Silver Price Changes
(Down 36%, and back up 29%!?!)
Silver Stock Report
by Jason Hommel, September 27th, 2011
This kind of volatility we are seeing in silver is insane, and is further proof that the paper market is manipulating the price! Silver hit a low of $26 yesterday, yet 3 days earlier it was $40.50!
$40.50 minus $26 = $14.50/oz. dip.
And yet, this morning, silver hit a high of $33.65. In just over 24 hours, silver bounced back by about 29%?
$33.65 minus $26 = $7.65/oz. gain.
I know this kind of market volatility and price changes are unusual. It's unusual even for a tiny $3 million market cap penny stock! And the silver market is a major $30 billion annual industry, which is 10,000 times larger than more stable penny stocks!
How can a dealer deal at 3% or less in this kind of environment?
We, at www.jhmint.com were super busy on Monday, 9-26-11. We sold $260,000 worth of silver and gold. We only bought $30,000 from the public, so we had to order $230,000 from the wholesale suppliers, who, again were all super busy themselves, and had busy signals on the phone today. We are rapidly running out, and risk being sold out of a few products tomorrow. Therefore, I raised prices by 1% across the board, again, to help ration product availability.
Our shop, jhmint.com, was super busy last Friday, 9-23-11. The public bought $250,000 worth of silver and gold from us, about 3/4 silver, 1/4 gold, and most of it all in cash, all under $10,000 limit. We took in only $60,000 from online wires, in 7 different wire transfer transactions. This move down in the silver price is totally fraudulent, the people are buying like mad at these levels. If this price holds for some insane reason, while people buy this much, then I'm thinking that silver at most of our suppliers will run out in about a month or less. Most people were buying like crazy. Exhausting day! Fun Fun!
On my facebook page, people were commenting about shops running out of silver already!:
Regarding these clearly manipulative price changes, a reader asked me at facebook:
When will the sellers like YOU just shut up shop during times like this! - put a sign in the window - 'gone sailing, back later' - Kiwi.
And I replied again:
The reader responded with appreciation and understanding:
cool - I appreciate the response Jason, except i do understand the free market, I just didn't realize you were buying at the market price.
I reply finally:
Yes, we always have to buy back daily. If we can't buy from the public, then we have to re-order from wholesalers. Unlike other dealers, I'm not content to sit on cash, I always go all back into metal at the end of the day, and during the day. We do this so that we will survive this bull market in silver, and survive the run up to $500/oz. and beyond. This is not just my market prediction hype, we are basing our business plan and strategy and business procedures to ensure business success while the price rises explosively.