Listen to the Hypocrite Speak!
(I'm such a Hypocrite.)
Silver Stock Report
by Jason Hommel, October 15th, 2009
I try to obey the ten commandments, I really do. And I advocate that others also try. But I find I'm completely unable to do so, as I use paper money, daily. Does that make me a hypocrite?
Paper money violates the ten commandments.
1. Paper money is a false god.
For my full essay on these topics, a most unpopular essay, see:
A hypocrite is someone who says, "Do as I say, not as I do," right? Isn't that what I'm saying if I preach, but am unable to live up to the standard?
I hate paper cash. I advocate that you don't hold cash, as a matter of principle. Holding cash supports the tyranny and oppression of the Federal Reserve, by giving cash value, which supports their money printing and theft from other cash holders.
Yet I hold cash! I need cash to buy groceries, clothing, electric bills, pay rent, advertising bills, and tax payments. But even more than that, now that I own two coin shops, each holds quite a lot of cash so as to buy gold and silver, (both bullion and scrap) from the public.
I once stridently tried to live with no more than $1000 in cash at any one time. That was not enough to pay the bills. I bumped it up to $5000.
One time, I tried to cash in $5000 of bullion at the Rocklin Coin Shop, long before I bought it this April. But the former shop owner knew me too well. He said, "Look Jason, you have enough to hold more cash than I do. If you do hold cash, I can then sell to you, when I need to. You should be providing liquidity for me, not me for you, in these small amounts of $5000."
I listened. I was convinced. Why should I make him do what I refused to do myself, such as, hold cash? Making HIM hold cash for my needs would make me a hypocrite, too!
But flat out, he simply did not let me sell bullion that day, so it wasn't like I had a choice. I suppose I learned a lesson. Maybe I learned the wrong lesson (to hold more cash), and maybe I just should have kept my mouth shut about my financial strength. Irony.
After that, I held more cash, and I started buying silver when he needed to sell, so I bought over time, at a much lower spread. These days, however, the Rocklin Coin Shop never sells bullion to any major wholesaler. The public buys far more than they sell.
Since the day when I began providing extra liquidity for my local coin shop, and now that I'm a moneychanger, I'm still holding more cash than I like, and I'm an even bigger hypocrite.
I hate that. But what can I do?
I still try to minimize the cash I hold, but the amounts are much, much larger.
I also hold more gold than I'd like for my own capital gain preference, as I like silver more than gold. But I hold the gold for the sake of my customers who will not be persuaded to buy silver.
I can be an advocate when I write, but as a shop owner, I also need to be a facilitator, to help people. Both advocates, and facilitators both help, and I can't always do both at once. There comes a time when giving advice must stop, and people make their own decisions.
I've also started holding more Silver Eagles than I like, as ideally, I don't like paying the higher premium on those coins. But then again, I want to help people, right? And I can't help people who want to buy Silver Eagles if I don't have them. Is this compromise? Hypocrisy again? Maybe much less so. Perhaps few would quibble or accuse on that one, or perhaps they would not see my strident desire to own "the most silver for the money".
By percentage, I allocate and hold about 6 parts silver, 2 parts gold, a half a part palladium, and 1 part cash.
That's now the "look at my portfolio". We ended that service. I sold my stocks. I can't sell a service of what we hold when it's that simple. Well, we could, but it wouldn't feel right.
When I started this business of advocating silver, nearly ten years ago, people told me the stocks would anticipate silver's rise, and move up first, due to the leverage of the stocks. OK. I was convinced. The stocks outperformed. I profited. Then they crashed and I lost big time. Many remain over valued.
SLV (the silver ETF) has significantly outperformed SSRI, the "best" of the silver stock majors, over the last two years.
SLV was up about 30%, and SSRI was down 40%, over the last 2 years.
What's really ironic about this, and I don't think I quite realized it when SLV came out, is that the SLV, that outperformed, is probably a total fraud. The custodian of the silver for the SLV is JP Morgan, who is identified as the largest silver short on the COMEX, and who holds the largest position in derivatives, up to $80 trillion. That's like putting the rat in charge of the cheese, which is long gone.
I know I called it, repeatedly, at the conferences in panel discussions before my son was conceived, over 2 years ago. I'm sure nobody remembers that I was right, and fewer than none even care.
I thought I was protected from over valued stocks, by being in tiny juniors, but many of them were hammered even harder, and performed worse. Oops. So I didn't call everything right.
