Hi all,

Given todays action in Silver and Gold I thought I would post this part of Hommels rant today. (I also posted this on EXN)

Deno

Other rumors: I've heard that 4 major coin shops on the West Coast of North America were out of 100 oz. bars yesterday; Amark, the largest distributor for Johnson Matthey in the nation, and Tulving, and two dealers in Vancouver. If you include NWT Mint's delivery delays, that's 5. Anoter man emails to tells me that a coin shop in Surrecy, BC is sold out of 1 oz. Silver Coins, and that their phones are ringing off the wall for orders and they can't fill orders for lack of silver.

So, I emailed a trusted dealer I know on the East Coast, and he said he could get Johnson Matthey bars from the refinery within a week or two; it takes that long to produce them. I've ordered from him before, he's good.

http://www.wexfordcoin.com/BullionBa...

It was rather shocking, therefore, to see the silver price go down so much today. Therefore, I suspect this dip will be very short.

I want to reassure all those who bought silver recently at $21/oz. I first bought silver at $5.50 in 1999. I had to wait 4 years until 2003, to see silver lose 25% to $4.15/oz. Looking back, it's hardly anything to complain about, is it? So, too, will this current dip, be long forgotten once silver is at $200/oz. or higher.

Again, the fundamentals: .007% of investors are buying silver in 2006, which is $1 billion. By the time 0.1% of money in the banks tries to buy silver within 1 year, the price of silver will be well over $200/oz., in my estimation.

Here's my projection from 2005 of what will happen to silver prices if they rise 50% per year for 15 years. (You can't even see silver's rise to $50/oz. on the chart!)

I hope you can see why it's so important to get your silver from a local coin shop if you can, or to spread out your orders over several dealers to protect yourself in case of a failed delivery.

http://find-your-local-coin-shop.com/