Archive for the ‘GOLD/SILVER CONFISCATION’ Category



Some of you noticed a correlation between rising physical metal demand and new gun sales. TPS believes this is by no means coincidence and this trend will continue. Today I want to focus on a issue on the minds of every person who practices independence and frowns upon a bigger overreaching government. We will address the odds of gun and gold confiscation and why I feel one asset has a greater possibility of confiscation than the other. Regardless, thanks for joining us today and feel free to share your take on such an important issue.

TPS readers own both gold/silver and guns. Most view firearm limitations as an intrusion of liberty and realize those who truly wish to harm others will find a way regardless the list of legal guns.  I don’t wish to turn today’s post into a gun debate, there are plenty of sites who will accommodate such debate with far more constitutional knowledge than this writer.

My goal today is to justify why the odds of gun confiscation grows with each passing day yet decreases for gold or silver. This may sound odd but the very government soon to confiscate guns across America really couldn’t care less that you own weapons.

This leads us to ask why then do I feel such a confiscation of guns as imminent? I’m glad you asked.

Many decades ago something changed in America. We went from a self sufficient society to one reliant on government. Our future handed over to programs like Social Security, our health to Medicare, and now our health care industry to politicians.

No longer do we have to rely on ourselves for food, shelter, water or clean air. We now have a government agency to “look after” our best interest in every aspect of our life. Hurricane hits, here comes FEMA. School shooting, here comes the FBI. But something unexpected came along with government protection; blame.

Americans now blame the government for today’s violent shootings taking place across the land. These same folks now demand government do something to end such horrible violence, almost as if it’s expected.

But government has no finesse. Government is a hammer used as a fly swat. This is why the bloodshed of first grade students will ultimately lead to such an outcry that government will quickly react if for no other reason than to squelch the outcry.

Some folks living in the USA are a generation or more removed from the power of our second amendment rights. They don’t own guns, they don’t understand guns, and worst yet they view guns as the problem. These same folks are in much need of a history lesson but few want to hear anything but an emotional solution to a complex problem.

The fact is as follows. The best hands to protect our children are the very hands in jeopardy of losing their gun rights.


What about silver & gold?

This same societal imbalance make silver and gold irrelevant today.  So-called safety net programs grow so large not all the gold privately held in America can make a monetary dent. Honestly, the giant we call government outgrew silver and gold long ago.

The odds of gold confiscation are extremely limited. Remember, we now have a reactionary minded government that only slams the hammer down when motivated by the emotions of the people. Right now, no one is crying out for the government to do something about the evil PM holders.

The power to print currency is the largest weapon in the world. This power is far more destructive than all weapons and yet more misunderstood than the human brain. Why spend time, lives, and effort to confiscate hunks of silver or gold when a central bank can digitally create a millions times its value in currency.

We live in a complex world in a trying time. Maybe this is why each person reading today should discretely own both the assets discussed today.

COMMENT: Hello, I have been following The Prospector Site and enjoyed your last post on true silver concerns.

I thought you may be interested in our recent piece “What Can 1 Ounce of Gold Buy“. This piece takes a visual dive on all of the things you could buy with an ounce of gold, ranging from Al Capone’s tax evasions, to the original island of Manhattan. Please feel free to contact me with any questions you might have.

TPS Reply: Very cool, I’ll pass it along.

QUESTION:  Why over the last two years are metal prices dropping at year’s end? Also, what’s your opinion on using a credit card to buy silver? Thanks.

TPS Reply:  Great question. The paper silver and gold market continues to provide buying opportunities for those that can look past temporary volatility. The paper PM markets have proven, once again, unregulated manipulation is what paper investors should expect. Soon physical metal will separate itself from paper and the difference will be in the form of rising premiums. My advice, do what I do and add you your PM stack while the discounting continues. Thanks.

Oh, the credit card part of the question. CCs are great for those looking for a temporary line of credit. Most PM brokers will pass CC fees to the buyer but the discount could be worth it. Try not to carry the balance any longer than necessary.


DC Carlton is the founder of The Prospector Site and author of Why Silver and Gold Will Go Higher. Feel free to register here for his free online newsletter that provides precious metal insight rarely mentioned from mainstream media sources


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One big price for today’s electronic currency is security, the upside is convenience. Never before is it as easy to buy silver and gold but a reader recently emailed TPS (The Prospector Site) asking how to safely buy precious metal while utilizing our e-commerce age. The process is simple, and safe, for those who take the necessary steps to protect themselves along the way. Today we tackle the necessary steps to land silver and gold safely into your discretionary spot for storage.

