Thanks OTIS for youtube link - I watched the videos and am impessed with the way they take the ore through the process right to the coin at the end. It is a very much a hands on operation from beginning to end. How many mints can show you exactly how the coin is made like this?
stella I do agree with many things you said in your videos - utube, but not this paper silver. the idea of getting real macaw may be different from the long past history. (which we who read history know very well that silver bond went bust = all those promised left holding their bags) here, its kind of metal flow. this I am still ok. but why hold someone else promise? when you can just buy the whole lot with the cash, or even credit. If the time is stretch too long, that make me nerves. We have here country risk involved. If the company is doing it in OZ land, then I may look at it a bit differently.
400 memberships @ $5000 per membership so $2,000,000. handing out 4800oz silver/year or $196,000 at current value. What puts me off is there is no easy way of dumping these if you need to besides selling them back to the company. The other thing is there website lists the upside gains but not the downside losses. Since i don't think this is a bond in the pure form rather a 'membership' there is a legal/financial reason i'm sure for making it a membership. If your looking for this sort of silver exposure why not just look at mining shares or ETF's.
Overcrowding with Macaws, they may eat the fish from the tank. Since there is a preservation component in this, then after the $5k, purchased, I believed they can give us the buyer some sort of acknowledgment for our contribution in saving the macaws and we can post the cert here on the forum with pride. no free silver here.
Difference is, you get that $5k back at the end with the second. And to the person who asked about the downside risk of silver, the bond states that you can withdraw the $5,000 at any point. I'm not going to buy, but mainly because I know nothing about Bolivia
You can ask for the money at any time, but they have 30 days to pay you. Stella mentioned that you can receive payback at the current silver rate. IE if silver doubles you would get back 10000 vs. the original 5000. When is the payback ratio calculated? The date the request is made, the date the request is accepted, the date of actual payment or some other date? Normally the difference would not be significant. However, if the US suffers hyperinflation, your proceeds might be worthless before you even receive it.
I cannot find any reference on the site to payback being in anything but USD. It would make a tremendous difference if he could guarantee payment back in the original amount of AUD or silver at todays price ie. say 100 ounces of silver whenever you want to withdraw or at the end of the 2 years. This would make it a much better investment. I would be happier knowing I have 100 ounces of silver at the end. All he has to do is put away in a safe the quantity of silver necessary to pay back all those investers who request payback in silver rather than USD. He would definitely get more investors and it could be to his advantage as he produces the silver at a much lower cost than market price. I wouldn't even mind reject coins or bars as long as it was silver!
I like the idea of donating any proceeds of the 'commission' from Royal Silver to Ron Paul, however non-Americans can't donate to presidential campaigns, but you could ask Brian to make the donation on 'our' behalf.
As Perth Mint refines gold/silver for our miners, it would be easy to simply credit shareholder's Perth Mint Depository account in whatever fractional ounces amount equals their declared cash divident, taking the metal straight from the miners' metal account with us. No need for the miner to sell their metal for cash, pay cash dividend to shareholder, who uses cash to buy gold.
The Royal Silver Club has proven a success. We have sold about 150 Memberships based on one mailing by us--which got Stella's attention and endorsement. No other effort so far. But soon we will do a world-wide campaign for the final Memberships. We are revamping our website this week, with new products and accepting credit card payments and advanced security for our customers, plus our Members can now control the price at which they lock in optional coins 24 hours a day--our Member's-only page updates the POS every 3 minutes, so Members can lock in their best price, even when we in Bolivia are all asleep. I'm going to ask our staff to lower retail prices and increase our wholesale price, to make our coins more accessible to the retail buyer, when we announce taking credit card payments. (Ironically to all us market-conspiracy buffs--yes, I believe-- JP Morgan Chase handles our credit card processing--they provide the best interface and highest level of service of any gateway we shopped--so they may be manipulating our favorite metal (or perhaps not) but nobody can deny they are skillful at what they do at all levels.) All Club Members have received at least 3 months of free coins so far, with another 3 months going out next week. We pay 3 months of free coins at a time in advance to lower shipping costs. Many Members have ordered optional coins. They receive the optional coins first, then we invoice them. NO risk on their part whatsoever. There should be plenty of stackers at this time, who can vouch for receiving free and optional coins, exactly as promised. A few Members requested their money back due to changing circumstances, and all have been re-paid with enough money on top to cover bank fees. One Member's who wanted his money back was short-changed by his bank about $170, and we are still sorting that issue out, but otherwise everybody is happy. Our friend John (Stellaconcepts) was proven right. The doubters were proven wrong. Those who said they would be better off buying $5,000 worth of silver than investing in one our Memberships (silver bonds) would be down 20% at a minimum (the silver price was in the low $US 40s at the time). They would have lost at least 15% of their capital, if not more, and be subject to daily swings of about 2%, which can be nerve wracking. Whereas Members can receive their capital back at any time with no loss, and they are up 3 to 6 coins per Membership so far, depending on when they invested. Some Members ordered optional coins at $30 per ounce, so they are way ahead right now. Those who ordered optional coins at $40 are ahead also, because our coins sell for much more than the POS. The US Dollar is not falling off a cliff as many predicted and may end up stronger as the US FED sells its treasury bills and other central