There were little changes needed in my weekly report
on silver stocks, so I did not go through and re-produce the prices on
the list this week. The last update can be found here:
www.goldismoney.com/ssr/SS42.html
Also, there is substantially reduced investor
interest. Also, last week, I produced a list of the symbols so everyone
can track the prices at Yahoo! Finance. Besides, if everyone else is
taking some time off, perhaps I should as well. And I did enjoy some
fun in the sun yesterday. But I could not stop myself from writing up a
commentary bit by bit throughout the week.
Topics in this week's commentary
(so many titles to choose from)
The Wisdom of Children...
Ruling the world...
Societal Condemnation...
Political Change...
what are you Working for?
Silver moved up to $6.75 out of it's previous
trading range of between $5.50 and $6.50 since the fall in price from
$8.40/oz., and few investors are paying any attention. But this is how
it must be. Bottoms are created when there is no investor interest.
Tops are created when investors are scrambling over themselves to buy.
I believe we have just put in a bottom in the silver price because investor interest remains low.
I know investor interest is low for the following reasons.
1. Signups and emails are down.
2. Bullion dealers report that
they are servicing 1/10th the buyers that they had when the silver
price was between $7-8/oz.
3. Volume on the silver stocks remains very low.
4. It is very difficult to get orders filled when trying to place a bid for silver stocks.
5. Spreads are widening in the
tiny silver stocks, again, due to low volume, and little investor
interest.
6. Other gold and silver
newsletter writers report that signups are down. This is described at
lemetropolecafe.com as the "café sentiment indicator".
7. This is the summer. During
summer, many investors (regardless of the sector) who are wealthy,
leave for a summer vacation, and completely ignore the markets.
Dealers have reported to me that they don't
understand how people can be so dumb as to buy at the top, and sell at
the bottom. What they fail to realize is that their customers, the
people, help to create the market. When the people stop buying, prices
drop. When people start buying, prices rise. The masses can never buy
at the bottom, and the masses can never sell at the top. That's just
the way that markets work.
Now, given that people are not interested in silver
now, and given that silver is not being used as money, we must be at a
brand new, all time low. And that, to me, is extremely exciting,
because we now have a new low price, that is over 50% higher than the
price in the Spring of 2003, when the price was $4.15.
Unfortunately, here's what dealers also don't
understand about silver. They see the action of the interest of their
customers, and they may decide to short silver when people are going
crazy to buy it. They may use the action of the people, and then take
contrary action. Unfortunately, dealers may forget two very important
things.
First, the dealer network has been devastated by the
23-year bear-market in silver. There are fewer dealers today.
Therefore, with a tiny increased interest by the public, say, moving
from 1 in 10,000 people being interested in silver, to 1 in 1000 people
interested in silver, this looks like "the public is going crazy" since
it represents an increase of customers of ten fold. However, still, the
public has not yet awoken to silver. The media still was not reporting
anything at all about silver when it hit $8.40! Thus, we are still at
rock bottom.
Second, the dealers may forget that it is monetary
demand that will ultimately drive the price. Monetary demand depends on
the supply of money, not the supply of silver. Thus, given how many
dollars there are, the price for silver could hit $2000/oz., yes, two
thousand dollars per ounce! Therefore dealers should never short
silver. It is just too dangerous.
I bought a book on Sunday, July 11, to read to my
fiance's children, aged 10-13. (Yes, I'm happy to announce I'm getting
married September 18th.)
The book was "Chicken Soup for the Preteen Soul."
I've read many of these Chicken Soup books a few years ago, and I
thought the stories were generally educational, interesting, and
motivating. This edition, the "Preteen Soul," starts out with a poem
written by Sara Alfano, age 11. Her poem:
If it were all up to me
The poor would have riches
And the blind man would see
The hungry would eat
And the weak would be strong
And the people with hatred would all get along
The ones who are greedy would start to share
And unfriendly people would start to care
The thirsty would drink
And the deaf person hear
And sorrow and sadness would all disappear
And that is how the world would be If it were all up to me.
I read this poem to the children, and I said I
disagreed with Sara in line two. (The Bible says the poor will always
be with us. Mark 14:7 "For ye have the poor with you always, and when
so ever ye will ye may do them good: but me ye have not always.") So,
to teach them without having to resort to a line from the Bible to
settle the matter, and to encourage them to think, I said, "Imagine if
everyone in the world had a million dollars or even a million ounces of
gold. What would happen?" I had not spoken to them about silver and
economics for weeks, yet, instantly, the children knew the answer.