Even honest well-wishers and Bible followers say, "Don't tell people if
you were right, that's just more vain chest thumping, and total
vanity. Nobody likes someone who says, 'I told you so.'" OK,
sorry. I get it. More hypocrisy I guess.
I tried advocating other precious metals dealers for years, and I grew tired of recommending dealers who would quickly be sold out, and could not provide silver bullion to my readers.
Of course, now people are buying bullion from us, and cleaning out our bullion that is set aside and allocated to our national shipping lines, so even I'm "selling out" at times. More hypocrisy from me. Again, I don't like it, but what can I do?
I have to hold cash, and be a hypocrite, and that bothers me.
But if I held no cash, and only silver, I find I would be a worse hypocrite if I tried to "FORCE" people to take silver as money from me in my daily transactions or in the paying of my bills, since, as a free market advocate, I cannot engage in force of any kind.
I have had some mild success offering silver as a means of payment to various private businessmen. But so few accept, it feels almost offensive, and feels like a failure, and I stopped offering. It's always a failure when I offer silver as payment to national chain stores.
I suppose I'm not as hypocritical as the politicians who use guns for self defense or for their own personal bodyguards, yet support anti-gun legislation.
After all, I'm not working on any legislation that would making holding cash illegal, nor have I ever advocated making usury illegal.
But of course, what other people do, is no justification.
I just can't figure out how to do any better. Perhaps the Lord will be kind enough to instruct me further.
But I certainly can't say that "doing my best" makes me a righteous man. Since I'm breaking all ten commandments daily, that makes me a sinner.
Thank God that Jesus Christ died for my sins.
Of course, every time I invoke the name of Jesus, people accuse me further.
Common accusations are that I'm merely trying to cloak myself in righteousness, as a means to fleece the flock.
After all, the only time Jesus got violent is when he confronted the moneychangers in the temple.
Does Jesus disapprove of advocating honesty? Certainly not.
Does Jesus disapprove of saying that honest men will be rewarded? Certainly not. Those are Biblical promises!
Does Jesus disapprove of me? I know he hates the sin, but here I am.
Lord, you know I've often prayed, perhaps more than any other prayer, "Direct my paths, tell me what to do." Well, I'm finally here, Lord, now what?
I'm now a moneychanger. One of the biggest mysteries to me is why the Lord had such a problem with the moneychangers. I continue to research it. Maybe I'll figure it out, now that I AM a moneychanger.
One theory says that the moneychangers were conducting business IN the temple, that it was the location of the business that was the problem, because not all were moneychangers, but rather, sellers of livestock for temple sacrifices.
Another theory explains that the problem was the very high rates charged to the people, who "HAD" to buy, to donate "clean" coins, or sacrifice animals, to the temple.
Another theory goes that the moneychangers were really usurers, like bankers, actually doing money lending, which is another sinful issue.
One of my worst problems, I feel, is that I'm often short, or impatient with other people who do not know what I do, especially if they give me attitude when they express their difference of opinion. I think I wrongly justify being short, because I'm short on time. When over 100 people reply with questions, I simply cannot answer everyone, although I try. But I'm such a hypocrite! How can I justify being short with people who don't understand, when I don't understand everything myself?
I find it's very easy to be patient and kind with people who are honestly seeking answers, and who are respectful, but that's no great achievement of righteousness to accomplish. It's easy to be nice to people who are nice.
Lord, please be patient with my lack of understanding, and please grant me the patience to be patient with angry people short on time who seem to need it the most. And maybe that's the greatest lesson of all.
One man tested us yesterday. He came to Dave, my main manager at the JH MINT, and asked us for the sales price on a rather nice, large, gold nugget. Dave assayed it. Dave offered our standard price. The man said, "that's a fair offer, ok, I'll do business with you." He then turned around, and bought $5000 worth of precious metals over the counter, and kept the nugget. I guess we passed that man's test.
When preaching, I don't always need encouragement. It's enough to know I'm pursuing the hard, rare path that few men dare to tread. Besides, God seems to find ways to encourage, or even command. But it's nice when we get encouragement from other men, too.
For example, this letter was hard to write. The unction came a few weeks ago. I don't want to say these things about myself. But on this, the Lord is directing me to write it, regardless of how I feel about it. Sometimes, obedience is better than instinct.
Lord, direct my paths. Teach me to not lean on my own understanding, but to pursue your ways.
Dave says I'm "trading what is Caesar's, to what is God's."