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WHY IT’S NEARLY TIME TO BUY MORE SILVER & GOLD!!

GOLD & SILVER, GOLD AND MONEY, SECURING GOLD & SILVER, STOCKS AND GOLD/SILVER, Uncategorized   No comments yet

As we prepare to put the final wrap on 2013 – there is one thing I know for certain. Neither gold or silver shined this year. In fact, neither metal has shown promise for several years, respectively. But the winds of change have me rethinking my nearly year-long resistance of adding more metal to my personal stash. For what it’s worth, I’ll pass along my opinion and then the decision to buy, or not, is all yours. Since this site, nor I, sale PMs (precious metals)…… I see no reason to “cheerleader” the unbiased facts.

Precious metal is testing the faith of even the most devote PM holder all while other asset classes confidentially climb. The DOW is on fire by rewarding her faithful nearly 30% year-to-date. Some parts of the country’s real estate market are feeling the same positive appreciation as historically low interest rates support rising home values. So, what the heck happened to PMs?

It took only a couple of years to undo gold’s decade long reputation as a steadily climbing safe haven. Folks today view gold, especially silver, as a high-risk asset with expectations of more decline. This expected decline is based on recent performance more than commonsense or an economic mindset.

The next rise in PM is imminent in nature but the unknown is how low will both metals fall before the next great rebound. We can argue short-term expectations (gold or silver) but long-term speaking leaves little room for discussion.  Not even the most economically optimistic person can name one growing asset unsupported by central bank intervention.

The ability to support an economy with fiat currency can not last forever, but it can outlast the faith of many folks entrusting silver and gold.

The 60%, or so, Americans still willing to trade effort for a paycheck are divided into two wealth classes. The first class is working to pay monthly bills all while attempting to build wealth (capital). The second class has wealth and is now trying to preserve it or, maybe better put, not lose it. The option to own physical silver or gold is reserved primarily for this second wealth class, but not exclusively (ones living check-to-check most often end up selling physical PMs soon as times get tough).

Now here is where things get interesting. Citizens of America are beginning to realize the biggest threat to their wealth is political. New laws like the Affordable Care Act are less about providing healthcare and more geared toward political control and wealth distribution. Think of it more like a well camouflaged form of modern-day taxation (penalty). The hook is now set and the wealth of America is ready to reel in thanks to unaffordable premiums or fines for opting out.

A rising DOW is nothing more than the distracting hand of an illusionist. Controlling political power is only possible by controlling the wealth of the people. When the majority depend on social programs then those in charge, politically, will stop at nothing to find creative ways to transfer your wealth in order to sustain their political power.

Why it’s nearly time to buy more gold.

The political climate we’re facing is more than just a loss of freedoms. We now live in an age of inherit confiscation meaning all exposed wealth is in jeopardy of some kind or another. This realization, or awakening, bodes well for physical precious metal and the soon-to-be-seen rising values of both silver and gold. In other words, the PM bottom rests in the faith of the masses.

Today’s dollar value assigned to each ounce of silver or gold is a byproduct of PM faith.

Precious metal has lost its illustrious shine as of December 2013, don’t even mention silver. By example, CNBC recently led with an article entitled “I wouldn’t buy gold with my worst enemy’s cash”: Strategist

The article mentions how, “gold doesn’t have many friends”. I agree, but articles like this are partial proof  why the time to stack more PMs is close at hand. Since 1970ish, the economic rule of thumb proves one downtrodden asset will climb soon after one faith-filled asset begins to tumble. I know of no crowds lined up to buy physical silver or gold. In fact, PMs are as far off the radar as they’ve been in decades or, as the article’s author puts it, “friendless“.

Sure the reduction in mining due to lower than expected prices in 2013-2014 plays into our “buy or not buy” scenario but not nearly as much the geopolitical & economical climate we’re living. A reduction in mining is only but one of many forces leading to the perfect storm of metal prices rising.

Is all this proof enough to run out and buy physical silver or gold? No, it’s not, at least not for those already protected and looking for the right time to add more. But this does mean the time is nearing. Until then we should live life and be thankful for what we’ve been blessed with.