"Everything you could buy with your money would quickly disappear," the
middle child said. "Almost no one would work," the oldest said. They
even realized that the economy would completely collapse. They said,
"Everyone would starve because nobody would bother to make food."
"Except some people, the really smart people, they would continue to
work." The youngest said, triumphantly, "What would be the point, the
money would be worthless, and prices would rise extremely fast and go
really high!" Such wise children... so capable of imagining the
possibilities and consequences of folly...
If only our politicians were as wise as a properly questioned ten-year-old.
Do you know that those conditions are beginning to
happen today? Commodities are not being produced fast enough, as
supplies are shrinking, and prices for those commodities are
skyrocketing. Things you can buy are disappearing. This is the end
result of the U.S. society and government wishfully thinking, somewhat
like Sara, that they can produce wealth for all, by merely printing
trillions of dollars, and giving handouts to the poor.
You want the poor to have riches? Then teach them to
not vote for government theft! And do them good by giving them an
education in the Bible. This, the government is incapable of doing,
even forbidden from doing, since they cannot endorse a religion.
There is a saying that goes like this: "If wishes
were horses, beggars would ride." Well, the street beggars don't ride,
but the politicians certainly do. They ride in luxury limos, at
taxpayers' expense!
Paper money is not real wealth; it is theft.
Here is my poem: (Now I'm not a poet, so forgive me if it rambles on too long, or has no rhyme or form.)
If it were all up to me
The stupid would understand the unchangeable economic laws of God,
That you reap what you sow.
Atheists would cower before God,
Fools would be shamed into silence,
Wise men would teach and rule
Justice would not be perverted.
You would have to work to eat,
Charity and love and discipline would rule
Idiots would receive an education for free,
By learning firsthand the rules of God,
They would be put to work the economic way,
By staying out of their way, and not regulating their lives.
Charity would be voluntary,
Handouts would come from the Church, not Government.
People would not be given something for nothing,
But would receive value for value, in fair trade.
Usury would not have government support,
As any kind of slavery would be illegal.
And so, people would enjoy the fruits of their labors
and keep what they earn.
But the lazy would still grow poor,
And those who refuse knowledge and work would remain unhappy,
People would suffer the consequences of their own evil decisions,
Those who covet would always be in pain,
Those who commit fraud and theft would be killed,
Those with hate in their hearts would die.
And thus, we'd all be better off,
As communism and socialism could not flourish,
Nor could oppressive government.
And so, fewer people would be deceived.
Peace would be expected,
And war would be rare.
As economic prosperity would bloom,
With just weights and measures for all.
And that's how it would be
if it were all up to me.
But unfortunately, it's not up to me, and they
didn't ask me. Nevertheless, I work to educate both myself and others,
as if one day, they might ask, or perhaps a king might ask. Or maybe
even the President or Congress. Daniel gave counsel to a King in
Babylon, and so did Joseph in Egypt.
What are you working for?
This phrase has several meanings. First, why work at
all? Second, what are you trying to accomplish, or what are you working
to acquire?
I realize that to advocate investing in gold and
silver bullion--that this is a difficult proposition to sell to people,
in any era. I'm basically saying, "Hold on to your money (silver and
gold being the only real money), make NO INVESTMENTS, and you will be
better off." Investing in gold and silver is literally like investing
in nothing--not that gold is nothing, and not that buying gold is not a
wise investment. The point I'm trying to make is that buying gold and
silver is not an investment in people, or their business plans, it is a
condemnation of people. To say to buy gold and silver is to say that an
inert thing will be more productive than any person can be. And that's
a very harsh condemnation of all of society, nay, the whole world!
An advocate of gold and silver must understand that
to buy gold and silver, is to reject all other investments in the
entire world. Think of the implications! It condemns nearly all
business enterprises in the entire world. (Except those who are working
from paycheck to paycheck, just to live, since they have no money to
invest anyway.)
Potential investors are people who have money to
spend, but half the people today work from paycheck to paycheck, always
broke or in debt, are simply not even capable of investing in gold or
silver.
