Hommels Auction: 50,000 oz. silver Canadian Olympic Mapleleafs
 

Auction: 50,000 oz. silver Canadian Olympic Mapleleafs
(Second auction!)
Silver Stock Report
by Jason Hommel, September 19, 2008

I'm parterning with a popular and well known bullion dealer to auction off 50,000 ounces of silver.

50,000 one-ounce silver coins: Canadian Olympic Mapleleafs

Terms: Available to bidders in the USA only.

Auction ends September 22, Monday, Noon, Pacific Time.

Bid how much you are willing to pay over spot.
Spot price will be Friday's London Silver Fix, as listed:
http://www.kitco.com/market/

Or, bid a total final price.

Minimum bid: $2.50 USD over spot, per ounce.

Minimum bid size: 5000 ounces. So there are 10 lots up for auction, you may bid for 1 lot, several lots, or all.

(The coins come in boxes of 200 coins each, so minimum is 25 boxes.)

Dutch Auction Rules. High bidder wins and gets first allocation, but the final auction sales price will be the lowest price bid that is required to fill the whole 50,000 coin auction.

Email your bids to: j@silverstockreport.com

Winning bidder (or bidders) will be notified via email on Monday, wire transfer instructions, to wire directly to the dealer.

Wires must be sent by Tuesday.

Only bank wires will be accepted. No checks, no Credit Cards, no cash.

Free, insured, shipping, to anywhere in the USA ONLY, included in the price.

After the auction, I will release the range of bids, but not the name of any bidder.

I accept no responsibility if your email bid gets lost and does not arrive, or gets lost in the spam filter. Email via "returned receipt requested" to help ensure confirmation of your bid.

I will attempt to email back to confirm bids as they come in.

I may publish bids half way through the auction.


As many of you know, even coins are getting harder to find and source.

I expect the coins to auction for between $3-6 over spot.




Sincerely,

Jason Hommel

Re: Hommels Auction: 50,000 oz. silver Canadian Olympic Mapleleafs
 

wow...thats about $75K starting minimum bids.
crazy

Re: Hommels Auction: 50,000 oz. silver Canadian Olympic Mapleleafs
 

A bit 2 rich 4 me. One box is already pushing it. :bear_w00t:

Re: Hommels Auction: 50,000 oz. silver Canadian Olympic Mapleleafs
 

http://www.apmex.com/Product/39327/2...Vancouver.aspx

not so bad if you're looking to buy and dont want to spend $75K to receive a slight discount.

Re: Hommels Auction: 50,000 oz. silver Canadian Olympic Mapleleafs
 

Why is Hommel selling at this juncture?

Re: Hommels Auction: 50,000 oz. silver Canadian Olympic Mapleleafs
 

He's not selling, the dealer's selling and Jason gets the commish

Re: Hommels Auction: 50,000 oz. silver Canadian Olympic Mapleleafs
 

Why do I think of Elmer Gantry everytime I see this guy's name?

Re: Hommels Auction: 50,000 oz. silver Canadian Olympic Mapleleafs
 

Update: Why Auction 50,000 oz. Olympic Maples?

(What's the purpose of this auction?)
Silver Stock Report
by Jason Hommel, September 20, 2008

Some people applaud this auction, others are confused, :confused_ma: and a few have gotten very mad by it:rant:. Let me explain.

First, why am I selling silver when I think we should hold it? Well, it's not my silver. Clearly, I don't own all the silver in the world, and we all know my readers should be interested in buying silver. I'm trying to help, as a middleman. This silver belongs to Tulving. My first auction caught his attention, and he thought we could partner up. Tulving sold out of 50,000 Olympic maples within about a week at $2.79/oz. over spot, and has graciously offered another 50,000 Olympic Maples to readers of the Silver Stock Report at an even lower price of $2.50 over spot minimum reserve, in an auction format.

I forgot to mention the main point of this auction is that this silver is "in". It has arrived at the depository on Friday, and there is no wait time, other than about 1-3 days to pick up from the depository to mail out after the auction is closed and wires have arrived. This was my requirement before I would agree to the auction, as this would help insure delivery by eliminating third party defaults. I believe avoiding default, and not selling silver you don't have, is very important in this market.

I thought this auction is a great idea, and here's why.

Ebay and bulliondirect.com are the only other real auction sites on the internet that can be used to determine a free market price. But they don't have much silver in large volume, and so many people don't trust the "ebay" prices, because of that. Furthermore, large buyers are thwarted and hindered by ebay and bulliondirect, since you cannot buy large amounts of silver at ebay, and bulliondirect does not have a lot of silver to offer now either. This auction can help to determine a free market price for silver in volume. This can help prevent shortages nationwide, as other dealers can use this auction as a price guide.

