Phoenix Show!  Feb 4-5!  Be There!

(Phoenix!  Feb 4! And 5th!)

Silver Stock Report

by Jason Hommel, November 24th, 2009

Vancouver Resource Investment Conference - January 17 & 18, 2010

Register Online Now - Don't forget!

After you register, email me, Jason Hommel, at and tell me what topics and questions you would like to see addressed.   Help me provide the content you want.  I show up for you, so what's most important to cover?  Last time, I covered the FAQs, the frequently asked questions I get.  And in a workshop, I covered the basic fundamentals about silver, see here:

Speech: Frequently Asked Questions on Silver February 25, 2009
Speech: Why Silver is Money (Phoenix Show Workshop) February 25, 2009

Topics I was thinking of covering this year include the following:

I thought of sharing information from my experience of opening and running two coin shops and a mint this last year. 

I thought of covering, again, the small size of the silver market.

I thought of covering usury.

I thought of covering price expectations going forward.

Joe Martin, the man who runs the Cambridge House Shows invites me to Phoenix, and asks what topics I was thinking of covering:  Long Term Fundamentals, Blasting Myths about silver, showing why silver will outperform Gold, the usual stuff.  Terbo Ted was excited to be able to capture this 1 minute video, and upload it to Youtube on his iPhone all within about 10 minutes.

But what's most important to you?  What are your concerns, questions, and topics you'd MOST like to see covered?  Email me:

I have no subscriptions to sell, I have no stocks to pitch, and my bullion business is doing just fine.  The shows help me gain new perspectives, and discover the concerns of people who show up to such industry events.  Shows are also very fun!


Here's some fun:  Saturday Night Live continues to hammer Obama, and nutty US economic policy.  This one is more funny than last week.  China mocks the ability of the US to repay debt, and says don't pay with "klunkers" that we got from our nation's "cash for klunkers" program.


More fun.  Bill Murphy, who will be at Phoenix, got air time on Bloomberg in Asia!

GATA Chairman Bill Murphy's appearance last night on Bernie Lo's "Asia Confidential" program on Bloomberg Television has been posted at YouTube in three parts here:


Even more fun: 

A news reporter covered the numbers in the gold market like I do.  His punchline is that if Developing Central Banks increase gold holdings from 2.2% on average, to a mere 5% of reserves, they would spend $115 billion on gold, which makes India's $7 billion 200 tonne purchase from the IMF look like peanuts.

See story here:

Side note, he neglected to mention that the world's gold mines produce about 2400 tonnes of gold per year, which, multiplied by 32,151oz/tonne = 77 million oz. of gold.  This implies that $115 billion spent on gold, if it purchased all new world gold supply, and if nobody else bought any new gold for a year, would drive the price to a minimum of  $115,000/77 = $1,493/oz.


The fun continued:

I attended the San Francisco show this last weekend because my good friend, Thom Calandra, who provided the occasion of a speaker's dinner, and he offered to put me up for the night at his house.  Such hospitality could not be refused.  

I attended the show with my good friend Greg Kyle, my brother, Terbo Ted who ran for congress, and my Mom and step dad, John, who are running, which handles all shipping orders of less than 100 oz. of silver, and also ships outside of the US, and also takes credit cards and paypal.

The best speech was given by Frank Holmes of US Global Investors, 

Frank Holmes pointed out that mining stocks have been lagging the metals prices, and with good reason.  Miners have issued shares in a highly inflationary way, and each share is continually backed up by less and less gold in the ground.  Mining company management is literally destroying shareholder value! 

That's why you want physical precious metal!  It does not vanish away through the issuance of ever more at high rates!  Newly mined gold only adds 1.5% to world supply each year!

A fun part of the show for me was visiting always gold-bearish Jon Nadler in person at the kitco booth.  See pictures, I think they are worth a 1000 words.

"Excellence within your Reach" -- But don't expect to be able to take delivery?!

I spoke with Jon Nadler, but I didn't know what I should say to a man who is always so bearish on gold, and always mocking gold bulls, especially during this wild bull market.  And I didn't want to be overly confrontational in person.  I actually wanted to just try to practice being cordial.  So I said, "Look, I'm not wearing a tinfoil hat!"  He said, "I never said that!"  Of course not, he never mentions us by name, he's above that.

