The CFTC Appreciation Medallion

This is from an excellent idea presented to Jason Hommel for the production of a new one ounce silver round. It can only be described as really "very fitting"...

"CFTC Appreciation Medallion.

Let us pause and give thanks to the CFTC for willfully refusing to recognize or end the low silver price manipulation of futures contract prices by several large banks that have sold short silver positions that far exceed all historic norms of position limits and concentration limits on the short side of the market.
The CFTC has all the data on who is manipulating. They know the names of the large banks who have such concentrated positions, and several writers in the private sector have fingered J.P. Morgan, but the official "investigation" lingers for months, if not years now, but that's not important.
What's important is that we show our thanks and appreciation for such criminal neglect in high places by buying the silver while it remains available. Also, why not immortalize such bold incompetence, ironically, in the very silver that they despise, for future generations so that they can understand our angst at this peculiar time in history, because otherwise, future generations would never believe it.
I really don't expect the CFTC to pull their head out."

Jason Hommel: What if They Returned to the Gold Standard?

(They can't, but we can..)

Silver Stock Report
by Jason Hommel, December 10th, 2008


What if the Government went back on a Gold Standard?

Do do that, they would need to use their gold to pay off all their debt.

That would give a price of gold if the U.S. Government backed the dollar with gold.

We only need to know two numbers, and do a simple problem of division.

First number: The national debt.
http://www.treasurydirect.gov/NP/BPDLogin?application=np

The government tells us this is:
$10,656,119,227,403

That's 10.6 trillion dollars.

Second number: The U.S. Gold stock.
http://www.fms.treas.gov/gold/current.html

The government tells us this is:
261,498,899 ounces of gold

That's 261 million ounces of gold.

So $10,656,119,227,403 divided by 261,498,899 = $40,750/oz. of gold.

In theory, if the U.S. government had the restraint to stop issuing any kind of new debt, and if there was a runaway hyperinflation, the government could credibly stop any sort of runaway gold price by offering gold at a price of $40,750/oz.

That's the price that could cap the gold market if the U.S. government sold all their gold to all their bond holders. At that point, all new taxes would have to be levied in gold, not dollars.

It's important to realize that any effort by the government to sell gold below that price will ultimately fail, and will eventually cause the gold price to go even higher than that price, as that would only deplete their limited stock of gold at inappropriate price levels.

The main point is that T-Bills, which are perceived as the safest haven around, are not safe. They are only backed up by gold at a rate of $40,750 per oz. With gold trading today at around $800/oz., the U.S. gold backs less than 2% of the value of the issued bonds, or stated another way, $800 is 2% of the price of $40,750. Gold, at today's prices, is clearly a far superior safe haven.

And silver, which is in short supply, due to relentless industrial demand that has consumed nearly all world silver supplies, is even safer.

Clearly, the government cannot offer gold at $40,750 per oz. today. There would be no buyers. But, over time, the gold price may rise to such levels, and beyond, as a generation of people slowly wake up to the monetary fraud of the last 29 to 95 years, depending on whether you count from 1980 or 1913.

I am not an advocate of a return to a gold standard, where gold backs up paper money. I'm in favor of a return to using silver and gold coins and bars as money, as measured by weight, and traded at their intrinsic value according to the price in an open and free market place.

Sincerely,

Jason Hommel

Jason Hommel: silver shorts must be desperate!

Jason Hommel is cutting off one-by-one the sticky strings that hold together the tricky web of lies being spun around Silver and the recent PM correction.
It feels almost like deconstructing Saruman's tower in "The Lord of The Rings" and exposing the Orcs, Trolls and Goblins hatcheting the PMs underneath the seemingly "normal" markets! A must read...
Jason Hommel: silver shorts must be desperate!

Jason Hommel documents Barrick's continuing huge gold short

Silver Stock Report editor Jason Hommel has dug through the financial reports of Barrick Gold to verify the huge continuing short position in gold the company seems to be trying hard to conceal. Hommel's analysis is headlined "Sell Barrick, A Sneaky Hedger" and you can find it at the Silver Stock Report site HERE

Jason Hommel: Swiss Gold Sales are Insignificant

Swiss Gold Sales are Insignificant

Silver Stock Report
by Jason Hommel, June 14, 2007


In my article last week, I spelled out various statistics on gold, as measured in tonnes.

http://www.silverstockreport.com/2007/tiny_size_of_gold_market.html

To recap:

155,000 tonnes of gold were produced in the whole world, in the entire history of mankind.
2500 tonnes of gold are produced by the world's mines each year.
5000 tonnes of gold are actually traded each year (best estimate).
500 tonnes of gold are sold each year by European Central banks under the "Central Bank Gold Agreement". (CBGA)

Recent news of Swiss gold sales of 250 tonnes over two years will fall under the existing, known CBGA. Thus, there is no material change in the status of the gold market.

Furthermore, there is no change in the fact that paper money is still being created at the same rates as yesterday.

The world's central banks continue to print up as much paper money in one year, as the total value of all the gold ever mined in all of human history. Both annual paper money creation, and all the gold in the entire world ever mined in all of human history, are both worth about $3.3 trillion, or $3,300 billion.