You can check the price of "silver Olympic Maples" at ebay.com.

More on price: http://www.coininfo.com/ shows that the average dealer is bidding about $2.00 over spot to buy regular silver Maples. That goes to show that the floor price for this auction of $2.50/oz. over spot is reasonable, and fair. You cannot buy silver "at the bid", and neither can the dealers. They only hope to get it at that, and as we know, most of them are sold out.

A few people were very angry at me. They said I don't care about the little guy who can only buy 100 ounces. This is obviously not true. Anyone buying in small lots can buy at ebay. The way it works is that the people who buy 5000 oz. may sell to others who may buy 200 oz. who may end up selling at ebay.

There is no need for me to provide the service that ebay already provides. Ebay is not helpful in brokering large amounts of silver.

The Canadian Mints and U.S. Mint sell silver in bulk. The U.S. Mint sells Eagle coins in 25,000 minimum lots at $1.25 over spot (and the dealer must be pre-authorized and have a minimum net worth of $5 million), and is now rationing, not by price, but by delays and prior purchasing volume history. The 15 or so primary dealers are now selling them at $3.50 over spot this week, because there is a silver shortage. This shows that the minimum price for these special Olympic Canadian Maples, at $2.50/oz. is lower than what is current for Eagles, and the minimum volume in my auction, 5000 ounces, is also lower.

Some were angry at the auction format. They think I'm price gouging. I'm not. I'm not setting the price. The market will set the price.

There are two ways to ration product. One, you can ration by selling out at too low of a price, which creates delays. Or, you can ration by price. This is an attempt to ration and allocate by price.

Rationing by delays prevents a free market price from emerging. Rationing by price at an auction, helps the free market allow for price discovery. But more than that!

A free market price sends a signal to all market participants. A free market price is the only thing that helps to end shortages. A free market price does this by encouraging others to take delivery of 1000 oz. COMEX bars to turn into 1 ounce rounds, and/or 100 oz. bars for investors.

So far, there have been 4 bids:

1. $3.15 over spot, or $15.25 for 5000 oz.
2. $15.00 for 5000 oz. (conditional upon verification of silver)
3. $2.80 over spot for 5000 oz.
4. $2.50 over spot for 5000 oz. (conditional upon verification of silver)

In my first auction notice, I made a mistake. I said that the price would be Friday's silver fix. It should have read "Monday's Fix" which is the day when the auction closes. I goofed and listed Friday, because my last auction closed on a Friday, and I wrote up this auction based on my first auction email. Sorry for the mix up.

Oh, a few Canadians were understandably upset because this auction of Canadian coins is valid only for people in the U.S. I apologize, we can only ship to within the U.S., because mail cannot be shipped insured into Canada. The insurance stops at the border. There is a way that Canadians can bid, but you must have a shipping address in the U.S., and then it is up to you to transport it across the border on your own. You can ship it to a friend or relative in the U.S., or to a depository in the U.S., such as www.firststatedepository.com.

One person who understands what I'm doing with this auction wrote:

This is fantastic news.

Jason is attempting to do away with the practice of dealer rationing.

What does dealer rationing accomplish?

It allows the price manipulation to practice manipulation on a continuous basis. (indefinitely)

The free market system cannot function with rationing.
The manipulators have only been successful as long as they have, as a result of silver rationing.

Jason Hommel has obviously identified a major problem and is working to correct same.

Good for him !

========================
Auction Terms:

50,000 one-ounce silver coins: Canadian Olympic Mapleleafs

Terms: Silver won at auction can only be shipped to locations within the USA only.

Auction ends September 22, Monday, Noon, Pacific Time.

Bid how much you are willing to pay over spot.
Spot price will be Monday's Silver Fix:
http://www.lbma.org.uk/

Or, bid a total final price.

Minimum bid: $2.50 USD over spot, per ounce.

Minimum bid size: 5000 ounces . So there are 10 lots up for auction, you may bid for 1 lot, several lots, or all.

(The coins come in boxes of 200 coins each, so minimum is 25 boxes.)

Dutch Auction Rules. High bidder wins and gets first allocation, but the final auction sales price will be the lowest price bid that is required to fill the whole 50,000 coin auction.

Email your bids to: j@silverstockreport.com

Winning bidder (or bidders) will be notified via email on Monday, wire transfer instructions, to wire directly to the dealer.