QUESTION:  Hello. I would like to invest in gold and/or silver, and am not sure how to (safely) do it. You mentioned a list of reputable sellers? Would you recommend bullion or another form? When you purchase online, how are the funds transferred (through a service like PayPal, or can they be done directly from a customer’s bank)? Thank you.

TPS Reply:  Ah, another one joins the PM flock, congrats. Thanks for the great questions and thanks for sharing such honesty. Sometimes the first step to buying the right gold, or silver, is admitting we don’t know what the heck we’re doing. My first experience was a train wreck and I’m humble enough to admit I bought the wrong gold when gold sold for less than $400 per ounce. I will also admit it was a paid education since this miscue sparked a desire to learn as much about real money as possible, my quest still continues to this day.

I recall a PM conversation not long ago with a New York Times bestselling author who writes about all things monetary and economic. How shocked was I when this author admitted “PM ignorance” when it came time to buy physical gold? This only proves few are comfortable with what to buy, where to buy and who to trust.

I push PM “Newbies” toward silver for one reason – CONFIDENCE. For some odd reason most newbies find buying PM uncomfortable or nerve-racking but have no problem investing a life savings in a intrinsically valueless currency supported by nothing more than a thin margin of faith. This PM insecurity causes too many to watch from the sidelines while PM prices rise with each passing year.

This is why I recommend buying silver bullion first, then gold bullion as you become comfortable with whomever you choose to trade with. Don at Colorado Gold works well with beginners, like you, so try them first. I also buy from Miles Franklin and Blanchard Co, too, not to mention my local coin shop. I’m sure there are many more reputable PM brokers but these are the ones I’m most familiar with.

Each online PM broker has their own rules to lock an order (“locking” an order is the moment a firm price is established). Some brokers (dealers) will lock nothing until a check clears or funds wire transfer from your bank to theirs. Some have dollar limits but will lock a price in temporarily while funds generate. Some PM brokers even allow purchasing by way of credit card but usually pass all credit card fees to you the buyer.

I have found bank wire transfers a safe and easy way to purchase PM.

WARNING:  Never buy PM face to face with someone unknown. I have stacks of horror stories from well meaning Craiglist traders who ended up robbed or with worthless gold clad bullion. Please stay with reputable PM dealers or brokers realizing their small fee is worth your piece of mind.

Some of you want to buy silver or gold without a paper trail of any kind, I understand. This is still possible but the window of unrecorded private asset ownership of any kind is quickly closing. The upside to owning metal without a paper trail is the reduced risk of governmental confiscation (see Silver Confiscation).  The downside to owning PM without proof comes in play for those who wish to insure silver or gold stored at home (you could be asked to show proof of ownership when filing a claim).

This is why some of our readers own metal with and without a paper trail. Nevertheless, start with low premium PM like bullion, rounds or junk silver. All three can be purchased in person or online depending on your perception or concern over a paper trail.

I want to leave you and all other readers with one last thought. You may find your first PM purchase unnerving but if you follow the instruction of someone trusted, like the PM brokers just listed, this process will become easier in no time.

COMMENT:   Just wanted to call and say how your book has prioritized our finances – thank you. It seems so obvious we cannot fix our economy by borrowing endless amounts of money and the chapter comparing other assets to gold was an eye opener. Within a week after finishing the book my husband and I each put one unnecessary asset for sale (boat and snowmobile) to begin the “wealth relocation” you write about. Trading a declining asset (toy) for something so protective as PM just makes sense. Thanks for the motivation we both needed to take control of our financial future. Cheers.

TPS Reply: Good for you guys and congrats for making what I think is a perfectly timed life-changing decision. Wealth relocation is nothing more than selling something with declining value and then replacing it with something of real value….. like silver or gold. You will find a feeling of liberation as your new wealth builds while others struggle to maintain a lifestyle that continues to rob the middle class. My recommendation, now, is to stay the course and continue to add PM when possible. Thank you for passing along such a nice compliment…and reading Why Silver & Gold Will Go Higher.


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In America, today is a special day to reflect and appreciate those who gave all for freedom (US markets are closed in remembrance). Unfortunately, the world continues onward in a complex monetary fashion attempting to correct decades of mistakes. Today we will feature several current events affecting the precious metal most of you own. Currencies across the globe are now in search of the next safe haven but few are yet to realize one currency is no better than the next. This will eventually lead boatloads of wealth into the ultimate safe haven of silver & gold.