Next, there are people who may have some net worth,
but they are also in debt, and this includes most Americans. It is
extremely difficult to sell to this group, because, for them, owning
gold and silver comes at a cost, the cost of their interest rate
payments! If you have a credit card or a home loan, at 6%, most of
these people would want to take extra money and pay off debt before
taking a bunch of extra cash out of the bank, and letting it sit "idle"
in the form of gold and silver. But perhaps this is ok. Perhaps those
in debt don't deserve wealth to begin with.
Next, there are people with a substantial income,
and/or people who live very frugally, who may have money left over to
really invest. Now, 90% of these people have between $2000 and $10,000
to invest, which is not very much, perhaps expenses for one month. The
key problem with convincing people who are earning money, is that I'm
saying that the way to wealth is to take your money, and let it "do
nothing". But they are in the process of actually making money, and
doing it well, because they have more than they need, as is evidenced
by their ability to save. So, to them, if they are self-employed, it
would generally make the most sense to re-invest into their own
business, or invest in their own selves and their own education, or
invest with their employer if they are employed by a public company.
Finally, there are the really rich, people who are
generally quite old, who have a substantial nest egg. Either they
inherited it, or they have been wisely investing their money over a
long time period. If their wealth survived the last 23 years of time,
they generally have been able to preserve and increase their wealth by
keeping it in bonds, stocks, or real estate, and most certainly not in
silver or gold. To convince this group of people to invest in a "thing"
like gold and silver, you have to do two very difficult things.
First, you have to convince them that the way they
maintained or created their wealth in the past is not going to be the
way to maintain or create wealth in the future, so you have to convince
them to change. It is axiomatic, (a given recognized truth) that old
people (who have the most wealth) resist change the most of all age
groups, so it is very difficult to sell them on gold and silver at the
present time.
Second, as for any investment, you have to convince
people that this investment is the best one, better than the
alternatives. But to invest in a thing, means that things are better
investments than people, and that's a rather harsh indictment and
condemnation on society. Literally, when I say investing in gold and
silver is the thing to do these days, I'm saying that there is nobody
on the planet, no person, no business plan worth supporting. (With the
possible exception of silver mining companies.) Again, this is a very
harsh condemnation!
When will people listen? Perhaps when the farmers decide to buy silver, instead of seed for the next harvest!
AND THEY MAY WELL DO THAT IF SILVER CONTINUES TO PRODUCE A 50% RETURN EACH YEAR!
When will people listen? Perhaps when the farmers
decide to sell their produce for gold and silver only, and reject all
paper money! Perhaps when people grow hungry and thin, and they realize
that wealth is not created when paper is printed, but wealth is only
stolen.
What am I working for?
First, I'm working to help people understand. I'm
teaching people about the laws of God, and about economic reality. I
view my work as a ministry. I'm ministering to the needs of people who
have been deceived by the fraud of the paper dollar. My work has turned
into an extremely profitable business. I have invested some money back
into my own business.
Second, I also buy silver (I work to acquire silver,
not fraudulent dollars), because I know that even my own business may
not always be the best thing to invest in! I do purchase advertising
from time to time. But many ads were not worth it. And I'm less likely
to buy advertising now, at the bottom, when people just don't care
about silver. I spent over $1000 to advertise at CNN.com even when
things were exciting, and I got zero results. It would have been better
if I had kept the silver. But other ads helped to double and quadruple
my email list.
Remember above where I said that investing in gold
and silver condemns "nearly all" business enterprises? Well, except
mine, of course. And except those who are working to save people from
the economic destruction that paper money will bring.
Know how I got my start? I started this essay
talking about Children. Why do I bring that up? Well, my dad has money,
and I'm his child. I knew if my father's money was invested well, that
maybe I would have an inheritance. It was not wrong to work for that,
but right! The Bible says a man should leave an inheritance to his
children's children!
Proverbs 13:22 "A good man leaveth an inheritance to
his children's children: and the wealth of the sinner is laid up for
the just."
I had to humble myself greatly to be able to "tend
the family flocks", as Abraham's children did, and to follow the
Proverb.
Proverbs 27:23 "Be thou diligent to know the state of thy flocks, and look well to thy herds."
I had to put myself under my father's authority
again, at the age of 30. I'd provide him with information, but realize
it was his decision. Yet it was a sale I could not afford to lose. Yet,
I'd have to respect his repeated requests to "not talk about silver
anymore, not for the next week or month!" And that was so difficult to
do. How many men at age 30 could humble themselves to live with their
father for the express purpose of convincing their father to invest
wisely, like I did?