Wires must be sent by Tuesday.

Only bank wires will be accepted. No checks, no Credit Cards, no cash.

Free, insured, shipping, to anywhere in the USA ONLY, included in the price.

After the auction, I will release the range of bids, but not the name of any bidder.

If your email bid gets lost and does not arrive, or gets lost in the spam filter, I can't help. Email via "returned receipt requested" to help ensure confirmation of your bid.

I will attempt to email back to confirm bids as they come in.

I may publish bids half way through the auction.


As many of you know, even coins are getting harder to find and source.

I expect the coins to auction for between $3-6 over spot.




Sincerely,

Jason Hommel

Re: Hommels Auction: 50,000 oz. silver Canadian Olympic Mapleleafs
 

Now I have an issue with this. Instead of Jason giving his newsletter subscribers and opportunity to pick up a measly 50,000 eagles that would go very fast to about 10 or 15 takers he chooses to middle man the deal and blow off his subscribers? I have heard all I need to on this, I used to defend the guy but looks as though he may have gone to the other side. :thumpdown

Re: Hommels Auction: 50,000 oz. silver Canadian Olympic Mapleleafs
 

I ordered a box of these from APMEX. They look kinda goofy but I'm a purity nut. The more 9's the better. :s9:

Re: Hommels Auction: 50,000 oz. silver Canadian Olympic Mapleleafs
 

25 boxes is a bit much, even with 2 life-times. I ordered a box myself and never even opened it; still has the mint seal.

As to Curtman comments, I know Jason personally and think, he means well.
But he's young and still a bit of a dreamer.
With this auction, he is trying to get some bigger costumers into silver, which is not easy. Large orders are hard to fill and it's also hard to convince "big dough", that they need silver. As for subscribers, I think it's crazy, to be one.

Re: Hommels Auction: 50,000 oz. silver Canadian Olympic Mapleleafs
 

Yes thinking more on it I must agree that the more silver being taken off the market the better.

Re: Hommels Auction: 50,000 oz. silver Canadian Olympic Mapleleafs
 

2.50$ over spot?????? uhh I'll pass on that one. I am holding firm for spot + 99c max!

Re: Hommels Auction: 50,000 oz. silver Canadian Olympic Mapleleafs
 

i applaud jason, and his gold counterparts like james turk, folks at gata, etc

they are aggressively seeking free market price discovery. if jason can prove a substantial margin over COMEX, then:

...selfishly - the value of ALL our metal will climb
...more importantly, honest money will win in the long run. this crushes any dishonest govt.

Re: Hommels Auction: 50,000 oz. silver Canadian Olympic Mapleleafs
 

personally I can't stand homey, he thinks people with jump all over themselves to own silver just because he was involved in the deal, and I'm sick of hearing his $50 an ounce rant all the time, and all the BS about owning physical, yet if you pay his stupid subscriber fee what do you get,,,,,,,none other but a printout of his portfolio holdings which are chock full of what? Paper, thats what! I guarantee you he has mirrors all over his house, to reflect his I love Jason walls.

Re: Hommels Auction: 50,000 oz. silver Canadian Olympic Mapleleafs
 

Bid Update on 50,000 1-oz. silver Olympic Maples
(Auction still not yet filled.)
Silver Stock Report
by Jason Hommel, September 20, 2008

With the auction closing today at noon in about 4 hours, this is the last bid update.

We have 6 validly priced bids so far, for 5000 oz. each, as follows.

$3.10 over spot
$16/oz., or $3.02 over the fix (spot).
$2.80 over spot
$2.80 over spot
$2.50 over spot
$2.50 over spot
----
Invalid bids, too low unless silver was lower than $12.50.
$15/oz. flat.
$14.90 flat.

The silver fix is $12.98, which was noon London, and 4AM Pacific time.
http://www.lbma.org.uk/

We need minimum priced bids of $2.50 over the London Fix, which would be $15.48/oz.

This auction appears as if it will be either 'barely filled', and maybe not filled. If not filled, the silver will go to all bidders under dutch auction rules for $2.50 over the London Fix, which would be $15.48/oz.

Silver is up to $13.28 now in the spot market. Thus, the minimum bid is now only $2.20 over spot!

APMEX now lists Olympic Maples for between $16.87 and $16.37, depending on order size:
http://www.apmex.com/Category/2/2009...ple_Leafs.aspx
APMEX has a minimum $50 order size.

==========

Minimum bid reduced to 1000 ounces!