News Worthy:

NY Times– Giant Lender in Spain asks for Billions to Fend Off Collapse

MADRID — Spain’s banking crisis worsened Friday as the board of Bankia, the country’s biggest mortgage lender, warned that it would need an additional 19 billion euros ($23.88 billion), far beyond what the government estimated when it seized the bank and its portfolio of delinquent real estate loans earlier this month. When Spain seized Bankia May 9, Luís de Guindos, the Spanish economy minister, said it would need at least $11 billion.

The government is trying to head off a collapse of the bank, which could threaten the Spanish banking industry and reverberate through the financial centers of Europe and beyond. The fear is that it will not have the money to save its banks, and their $1.25 trillion in deposits, and will need a rescue by the rest of Europe — even as political and financial leaders struggle to resolve Greece’s debt debacle.

The rising fear now is that the recent steady outflow of deposits from Spain’s banks, which are suffering from the bursting of Spain’s real estate bubble, to institutions outside the country could eventually turn into the sort of bank run that almost brought the financial world to its knees after the collapse of Lehman Brothers in 2008. Read it here.

News Worthy:

FXSTREET.com– Central Bankers Bought More Gold While European Leaders Kept Talking

Central banks gold purchase data in April cheered gold market on Thursday, however. Mexico, Kazakhstan and Ukraine added about 204,000 ounces in April. The Philippines added a whopping 1.033 million ounces in March with gold now at 13.6% of its total reserves. UBS highlighted the Philippines’ gold purchase is significant as this is the second largest monthly Central Bank’s purchase after Mexico’s purchase of 2.5 million ounces in March 2011.

World Gold Council (WGC) reported that central bank purchases were 80.8 tonnes in Q1 2012 or around 7% of global gold demand. What is more interesting is that WGC is now confident that central banks will continue to buy gold and has added official sector purchases as a new element of gold demand while eliminating official sector sales as a negative supply factor. Read it here.

News Worthy:

MONEY MORNING–Good News for Gold Prices: Commodities are Wounded, But Far From Dead:

Greece is frozen in a political stalemate. Youth unemployment is running at over 50%. And there has been a $1 billion run on Greek banks.  From near and afar, there appears to be no easy way out, especially now that the Eurozone is heading back into a recession.

It’s times like these when investors pour into the U.S. dollar for its “perceived safety.”

With commodities priced in U.S. dollars, this spike in the greenback has sent commodities-including gold prices-into a tailspin since early March. That has many doubters asking: “Has the commodities super-cycle ended?”

It’s a reasonable question considering the Continuous Commodity Index (CCI) is back down to levels it last saw in September 2010.  What’s more, gold prices have backed off to near $1,500/oz., and oil prices have fallen from $110 to $90/barrel.

But as you’ll see, the commodities coin does have another side.

And debt in the West (U.S., Europe, England, and Japan) has doubled in a little over three years to almost $8 trillion in a veritable monetary flood that’s bullish for gold.  Read it here.

News Worthy:

SILVERSEEK.com– Illegalities

The Commodity Futures Trading Commission (CFTC) has been negligent in failing to terminate the obvious manipulation ongoing in silver. Furthermore, the agency may be complicit in this manipulation. Worse, it has lied to the public and elected officials. This all goes back to the time when Bear Stearns was taken over by JPMorgan in March of 2008.

It is well known that Bear Stearns went under as a result of a sudden loss of liquidity amidst a run by creditors and customers. What is not well known is that those problems were greatly exacerbated by a $2 billion margin call on silver and gold short positions from the end of December 2007 to March 2008. I believe the silver and gold margin calls were at the heart of Bear Stearns’ failure. Read it here, thanks to a reader named Jeff.

Comments & Questions:


I have been a reader of your website since early this year and reading your book re-emphasized what you have written at TPS. I just finished reading Why Silver & Gold Will Go Higher and enjoyed it.

You raise a lot of good questions, and its clear that sooner or later US monetary system are forced to increase interest rates and when that happens we can see gold skyrocketing as banks will be unable to pay back on its obligations demanding more bailouts and devaluing the dollar further. Maybe that will be the start of the biggest bubble of all? Time will tell.

I had big aha when you said that the world is moving into a scaled down version of itself, like when home equity owners scale down to protect remaining equity value in PM.  I guess we are all on the same ship, and like you said, this ship seems more like a titanic ship, were there just isn’t enough lifesaving boats for all!  Lets hope not.
Cheers for all!

