Auction Update: 25 silver 100 oz. bars, JM or Engelhards

(Update!)

Silver Stock Report

by Jason Hommel, August 28th, 2008

Many people have emailed me to ask why I'm selling silver.  I'm not.  I'm selling another man's silver because I don't have a monopoly on printing money, and I can't buy all the silver in the world.  As I wrote in my last email:

"Some people may wonder if I'm selling out.  I'm not.  These are bars from some of my readers, that I now offer to you.  I'll sell mine, and use the cash to buy these, to insure no default to you, and help insure the highest possible price to the real seller.  I will earn a small spread, and I'll get to test the market to see a depth of bids."

I was sort of forced into doing this auction by market pressure.  I claimed there were shortages, and that 100 oz. bars sold at a premium.  Another man didn't think he could get a premium for 100 oz. bars, because he was not connected to the investment side of the market.  So, I had to put up, or shut up, and I said I would get him a premium over spot for his bars, hence, this auction.

Current bids:
$3.76 over spot, for the lot.
$16.01 per ounce for the lot. (This is about $2.32 over spot now, at $13.69/oz.)
$2.00 over spot for the lot.
$1.75 over spot for 1/2 the lot. (partial lot bids not wanted)
$1.60 over spot for the lot. -- bid withdrawn due to "lack of disclosure of the process".  I don't understand that, because I disclosed everything except the names of other bidders, something even ebay does not disclose.

Additionally, I had 2 people from Canada, and one from New Zealand, asking why I can't ship outside the U.S.  The reason is that U.S. Post Office cannot ship registered, insured outside the U.S.  Outside the U.S. is outside their jurisdiction, and they thus cannot gurantee via insurance, a delivery.  There are no export restrictions on silver leaving the U.S., as far as I know.  I shipped silver to Canada once, and the package was lost for over a month, so, never again.

I expect more bids by tomorrow, Friday, Noon, at my auction's close.  That's NOON, Pacific Time, the last "noon" in the U.S.

Please continue to bid, even if you are not the highest, in case one of the bids falls through, and does not send the money if they end up the winning bidder.

Reminder:  The "spot" price for this auction is the London Silver Fix, on Friday, as listed here:
http://www.kitco.com/market/

I have no guarantee that I'll have more silver to auction regularly, after this auction.  However, high prices should tend to attract sellers, and I hope to help the market to continue to function, if only to inspire others to do things in a more free market way, to help avoid the plague of shortages.  IE, the only solution to shortages is a higher price.  The only way to allow higher prices to be bid is in a free market.  The paper futures market is not a free market if people are selling what they do not have.  Hence, this auction.

Even this auction is not "ultimately free" as there are limits.  It is one time only.  It is to US only.  And for 25 bars only.  Three limits.  But I'm one man, and this is my first auction.

There are several threads about this auction on the internet.  It is being closely watched.  I started none of them.

https://www.kitcomm.com/showthread.php?t=21902

http://messages.finance.yahoo.com/ETFs_(A_to_Z)/ETFs_I/threadview?m=ts&bn=29797&tid=12599&mid=12599&tof=4&frt=2

http://forums.silverseek.com/showthread.php?threadid=1494

http://goldismoney.info/forums/showthread.php?t=295675

Part of the purpose of this auction is to see what bars will really sell for, in a large lot, in a free market.  (And not just on ebay, where there may be only one bar at a time, and where there might be ways to get rebates from credit cards or other offers.)

Part of the purpose of this auction is to rebuke Johnson Matthey, and other major dealers, since they don't sell product to the highest bidder at auction, but sell out completely, and/or make customers wait in line from 8-10 weeks, or 2-4 months, or indefinite time periods, or refusing buy orders.

Of course, I also refuse buy orders, but then again, I'm not a regular dealer, and I fear default is coming, or in progress, in the silver market.

Meanwhile, Johnson Matthey is no longer taking orders for 100 oz. bars. 

One man, at the Yahoo! Finance Threads, rebuked my Christian beliefs, calling me "greedy".  I responded and was able to share some of my Bible based beliefs.

The Stumblingblock of their Iniquity
http://www.silverstockreport.com/2008/stumblingblock.html

Meanwhile, the world's largest refiner announced that they ran out of Krugerrands.  (Confirming my rumor of yesterday.)
http://www.bloomberg.com/apps/news?pid=20601012&sid=acH4WhPh1WJ0&refer=commodities

I looked up the Federal Regulations on Auctions.  There are none, fortunately!  We can have a free market, if we choose.  Men don't often choose, I suppose that's part of the problem.



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For full details on this auction, see:

I have 25 bars of .999 fine 100 oz. silver, JM or Engelhard available for bidding, and available for immediate shipment.
http://silverstockreport.com/2008/auction.html





Sincerely,

    Jason Hommel

    In case you miss an email, check the archives:
    http://silverstockreport.com/ssrarchive.htm
    www.bibleprophesy.org 

    You can buy silver in lots of 100-500 oz. at my auctions at www.seekbullion.com
    Auctions end M-Th, Sat, At 7PM Pacific, but you can place bids anytime, 24/7.  Wires only.  USA Shipping only. 

    You can also buy silver at www.momsilvershop.com
    Mom will ship overseas, and also in lots of more or less than 100 ounces.

    See us also at:
    Rocklin Coin Shop
    4870 Granite Drive, Rocklin, CA 95677
    http://rocklincoinshop.com/