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In April, we
had a record month in buying and selling silver and gold. Business volume increased 57% over our prior month's record.
Many customers
are walking in, and saying,
"I need silver."
Not "I'd like to buy". Not "I want".
But "I need."
Most of our
customers mention that they are aware of the recent government budget battle and near shutdown of the government.
People are aware that the
government's budget is
short by $1.6 trillion, which is
$1600 billion dollars-- that they
are printing, to meet the "need,"
and yet, the political
parties were arguing over
a mere $30 billion difference.
(And yet, investment demand for silver stands at a paltry 250 million oz., at $50/oz, which is a mere
$12.5 billion.) Our customers are aware that there
is zero political will (neither among the politicians, nor among the population) to even remotely fight for something close to a balanced
budget for nearly the next
two years, until after the next election in the fall of 2012. They say it would
be one thing, if the
budget fight was whether to cut $500 billion to
$700 billion from the budget, but it was nothing
like that. They are aware that the current crop of politicians are so weak, and so ineffectual, even with the new tea party tax cutters in
office, that inflation is
guaranteed for the next two years or many more. People are aware
that the entitlement mentality in America is now so
strong, and since so many people are "on the
dole" from the government,
that they will likely continue to vote
for more government spending
for decades to come.
I'm 41. For the first time in my life, an older customer actually apologized to me. He apologized
as a representative of the older
generation, to me, as a member
of the younger generation,
because America has been destroyed on their watch, and they know that they made our lives worse
by stealing our freedoms, and by increasing our tax burden.
But he said he did not know what to do about it. And
I said that buying silver is far more than enough. After all, if voting counts, and if writing letters counts a thousand times more than voting, then buying silver
counts a thousand times
more than writing letters!
In my
opinion, our customers should not be so concerned with the current new money
printing, as much as they
should be over all the prior money printing over the past
100 years, that has yet to show up as demand for
real money.
Money in US banks stands at about $18
trillion. If 1% of that money were to be spent
on silver, it would be $180,000
million. But with only
700 million new oz. of silver mined
each year, that implies a price of $257/oz. for silver, which would leave
no silver left over for industry or the rest of the
world. Since industry
and the rest of the world will
need silver, too, this implies
that silver prices will hit about $500 oz.
or more by the time a mere
1% of money in the US tries to buy silver to protect itself from inflation.
In fact,
many people are now realizing that price is simply
not a factor. They know that
silver, at any price, is
better than paper, or nearly all the
alternatives. They know that
paper is merely paper, and silver is something
real. Some people are now
realizing that plastic forks will likely
outperform the dollar now,
due to inflation. People are now realizing that any real good is better than paper
money.
But plastic forks don't do the job. They cost about $1 a box.
Nobody wants to try to store, and then later re-sell, 100,000 boxes of
plastic forks.
Even copper can't do the job. A copper
brick that weighs 33
pounds recently sold for
about the same price as a
10 oz. bar of silver. The silver
is infinitely more
portable and practical. The copper brick also had a 100% markup over the
value of the copper in it.
That leaves silver and
gold as the only real alternatives.
None of the other major investment
alternatives are even remotely
attractive now.
Bonds pay next to nothing, a tiny fraction of 1% at the bank. Yet inflation is over 10%, guaranteeing your loss. And as interest
rates must rise, bond values will
be guaranteed to go down both numerically, but also in value as the dollar drops.
Housing remains a basket
case of woes, as the banks
are sitting on properties
that are decaying, and prices will continue to plummet.
Stocks are still trading at up to 50 times earnings in many cases, and earnings are often fraudulent. Companies are
also in debt up to their eyeballs, and won't survive interest rate hikes. Besides, most baby boomers will be selling
stocks for their retirements to live on, and so, stocks will go down for the
next two decades or so.
April was
crazy. We had 2-3 people in the shop nearly
non stop all month long.
A few days, I never had a chance to eat
lunch. I'm sorry I've not had time to write. I've been exhausted, and stressed.
Being a precious metals dealer in this environment is very difficult. Setting
the price for metals is also difficult.
If our prices are too low, we
risk selling out, and then our labor
and shop will be wasted. And if our prices are too high, product won't move, and then the
capital is wasted.
We must sell a minimum, just to pay the rent, ads, and wages of our 5 workers. The free market keeps our prices
honest. Also, many other suppliers
are getting backordered,
and delivery times are increasing,
or no metal is available at all, at any price.
How do we deal in such an
environment? How do we
set prices if I cannot
replace the exact product from
any other dealer?
And then,
tonight, silver prices dropped 11.5% in a few
minutes, from $48 to $42. How can a dealer deal in such
conditions? The underlying spot price is supposed
to be rather
stable. President Nixon fixed
wages and prices when inflation exceeded 4% in
an entire year. Prices are not supposed to move
more than that in a year. Clearly,
manipulation still rules
the day.
To cope
with the price volatility, I have widened our spreads, that is to say,
I have increased the price
that we sell, and lowered the price at which
we buy. I apologize, but I didn't create the national conditions under
which we now live and must all figure out how to adapt to, but rather, I've fought against
them my entire adult life.
I urge you
to buy real silver, while real silver is available. It won't always be available! Some kinds are NOT available now, not at any price!
Consider the alternatives. Can you go to Wal-Mart and fill the
largest U-haul you can rent
with $50,000 worth of goods on a Saturday? Would
you want to, if silver or gold were not available? Would that even be
feasible? Would the
shelves of the mega
stores be empty if that were the only alternative? Prepare
now. It's getting crazy out there, and the hurricane of hyperinflation is just about upon us.
Please follow me on
Facebook. So much has happened
over the last two weeks, I've not had time to write. Osama Bin Laden is
dead. Does this mean the three US wars will end, and the dollar will get stronger? No.
Obama released his Birth Certificate, showing his real father is not an American, thus proving him ineligible to be "natural born" under the
Constitution.
Ron Paul formed an exploratory
committee to determine if
he should run for President again. See www.ronpaul2012.com.
Jason Hommel
Silver Stock
Report
I strongly advise you
to take possession of real gold and silver, at anywhere near
today's price, while you still can. The fundamentals indicate rising
prices for decades to come.
Follow me on facebook!
http://www.facebook.com/jason.hommel
Or Youtube!
http://www.youtube.com/user/bibleprophesy
JH MINT & Coin Shop, Grass Valley, CA
Minimum order $5000, USA shipping only.
Open 10AM to 5PM Pacific Time, Monday to Friday, closed weekends and bank
holidays. (Also Closed from Dec. 25th to Jan 1st)
www.jhmint.com
(530) 273-8175
Kerri handles internet phone orders:
kerri.jhmint@yahoo.com
(530) 273-8822
If we can't fill your
needs, or if our phone lines are too busy, try my mom's shop, located in
Sacramento, CA:
www.momssilvershop.com
(916) 481-5656
mom@momssilvershop.com
You can also buy and
sell silver at auction, online, for only a 1% fee, at:
www.oneoverspot.com
In Portland, Oregon, a new bullion shop opens up, and needs customers!
http://www.goldsilversupply.com/
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