QUESTION:  Do you have plans to buy more silver in 2014?

TPS Reply: Thanks for the great question. As you know, I bought little PM in 2013. The PM market was too unstable therefor I held my wealth in cash all while patiently waiting for metal prices to stabilize. But those already holding physical metal have this option. If you’re new to PMs I strongly encourage you to consider taking a hard look at trading dollars for PM.

Honestly, I have no plans to buy or not buy in 2014. I don’t use a calendar to determine my next purchase. I’ll base my decision on the political climate as much as anything else. It could be hard to deny the temptation of $18 to $20ish an ounce physical bullion, I’ll admit. By the way, I view my PM holding in terms of ounces over dollar value. Dollar values of physical silver, and gold, fluctuate along with the paper PM market and can be misleading (one event is all it could take to send PM prices soaring).

My opinion is we will soon see a great separation between paper and physical PM. Until then- more of the same should be expected.

COMMENT: My identity was stolen this year, you can’t believe the never-ending hassle it has caused. My bank keeps reminding me they will stand behind my losses but I can’t help but wonder if this is a sign of the times.  You often mention the safety of storing wealth in precious metal but I can’t help but wonder if the same theft risk is possible. At least my bank is willing to replace what’s lost.

TPS Reply: I’m sorry for the trouble you mention. I’ve heard from at least six other readers this year alone who’ve had their identity stolen, same as you. Cyber crime is the newest threat to our banking and financial system. This crime is unlike any form of thievery before since technology only recently offered such an opportunity to transfer digitized wealth from owner to thief. Online security measures are nowhere near par with today’s cyber threats, this is concerning as you know.

The threat of cyber crime is nonexistent with wealth stored in physical silver or gold. This is one of the benefits of storing physical metal in a safe/secure location over storing wealth in a traditional savings account at your local bank (dollars). You’re right, most banks are doing what they can to resolve bank related cyber crime but online security experts claim this will not always be the case. Some banks will only stand behind depositors who can prove they are doing a depositor’s part of securing online activity.

My guess is banks will soon impose a “cyber protection fee” to depositors and credit card holders. This fee could  fluctuate according to cyber threats and a bank’s losses. Please add cyber crime threat as yet one more reason to consider owning physical silver/gold AND physical dollars. HAPPY NEW YEAR TO ALL.

DC Carlton is founder of The Prospector Site and author of the Amazon Kindle #1 Bestsellers Why Silver and Gold Will Go Higher and Storing Silver & Gold. If you’re looking for trustworthy PM assistance feel free to contact DC regarding his personalized consulting service. TPS doesn’t sell silver or gold; we represent you, the buyer, looking for affordable precious metal from honest trustworthy sources. 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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Safely Storing Precious Metal

SECURING GOLD & SILVER, STOCKS AND GOLD/SILVER   No comments yet

Coeur d’Alene is a majestic city nestled within Idaho’s panoramic Panhandle. Lakes, national forest, golfing – you name it and Coeur d’Alene has it. According to Wikipedia, this Idaho city has a population of nearly 50,000 with nearly 93% of them white and the remaining 7% a blend of African American, Asian, American Indian, and Hispanic descent. Not exactly your typical inner-city demographics, respectively.

But Coeur d’Alene has at least two residents, or at least visitors, they can do without as of August 5, 2013. Because this summer morning was the day over $250k worth of silver and gold coins were carted away right in front of a PM (precious metal) owner who assumed their stash was safe. Unfortunately, this type of crime only indorses today’s need to secure and diversify your storage plan.

 

COEUR D’ALENE, Idaho — Several hundred thousand dollars worth of rare silver and gold coins were stolen in a burglary early Sunday in Coeur d’Alene.

It happened around 12:55 a.m. when the 54-year-old homeowner returned home to find an unknown man standing in her doorway and a car parked in her driveway.  When she asked him what he was doing in her home, a second man emerged from the car, according to police.

The second man yelled at her before hopping in her car and driving away from the car at a high rate of speed.  The man who was in the home then jumped into the truck in the driveway and fled the scene.

