More TwosDay Silver Shortage Reports

[webmaster]

Subject:More TwosDay Silver Shortage Reports
By: Jason Hommel, Silver Stock Report

Overview: I asked my readers to go to their local coin shop on Tuesday, September 2, at 2PM. On September 3rd, I published the first 10 reports from my readers. Here are the rest, about 25 more. They are almost identical. No customers. No silver. Long delivery times, or unknown wait times. What little silver there is, is often selling at shockingly high premiums, and going higher.

Link: http://news.silverseek.com/GoldIsMoney/1220733996.php

[valerb@bellsouth.net]

Jason, I must be the unluckiest silver investor in the USA. Outside of buying silver rounds from NWTM, I have purchased mostly 100oz Engelhard and JM bars from the same two dealers. I suppose like most investors, I don’t go to my dealer and ask what he has, I call him first to find out what he has and at what price. My main dealer asks why I was laughing when he said he didn’t have any silver at all. I told him I didn’t believe everyone ran out of silver at the same time. He then told me he really has his normal stock of silver, but was cut off from his supplier a couple of days before. The bottom line explanation was that he sells his silver for whatever the going rate is and he doesn’t lose any money as long as he can purchase replacement silver the same day. This of course lead me to needing more understanding how he could do that without losing money when the price of silver was dropping. His explanation was simple to understand. He always keeps X amount of silver on hand so his investment never really changes. The price goes up and the price goes down, but he always has the same amount of silver. He makes his profit off the markup rather he sells it for $10 an ounce or $20 an ounce. Like everyone else, his net worth depends on what the price of silver is on any given day, but he doesn’t concern himself with that figure as it used to drive him crazy years ago. He basically refers to himself as a buy and hold investor in silver and gold. Now that I had a good understanding of how he operates, I called my other dealer and asked him if that was how he operated and he said yes, but said he would deny it if I told anyone. He said he didn’t want to piss off any customers for fear they wouldn’t understand why he wouldn’t reduce his inventory at the current price, not knowing how much he’ll have to pay to replace it down the road when it becomes available again.

So I either have the only two dealers who live off markups alone or there are many others out there doing the same thing. I find that rather hard to believe that I just happened to find the only ones operating like that in the country. Both dealers are regular coin shops dealing in all kinds of investment coins in addition to being Gold and Silver bullion dealers.

Dealers like APMEX are a little misleading with that $1.49 over spot price. First off, they are not quoting spot as the bid price, they are using the ask price. If you happen to have an extra $27,560 to purchase 20 bars you can get that price. For $1.59 over ASK price, you can buy ten or more bars. Then if you can only afford nine or less, it is $1.69 over ASK price. I know the ask price is only 5 cents more, but why try to nickel and dime people. By the way, those 5 cents adds up to an extra $100 if you can afford to buy 20 bars.

Why do people need to pay huge markups to get their silver today, when they can wait a few weeks and save a ton of money? I have no idea what all of the prices offered and by which dealers, but I do know that NWTM for example offers Pan American Bars for only 78 cents over spot unless you order ten or more and then it is 73 cents over spot. Engelhard and JM bars are $1.13 over spot unless you buy ten or more and the price drops to $1.08. I’m sorry; I forgot that you told us NWTM was bankrupt, what was it, two or three months ago. Maybe Ross is not as dumb as you think or I’m a fool for not listening to you and paid him for a small mountain of his rounds that I’ll never get. Only time will tell.

I’m sorry, but I think you are doing your readers a disservice by telling them to buy everything they can get their hands on for whatever the coin dealers are asking. I know coin dealers that ask $4 and $5 over spot when things are normal. Then there is Steve Quayle who is selling silver for over $20 and ounce and telling his readers that is what they should be paying. I agree with that logic, that the price should be over $20 an ounce. But no one should pay that amount when the spot is just over $12 and you can buy premium silver for far less than $20.

Hey, where were you when Ted Butler said he is convinced that SLV was a safe investment since they started listing their serial numbers. I was afraid to buy SLV until he wrote that article. Now I’m in for two years worth of ROTH investment and can’t get it out. Wish you could have found out about Barclay’s problems several months ago.

Now I have to worry that you’re wrong about NWTM and Barclay’s. Give me some good news and tell me my IRA silver with Crest Star (American Church) or whatever their new name is, is safe.

No, please don’t, I know you’ll tell me I’m screwed again.

PS, I have the bulk of my silver and it can’t be screwed with