In the interest of both filling up the auction, and adjusting to feedback from my readers and the dealer, I'm reducing the minimum bid to 1000 ounces, and allowing bids in increments of 1000 ounces. If existing bidders wish to adjust their order sizes, they are free to do so, and submit new bids.

This will be more to keep track of, up to 50 bids, which I was hoping to avoid, but Tulving and I thought it would be best, and I can manage. With this format, winning bidders will be notified by email, not by phone, the final auction prices, and wire instruction information. Also, after the auction, I'll submit the final bids in email for everyone to see.

The reason why I selected the 5000 oz. minimum bid, orginally, is that is the size of the COMEX contract, and it would make for a more valid comparison between our auction prices, and the COMEX price. But it looks like that minimum was too high to be practical for refined coins, and this auction, for now. Looks like I was aiming too high.

==========

Updated Auction Terms:
Changes in bold, from
http://silverstockreport.com/2008/auction-2.html

50,000 one-ounce silver coins: Canadian Olympic Mapleleafs

Terms: Silver won at auction can only be shipped to locations within the USA only.

Auction ends September 22, Monday, Noon, Pacific Time.

Bid how much you are willing to pay over spot.
Spot price will be Monday's Silver Fix:
http://www.lbma.org.uk/
LONDON FIX IS: $12.98

Or, bid a total final price.

Minimum bid: $2.50 USD over the London Fix, per ounce.

Minimum bid size: 1000 ounces . So there are 50 lots up for auction, you may bid for 1 lot, several lots, or all.

(The coins come in boxes of 200 coins each, so minimum is 5 boxes.)

Dutch Auction Rules. High bidder wins and gets first allocation, but the final auction sales price will be the lowest price bid that is required to fill the whole 50,000 coin auction.

Email your bids to: j@silverstockreport.com

Winning bidder (or bidders) will be notified via email on Monday, wire transfer instructions, to wire directly to the dealer.

Wires must be sent by Tuesday.

Only bank wires will be accepted. No checks, no Credit Cards, no cash.

Free, insured, shipping, to anywhere in the USA ONLY, included in the price.

After the auction, I will release the range of bids, but not the name of any bidder.

If your email bid gets lost and does not arrive, or gets lost in the spam filter, I can't help. Email via "returned receipt requested", and include the word "silver bid" in the subject line to help ensure email delivery of your bid.

I will attempt to email back to confirm bids as they come in.

I expect the coins to auction for between $2.20 to $3.00 over spot.




Sincerely,

Jason Hommel

Re: Hommels Auction: 50,000 oz. silver Canadian Olympic Mapleleafs
 

Auction Closed; Final Bids for 50k oz. silver
(Thank you!)
Silver Stock Report
by Jason Hommel, September 22th, 2008 :bear_w00t:

Here are the bids for the auction.

Bid Update on 50,000 1-oz. silver Olympic Maples September 22, 2008
Update: Why Auction 50,000 oz. Olympic Maples? September 20, 2008
Auction: 50,000 oz. silver Canadian Olympic Mapleleafs September 19, 2008

$3.25 over spot = $16.23, 5000 oz.
$3.10 over spot = $16.08, 5000 oz.
$3.02 over spot = $16.00, 5000 oz.
$3.02 over spot = $16.00, 1000 oz.
$3.02 over spot = $16.00, 1000 oz.
$3.02 over spot = $16.00, 30,000 oz.
$3.00 over spot = $15.98, 5000 oz. (Only 3000 allocated)

Final floor price: $3.00 over spot = $15.98/oz.!

That was the floor, the rest of the bids didn't make it.