Prospector Reply: Thanks for reading and commenting. You mention “obligations” and it’s important to realize another word is soon to find worldwide popularity, default. This happens while we watch a giant currency shuffle from euros into USDs. The problem, the USD is no more worthy to take on liquidity than the euro is.

The ability to print over monetary mistakes causes a false belief that will someday leave masses very disappointed. Good for you, and other readers too, for not falling for this “lifesaving boat” to nowhere.

QUESTION:  (edited for space) Hi, I am just a small investor in Physical Silver Bullion. I have currently about 720 oz’s of all types, & sizes of silver bars, rounds, and coins. All .999 Fine Silver, some Canadian Silver that is .9999 Fine. My goal is 1000 oz’s before I can’t afford to buy silver anymore. 90 % of the silver I own I bought when spot price was still under $20 an oz spot price, so I am already way ahead financially.

What I need to know is when it is time to get out, what do I invest in, or sell My silver for when it has reached the top of the Bull? Not US dollars, because that would be defeating the purpose of owning Physical Silver Bullion.

Prospector Reply: Thanks for the question and nice job on the silver stack. I’m guessing many readers are wondering when to jump from PM (precious metals) but the truth is we are nowhere near the end of this bull run, at least in my opinion. Think of it like this if you will. Everything sending PM higher is soon to enter warp speed. Deficit spending, unilateral fear or concern, equity market volatility, loss of real estate faith, etc are all feeling the ill effects of fiscal irresponsibility.

The “top” you ask about could look more like a last man standing scenario if central banks refuse to back off.  Be sure to keep at least 1/3 (or more) of your physical silver close at hand. Don’t be afraid to store some silver internationally, but outside the banking system, just in case some bureaucrat decides to target PM. Keep up the good work.

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WIPED OUT (without gold)


There is a strange correlation between those struggling to make ends meet and those with little understanding of simple economics. Today I want to make this comparison and then ask readers why more don’t understand monetary imbalances or principles. This lack of understanding became very obvious when I researched Why Gold & Silver Will Go Higher but most obvious when friends asked why I would write such a book. Maybe this is why the majority of our middle class are on the verge of being wiped out.

Don Stott with Colorado Gold said something in his interview that made me realize how bad this lack of money understanding is today. He said, “ The average Representative or Senator hasn’t a clue about basic economics.  All they want is to stay in office, and when they come up for re-election, their opposition will quote verbatim their votes on handouts.”

If Don is right, and I believe he is, are we safe to say leaders of this great country strive to keep constituents in the dark, almost like moist mushrooms?  But wait a second, maybe the economic ignorance goes beyond maliciousness, maybe these guys actually have no clue how truly destructive debt and debasement are.

Something said in August, 2011 made me stand on my living room couch and shout back at my TV. The discussion was over raising the debt ceiling, again, and President Obama proved to all listening exactly how much he knows about ill effects of debt. He said, “Hey, I don’t want to be standing here talking about the debt ceiling, I would rather be talking about a new program or sports.”

We must now put this into perspective (yes, this has to do with your silver and gold rising, trust me). The reason we must raise the debt ceiling is because of reckless spending. Too much government, too many programs are the cause. I’m not sure if Mr. Obama realizes it but the last thing we need is more programs to burden a bankrupt government.

So where does this leave you, you know, as a gold holder?  After all, you can’t control how Congress shells out the dough. You can’t control Mr. Bernanke at the Federal Reserve either. Maybe our system of higher learning can help.

College students are smart, just ask them. The majority study hard and strive to improve themselves and the world around them. I heard Ron Paul last week mention his on campus rallies are bursting at the seams with kids no longer willing to accept such indebtedness and fiscal mismanagement, good for them.

Now, here is the problem. These same students, or their classmates, are $1 trillion in debt thanks to this higher learning. Student debt has now surpassed credit card debt ( CCs make up 98% of consumer debt). The same students mad about national deficits are guilty of unsustainable debt!

Okay, let’s recap.

  • Elected officials don’t understand, or ignoring, basic economic principles.
  • The US President doesn’t understand, or ignoring, basic economic principles.
  • Today’s college students don’t understand, or ignoring, basic economic principles.

I want to tie this thing together starting with education. We know, by proof, that college students don’t entirely understand simple economics. So what do they understand? After all, these kids have spent 12 to 16 years in a classroom. Let’s make a list.

  • They understand the need for sexual sensitivity (homosexual, heterosexual, and everything in between.
  • They understand the need to not bully each other.
  • They understand global warming (climate change).
  • They understand carbon footprint.
  • They understand the need to invest a lot of currency in continued education.

