Silver Auctions And Silver News
(And Links)
Silver Stock Report
by Jason Hommel, December 16th, 2008
Silver Bar Auctions at www.seekbullion.com
Closing Tonight at 6pm Pacific Time, 9pm
Eastern:
Current Highest Bid as of 1PM | Auction details and link
USD 6,025.00
500 ounces | 5 x 100 oz Silver Engelhard Bar | U.S., by
Jason Hommel
USD
6,205.00
500 ounces | 5 x 100 oz Silver Engelhard Bar | U.S., by
Jason Hommel
USD
12,020.00
1000 ounces | 10 x 100 oz Silver Engelhard Bar | U.S., by
Jason Hommel
USD
11,665.00
1000 ounces | 10 x 100 oz Silver Engelhard Bar | U.S., by
Jason Hommel
USD 21,520.00
2000 ounces | 20 x 100 oz Silver Engelhard Bar | U.S., by
Jason Hommel
Closing at 6pm Pacific Tomorrow, another set of
auctions, for another 5000 ounces of silver, like the ones
above.
I've had a few people who want to buy more, on better terms,
meaning cheaper, not at auction. That won't happen. If it did,
I'd have to charge 5-10% more, to be fair, and nobody wants to pay
more!
I like the auction format for several
reasons:
1. It's "free market"! Thus, it allows others
to compete, and get silver, the free market way.
2. It allows
me to sell when I'm ready. I have to ration my sales, as I ramp
up. If I sell too much, too soon, and run out, that's no good
for me or the market. As you can see, my mom is a more steady seller
than I am.
In theory, the auctions are the best way. There
are no monopoly-type side agreements "in the dark".
For example, if I sold direct to customers, I could run out, or have
less for sale at auction, and thus other people can't bid on that silver,
which is not fair to them.
But since they can bid, and if they don't win, they have nobody to
complain to, except themselves, if they don't get any silver.
I really appreciate your bids! It's amazing, the last
minute activity on some of these. On Wednesday last week, there
were 4 people bidding in the last 60 seconds, creating 11 bids!
That's very competitive.
Again, I plan to "ramp up" and I'm aiming
to sell more than 20,000 oz. per week. Maybe starting this week, or
next.
So far, I've been able to continue the "no minimum bid"
auction approach, which may lead people to think I'll take any low
price. Not so.
If the silver auctions off
at below my replacement costs, I'll have to start including a minimum
bid, otherwise, I'd go broke.
=====
In other silver news,
this headline could be "Nobody in the world dares to
risk going short silver, except for JP Morgan!"
US banks hold bulk of Comex gold futures
Excerpt:
For silver, it's even more startling. On
December 2, as silver closed at $9.57, exactly 2 U.S. banks held a net
short positioning of 24,555 contracts. The CFTC reports that as of the
same date all traders classed as commercial held a net short positioning
of 24,894 contracts. So, the 2 U.S. banks, with one particular Fed member
bank probably holding almost all of it, held a sickening 98.64% of all the
collective commercial net short positioning on the COMEX, division of
NYMEX in New York.
Exactly 2 U.S. banks have practically all the
COMEX commercial net short positioning on silver.
Rumor is
that the COMEX itself is warning brokers about a squeeze in Dec. gold this
month. Interesting.
As for me, I'm not short, and I'm not
selling out. After I sell silver, I immediately repurchase 1000 oz.
bars in bulk from a wholesale supplier, and then I ship them off to a mint
to turn into bars or coins. Not everyone can do that, because both
the wholesale suppliers and the mints want to limit the number of people
they work with. They each have rather high minimums, like 5000
to 10,000 oz./week.
=====
Some people have asked me
about going into the minting business. Here's one for sale for $1
million:
http://tokens.com/sale/
(They
did not pay me to list them, and I've not been in contact with
them.)
=====
There is yet another place to try to buy and
sell silver:
https://www.flettexchange.com/
The
flettexchange does not yet have much available, only a few 1000
and 100 oz. bars for sale, and the spread is wide, like from $9-12/oz.,
although that will likely improve with time.
=====
Here's an
excellent article:
A Problem with GLD and SLV ETFs
http://www.runtogold.com/2008/12/a-problem-with-gld-and-slv-etfs/
Key
Excerpt:
There is economic incentive for the Custodians to
loot the ETFs. From page 9 “Under the Custody Agreements,
the Custodian is only liable for losses that are the direct result of its
own negligence, fraud or willful default in the performance of its
duties. Any such liability is further limited, in the case of the
Allocated Bullion Account Agreement, to the market value of the gold held
in the Trust’s allocated gold account with the Custodian, or the Trust
Allocated Account, at the time such negligence, fraud or willful default
is discovered by the Custodian”. Not only does the Custodian attempt
to disrobe itself of liability but even if it is found liable it tries to
assert damages accounted at the time of discovery of the
default.
=====
Another excellent article:
Explaining
Inverse and Leveraged ETFs
http://seekingalpha.com/article/104703-explaining-inverse-and-leveraged-etfs
Key
Excerpts:
Inverse and Leveraged ETFs lose money over the
long term
Leveraged ETFs' efficiency goes down with
volatility
There are troubles when the
counterparties don't honor their contract. When these parties
fail, then the ETF could lose money.
Here is some good information on this, written by Paul
Amery.
=====
With
all the talk of impending defaults of both the COMEX, and the ETF's, and
with the price dip now from $20 to $10, there just couldn't be a better
time to buy physical metals.
This weekend, I read the annual
report of my major silver wholesaler supplier of 1000 oz. silver
bars. They have half a billion worth of physical metal on hand, with
only a million or two worth of financial paper assets prone to default, so
their potential to default on me is close to zero. And even if
they were to default on me, my customers' silver would already be shipped
out, and so, if you win my auctions, you will still get
your silver, due to my policy of shipping the same day as wires come
in.
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/
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