Silver Price Changes(Down 36%, and back up 29%!?!)Silver Stock Reportby Jason Hommel, September 27th, 2011
This kind of volatility we are seeing in silver is insane, and is further
proof that the paper market is manipulating the price! Silver hit a low of $26
yesterday, yet 3 days earlier it was $40.50!
$40.50 minus $26 = $14.50/oz. dip.
= 35.8% drop in
And yet, this morning, silver hit a high of $33.65. In just over 24 hours,
silver bounced back by about 29%?
$33.65 minus $26 = $7.65/oz. gain.
= 29.4% gain in just
over 24 hours!?!
I know this kind of market volatility and price changes are unusual. It's
unusual even for a tiny $3 million market cap penny stock! And the silver
market is a major $30 billion annual industry, which is 10,000 times larger than
more stable penny stocks!
How can a dealer deal at 3% or less in this kind of environment?
We, at www.jhmint.com
were super busy on Monday, 9-26-11. We sold $260,000 worth of silver and gold.
We only bought $30,000 from the public, so we had to order $230,000 from the
wholesale suppliers, who, again were all super busy themselves, and had busy
signals on the phone today. We are rapidly running out, and risk being sold out
of a few products tomorrow. Therefore, I raised prices by 1% across the board,
again, to help ration product availability.
Our shop, jhmint.com, was super busy last Friday, 9-23-11. The public bought
$250,000 worth of silver and gold from us, about 3/4 silver, 1/4 gold, and most
of it all in cash, all under $10,000 limit. We took in only $60,000 from online
wires, in 7 different wire transfer transactions. This move down in the silver
price is totally fraudulent, the people are buying like mad at these levels. If
this price holds for some insane reason, while people buy this much, then I'm
thinking that silver at most of our suppliers will run out in about a month or
less. Most people were buying like crazy. Exhausting day! Fun Fun!
On my facebook page, people were commenting about shops running out of silver
Regarding these clearly manipulative price changes, a reader asked me at
When will the sellers like YOU just shut up shop during times like this! -
put a sign in the window - 'gone sailing, back later' - Kiwi.
No, we NEED to sell to the public, so that we can allow the
public the opportunity to challenge, and take on the JP Morgan manipulators. I'm
not "selling", I'm "passing it through", as for every sale, we re-purchase the
silver immediately, in bulk from wholesale suppliers, and mints, who manufacture
fresh new 1 oz. rounds.
And I replied again:
Also, Stephen, we have FIXED costs, such as telephone
book ads, rent, employees, internet, electricity, garbage collection. If I close
up shop, on some of our busiest days, I would be a horrible businessman. The
trouble is not me, the trouble is that the public, such as yourself, do not
understand the first thing about the free market, and how free market
competition is the ONLY thing that will ultimately end the price manipulation.
See, the price manipulations fail when the public goes on a buying spree like
they did on Thursday and Friday.
The reader responded with appreciation and understanding:
cool - I appreciate the response Jason, except i do understand the free
market, I just didn't realize you were buying at the market price.
I reply finally:
Yes, we always have to buy back daily. If we can't buy from the public, then
we have to re-order from wholesalers. Unlike other dealers, I'm not content to
sit on cash, I always go all back into metal at the end of the day, and during
the day. We do this so that we will survive this bull market in silver, and
survive the run up to $500/oz. and beyond. This is not just my market
prediction hype, we are basing our business plan and strategy and business
procedures to ensure business success while the price rises explosively.