Swiss gold sales of 250 tonnes are worth $5 billion.

Swiss gold sales pale in size in comparison to the Bank of China's $1200 billion of reserves. China hopes to diversify 5% of that into gold, which is $60 billion.

Where is China going to get $60 billion worth of gold, or about 2871 tonnes?

This remains the unanswered question in the gold market.

China's reserves: Golden dragon or sitting duck
http://english.people.com.cn/200706/07/eng20070607_381820.html

Therefore, you can see how ridiculous and misleading the following headline is:
Swiss sales dash hopes of gold recovery
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/06/14/bcngold114.xml

On the contrary, Swiss sales of 250 tonnes are a non event, and will not remotely satisfy China's oft-repeated desire and need for 2871 tonnes of gold.

Not even Resource Investor reports the facts correctly (and I advertise there!):
Switzerland Central Bank to Sell 250 Tonnes of Gold
http://www.resourceinvestor.com/pebble.asp?relid=32973

RI reports that Virtual Metals claims that Portugal has 79% of its reserves in gold.

Matt Turner, commodities analyst with Virtual Metals, told RI it was significant that the bank said gold as a percentage of reserves had gotten too high, since many European countries have a higher share of gold reserves.

Greece has 80% of its reserves by value in gold, Portugal 79%, Italy 66%, Germany 63%, Netherlands 56% and France 56%. If these banks were to reduce their reserves to 30%, Germany would have to sell 1,802; Italy 1,341; France 1,273; Switzerland 394; Netherlands 311 and Portugal 235 tonnes.

However, GATA has shown that Portugal has already leased out 70% of their gold. Therefore, Portugal's gold cannot be sold twice at the same time!
http://gata.org/node/4194

GATA.ORG therefore writes a different headline regarding the Swiss gold sale:
Switzerland keeps bailing out its banks short gold
http://gata.org/node/5168

If the Swiss gold has already been leased, then this gold may be "phantom gold" sold directly to banks that are short gold, to let them off the hook for their gold leases. In other words, no gold at all may come to market from the Swiss sales.

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Jason Hommel: Why Silver will Soar

SILVER OWL Blog:
Jason Hommel: Why Silver will Soar

Jason Hommel: Fraud vs. Truth

Silver Stock Report
by Jason Hommel, May 17, 2007

Major Frauds of the U.S. Monetary System.

• 1. The dollar is a broken contract to repay with gold or silver.
  
  
• 2. Unrestrained creation of money increases an already unpayable debt to the public.
  
  
• 3. Banks don’t possess the fraudulent paper money they say is in your accounts.
  
  
• 4. The FDIC is a lie; they don’t have the money to cover the accounts either.
  
  
• 5. The central banks only possess half the gold they say they do, the rest is leased out.
  
  
• 6. Bonds are a paper promise to pay more fraudulent paper promises.
  
  
• 7. Inflation indexed bonds adjust by using a false rate much lower that the real rate.
  
  
• 8. More futures contracts are sold, than silver or gold exists.
  
  
• 9. Options are a bad gamble on leveraged futures, and most expire worthless.
  
  
• 10. Position limits on longs attempt to control the market by limiting buyers' purchases.
  
  
• 11. COMEX silver delivery delays are market defaults.
  
  
• 12. Bank hold times on checks defraud you of access to your money.
  
  
• 13. Legal tender laws prevent people from using gold and silver as money.
  
  
• 14. Taxes on gold and silver purchases are illegal since it is only one tender for another.
  
  
• 15. Income tax was to be temporary from WWII; it's fraudulent and unconstitutional.
  
  
• 16. The social security system, medicaid, and medicare is a pyramid scheme and will collapse.
  
  

Jason Hommel: How to Fix Gold Price Fixing

by Jason Hommel, April 9, 2007

"The world monetary system is in serious trouble, and the main problem is that nobody who is in power seems to know how to fix it. This is the theme of an article at lemetropolecafe.com called "The Road to Roota or The Implementation of the Gold Standard." (You can read the article if you signup for a free two-week trial at lemetropolecafe.com, which I strongly suggest that you do.)

The Fed tried to work on a cure for the monetary system in 1981. See "All That Talk About Gold", from October, 1981.

It was thought, at the time, that the biggest difficulty was to determine the fixed, set dollar price, for gold and silver, and nobody could agree.

President Reagan decided to continue to let the market decide, and let the dollar "float", and it has been sinking ever since.

Five years later, in 1986, the president's commission came up with issuing gold and silver Eagles.

But they printed the term "$50" on Gold Eagles, and "$1" on Silver Eagles. Most everyone who has ever looked at one of these coins, which are worth about $700 and $15 today, will ask, "Why did they do that?"

Click HERE for the rest of the article...

IMF Admits GATA is right?

Silver Stock Report editor Jason Hommel has reviewed the International Monetary Fund's concern that its rules allow central banks to double-count their gold, to count leased gold as if it is gold still in the vault. Hommel's essay is titled "Has the IMF Admitted GATA Is Right?"

Review on Vancouver & Silver

Jason Hommel's debut on Youtube. All about Silver...


duration: 20:30'