$2.85 over spot = $15.83, 5000 oz.
$2.82 over spot = $15.80,40,000 oz. !
$2.81 over spot = $15.79, 1000 oz.
$2.80 over spot = $15.78, 5000 oz.
$2.75 over spot = $15.73,10,000 oz.
$2.75 over spot = $15.73, 1000 oz.
$2.67 over spot = $15.65, 1000 oz.
$2.65 over spot = $15.63, 1200 oz.
$2.62 over spot = $15.60, 1000 oz.
$2.60 over spot = $15.58, 1000 oz.
$2.60 over spot = $15.58, 1000 oz.
$2.58 over spot = $15.56, 1000 oz.
$2.56 over spot = $15.54, 5000 oz.
$2.55 over spot = $15.53, 5000 oz.
$2.55 over spot = $15.53, 1000 oz.
$2.55 over spot = $15.53, 4000 oz.
$2.53 over spot = $15.51, 1000 oz.
$2.53 over spot = $15.51, 1000 oz.
$2.52 over spot = $15.50, 1500 oz.
$2.52 over spot = $15.50, 1000 oz.
$2.52 over spot = $15.50, 1000 oz.
$2.52 over spot = $15.50, 2000 oz.
$2.52 over spot = $15.50, 5000 oz.
$2.52 over spot = $15.50, 2000 oz.
$2.52 over spot = $15.50, 1000 oz.
$2.51 over spot = $15.50, 5000 oz.
$2.50 over spot = $15.48, 5000 oz.
$2.50 over spot = $15.48, 5000 oz.
$2.50 over spot = $15.48, 5000 oz.
$2.50 over spot = $15.48, 1000 oz.
$2.50 over spot = $15.48, 1000 oz.
$2.50 over spot = $15.48, 1000 oz.
$2.50 over spot = $15.48, 1000 oz.
$2.50 over spot = $15.48, 1000 oz.
$2.50 over spot = $15.48, 1000 oz.
$2.50 over spot = $15.48, 6000 oz.
$2.50 over spot = $15.48, 5000 oz.
$2.26 over spot = $15.24, 1000 oz.
$2.02 over spot = $15.00, 5000 oz.
$1.92 over spot = $14.90, 5000 oz.

Total bids for 197,000 oz. of silver.

Thanks for bidding. I'm sorry if you did not win, or if my estimations on how the auction was going threw anyone's bid off. I received most of the bids in the last two hours.

One bidder for 5000 oz. cancelled his bid, because I lowered the bid size to 1000 oz. in the middle of the auction, which allowed his potential customers to also bid. His bid was for $2.80 over spot, and did not win.

Re: Hommels Auction: 50,000 oz. silver Canadian Olympic Mapleleafs
 

[With this auction, he is trying to get some bigger costumers into silver, which is not easy. Large orders are hard to fill and it's also hard to convince "big dough", that they need silver. As for subscribers, I think it's crazy, to be one.]

hes trying to prove that silver prices are higher than spot. i guess his expectations are too high and had to lower (to 1000 oz lots).

Re: Hommels Auction: 50,000 oz. silver Canadian Olympic Mapleleafs
 

"Spot" is Hollywood, like Mickey Mouse

Re: Hommels Auction: 50,000 oz. silver Canadian Olympic Mapleleafs
 

My wife is canadian so she is going to get some of these. Miles Franklin purchased 32,000 Oz (160 boxes - 200 in each box). Problem is Franklin wants 4 bucks over spot for each coin. Wife does not care about the premium, she is paying for them, so I guess we will get at least 1 box from Franklin.

SilverNuts@Bolts, what does the mint box that the coins come in look like? Is it yellow, a smaller version of the 500 coin canadian monster box?

I like that Jason is getting more buyers into the market, but Tulving was selling these for 2.49 over spot, then ran out of inventory. What really happened was that Tulving gave his remaining inventory for this auction, another dealer ended up purchasing most of the coins, so I will end up paying 1.50 extra per coin.

Re: Hommels Auction: 50,000 oz. silver Canadian Olympic Mapleleafs
 

Box has 200 maples, with a label...
BP CDN SML OLYMPIC 1 OZ $5 2008 T
White carton box 15.5 x 6 x 3 inches
Has 3 nylon straps. I never bothered opening it up.
Maybe there is a clay brick inside? Complements of the mint? :D

Re: Hommels Auction: 50,000 oz. silver Canadian Olympic Mapleleafs
 

SilverNuts@Bolts,

Is it a plastic box, or is it cheap cardboard box like the phils come in?

I would have thought that the coins would be in mint tubes of 25 coins per tube, packed inside a plastic box. Ampex was selling these, 20 coins came in a plastic mint tube, 200 and you got the mint box.

3 inches wide by 6 inches tall by 15 inches long. Sounds like the 8 mint tubes are in one row instead of 2 by 4 pattern.

Re: Hommels Auction: 50,000 oz. silver Canadian Olympic Mapleleafs
 

cardboard box like the phils.
Coins come in plastic sheets.

Re: Hommels Auction: 50,000 oz. silver Canadian Olympic Mapleleafs
 

LoL

http://www.marmalade-skies.co.uk/elmer.htm

Re: Hommels Auction: 50,000 oz. silver Canadian Olympic Mapleleafs
 

In reality he didn't have to lower the minimum quantities ordered.

He and Tulving don't understand the "sniper" mentality

He ended up with plenty of bidders but most waited until the last two hours to bid.