That cast on method in crochet is called the magic ring. I use it all the time when making doilies and when starting a project requiring a chaining of sts joined with a sl st. Yes, it does eliminate the hole.
Here is a link to a video on YouTube. Google has change their look a bit.
Notice there a several different names given to it. I guess we crocheters can't make up our minds, lol.
I guess I won't be using silk if it will take that much yarn. It also eliminates some special yarn I have but not enough of. To bad as it has a nice sheen and is so light reflecting.