit than that. I think he's a human of somewhat higher intelligence than normal, but his wisdom score is extremely low. Either that, or he has a very high wisdom score, but he just works with black chaotic magic, instead of embracing the light of truth, or something like that. I think he has a clear agenda, he is actively making a war on gold and silver with his words, on a daily basis, and he is paid to do that.
There are more key connections I must reveal, based on reports from out of Australia about two weeks ago.
The Perth Mint owns 40% of AGR Matthey, in Australia.
AGR Matthey supposedly was using some of Perth's silver and gold that backs the Perth Mint silver certificate program, that is sold by Kitco.
Proof: The Perth Mint's annual report discloses the precious metal loan to AGR Matthey, as I reported previously.
"The $880 million of precious metals deposited by Perth Mint Depository clients (note 17) was used in operations by Gold Corporation as inventory ($381 million - Note 8b) with the balance in the refining operations of AGR Matthey (Note 8a).
http://www.perthmint.com.au//documen...ort 2007.pdf
p. 81, bottom
I never took a class in deciphering "Ogre-speak", and certified accountants can't decipher Perth's annual report either, but did Perth Mint mean to say or imply that AGR Matthey has "the balance" between $880 million and $381 million, which would be about $500 million worth of gold and silver backing the certificate program?
Wait, that's not the shocking part, I'm getting to it.
Here's the bombshell shocker:
AGR Matthey closed their silver operations! There is no news of this item, it's only available at the Kitco chat boards directly!
https://www.kitcomm.com/showthread.php?t=21325
Two of my readers reported the same thing. AGR Matthey offices closed. What?? Why?!
AGR Matthey supposedly has all this gold and silver on loan from Perth Mint's certificate program with which to operate and conduct operations, to enable them to have metal for use in refining operations, so that they can take those abundant 1000 oz. bars, and make them into 100 oz. bars, and sell metal to the public, and now, during a time of record demand from the public, when little old me can sell 25 bars at a $4.01 premium to the spot price, when AGR Matthey should be well funded, with plenty of metal, and capable of making a killing on manufacturing bars with their own top industry and famous and desired trademark, they decide to close up shop?
What??!!
Their story makes no sense. It make more sense that they have been operating at a loss for years, and used up the loan of precious metal in operations years ago (a loan that would have been fantastic to have during a bear market in metals, which, if you used accounting gimmicks right, you could say that the loan was brining in "profits", but not in a bull market). So, most likely, the managers recognize that they cannot buy more metal today, and cannot get the metal back to pay back the growing metal loan. It makes more sense that as the silver market is manipulated down, when inflation is raging, and when investors are all buying, and not selling, that they cannot source metal from the public anymore, and so they have closed up shop for that reason.
So, look, AGR Matthey's closure of silver operations might have been a $500 million precious metals default to Perth Mint in the last two weeks. No wonder the Perth Mint wants to deal in 20 tonnes of silver minimum, which would still only be about $10 million worth. (20 tonnes x 32,151oz/tonne = 643,020 oz. x $13? = $8.3 million!)
But hey, I'm sure someone like Nadler can be hired to say things like "move along", "nothing to see here", the business was "just not profitable". Really! Ya think?
If silver is abundant, why can't AGR Matthey use their ($500 million?) pool of abundant and borrowed metal to make 100 oz. bars to sell to the public at a premium, and just buy more abundant 1000 oz. bars with the profits and make a killing?!
I believe that this is the first major "hidden" default, or emerging default, that has the potential to cause the bankruptcy of the Perth Mint, and/or bankruptcy and/or silver default at the COMEX, if they are not all bankrupt already.
The closing of AGR Matthey calls into question the validity of the entire Perth Mint certificate program, and Kitco, and Nadler.
I think Perth Mint certificate holders should either be investigating, or redeeming their certificates for real physical metal, while they still can.
It appears as if the Perth Mint took my advice a few months ago, and bought at least some silver at higher prices to make available to people, to calm down the constant stream of reports of delays of 2 months. But now, it appears as if things are much, much, much worse than a mere 2 month delivery delay.
It seems as if Perth's 2 month delay has turned into Johnson Matthey's 2 month delay!
The other connection and warning that must be made now, is about Johnson Matthey, because AGR Matthey is one of their divisions.
http://www.matthey.com/about/locations.htm
Johnson Matthey, of course, is the largest silver refiner in the U.S., and was 8-10 weeks behind on orders for 100 ounce silver bars, and in the last week or so, stopped taking orders for silver. Matthey has a capacity of manufacturing 300-400 bars per week. 7th Grade Math warning: 400 bars x 100 oz.. each x 10 weeks = 400,000 ounces of silver = 12 tonnes, that JM is behind, backordered.
Interesting that that amount is just under the "minimum deal size" of 20 tonnes as Nigel said at Perth.
COMEX contracts are for 5000 ounces, or about 1/6th of a tonne. Why not just take delivery of 120 contracts Nigel?
But wait, if 20 tonnes is the minimum deal size, does that mean that Perth does not buy any silver when investors buy certificates for less than that, after all, that's their minimum deal size!?
So, it's not we silver investors who need to take delivery of the COMEX contracts. We silver investors already placed the orders. It's them, the companies who owe silver to the investors, who need to take delivery, and apparently cannot.
Johnson Matthey's primary distributor is AMARK. Amark is the largest bullion trader in the U.S. Amark is out of all silver products, so they are essentially "out of business" with a "shut down" silver division too, until they get silver.
Most other major dealers deal direct with Johnson Matthey, or Amark.
Here is another major shocker that I just heard today. CNI Numismatics, at golddealer.com, who is one of the most trusted silver dealers of which I know, verifies and confirms this overall story with a shocker admission from Johnson Matthey.
JM told CNI that JM is "ramping down" production of 100 ounce bars!!!
What? JM is backlogged 8-10 weeks, and refusing orders to try to catch up, yet is "RAMPING DOWN production"? That confirms the AGR Matthey shut down. And that can only mean one thing. There is a shortage of 1000 oz. bars or any other form of silver to make into 100 ounce bars.
This is why there is a shortage, world wide. The largest silver providers can't find enough silver to provide it. And this is why the shortage is denied by those in that camp. Their businesses may well be at risk right now, and the worst lot of them are in desperate need of you to send them money now to wait for silver that has an indefinite wait time attached.
KITCO NOTICE ADMITS THEY WANT TO DEFRAUD YOU BY HOLDING YOUR MONEY POTENTIALLY FOREVER, AND IF YOU ASK FOR A REFUND, THEY WILL CHARGE YOU EXTRA.
IMPORTANT NEW NOTICE: Demand for bullion products has increased significantly in recent days. As a result, we may experience delays in supply and possibly delays in processing and shipping by our vaults. We apologize for this inconvenience and will do everything in our power to service your orders as quickly as possible. While cancellation fees still apply, prices are guaranteed regardless of the length of the delay. We remain committed to providing you the best service no matter what market conditions prevail.
Don't fall for it. Not now.
Be careful out there. Defaults are either ongoing, or imminent.
If you want to help break these guys, there's one key way to do it. Make sure you buy and sell your silver at an ever increasing premium over their "spot" price or paper price. As that starts to happen, the paper hedging contracts cannot be used to purchase silver from the public, because the public's silver will cost too much. And if the paper system cannot provide enough silver either, then their game is over.
We are closer than ever to a major explosion in the silver price. In fact, it's already begun in the premiums for "walking silver" as opposed to "paper silver". What's "walking silver"? The stuff you can walk out of the store with!
Sincerely,
Jason Hommel
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