Silver Show in Idaho
Silver Stock Report
by Jason Hommel, August 15, 2006
This report available online at
I encourage you to register for The Silver Summit this year in Idaho. It will be the best mining conference of the year. It will be much bigger than last year as it will be held in Coeur d'Alene, Idaho. Most of the silver mining companies will attend. I will attend, and give two speeches: one during the main event, and one on Sunday morning covering the religious points on silver.
September 21st - 22nd, 2006 Coeur d'Alene, Idaho
September 23rd - 24th, 2006 Wallace, Idaho (Optional Fun)
Also speaking is John Embry, Chief Investment Strategist of Sprott Asset Management, who has endorsed GATA's work. If you do not know who GATA is, see GATA.org, and get on their free email list. Also, get a free two week subscription to lemetropolecafe.com. GATA has exposed the failing scheme of the central banks to sell gold to cap the price, and the gold price is rising, in part due to nations like Russia discovering what GATA knows, as was presented at Gold Rush 21 over a year ago when the gold price was around $430/oz., an event that featured John Embry. If you want to know where gold and silver are headed, and you had to pick one man to listen to besides me, I'd pick John Embry!
Other noteable speakers will include financial writers Richard Daughty, whose work appears at the Daily Reckoning & David Morgan of silver-investor.com.
For a full list of speakers:
Silver will be there, but silver does not speak. Silver has no public relations agent. Silver does not advertise. Silver does not have an investor relations department. Silver does not produce financial statements. Silver does not produce an income. Silver does not generate profit. Silver does not have a brain that you can "outwit". Silver suffers the incompetence of all humans, including my own.
If a bullion dealer spends money to advertise silver, such as sending you a mailing, that costs money. That money must be reflected in a higher price that the dealer must charge for the silver that they sell. Why? Because such a bullion dealer may end up scaring away people who would otherwise want to sell silver, which can be a source of a dealer's "spread" or profit. Therefore, it actually pays a dealer to have a neutral viewpoint on silver.
Furthermore, if a dealer advertises, buyers who may be successfully convinced to buy silver may end up searching for the lowest price dealer, and buy from the other dealer, instead. Therefore, it does not really pay for bullion dealers to advertise the product that they have to sell. Commodities do not lend themselves to advertising because there is little or no competitive advantage to a given bullion dealer's product. All product is nearly identical.
I never thought I'd be able to advertise as heavily as I do, but I advertise with free money. I began in 2003 by just trying to market a few essays, by giving a non-exclusive right to market the essays to someone else. They sold ok, but as it turned out, people wanted to buy a monthly subscription to "look at my portfolio" more than anything else, and I use the money from my 800 or so paying subscribers for advertising.
This process may actually be doing silver investors a dis-service. It seems as if many beginning investors think that they will automatically get access to some sort of "holy grail" of money-making heaven if they subscribe to my portfolio, rather than buying silver.
Don't get me wrong. The stocks I own are outstanding, and many tell me that they are much better than those chosen by other analysts, and my portfolio continues to perform very well, so I'm confident about my investment choices, and marketing my service.
Part of me fears that my business process makes investing in silver sound too complex, because I write many articles trying to analyze silver from all the angles, (including the religious ones) and I also analyze mining stocks. I apologize if I make silver investing sound complex as some have criticized.
That is not my intent. I try to simplify it. My trouble is that I may give the impression that silver stocks will always outperform silver. That is just not so. Exploration and mining companies may outperform silver, or they may not. Sometimes stocks out-perform, sometimes stocks under-perform, as when silver goes down or is on a dip and investors flee the sector.
Other people who advertise silver may also try to sell you products that might outperform silver, such as numismatic coins, or derivatives like futures contracts or options. But then again, such products might not outperform silver. I don't like numismatics, and I loathe derivatives. I think numismatic coins are like idols, and derivatives can default. Even mining stocks may go to zero, but silver never will (except perhaps when the antichrist comes to power after the rapture, in the middle of the tribulation) --but that is a religious viewpoint and opinion.
You do not need to be an expert on silver before buying silver. Silver is simple. It, like gold, is real money, whereas paper money is not, paper money is fraud. That's all you really need to know. It would probably be wise of you to search around for a low cost, reliable, bullion dealer, and I've listed several of them for you here.
I like silver better than gold for a number of reasons. Mainly they can all be summed up in the ratio, which is about 52 to 1. You can buy 52 ounces of silver for the same price as 1 ounce of gold. I think this ratio will easily return to the historic ratio of 15 to 1 very easily, and as silver does that, it will outperform gold by about a factor of just over 3. You will make three times as much money owning silver, than gold by the time the ratio hits 15:1.
I think silver will do better than 15:1. It may hit 5:1, or even 1:1. If that happens, you will make far, far more money in silver than gold. Why might silver do so well?
Silver is consumed by industry. How much? Nearly all of the silver that is mined each year, and more. This has been going on for decades, perhaps over 50 years.
Very few governments hold any silver. India may hold about 50 million ounces, and that's about it. The U.S.A. silver hoard of 3 or 5 billion ounces has been sold. This means that government selling can no longer cap the price.
The world has much less silver today than when the Hunt Brothers bought over 100 million ounces of silver in 1980, and "cornered" perhaps 5% of the world's silver market.
Today, the world may have about 250 million ounces of silver available: 100 million oz. on the NYMEX, 100 million oz. in the Silver ETF, 50 million oz. held by the government of India, and that's about it.
Warren Buffett's silver has also been sold, and no longer exists as an "overhang" as something that could be sold to temporarily depress the silver market. In 2003, when we were wondering why silver was not participating in the gold price rise, it may have been due to Warren's selling.
But these are just details; and I can only cover so much detail in an article, or even a speech.
At the Silver Summit, I will try to cover the information in the following articles, and also be available for questions. If you show up to be able to look me in the eye and ask, "Do you really think so?" my answer will be "Yes!".
Since Silver does not speak nor advertise, you ought to attend the Silver Summit. It's about as close as you can get to hearing silver speak.
Here is some of the content that I plan to cover:
Topics for my Speech on Silver:
Why Silver Prices Must Rise
(A thorough overview of the Fundamentals)
Future Gold & Silver Prices
The Money Chart & Desirable Features of Money
Topics For Sunday Speech, September 24th, 11 AM-1PM
Why the world will likely return to a gold standard before the pre-tribulation rapture
Why the Use of Paper Money Violates All of the Ten Commandments
Gold and Silver in Bible Prophesy;
The Great Harlot of Revelation 17-18: Who She Is & What that means
18 Biblical Guidelines for Managing your Money
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