My Silver's Not for Sale

"...people are destroyed for lack of knowledge."

Silver Stock Report

by Jason Hommel, February 5, 2008

This Friday, I hosted a fundraiser for Terbolizard, attended by about 50 people in Grass Valley.   See terbocongress.org

Silver investors and supporters of Terbolizard share a common passion for freedom.  Both have a dedication to more freedom for the individual and more restrictions for the Federal Government.

Terbo Ted the consultant, arbitrator, and politician, wants to help increase people's freedom by voting in Congress against all legislation that is against the Constitution, which will help to make society more free and wealthy.

The House rules say that when they draft a bill, it's supposed to explain within the bill how the bill is Constitutional.  But they routinely pass legislation that is in violation of half of the Bill of rights!  Ted wants that Congressional Psychosis to stop. 

I want to increase people's freedom and wealth, by telling them of the profound wealth-increasing benefits of owning silver.  After all, if you are wealthier, it naturally follows that you will be a lot more free.

I had a chance to share my views on why buying silver is a political action that takes away the power of the Federal Government which uses the power of the printing press to steal people's wealth through inflation.

There were three other panelists who supported Ron Paul, and we all spoke briefly, and then opened up to a panel discussion and audience questions.  One man, an actor, gave a talk on how he was influenced to think about how he could positively impact the future of the world after the birth of his daughter!

The people were particularly interested in the Indian Gaming Propositions on the Ballot in California.

Ted said that he simply votes no on nearly all such propositions.  It's rare that you'd ever get a chance to vote for increasing anyone's freedom or to eliminate any taxes.

I said that although I'm an extremely conservative moralist, who preaches to investors about the futility of gambling through futures contracts, I recognize that it would be a much worse evil to try to ban gambling, or regulate it, or tax it, because taxing gambling increases both the size of government, which is bad, as well as increasing debilitating government handouts, which is bad.

Quite a few enthusiastic freedom-supporters stayed about an hour and a half after the meeting, talking with each other, Ted, and me.  It was great fun, and we met a lot of very interesting people who are interested in helping out the campaign.

The Sacramento Bee Newspaper wrote up the event, in a humorously flattering way (I don't think that the writer attended):

http://www.sacbee.com/capolitics/story/684496.html

The Buzz: Vote for me -- and buy Jason's silver
A weekly roundup of odds and ends from the Capitol

Published 12:00 am PST Monday, February 4, 2008
Story appeared in MAIN NEWS section, Page A3

There's a Republican guy running in the 4th Congressional District to replace retiring incumbent John Doolittle. His legal name is Theodore Terbolizard. Seriously. He was born on Leap Year Day, 1968 as Theodore J. Hommel. His current last name is a combination of an Internet term for "geek" and a nickname he gave to his daughter's mother.

According to his Web site, Terbolizard is a musician, artist, video producer, Internet news anchorman and "highly competitive recreational league slow-pitch softball pitcher, with a tall breaking curve." He also was briefly a 2003 gubernatorial candidate.

Here's the weird part. Terbolizard was scheduled to have a fundraiser in Grass Valley on Friday night. Among the scheduled speakers was his brother, Jason Hommel.  Brother Hommel was set to "discuss silver investments." That's right: an infomercial at a political fundraiser.

It's going to be a long year.

---end Bee excerpt---

Hilarious!  Silver, and the concept of freedom, are both so "off the radar screen" and foreign to a mainstream columnist that he writes as if has no idea why a candidate who stands for freedom, and a silver investor, would have anything in common besides being brothers.  Or maybe he does know, and he was pointing out the unusual combination!  At least our "weirdness" got us some press!

Also, I wasn't just "among the speakers"; nor was I hosting an informercial, I was the host!  I invited people to the event; paid for the newspaper advertising inserts, booked the hall, and guaranteed the price for 50 dinners by pre-paying!  I wasn't there to sell silver to make money; I was there to spend it, and give back!  FYI, I spent over $6000 on the event to help raise $950 for my brother Ted, and to help the community and nation in which I live.  Most of the $100 plate dinners were given away to friends and family, and since fewer people showed up than expected, we had the opportunity to give away free dinners to latecomers, somewhat like is described in Matthew 22:1-14, and Luke 14:13.

Interestingly, and probably not coincidentally, Ron Paul was supported by Burt Blumert, a coin dealer in California.  But the ignorance is understandable, since some of my investors are not interested in Terbolizard, and some of Terbolizard's supporters are put off by the concept of silver investment advice.  Ted and I both found that quite interesting.

At least the paper spelled our names right!  The "buzz" was written by Bee Columnist, Steve Wiegand who can be reached at (916) 321-1076 or swiegant@sacbee.com.

