Am I Shill Bidding?
Silver Stock Report
by Jason Hommel, January 13, 2009
I'm continuing to create new best practices
in the silver dealing market, one of several dealers selling at www.seekbullion.com.
My main goal is to make sure I never sell out of silver, to make
sure that I can offer some silver at some price--the free market
It's bad if a price is either too low, or too
high. So, it's bad if I try to set a price, any price. It must
be a market price.
If I set a price too low, then I can
sell out, and no product is available to anyone. Also, if my price
is too low, then I can't replace my inventory, and eventually must go
out of business.
If I set my price too high, then I'd
sell fewer products, and earn less profit.
The free market
price is when a willing seller, and a willing buyer, come together at an
agreed upon price, when nobody is defrauded, when nobody is forced to buy
or sell, and when nobody is prevented from buying or
To continue to offer silver at a free market price, I
must have a minimum price. My minimum price is based on covering my
cost, plus tomorrows silver price, which is the time i receive the
money from the prior day's auction's highest bidders. To get as
close as I can to tomorrow's price, I have to set my "reserve"
price within the last hour or two before the auction.
could list my auctions with a reserve price at the start of the
auction, which is generally a day or two before the auction closes, but
this would cause the reserve price to be too high if silver prices
drop, which is bad for the customer. Or, the reserve price could be
too low, if the silver price moves up, which would be bad for me,
and ultimately bad for the customer, if I have to stop selling
because of that.
So, many people like my process, think it's
awesome, that I'm doing just great, that I just need to "continue
what I'm doing", and I appreciate all the support.
people across the internet have slandered me once again, accusing me
of "shill bidding".
Fortunately, enough people understand the
reality of the situation to come to my defense.
shill bidding, which is placing a secret bid on your own auctions in
another name, designed to trick bidders into bidding too high.
bidding on my own auctions, in my own name, in the open, at a
pre-stated price, of spot plus $2/oz., which, tonight, is $13.81/oz.
I'm not deceiving anyone, which is what shill bidding is designed
Some people accuse me of "locking in
profits". But that's still not guaranteed for me, since the
auction price is set in the evening, and the winning bidder pays the
following morning or afternoon, and thus, nearly a day goes by during
which time I'm exposed to changing silver prices, which is difficult
for me to be "out" of the silver market for even 5000 oz., for even a
day, given that I believe we are in a bull market.
So far, in the
three months since I've started selling silver at auction, I've been
able to cover fully, and buy back every ounce of silver I sold,
plus overinvest in about 10,000 ounces of extra silver
inventory. To earn that, I've put nearly 200,000 oz. of silver at
risk, which means I've made, on average, about 5%.
If overinvesting in silver turns out to be a "bad business
decision" I'm happy to make it. So, I'm not selling out, as so many
accuse. Last week, however, we were unable to be able to over invest
into any extra silver.
I wonder why nobody ever accuses
other popular bullion dealers of "selling out" of silver, as a means
to exit the silver investing/dealing business? They only
accuse me of that. Silly false accusors, they have nothing
better to do with their time.
Tonight, we are offering 40 JM
Stamped bars, from 6-9pm. The first of the auctions
started closing 40 minutes ago.
Meanwhile, while I
continue to do everything in the open, banks resort to increasing
Reform plan raises fears of Bank
The Bank of England will be able to print extra money
without having legally to declare it under new plans which will
heighten fears that the Government will secretly pump extra cash into the
is payment in full. Paper money is a fraud, a false promise.
I'm offering something real.
I understand people
need to become better skeptics in this age of fraud, but please check
out my user ratings!
5 stars. I ship the SAME DAY wires come in, so you know I'm not
defrauding you, and playing with your money. And people
are testifying of my fast shipping!
In case you miss an email,
check the archives:
You can buy silver in
lots of 100-500 oz. at my auctions at www.seekbullion.com
Auctions end M-Th, Sat, At 7PM Pacific, but you can place bids anytime, 24/7.
Wires only. USA Shipping only.
You can also buy silver at www.momsilvershop.com
ship overseas, and also in lots of more or less than 100
See us also at:
4870 Granite Drive, Rocklin, CA 95677