(Most silver is like other silver!)
Silver Stock Report
by Jason Hommel, August 29th, 2008
Sorry. My last email earlier today was blank for many people. The highest price bid for the 25 bars of silver was $4.01 over spot.
Some people have suggested that if I believe there is a shortage of silver, why not “take delivery at the COMEX?”
Well, I have taken delivery of physical silver, but not at the COMEX. But the effect on silver, and the effect on COMEX is just the same. See, if I buy “extra silver” from a coin shop, then that coin shop does not have to sell their “extra silver” to the refiner, where their “extra silver” may end up at the COMEX. See, silver is fungible. It does not really matter what form of silver you get it, or where you get it, taking delivery of real silver from a coin shop puts the squeeze on COMEX silver all the same.
In fact, if I think COMEX is likely to default, then COMEX should be the last place where I should go to get silver. After all, if there are several different places to get silver, and if one is expected to default, you’d be sure to avoid that company too, wouldn’t you?
So all the nay-sayers, who claim there is plenty of silver (while they have none to sell), who tell us to “just take delivery at the COMEX” (while their own companies seem incapable of taking delivery at the COMEX, because they have no 1000 oz. bars to sell either) are, at best, woefully uninformed about the basic assumptions we are making. At worst, they are lying on purpose, to hide their impending bankruptcy. In fact, a failure to deliver silver to their own customers on a timely basis who have paid for silver, is the very definition of bankruptcy. But for some reason, silver buyers are some of the most patient and kind creditors of all, because they, for some reason, don’t demand forclosure or government prosecution on the businesses that cannot deliver on their promises. Maybe that’s because silver buyers don’t trust the government in the first place. That’s good news for those who lie about an abundance of silver, while they don’t have any.
Ironically, the nay-sayers say the same thing we do at this point. TAKE DELIVERY, and GET PHYSICAL!
My auction proved something. I was saying there was a premium on 100 oz. bars, and that it was difficult to source any. My auction proved that, to the tune of $44,000.
Also, in nearly every email, I try to tell my subscribers where you can get silver.
But those who claim there is no shortage, make absolutely no effort to tell you where you can get any, without having to “wait indefinitely”. Isn’t that telling?
May I suggest to Meet up other Silver Stock Report readers at YOUR LOCAL COIN SHOP, on Tuesday, September 2, at 2PM.
Suppose if all buyers during a month show up all at once? Clearly, the shop will be sold out immediately, if it isn’t already. I think that would leave an impression on the owner.
This will serve several purposes:
1. You will find out that you are not alone.
2. You will impress upon your dealer the amount of demand for silver.
3. The coin shop owner will be more confident and more likely to raise his bids to get silver for everyone, so it’s in your own best long term interests to show up.
4. Be prepared to network with other buyers. Other buyers may have bars to sell if they are retired, and “all in”; they may have to sell bars for normal life expenses.
I suggest that everyone visit their favorite local coin shop on September 2, at 2PM. That’s Tuesday, 4 days from now. (TWO’s-Day) Easy to remember!