I asked him how was business, he replied, "Can't complain."  Fair enough.


What's with the gambling theme?

Are they saying that investing in a Kitco pool is like Gambling? What an association!

Are they trying to suggest that you will be gambling that Kitco will remain solvent?!

I spoke with Jon Nadler, and I asked him about the theme.  They gave me a free deck of cards.  The least I could do was take a picture of it and share with my readers.  The gambling theme was supposed to highlight a contest you can win if you give them your name, it's merely a common lead capture device.  Oh, ok.  Hey, it was not my idea.

I apologized for poking fun at Nadler, but he makes himself such a target, that I just can't resist.

I tried to be cordial, and so I showed Nadler some of our silver rounds.  So we have at least something in common.  They are making 1 oz. rounds, too, Kitco rounds.

Kitco's prices are about what our prices are.  We each charge around $2/oz. over spot for a generic one oz. silver round.  I suppose we deliver much faster, I don't know if they caught up on deliveries yet.  Anyone order from them lately?

Nadler asked me about my meeting with Perth mint officials last year.  I didn't share details, but as you can see, since then, I've started my own mint, so it goes to show I don't fear that Perth will be able to provide much competition, even though Perth claims to have $2 billion in "working capital" due to their certificate program.  I still wonder why $2 billion in capital is insufficient to provide material to the world wide silver market that demands barely $2 billion in total inventory per year.  It seems to me that their capital should be so suffficient that they would never run out of products, like they did repeatedly last year.

Anyone try to take delivery from Perth in the last year?  I hear they put some money towards working inventory, and I've not received very many complaints about them in the last 12 months, which is unusual, and quite a bonus for silver investors that they would allocate any capital at all towards bullish forces. 

Email me:


ADS can be difficult to write.  You get much less space to make a point than in a newsletter.  And as you know, I'm long winded--but getting better.

Here's some ad text we will be using in a local "coupon book" ad:

Now is the time to buy silver and gold!

We are seeing 9 times more gold and silver buyers as sellers.

Yet we know that the USA is only buying about 2% of the world's annually newly mined gold, which is only 1.5% of all the gold in the world that has ever been mined.  And the USA is only spending less than 0.013% of the $14 trillion in money in the banks to buy that gold. 

This shows that gold is far from a bubble, but is still at the beginning stages of a wild bull market that should last for decades.

The silver market statistics are even more shocking.  The world's silver mines produce 600 million oz. of silver, and most is consumed by industry, leaving only 100 million oz. for investment demand, or just under $2 billion worldwide.  Fortunately, the USA is buying about 20 million oz. of American Silver Eagles per year, showing that while precious metals demand in America is abysmally low, it is relatively higher for silver compared to the rest of the world, showing that of the US investors, a substantial percent are aware that silver should outperform gold.

Come swap your gold for silver at our coin shops!  Or just buy more silver!


Readers have asked me more about reporting requirements.  Here's the text from an IRS form 1099B form.  It indicates that certain transactions (IE, most that we deal with) are NOT REPORTABLE.

From IRS 1099B, page 2.

Sales of precious metals. A sale of a precious metal
(gold, silver, platinum, or palladium) in any form that may be
used to satisfy a Commodity Futures Trading Commission
(CFTC)-approved regulated futures contract (RFC) if the
quantity, by weight or by number of items, is less than the
minimum required to satisfy a CFTC-approved RFC is not
reportable. Further, a sale of a precious metal in any form
that cannot be used to satisfy a CFTC-approved RFC is not

For example, Form 1099-B is not required to be filed for
the sale of a single gold coin
in the form and quality
deliverable in satisfaction of a CFTC-approved contract
because all CFTC contracts for gold coins currently call for
delivery of at least 25 coins.


Please, come join the fun and attend the Phoenix show!  Nadler might be there.  Think of some good questions to ask him, too!

Vancouver Resource Investment Conference - January 17 & 18, 2010

Register Online Now - Don't forget!