banks (Japan i.e.) buy USD to weaken their own currency. But Members can hedge dollar risk, as Stella has shown. Personally, I feel silver is in a range for a long time and we may not see $50 for a while--production has ramped up at mines and this silver will begin hitting the market in the next couple of years. Supply and demand is the strongest of market forces. When the POS hit $9 in 2009, many mines and mills shut down, this caused the POS to spike to where we are today, now mines and mills are expanding due to the high price and the POS should go down as a result of additional supply. Supply is increasing in silver not vice-versa. I know the wild-eyes will scream at me for being a heretic, because their world-view REQUIRES silver to go only one direction--UP, but I live in the trenches of production and there is a lot of silver hitting the market. All of us who were long silver in April-May can attest that the POS can go down fast--real fast. So John (Stella) was right, when he said he would never want to be 100% invested in silver, and that the Royal Silver Club represented an attractive hedge against silver depreciation. He was prophetic, which is why I take into account his opinion. Those of you who follow his channel can attest to his instincts being correct most of the time. Regarding our own risk, Royal Silver Company hedged 1,000 oz/year of financial risk at $35 and another 1,000 oz/yr at $30, so those that predict that the Club will go bankrupt when silver hit $50 to $100 don't understand that we are prudent and have hedged against our downside (silver increasing). We're OK. The Club is an interesting concept in raising money. Rather than sell shares of our company to the public at inflated prices via a broker taking 30%, thereby devaluing our current shareholders--which is the model almost all other junior companies pursue--which would be difficult, given where we operate, we appealed directly to our customer base--people who have seen our products and who appreciate their uniqueness--with an investment that so far has proven the best investment in silver a person could have made between July and now. The internet allows small companies to reach a global audience and create a global customer base. Regardless of the fact we are located in a third-world country with challenges, as long as we service our customers with the best product at a reasonable price, they can tell what kind of company we are. We depend on word-of-mouth sales, and our reputation means everything. Our Islamic-market coins sales will easily outstrip sales of Macaws and Cats going forward. And those buyers have no idea who we are. When our dinars hit the market, it should cause a sensation. When they find out who makes their coins, we may drive sales even more. We will offer inexpensive 1/4 oz gold coins next week--if you shop around, you will find our price competitive. We will make two qualities--.9999 in large amounts and .99999 in limited amounts, each will be a different design. The Andean Cat 1/4oz will be the bulk gold at .9999 and the Blue-Throated Macaws 1/4oz will be the extra-pure .99999 gold in limited quantity. We have proven ourselves capable refiners by now. But gold can only be refined by top management, not by our rank and file employees, for reasons everybody can understand. That's the update on The Royal Silver Club. Thank you to all Members who are stackers, and if you were put off by the naysayers--I think so far they have been proven wrong. Please take a look at the site www.royalsilver.com next week for a new offer. Two years will tell who comes out ahead: the Members who bought our Membership for $4,900 with the Stellaconcepts promotional voucher when silver was at $43 and who receive free coins and his/her money back (at the USD exchange rate), plus the option to buy our coins for wholesale--knowing that our coins still command one of the highest resale premiums on the non-numismatic market, or the person who bought $5,000 worth of normal bullion silver at $43. Time will tell, but at this moment The Royal Silver Club Members are way ahead. Always best regards Brian
Presumably if these 'bonds' come with a capital guarantee, related to the spot POS then I'm wondering why there isn't a parallel product which is structured simply to lock-in gains as the POS reaches certain targets for bond holders. Also the rating of the issuer must be transparent & defined by a recognized ratings agency to become a truly innovative investment product. Otherwise one might just as well buy physical & aim for straight capital gain - the monthly coins are really only a gimmick, since any income will be treated as interest income rather than something which is held for over 12 mths when only a 50% charge to CGT would be incurred on sales. VRS x
As per the PDS the Royal Silver Silver Bonds are not capital guaranteed. They are however, un-subordinated debt instruments. As VRS identified, the interest is paid in silver ounces instead of cash but would still be taxable as income as if it were cash. It is not normal for debt issuers of this size to be rated. The amount of interest payable on the debt (although variable based on the POS) is within the range that would be expected for an issuer of this size and risk profile. The Silver Bonds alone may be a reasonable investment, subject to the additional complication of the currency risk for non-USD investors, but the kicker is in the opportunity to buy Royal Silver rounds for $3 over spot each year to the value of the investment made with no payment due until receipt. Bond holders who utilise this option stand to make a substantial additional gain on their investment.
Yes, granted its only a $5k investment. And if the producer is also selling rounds at spot or with premium won't there be an issue with bond holders trying to match those prices even though they're paying only $3 over spot? VRS x
The producer is able to wholesale or sell directly at a lower price than bondholders so doesn't this become more or a numi bonus for them rather than competing with the producer, for example if I wanted to buy $5k's worth of coins in any year? Sorry if I'm missing something here VRS x
Brian - if you are going to lower the retail price of your coins, surely this will lower the overall value of your coins on the market and make the bond idea less attractive?
$3 above spot is well below what the rounds are sold for to non-members. Bond holders can purchase at spot +$3 and re-sell for less than Royal Silver sell for at retail. Brian's comments about decreasing retail margins is of interest however - this would reduce the bond holder's margin but not likely to eliminate it.
