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
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