The victim went into her home and found her disabled father was unharmed and in his bed.
Police said the thieves took two safes filled with rare coins valued at a total of $250,000.  The suspects also took prescription medication belonging to the victim’s father. KTVP.com

I don’t want to read anything into this article other than what’s reported, so let’s focus on the facts. The most relevant point I see after reading this article is that no one was hurt or killed defending something that is replaceable. The second most relevant point is how quickly something so valuable can disappear, even in a relatively small city in Idaho’s Panhandle.

The aforementioned article proves the importance of protecting your stash regardless your neighborhood’s zip code. I have no way of knowing if these victims lost all their PM stash; my bet is they did. I doubt storage diversification ever entered the mind of a family securing silver/gold coins at home and in a safe.

A theft like today’s dissection is rarely random. While researching for my book on storing PM it became painfully obvious that folks who own PM, yet fall victim to theft, unknowingly participate in the crime. They participate by not taking a proactive approach to PM storage. Well over 90% of all stolen PM is never returned to its rightful owner.

Before we unfold three protective suggestions I would like to share one other opinion. My opinion is that far over half of all PM theft is never reported. Most folks who store wealth in PM are far too discrete to share anything that will expose themselves as PM prudent. Now, with that, let’s dive in.

INSURANCE:

The most common question TPS (The Prospector Site) receives is in regard to PM insurance. Most readers are surprised to hear that PM stored at home is insurable but they’re most surprised to hear it’s reasonably affordable, as well. Insuring your PM in-home stash is not for everyone. I’ve witnessed several phone consultations where the folks shot down PM insurance before I could get the entire suggestion from my mouth.

You’re right, the steps to insure in-home PM will produce a paper trail AND expose you as a PM owner……. at least to the company writing the policy. There is no way around this other than using a trusted friend or family member (to store and insure), and I’m not sure I want to go on the record endorsing such a suggestion.Exposure is the price a person will pay to insure PM stored at home, sorry.

Expect to answer a number of questions before settling into the peace of mind that comes with being insurable.  Questions like proof of PM purchase, history of burglary, your home’s exterior, etc. should all be expected. Expect to pay somewhere in the neighborhood of a $500 premium per $100,000 insured. I’m sure the premium varies so email me for more information or for an insurance source.

LAYERS:

The best in-home storage plan has little to do with the size of a gun safe or how powerful the weaponry protecting your abode. It is far more beneficial to have a multilayered storage plan than the best safe in town.

The foundation of a good storage plan is discretion at time of purchase…… and every moment thereafter.

Discretion is a hard gift to wrap. Once word spreads that you own physical silver or gold it’s hard to reverse course and nearly always assumed the metal is kept inside your home. This is why so many PM thefts end with the family sitting side by side at gunpoint before someone finally divulges the hiding place. It should never come down to risking the well being of your family, never!

STORAGE:

Never store all your PM at home. In fact, never store all your metal in any one place. Although I do recommend storing at least 1/3 within arm’s reach, I don’t recommend taking such responsibility if you’re not comfortable defending an in-home stash. Also, for those who frequently travel, in-home PM storage should be carefully considered before formulating your PM plan. A vacant home carries far more risk than one inhabited.

This could sound strange but most PM theft originates from someone close to the family. It could be someone from the remodeling crew, or it could be the nephew battling addiction of some kind. The only antidote for this risk, other than discretion, is storage diversification.

There are more reputable places to vault today’s PM than I can list. Some are domestic and some are international. Nearly all are outside of today’s banking system and this benefit will grow as world governments look for creative ways to tax her citizens. This opportunity to stash wealth outside of a country of residency is a closing window.

The internet blazes with bank box horror stories, and I’m sure a few are true. But the truth is, as of November 2013, storing SOME metal in a locally owned bank is far safer than the storage plan implemented by most folks. Storing some metal in a bank box is far safer than leaving it at home while snow birding for the winter.

It really comes down to the most practical storage method in relationship to your situation. 

Well, as you can see there can be plenty to consider before bringing home the next monster box full of silver. The first step is taking the mental effort to educate yourself before anything else. Protecting the metal that will someday protect your financial future is always worth the effort.