I love the implication in the headline "and buy Jason's silver" that silver is so scarce that I'm the only one in the world who has any for sale.  The headline is just so awesome!  I can only wish it were so!  I also love the implication that the silver market is so small, that I can "talk up the silver market" to a mere 50 local participants who show up at a political fundraiser, rather than talk the market to my own email list of 68,000 worldwide email readers.

But my silver's not even for sale!  Furthermore, I'm not selling silver, I'm a buyer!  I've nearly doubled my silver holdings in the last two years, buying at an average price of about $13/oz.  I expect that I can double my silver holdings again, when the silver stocks and other mining stocks explode in price soon, as they must, as so many have such low forward P/E ratios.

I've never written such a bullish headline for silver.  The Bee shouldn't mislead the people so much about the bullish prospects for my silver holdings.

Just so we are clear:  I have no intention to sell my silver since it's moving up at a rate of about 30% or more per year.  I'll not be motivated to sell my silver not even if stocks drop so low that they have a P/E ratio of 3, and not even if bonds were paying 30% per year.

But such cluelessness about a market is to be expected at the bottom of a market. 

More cluelessness was expressed in 300 inane comments about GATA's newspaper ad that came out last Thursday.

Look over the posts and comments at digg.com.  Digg is a website of internet users of above-average intelligence, as these people are web-savvy techies, mostly interested in tech news.  But their cluelessness and skepticism about the GATA ad is self evident in their posts.

http://digg.com/2008_us_elections/GATA_to_Federal_Reserve_Where_s_the_Gold_in_Ft_Knox

Here's one that about sums it all up:

"The thing I don't get is, why would GATA, an organization funded and backed by heavy-weight gold investors, be so interested in pushing a story that puts downward pressure on the US dollar and pushes up the price of .... oh wait ... forget it."

This person acts as the newspaper headline writer did.  They merely make the "knee-jerk" assumption that we are trying to talk up our markets, as if we were snake oil salesmen.  They fail to see that we are not the ones doing the talking.  They fail to see that GATA has been banned by the press for over 7 years! 

Rather, it's the government, and newspapers, and Universities, and TV, and nearly the whole Western world that is doing the talking, and issuing the propaganda about how "gold pays no dividends", even as gold soars in value 30% per year or more! 

Now, I admit that I did sincerely think that GATA's ad would have a more positive impact.  Only 2 of over 300 posts showed that people were inclined to buy gold, just in case what GATA was saying is actually true. 

What GATA is saying is, in fact, true, and you can verify all claims made in the ad, here:
http://www.gata.org/node/wallstreetjournal

But I was not prepared for the stupidity level of the general public. 

It still boggles my mind that the public cannot figure out that they are guaranteed to lose 10% per year in bonds, as bonds are paying 5%, and inflation of the money supply is over 15%.

Perhaps the public will wake up when bonds are paying 3%, and when the money supply is increasing by 20%, but really, who knows what it will take?

I wrongfully overestimated the general intelligence level of the public.  Clearly, the majority of the readers of the Wall Street Journal are idiots, who fail to realize the implications of what happens to a manipulated market when the manipulations end as they are failing before our eyes.

So let me spell it out more clearly.  Gold prices will continue to go up.  A lot!  And not because "I say so" or because GATA places an ad; which was proved since the market was hammered down over the last few days, in contrast to my short-term expectations.

But I suppose that the gold market's drop is quite easily explained as this is a manipulated market.  Those who are short gold may have also overestimated people's ability to understand GATA's claims, which probably explains the panic selling that coincided with the ad's release, which might be a desperate attempt to discredit GATA's claims.

In fact, the silence of the mainstream media in response to GATA's claims is deafening! 

Furthermore, GATA has continuously noted that whenever the news is good for gold, gold prices are hammered down on that day, and then on days when not as much news comes out that would be good for gold, gold prices tend to go up more. 

Interestingly, platinum and palladium screamed upwards the last few days, while gold was pounded down.  Since 80% of platinum comes from South Africa, which is having problems delivering electricity to the miners, that might explain it.  But that news would also be bullish for gold!  Ironically, environmentalists convinced the communist government to not build any more coal powered power plants.  And without power, they cannot produce the platinum and palladium that are needed to reduce exhaust emissions from cars.  I wonder why I've never seen an environmentalist lobby for more platinum and palladium mining, since these metals reduce exhaust pollutants?  I guess they just don't get it either.

I suppose that GATA's conferences have a much greater impact, since it those who go to a conference have enough time to actually digest and understand the issues, and that a single ad in the newspaper is just not enough information and not enough time to really make a difference for most people.

Anyway, this will probably be my last commentary for a while.  I will be spending more time to edit my book this month.  Besides, it's ski season! 



Sincerely,

    Jason Hommel

    In case you miss an email, check the archives:
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