If you have a child in college, or close, please read carefully. The same kids taught something else too. They are led to believe large deficits are necessary as “investments” in America. This is not spending, this is investing. These college students have not connected the dots that this investing is robbing their future selves.

You don’t need me to remind readers how this lack of an understanding affects silver and gold. You know by now PM will rise as necessary to support true value.

This Wednesday I will expand this topic into three things you must teach your children about money, NOW. Please don’t miss it especially if you have school age kids.



Question: The reason I am on your website is my total disgust & lack of confidence in the FED. The entire country is being held siege by a congress & a senate whose politicians have one thing on their minds only & that is to stay in power & keep their jobs. They no longer work for us. We work for them & confiscating gold or any other precious metal would not be beyond them to maintain their positions. I don’t believe keeping my money in another country is the answer for me. I’m 75 & my total amount of savings is about 40,000.00.

The reason I am hesitant to buy gold is because everyone tells me when the “crunch” comes gold will give one an advantage. I don’t understand how that is. How would you access it & how would you exchange it? What good would a pile of gold coins do if I didn’t have an understanding of how I could use it as a monetary means of support? Who would take it? I don’t get it. For investing I do ,but for actually subsisting on it during a crisis is beyond me.

ANSWER:  Thanks for the comment & question. You are wise to ask such questions and as you can tell I agree with your assessment of today’s political leaders (not all but most don’t represent our best interest). Let’s get straight to your question since I can feel your concern and want to help anyway I can.

Confiscation of PM is something that could happen but far less likely than confiscation of  more obvious sources of wealth (pensions, stocks, homes, etc).  But confiscation happens right now each time your wealth, in dollars, devalues through inflation. Most can’t see this confiscation because the numbers on their currency (dollars) remain unchanged even though the buying power declines.

You mention $40k in savings and then asked how converting some of this savings to PM is beneficial. Gold is rapidly realizing worldwide demand just as our dollars are realizing worldwide skepticism. This is because the world is awash in dollars and now the only country able to make more dollars is doing so at a record pace. This is not sitting well with other nations or investors across the world.

This currency conflict leads more to real money, like gold. The problem is only so much gold exists in the world. Demand far, far, outweigh production or inventories of PM. Now, let me ask you a question (maybe two). Do you believe things will worsen economically speaking? If so, do you agree those holding a very limited supply of physical gold will control who buys and at what price?

Of course PM holders will dictate what sellers pay. Every gold expert, all PM brokers and miners all agree on one thing. A limited amount of PM exists and all the demand in the world will not create PM that doesn’t already exist!

Here is my opinion, for what’s worth. You asked about subsisting and exchanging gold into some form of currency.  Currencies are not going away, the world we live needs currency to trade both locally and globally. A currency will always exist and this currency will accept gold/silver at any time but at much higher value than todays.

The choice is obviously yours but please consider trading some savings into PM.


Send me a copy of your book.  I have known Don Stott since the 70′s.  And while we may disagree on a lot of things I totally respect the man and he has been my sole source of gold, silver and palladium.  You are falling short by not addressing palladium and platinum, which in my experience as a miner/geologist are much rarer than gold or silver.  Enjoy your site.

REPLY: You bet I’ll send over Why Silver & Gold Will Go Higher, thankful you’re willing to comment/review. Here is why I don’t write about palladium or platinum, I don’t follow the two metals close enough to make an accurate assessment of either. I would love for you to help write why such metal is worthy. If you do, I will post it right here on TPS (The Prospector Site).

There is no doubt that all precious metals stand a reasonable chance of drafting gold to prices unimaginable. Does this include palladium and platinum? Maybe you can help answer this last question, thanks for the comment?

PS:  About Don with Colorado Gold, I completely agree that he is a well-respected man in the PM industry.

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THE WAR ON WEALTH (what every gold holder should read)


With tax day rapidly approaching I thought it wise to see if blame the wealthy has kicked in yet. Not to my surprise one of the largest California papers stayed true to my blame prediction.  If you own or soon will own silver or gold please pay close attention to today’s post. We are about to enter an age of blame that will with all certainty include folks just like you. Your plan for 2012 must include precautionary wealth.

The Sacramento Bee is the proud originator of this article. I want to hit the high points before adding our two cents.

If California taxpayers paid up, state’s deficit would disappear. THE SACRAMENTO BEE

As Californians put the finishing touches on their income tax returns, tax collectors say the state’s $9.2 billion deficit would drop to zero if all taxpayers submitted what they owe.