QUESTION:  What do you think of today’s PM market? (several similar questions & versions).

TPS Reply:  Thanks to all who’ve called and emailed with similar questions. To answer the question in one word, ugly. I’m not a good cheerleader and I’m guessing you don’t read this site for anything other than unbiased PM fact. Physical silver and gold have underperformed for sometime now. You don’t need me to spell out the obvious.

Several experts have attempted to guess when metals will rise, and all have ended up looking unprofessional. My guess is that most PM experts have underestimated the power of printing currency in order to appease the masses. Remember, the purchasing power of PM should be the focus far over the dollar value. The ability to print money has supported an economy that otherwise would be in major economic correction.

Today it takes nearly 12 physical gold ounces to equal one DOW (16,000 +-), or a 12-1 gold to DOW ratio. As you know, the DOW is made up of 30 major industrial corporations who benefit from a print-based economy. One market benefits from printing (DOW) while one market (precious metal) stumbles along sideways.

The fact physical silver or gold is not rising depresses most of my readers but the reality is we should appreciate this temporary state of economic calm while it lasts. The ability for world currencies to monetize themselves is a closing window. Once this window closes I have little doubt asset-to-asset comparisons will swing in silver/gold’s favor. Until then, more of the same should be expected.

The only indicator we have is history. History has not supported economies that overproduced currencies, not without major inflation, deflation, or even stagflation. Where we are now is somewhere in the economic digestive tract as currencies around the world continue to blur real money value (gold) with nonstop paperless printing.

For what it’s worth, my plan is to stay the PM course while simultaneously using this era of temporary stability to create additional income. Thanks again!

 

DC Carlton is founder of The Prospector Site and author of the Amazon Kindle #1 Bestsellers Why Silver and Gold Will Go Higher and Storing Silver & Gold. If you’re looking for trustworthy PM assistance feel free to contact DC regarding his personalized consulting service. TPS doesn’t sell silver or gold; we represent you, the buyer, looking for affordable precious metal from honest trustworthy sources. 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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What a DOW decline means for GOLD

GOLD & SILVER, SECURING GOLD & SILVER, STOCKS AND GOLD/SILVER   No comments yet

At times you can feel “change” in the air. After years of war, it was likely a young Senator from Illinois was a frontrunner for a 2008 presidential election months before a November opportunity. Why, because change was in the air even if this change was nothing more than a flashy campaign slogan? Flashing forward, another “change” swirls but this change is less opportunistic for most but profitable for those holding wealth in physical silver or gold.  My only advice is to brace yourself for this monetary change.

I can think of nothing as financially devastating, to most Americans at least, as the 2008 DJIA disastrous decline. Within months the DOW promised 15,000 only to tumble, and then tumbled even more, until a 6000ish DOW left nervous investors asking just how low can a modern-day DOW decline. The wealth and future of America was nothing short of in peril.

The winds of change today, late summer-early fall, are reminiscent of 2008. Far too many hold faith in a DJIA supported only by trust and the ability to overpopulate a currency. Also, far too many forget how quickly asset bubbles burst and investment dreams vanish.

Today we’ll compare rising gold/silver to a vanishing DOW. I’m certain both will happen, in tandem, but have no idea when. I suspect soon.

In my opinion, the most likely short-term scenario to double silver and gold’s worth is a DOW collapse. For this reason I would like to compare a DOW decline similar to 2008s to today. In return, let’s compare the effects of such a DOW decline to silver and gold accordingly.

The 2008 DOW lost over 55% of its value in the fall of 2008. This wave of uncertainty challenged gold and it, too, fell around 20%. But gold rebounded nearly 90% over the next few months leaving physical gold holders not only confident but monetarily rewarded for their good stewardship.

GOLD:

Percentages can be a little blurring so let’s put dollar numbers in their place. If today’s DOW dropped 55%, like in 2008, this would nestle our favorite blue chip stock average somewhere in the neighborhood of 6930. If gold, too, followed 2008′s pattern this would put gold around $1064 per ounce.

