Ignoring the Free Market Causes Shortages

[webmaster]

Subject:Ignoring the Free Market Causes Shortages
By: Jason Hommel, Silver Stock Report

Overview: I do not believe the futures market needs to be "regulated" or "sued" or "legislated" out of existence. It simply needs to be ignored by the market, and it appears that is what is happening, and thus, it will beome increasingly irrelevant. The paper manipulators will ingore the free market at their peril, and we will ignore their rigged market to our success.

Link: http://news.silverseek.com/GoldIsMoney/1219600231.php

[thowze]

The third free market violation comes from the U.S. Mint. The U.S. Mint has outsourced the making of coin blanks to other vendors. To my knowledge, they do not do this for coin blanks for other coins, such as pennies, nickels, dimes, quarters, or other coinage.

Thus, they place themselves at the mercy of private businesses that have to operate in a rigged fantasy market of highly variable prices, where no actual increased silver product is made available to turn into blanks at lower prices. This thwarts the intention of the U.S. Silver Eagle program, which is to make silver available to the market at all times at market prices.

It also made me wonder if the U.S. Mint is doing everything it can to make sure
that American Eagles are available for purchase. Back in May of 2008,
Silver Institute Executive Director Michael DiRienzo contacted the Mint after they
made statements that future productions would have to be rationed due to the
fact that they did not have enough planchets for bullion coins. Basically, the Mint
blew him off.

Silver Institute Urges U.S. Mint to Stabilize
American Eagle Silver Bullion Coinage Program
http://www.silverinstitute.org/news/pr29may08.html


U.S. Mint's Reply to Silver Institute
http://www.gata.org/node/6349

[daman4455]

My company imported in to India some 22 tons of silver at market prices in last two weeks from a US based company with contacts in several mines. The supplier gave honest prices as prevailed in the market plus shipment charges for arranging air shipment from London, Hongkong and other places to Indian city of Chennai where our office is located. All shipment charges were on actual basis.

In India we have traditionally strong facilities for manufacturing though our silver mines produced only 200 tons per annum. We import 1500 tons per annum as a whole in this country and my friends in business have imported 100 tons from overseas without any difficulty during this price decline.

How I am to believe Mr. Jason Hemmel for now or future? In India we need only 2 days time to produce any amount of coiin or articles required by customers.

US retail outlet shortage is not world shortage. Further I believe shortage in US should be due to logistic factors as US players never buy physical silver coins and articles regularly and most of the industries would have closed down due to lack of patronage. Only investors need to blame themselves. We never find difficulty in sourcing silver and satisfying our regular customers.

[MetalWorx]

I have read your posts before and am still confused by your comments.

Originally Posted by daman4455

My company imported in to India some 22 tons of silver at market prices in last two weeks from a US based company with contacts in several mines. The supplier gave honest prices as prevailed in the market plus shipment charges for arranging air shipment from London, Hongkong and other places to Indian city of Chennai where our office is located. All shipment charges were on actual basis.

In another post you stated "I am an Indian importer and I find no problem in sourcing silver even today for manufacturing use. I use to keep inventory of 10 to 15 metric tonnes but I stopped that after September 2007 as it took nearly 8 months to sell the same due to weird speculation."

Looks like you see these prices today as a good deal .

Originally Posted by daman4455

In India we have traditionally strong facilities for manufacturing though our silver mines produced only 200 tons per annum.

In another post you stated "Take for example India, silver is not at all produced/ mined but entirely imported. Still all shops have ample stock of any silver article or coin."

Originally Posted by daman4455

US retail outlet shortage is not world shortage. Further I believe shortage in US should be due to logistic factors as US players never buy physical silver coins and articles regularly and most of the industries would have closed down due to lack of patronage. Only investors need to blame themselves. We never find difficulty in sourcing silver and satisfying our regular customers.

In this article Jason Hommel does not state that there is world shortage as you claim he does.

"It's not rocket science to predict that when prices are too low, shelves get cleaned out! That's basic 101 free market common sense.

Besides, if 9 out of 10 bakery shops have no bread, that's called a shortage of bread, even if there is plenty of grain available. Silver itself may be "abundant," but not in the form that we investors want to buy, which is defined as a shortage."

[Canadiansilverbug]

daman4455

If it's so easy to get any quantity of silver into india and only takes days convert fair delivery bars into what your clients want why don't you buy 20 tones convert it to 100 oz bars and return it to N.A. for a $4/ oz premium?

Sound like damn easy money to me.

To anybody else, has anyone/group/business ever looked into what the capital costs of a simple mint would be. nothing fancy, arc furnace, generic molds like the old rough J&Ms, scales, buffers, building, license etc?

Incorporate, sell shares and pay dividends to the owners in silver, I'd invest.

Why doesnt one of the bigger miners (or a cooperative of smaller producers) do this, as a value added product, this would also give them more reason to hold stock rather than dump at what ever the manipulated paper price is in any quarter?

Someone really needs to rattle the cage of the establishment!

Is there any word from NWT mint of expansion plans?

[Argentum]

I don't think Ohio Mint has much of a 100 oz shortage. They are local. Yes, them bricks are ugly, but then there is no chance of fakes as they just started within the last year.

They can be found on eBay or BD.