That means every resident claiming the market value of tattered jackets donated to charity. Every business reporting every dollar of income they receive even when paid in cash. Every service worker reporting every tip. And every resident paying use tax on Internet purchases.

But full compliance does not occur.

In a new estimate, the Franchise Tax Board says that $10 billion in state income taxes go unpaid each year, often when workers receive payments under the table, businesses skirt reporting requirements or people take deductions for which they do not qualify. The state Board of Equalization says an additional $2.3 billion in sales and use taxes go unpaid.

“It’s our way of investing in society for the various benefits we receive,” said Jerome Horton, who helps oversee the state’s two major tax agencies as chairman of the Board of Equalization and board member at the Franchise Tax Board.

Horton is pushing Senate Bill 1185 with Sen. Curren Price, D-Los Angeles, to create a “Centralized Intelligence Partnership” that would coordinate data across state agencies to flag tax evaders and people selling illegal goods and services. It would incorporate data from agencies ranging from the DMV to the Department of Consumer Affairs. READ MORE HERE.

PROSPECTOR: I want to make full disclosure from the start. I’ve owned multiple businesses in California and very familiar with the state’s monetary miscues. I read this article two times just to make sure I didn’t miss anything, I did not. But what the article should have said I’m saying right here.

Articles like the one above must serve as a giant red flag to PM (precious metal) owners.

We mustn’t view this as an alarmist but realist. The article screams “look out” loudly and all with wealth must understand what is not written into the article. It is quick to continuously point out the need for all to pay fair share echoing the same tune from DC. Personally, it only validates my savings in silver and gold.

There is no mention of massive regulation and the multiple layers of bureaucracy necessary to administer business busting policy. No mention of millions illegally manipulating a welfare system, health care system, and multiple other programs too. Nothing mentioned of swollen entitlements imploding from an unsustainable system regardless of tax revenue.

So what is the truth?

The truth is some taxable revenue always falls through the cracks. Not everyone completely stops at a four way. Not everyone drives the speed limit, not everyone pays taxes on 100% of their taxable income, sorry. The truth is most business owners (independent employees) are simply trying to survive.

But this is a prime example how bigger government or states like California don’t get it. To focus on the 10% unpaid and not on real issues is ridiculous. Why? Because to squeeze hard enough to juice the remaining 10% requires driving out thousands of compliant taxpayers and businesses. This is exactly why I’m not writing this from California.

But this goes beyond what most see as apparent!

This is about taking sides. This is about us against them. This is about if only the ones not paying fair share paid more. This diverts attention away from state level monetary miscues and puts the blame on the tax payers. Who needs to shrink government if we can milk a few more billion from captive Californians?

This is where we must tie today’s post into silver and gold.

We are now entering an era where all wealth targeted. Do you actually think the big squeeze stops with the guy mowing lawns for cash? Look around to prove my point. How much wealth do you store in indefensible assets? Your home targeted by property taxation, all your vehicles too. Your savings fall victim to inflation. Washington now has big plans for private retirements. The list of defensible assets is short.

The freedom to own silver and gold provides an opportunity to practice precautionary wealth.

Let me explain. Silver and gold provide hidden savings and wealth, few assets can say this. Here is a list explaining the benefits of hidden wealth (precautionary wealth)

  1. Precious metals still offer unrecorded ownership.
  2. Precious metals are a worldwide universal currency.
  3. Precious metals can be stored outside of country of citizenship.
  4. Precious metals ignored as a store of wealth.

Not a day passes without someone mentioning silver or gold confiscation. To me, this is less likely compared to confiscating more traditional assets via inflation and government overreach.  Articles like today must serve as a sign of what’s to come.  “Yes” it’s time to turn up the savings in silver and gold.


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Is it possible you’re still trying to protect something soon to be useless over this decade and beyond?  A big part of understanding relevance of PM is by developing a nontraditional mindset, at least nontraditional to those still buying recovery. The monetary establishment still drums importance of a high FICO score as necessary because their very livelihood depends on you and your buddies returning to debt infested waters.  Since old habits die hard many still protect FICO scores like a burned out fort not realizing the new normal includes far less credit than most are comfortable with.  My question for you, do you still believe in good FICO fiction?

By the way, just a reminder to sign up for our weekly online newsletter to receive The Prospector Site emailed straight to you.  It’s 100% free so sign up here.