But as mentioned gold didn’t drop long, or far, until nervous investors found the one historically proven hard asset worthy of investing, and investing they did. This time will be no different, in fact, this time nervous investors will “double-down” as they realize adverse monetary effects are the new common.

After a brief decline (gold declined around 20% September 2008), gold found footing and I suspect this time will be no different. Accordingly, this would leave paper gold at $1436 (six months), at $1862 (12 months), and $2128 (18 months). I would think the physical market (premium) for gold could easily add another $200 +, per ounce, to the aforementioned dollar values. Now, this leaves silver.

SILVER:

The 2008 DOW meltdown pushed silver’s paper value down 50% (from $18 to $9 per ounce). But this discounting didn’t last long, nor did physical metal supplies, as new silver investors found great reward for their monetary prudence. Now, let’s plug today’s silver price into such a 2008 scenario.

If silver dropped 50% today it would leave paper silver selling at $10.75 per ounce. Within six months silver would reach $16.12 (50%), and then $20.42 (12 months), and then $21.50 (18 months)…….. according to our 2008 comparison.

But these values fail to account for rising premiums, like in 2008-09. By example, October (2008) 100-ounce silver bars carried an additional 50% +premium on the secondary market, silver Eagles even more. This pushes our $20.42 paper silver to just under $31 for physical silver ounces, at least.

Remember, the secondary PM market doesn’t care about long-term customer creation, satisfaction, or service.

The secondary market is the future of how physical gold and silver exchanges – but don’t expect bargains from those willing to sell. Typically, secondary markets grab as much as possible by taking advantage of those late to the investment party (this information, although thought provoking, is nothing more than proof how one asset correction will temporarily influence precious metals. The one long-term monetary constant is value stored in sound money via hard assets).

QUESTION: DC, I’d like to ask about safe deposit box (storage). How safe is it, actually? What will happen to stuff inside the boxes if the bank shuts down? Love your blog, anyway. It helps me to focus on long-term protection instead of short-term volatility. Thank you.

TPS Reply: I’ve waited for this question….. so thanks for asking. Make no mistake; we are nearing a point in which wealth stored in banks is at risk. This includes assets stored within bank security boxes, as well. The question is which method of storage carries more risk. Many of my readers choose bank storage because they’re not comfortable defending metal stored at home or business, this I understand.

If we must pick between the lesser of two evils I have a suggestion. Why not diversify and insure your physical metal? Insurance is available for both home and bank vault stored PM. This insurance also covers the risk of transporting the metal to and from. I’m not sure if Indonesians are eligible for this insurance so contact me if you’d like my assistance.

So far this year 18 banks have closed here in the US. All reopened, to my knowledge, under a new flag and all box contents transferred along with bank ownership. This change didn’t affect those renting deposit boxes. But we live in an age of great volatility and greater uncertainty. This means all exposed wealth will eventually be challenged by creative governments looking to find a fresh means for new taxation and wealth accumulation.

I’ve personally only used bank box storage while away on extended travel, like internationally. I weigh the risk at the time and pick between the lesser of two evils. The bottom line, I know of no 100% secure or full-proof means to store physical precious metal. This is why I recommend diversification and insurance. Thanks for the great questions and comment.

By the way, your long-term comment is spot on…… good way of approaching PMs.

COMMENT:  Metals are rising!!!!!!

TPS Reply: They are, and this is a good confidence boost for those new to PM. I can’t tell you how many emails TPS has received from new readers who bought discounted PM only because of this last PM correction. I know many readers are frustrated but the opportunity to buy discounted metal truly allowed more to join the PM table.

Gold and silver rising is great but pale when compared to the advantages of discretely storing wealth out of sight. All exposed wealth is now under threat of taxation, confiscation, and blame. Why not take advantage of this temporary opportunity to trade dollars for unregistered wealth (physical silver or gold)? Not to mention the opportunity to store this wealth in many different countries, and outside the banking system.

