First Report since April, 2014
Silver Stock Report
by Jason Hommel, Feb 2, 2016
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When I created the first Silver Stock Report in September, 2003, it was in response to market demand.
I wanted to promote silver, because at $5/oz., I recognized silver was historically never cheaper, and never a smaller market than way back then. But others just kept saying that if I was right, and that if silver prices would move up, then before silver really moved, the stocks would move first. And people wanted to know what stocks I was buying, so I finally said so.
And people were right. And the stocks got overheated by 2006, and topped out.
While I did make a lot of money, I lost a lot, too on the way back down.
My original focus was that I wanted to promote silver, and honest money.
But silver itself does not pay the bills. It was far too small of an industry, and still is.
My next mistake was to get out of the volatile silver stocks, and to try to "push" silver to the masses by becoming a bullion dealer.
It seemed to be the right thing to do as silver prices were manipulated down in 2008, and as spreads on bullion widened. However, spreads quickly narrowed as prices recovered, and my business volumes dropped away, as I could not maintain being a market leader on price.
As a free market thinker, I knew that prices were incentives to production. But I forgot the cardinal rule. Manipulated prices send false signals to producers, because manipulated prices are unsustainable prices, and that's exactly what happened as silver prices were manipulated from $20 to $9 back in 2008, such prices created wide spreads in the bullion market, which were unsustainable. And very quickly, the profit margins vanished.
I tried to hang in there, and we had one very great month in the spring of 2011, when silver prices were climbing from $40 to just under $50/oz., and we bought and sold about $5 million worth of silver in a month at wider spreads than usual. But the good times did not last, and did not return. And I would have been far better off financially if I had never stared bullion dealing, or sold all my silver and bought into the stocks again back around the market bottom in 2008.
I closed my bullion dealerships in January, 2014, and tried trading the stocks again. My mom's coin shop remains open, at momssilvershop.com in Sacramento.
Unfortunately, in the spring of 2014, there was no return of the bull market, even though prices were dirt cheap. And they are cheaper now!
At the market's bottom, we all get discouraged, and I did too.
At present, I feel like the Biblical prophet Jonah, who ran away from his assignment to preach to Ninevah.
But there is a difference. Jonah got angry, because Ninevah listened, and repented in sack cloth and ashes, and turned back to God, and was spared the judgement that Jonah prophsied.
In contrast, I feel angry because I feel that the people are mostly not listening. I wish that more people would have responded and bought silver.
None of my essays or videos have ever gone viral. Dumb blonde videos and cat videos get up to 30 million views. The good messages of how silver is a potentially great investment and how you can make up to ten times your money, as silver went from $5 to $50/oz.? Nope, never went viral. People still don't care and never really listened.
And yet, they are buying silver, more than ever. It's estimated that investors are buying up to 300 million ounces of silver a year now, which is ten times as much silver as at the beginning of this bull market in silver, when only about 30 million ounces of silver was being purchased for investment.
This is ten times as much silver, but at nearly triple the price, which makes thirty times as many dollars buying silver for the purposes of investment.
This brings me to my two burning questions.
1. What do you want? Do you want comparative analysis on silver stocks? Do you want the moral reasons to buy silver? I can provide that.
2. Here's what I want. I want to promote silver. So, here's my question. How can I do this better or differently than I have done in the past? Help me. Help me reach the masses. What will it take? How do we do it? I want to start a movement. A revolution. A peaceful economic revolution. How does this happen? I don't know. God help me.
Today, I have nothing to sell. I'm not selling stocks. I'm no longer a bullion dealer. I mention no Bible verses. There is nothing to donate to.
Oh yes, I have an agenda. It's called honesty.
If you are on facebook, send me a friend request, and follow me on facebook!
Silver is money, rare, honest, true, heavy, measureable, weighable, countable, the best electrical conductor, a great heat conductor, the most reflective metal, good, pure, shiny, acoustical, antibacterial, valuable, the free markets choice for thousands of years, rewards production, savers, and thrift, maintains honest and limited government, restrains government, promotes freedom, is slandered, misunderstood, ignored, undervalued, overlooked, maligned, hated by bankers, usurpers, and usurers, is traded, hoarded, saved, appreciates, goes up in value, rewards miners, promotes the production of byproduct minerals needed by society, is beautiful, substantial, useful, is ever more useful and rare, increasing in rarity,
Paper money is plentiful, dishonest, false, adulterated, watered down, dirty, filthy, moldy, dusty, diseased, imaginary, unjust, abominable, a theoretical abstraction, not identifiable, not definable, not measurable, inflatable, inflationary, intrinsically worthless, overvalued, used up paper, temporary, monopolistic, parasitic, easily counterfeited, a broken promise, a cause of taxes, oppresses the people, rewards laziness and political connections, corrupts politicians, subverts governments, heavily promoted by liars, is spent quickly, depreciates, grows more worthless, rewards debtors, rewards paper money printers, promotes tyrants and excessive and intrusive government, is a tool of theft, is evidence of theft, causes theft through imaginary and phantom capital gains taxes from inflation, causes theft from savers through devaluation, is worse than worthless, is harmful, causes economic distortions, encourages bad investments, encourages speculation, encourages debt, encourages leverage, discourages business, keeps alive bankrupt businesses, delays the natural business cycles, causes depressions, causes wars, funds wars, was discredited for hundreds of years in China, has currently lasted barely 101 years or 43 in America depending on how you count, has lost 99% of its value in 100 years in America