Eventually all will realize only loads of credit allowed Americans to live a lifestyle unworthy. I often refer to today’s period in time as the great correction because not only will worldwide economies correct but so will individual belief systems. The necessity of a great FICO score has to be on the list of a correcting belief system and we have to look no further than credit shrinkage as proof. If you can grasp this as fact then you’re inches away from understanding why our economy continues to suffer from job losses, housing devaluation and foreclosures, budget woes, and soaring precious metal values.  The last forty years created a credit necessity to maintain an unsustainable lifestyle and this is why governments worldwide are frantically printing currency in hopes of reviving a stone cold economy.

If you’ve owned gold or silver for any length of time then you already know traditional credit doesn’t have to be part of a wealth preservation strategy, but most aren’t so observant. From buying a new home to selling municipal bonds, strong credit is the linchpin holding together a tradition of borrowing, leveraging, or anything but saving.  Today’s mortgage lenders have beefed up borrowing requirements, especially over five short years ago, by now requiring borrowers a FICO score in the high 700s along with a near spotless credit history, not to mention a higher down payment.   Little do the few still willing realize but this false belief supports artificial housing values by postponing a real estate bottom.  This may sound odd but a poor credit score will save millions of households from prematurely purchasing properties still in declining markets.

Our clients often ask what a future with limited or less credit could look like and we understand the curiosity.  No one knows for sure but we are sure that strong FICO scores will be less relevant especially as gold & silver continue to climb the worldwide currency ladder.  Most assets we commonly leverage (homes, cars, trucks, boats, RVs, vacations, and soon to be education) are in decline especially when compared to gold over US dollars.  This is why it’s becoming cheaper to buy most assets in real terms of true money (PM).  This is hard for many to grasp, maybe this is why so many continue to wear high FICO scores like a badge of honor.  PM holders realize the time is soon at hand when leverage, by way of credit, is no longer necessary to buy other declining assets.

SmartMoney recently ran an article called Foreclosure Sales Flood Market offering alarming news for those still advocates of a housing bottom.  Their research shows foreclosures and short sales now account for 35% of total existing home sales in January 2012, this is up a disturbing 16% from last summer.  I guess it is no wonder housing values dropped 8.5% nationally over the same time period.  Folks, you don’t need me to tell you housing has not bottomed and is now below intrinsic value in many cases.  This should tell us housing will not only correct but over correct allowing those sidelined holding gold, silver, or cash, buying opportunities of a lifetime, maybe five lifetimes. If true, and I certainly believe it to be, fussing to preserve FICO scores could be unnecessary as anytime in modern history.

Those looking hardest for economic recovery fail to understand how integrated credit has been to markets in the not so distant past.  Easy credit days will not come back anytime soon and this fact will complicate recovery before correction.  My guess is we will soon see organic credit, especially in home sales, commonly seen during an era of high mortgage interest.  Owner carryback financing relies less on credit scores and more on buyer trust, integrity, and down payment.   Can you imagine the opportunity for PM holders in a time we’re describing?


QUESTION: You talked about getting the copper rounds for as low as 59 cents; who is the manufacture of these rounds and how are you getting them for that price?

PROSPECTOR REPLY: Thanks for the question.  Not sure how long ago I posted copper prices since I don’t recall talking copper prices recently, but it’s possible.  Copper bullion bars and rounds are readily available from several mints and below I’ve linked to an American copper bullion source for those interested.  We have to wonder if copper and nickel will find the same appreciation as silver, my bet is they might but I’m not 100% sure of the level (upward).  Some copper coins are so professionally minted it’s hard to tell them from more expensive bullion.

Check out The Copper Exchange for more information, they ship free to the lower 48 states. This wholesaler offers bullion bars (5 lb. bars) as low as $.44 per ounce and copper bullion 1 ounce round as low as $1.05. I believe they have a 1000 ounce minimum but it is worth asking before buying.  Back to your question, I’m unaware of a bullion source selling one ounce copper coins @ $.59 per.


The gap between new gold bullion and Pre 1933 rare coins continues to shrink making rare coins worth considering, regardless if a collector or after wealth preservation.  Gainesville Coins now advertises $20 Saint Gaudens Double Eagles at $1815 while American Eagles bullion at $1800 per ounce (obviously prices are constantly changing). Many collectors believe Pre 1933 coins could be exempt from possible confiscation under collector coin exemption.  This is only speculation but with new gold and rare gold nearly one and the same it’s worth buying rare, at least if you’re in the market for more gold.