And now I'll be ok, unless my father goes on a wild
spending spree. Just as my father had to trust me, I have to trust him.
All my advice and work would be almost nothing for me if my father
decides to leave me nothing, which he still could decide to do, and
it's within his right.
I began by convincing him to buy gold and silver,
and the highly leveraged stocks. I spent about 2-4 years to fully
convince him. I believe the time was well worth it. So far, convincing
my dad has been very successful for me. Literally, there is no job in
the world that could have paid better, given my age and qualifications,
and given the returns he has gotten on his investments.
Furthermore, my father's stubbornness, and final
acceptance, helps me to realize that other people will also become
convinced, over time. My father's skepticism, sales resistance, and
refusals also have taught me to really think hard about why to invest
in gold and silver. It's one reason why I know so much, and it's partly
why I'm a fairly good silver advocate today. Sometimes, working to
condemn the frauds taking place in the world, is the most productive
thing you can do with your time and energy.
And so, I ask you again, What are you working for?
People say that "gold is inert". People say that
"gold does nothing". People say that "gold does not pay interest". They
are all wrong. Gold keeps men honest, and prevents theft by way of
government created inflation. Those are very important and productive
things. An economy cannot survive without honest exchange, which allows
for trade, the division of labor, and extraordinary productivity.
Are we really so productive that we should allow our
wealth to be stolen? Such a large percentage of society works for the
government, and so many mooch off of that government, and receive no
Godly education in the process. Isn't it time to slap them in the face
with economic reality and the laws of God by buying gold and silver? As
I wrote last week, there is something you can do if you want political
change, and it's not voting at the polls. The most important vote of
all is to buy silver.
Gold also teaches many of God's economic truths, and
perhaps that's the most important thing of all. Gold and silver keep
men honest, and that is always needed in a world where all men are
found to be liars, which is another of God's truths. Romans 3:4 "God
forbid: yea, let God be true, but every man a liar; as it is written,
That thou mightiest be justified in thy sayings, and mightest overcome
when thou art judged."
Gold and Silver reflect the divine. And they also reflect the wisdom of children.
Now, let me share with you some of the most shocking
information I've run across this week. U.S. banks are in default, one
to another, in amounts that change, over time, from $900 billion to
$1.4 trillion dollars. This is a lot of money, even given that M3
stands at over $9 trillion! 1.4/9 = 16%!
Here is the source of this spectacular bit of
information: www.lewrockwell.com/north/north282.html -- June 30th,
North www.jsmineset.com/miscfiles/PollockM3.pdf -- June 9th, Pollock
Given that there is no longer any honor among the
banking thieves, it should be no wonder that the Rothschilds have left
the gold fix, and that AIG has left the silver fix.
The reason why these inter-bank transaction
failures, or bank defaults, are occurring, is the rise of interest
rates. Pollock writes, "The problem is that the market will raise rates
if the FED fails to do so."
Thus, if people sell bonds, in the slightest, to
start buying silver or gold, and if they sell enough bonds to cause
bond values to lower and interest rates to rise, it will cause these
bank defaults to increase, and cause the collapse of the banking
system. And then, how much more will people flock to gold and silver,
which cannot default? What do you think the dollar be worth after a
systemic banking collapse? It is always much, much less, especially in
terms of gold and silver.
But who in their right mind would want to own bonds
paying 1% per year, when silver has shown price performance of 100%
gains from $4.15 last spring to $8.40 this spring, and has held on to
gains of over 50% at the current price of over $6.50?
Let them owe their trillions to one another. I don't
care. I own silver, and I don't keep money in the banks. And I'll swap
some for gold at the right price. In the end, "He who has the gold
makes the rules," and, really, should it be any other way? And how will
the world be, when it is all up to me and thee?
Really, we shouldn't have to worry about "them"
confiscating "our" silver. They should be worried about us confiscating
their land and their government, as we will be buying both with our
gold and silver.
Due to reduced investor interest, I may be able to
read and answer some emails this week. So, if I'm asking you the right
questions, let me know at jasonhommel@yahoo.com
Also, my web site has been updated. Please take a look at www.goldismoney.com
I will be speaking in Idaho at the Silver Summit in September 23-24 www.silverminers.org/summit/index.html
I will be speaking in Toronto at the Cambridge Gold Show on October 3-4. www.goldshow.ca
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