Final Auction Notice!: 125 Engelhard 100 oz. Silver Bars
Silver Stock Report
by Jason Hommel, October 15th, 2008
In most auctions, people
tend to wait until the last few hours to bid, and there are 4
hours left. The lowest bids are already about $14.50-15/oz.,
($4-$4.60 over spot) at this point, a premium of 38% to 43%. So
I'm concerned people may begin to overbid. But it's not my place to
say what these are worth, that's for the market to decide.
But I
feel it's important to remind people that I plan to auction
200 of the same kind of bars by next Wednesday at noon, in a similar
format, at the same site, seekbullion.com. That would be a rate
of about 1 million oz. per year, or about 1% of the overall investment
silver market of about 100 million oz. per year. Is that enough to
help reduce premiums? Not likely.
But other dealers will
soon be able to offer silver for auction at
seekbullion.com. But they will need silver to sell, and they
will need to trust the auction format. We'll
see.
Also, who knows what underlying spot silver prices will
be next week.
In addition, premiums over spot have only
been increasing. For example, in my first auction, for only 25 bars,
back on August 29th, which was a month and a half ago, only one person bid
$4.01 over spot, when spot was $13.76, that was a 29% premium, which I
discounted to $3.76 over spot, or a 27% premium.
Auction Closed: 25 silver 100 oz. bars, JM or Engelhards
August 29, 2008
Many people have asked me
if I will auction any rounds or 10 oz. bars. Well, my mother has
begun auctioning smaller lots of silver on ebay.com, and her first few
items are 1 oz rounds (Buffalos) sold as singles, a pound (12), or 20
at a time, and 10 oz. Amark bars, and her first few items close in
about 2 days. She's hesitant to list more, unless these get any
bids. Please bookmark her store:
http://shop.ebay.com/merchant/jkesilver
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The
auction for 125 Engelhard 100 oz. Silver Bars is running, live,
at:
http://www.seekbullion.com
Auction
ends TODAY, Noon, Pacific time, October 15th. That's the middle of the
day of the middle of the week.
Actually, a series of
auctions is scheduled, running over the course of 26 minutes, ending Noon,
TODAY, because there are 26 separate auctions.
The lowest current bid
is $14.00/oz., or $1400 per 100 oz. silver bar, for a single lot of 20,
full lot only, for a total of $28000.
Here's a picture of my bars for this
auction:
http://silverstockreport.com/images/130-Silver-Engelhard.jpg
I can ship immediately upon
receiving the wire transfers from the customers, after the auction.
Wires must be sent within 24 hours
after the auction's close!
After the auction, I plan
to use the proceeds to buy more silver, such as 1000 oz. COMEX bars, to
make a profit.
I
own over 200,000 oz. of silver. I'm not selling out. I'm only
selling 12,500 ounces, and I plan to buy more silver, cheaper, but in a
different form, such as 1000 oz. bars.
Since this auction is going
so well, I plan to auction more silver next
Wednesday.
The price manipulation at the COMEX is so
severe, that it has now created the profit incentive to create a free
market in silver, through this auction, in order to arbitrage between the two markets, by buying in
one, and selling to the other.
Al Korelin interviewed me
this morning and I spoke briefly about the profit opportunity in silver
because of the premiums:
http://www.kereport.com/DailyRadio/Daily101408.mp3
It is
impossible for me to "price gouge", because I'm not setting the
price. The free market is setting the price.
There are some questions
about how the bidding works.
The bidding system at seekbullion.com uses PROXY BIDDING!
WHAT
IS PROXY BIDDING?
http://www.wisegeek.com/what-is-proxy-bidding.htm
How to
bid:
First, register at http://www.seekbullion.com!
Proxy bidding at seekbullion.com works
similar to ebay.com, however, the "bid increments" at seekbullion are much
smaller.
The high bid wins, but is never what is
paid. The second highest bid mostly determines the
price!
The highest bid is always hidden from view. The bid
you see is nearly always the second highest bid, plus a small increment over that, due to the automatic
proxy bidding of the highest bidder.
For example, if by the
auction's close, one person has bid $1800 for a bar, and the next highest
bid is $1600 for a bar, then the auction software lists the highest bid as
$1601, and the person who bid $1800 is the highest bidder, but will
only pay $1601. The person who bid $1600 will not win, and their bid
is only used as a base for the automatic proxy increment bid of $1
over that price.
It's like each
bar is bid at least twice at very near the price you
see.
This really prevents price gouging, because the bids
have depth--at least two buyers are willing to pay very similar prices.
The second to last auction, for 20 bars, has a bid history of
174 bids, partly because the automatic proxy bid increase
for the highest bidder is so small.
If you want a
free market in silver, then please tell people about my auction at:
http://www.seekbullion.com
Sincerely,
Jason Hommel
www.find-your-local-coin-shop.com
www.silverstockreport.com
www.miningpedia.com
www.bibleprophesy.org
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