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Little puts more fear into the hearts of PM (precious metal) holders than the word “confiscation”.  Since silver is the hot metal of the decade I would like to continue our discussion on all things silver related.  We often associate gold with confiscation and unbeknown to most silver fell victim to gov’t confiscation as well. My goal for today is provide proof silver confiscation happened, yes in the US, but unlikely to happen anytime soon.  Since I don’t sell silver I feel comfortable describing silver’s good, bad, and ugly side.  If you’re new to silver please don’t interpret this post as anything but a lesson why silver ownership is wise.  Nothing once confiscated is valueless, silver certainly isn’t.  Let’s dive in.

Franklin D. Roosevelt convinced constituents to elect him four times; only because of his death did American citizens realize a new president.  Below is a currency in circulation graph (USD) beginning shortly before Mr. Roosevelt’s era to today.  One glance at this currency graph (compliments of the Federal Reserve Bank in St. Louis) provides proof why PM had to be confiscated to allow a fiat currency room to create a debt based system and then continue to monetize debt. What does this mean to the guy who works for a living? It means the only way to legally print your currency into worthlessness is to control real money (gold & silver) at least until paper currency became the new normal. It’s worth noting gold & silver graph similarly to the currency graph below all rising along the way.

Please notice how the amount of currency in circulation stayed flat until early 1940s.  This only shows the level of fiscal constraint our US dollar held while hinged to PM.  Confiscating gold first and then silver were the missing link government needed to spend at will without the restraint of pesky gold or silver.  Since this era, and up until the second you read this post, it’s impossible to define an accurate value of our USD; this is why both gold and silver continue to climb.  The most recent activity on our graph is not for the faint of fiscal heart but it is relevant to those holding PM (probable most relevant for those not holding PM).

For anyone interested here is a link to Executive Order 6814 – Requiring the Delivery of All Silver to the United States for Coinage, confiscation of August 9, 1934.  It is interesting reading exclusions for industrial, commercial, professional, artistic, and monetary use.  I’m not sure how receptive silver holders were to 50 cents per oz exchange or the immediate tax on silver sold prior to the 90 day confiscation exchange period.

It helps to broaden our view of something like confiscation to keep future confiscation in perspective.  Unlike Pre 1930s, PM today has no limiting effect on digitally printed money.  Unlike 1930s most folks on the street see nothing monetarily relevant with gold or silver coins.  This is why our Federal Reserve can simply increase the currency, monetizing debt and funding programs, as it pleases and the amount of gold on hand is meaningless.  This certainly was not the case before the dollar gold standard, but is today.  This is why I honestly feel private metal ownership has little odds of modern-day confiscation. Combine this with the trace amounts of both metals compared to trillion of dollars in circulation and you can see my point.

This could, and hopefully will, change someday if our monetary system reenters a PM standard but this could be a distance down the road.  Owning some metal in Canada, or other international vault programs, is worth exploring just in case of the worst case scenario. No doubt interesting times we live.  Oh, one last point for those asking if silver poised to increase in dollars.  The silver supply is proportionally only a small fraction of the currency supply shown above and in our graph.  This means while silver/gold rise lockstep with dollar printing, metal supplies are not.  Few interpret such fact as anything but favorable for PM holders.



COMMENT:   Thank you for pointing out the TRUTH about the dollar. You have pointed out something that should be so obvious, but I didn’t see until you brought it up. Where the dollar has lost much of its value over the past 80 years, gold’s value has increased 100 fold! Amazing and crazy! It would be wise to consider the value of investing in hands-on gold.

PROSPECTOR REPLY: Thank you for reading.  You make a good point with investing hands on and I always recommend newbies own physical gold/silver first before anything else.  This is also why we recommend making the effort to understand PM before spending one dime. Silver and gold can be a little confusing and the only remedy for this confusion is spending the time to self educate, having said that, I have no problem with mining stock or paper metal as long as we’re comfortably protected with physical first.  We have many readers who own pounds of both metals leading them to venture, or speculate, on other PM sources.  Thanks for the comment.

QUESTION:  We took advantage of the last drop in silver by ordering 500 one oz  Canadian Maple coins.   Our goal is to add another 500 over this year and this where the confusion comes in.  Are we better off to buy some each month or wait for a dip like the last one?

PROSPECTOR SITE: Thanks for the question.  To be honest we have readers using both buying methods.  One is commonly called dollar averaging and the goal is to average high and low into a comfortable medium.  The problem with this system is timing, let me explain.  The silver market is volatile and this will not change anytime soon.  Understanding this volatility and using it in your favor (buying the dips) can be the difference between tens of thousands of dollars someday soon, no kidding.  Buying on dips does require patients and confidence.  Regardless, the most important point is to own precious metal, congrats!!

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