 

DC Carlton is founder of The Prospector Site and author of the Amazon Kindle #1 Bestsellers Why Silver and Gold Will Go Higher and Storing Silver & Gold. If you’re looking for trustworthy PM assistance feel free to contact DC regarding his personalized consulting service. TPS doesn’t sell silver or gold; we represent you, the buyer, looking for affordable precious metal from honest trustworthy sources. 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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WHY PRECIOUS METAL HAS ME WORRIED

BUYING GOLD/SILVER, GOLD & SILVER, SECURING GOLD & SILVER   No comments yet

Our physical silver and gold market is in a precarious position…… and this worries me. The great paper PM (precious metal) sell-off of 2013 started in April and showing little signs of reprieve as June fades into July. The hard asset faithful patiently wait for a bottom all while questioning the wisdom of owning physical silver or gold. All this while today’s media wastes little time casting disparaging remarks for those practicing sound money practices and prudence. Even with all the aforementioned, this is not why precious metal has me worried.

Thank you so much for joining TPS (The Prospector Site). This post, like the hundreds before, is all about translating monetary fact from fiction, sound money from paper promises. I have no doubt our world of financial rhetoric confuses many, maybe most. Hopefully we can clear the air of confusion that clouds the judgments of so many.

Even though the US Mint will sell more Silver Eagles in 2013 than any year prior, our physical silver market is on the ropes. Demand for silver is great but nowhere near equal to today’s level of economic turbulence and fiat uncertainty.  The great alternative currency experiment is nearing an end.

The PM volatility we’re experiencing as you read this is beyond the expectation of this writer. Honestly, I expected to see paper silver, and gold, dip but did not expect physical PMs would follow in such waterfall fashion. It’s easy for me to say prices will stabilize, then rise, because I understand the equilibrium between inflation (consumer prices) and physical PM.

After all, it was only after abandoning the gold standard we realized a rapid rise in consumer prices. The many decades before realized little, or only slight, inflation because the ability to print fiat did not exist. From Egypt to Brazil, the conflicts we see today are all a derivative of fiat currencies out of control.

Why I’m concerned:

Let’s take a closer look at this from a businessman’s viewpoint. A business expands as demand generates profit. This includes leasing or buying more equipment and space, growing a workforce, and so on. The goal is to generate enough product or service to match the market’s pace and trend. Simple enough I’m sure you will agree?

Today’s companies in the PM exploration and mining industry are in great trouble. Mining stock is in far greater decline than paper or physical PMs, even with rising worldwide demand. Why you ask? Because an ounce of real metal sells for less than the tangible cost to extract PM from the ground.

A company in the mining business doesn’t view silver or gold as a safe haven. They view PM as an avenue of business growth and profitability. The problem is we have reached a price point to where the return is not worth the investment, not to mention risk.

Each person considering owning physical silver or gold should expect to see an interruption in precious metal availability sometime in the near future.

The mining industry has yet another problem, as well. Today’s environmental challenges are complex and litigation is extremely expensive. Each passing day brings the threat of yet another environmental related regulation that requires new or updated compliance. It is only worth fighting through such regulation if the trouble equals profitability.

This tandem threat, environmentally motivated regulation and lack of profitability, is far more concerning than a temporary waterfall drop in PM prices. A mining bust will not return to a boom overnight, regardless if PM prices rise in the meantime.

TORONTO, June 24 (Reuters) – Barrick Gold Corp will lay off about 30 percent of corporate staff at its headquarters in Toronto and in other offices in a downsizing plan triggered by problems at major mines and a drop in the price of gold. Read it here.

So what does this mean for those of us living outside the complex world of PM mining? It means a growing market of PM buyers will soon compete for smaller piece of the pie. If current PM physical demand weren’t as great I would say declining output is in nature order, but this is not the case.

The collapse within the paper silver and gold market has caused adverse effects far beyond what most comprehend. Please take a moment to read the Q & A segment if you’re contemplating adding more metal to your PM stack.

QUESTION: DC, are you buying now?

TPS Reply: Thanks for the tiny question. My answer is “no”. I’ve suspended my purchasing plan until prices stabilize because I refuse to buy new metal only to watch prices free-fall soon after. Remember, this is all about ounces….. not price. If I can buy more ounces tomorrow with the same amount of money then why buy now?

I’m not a financial adviser, this means I’m speaking for myself and each reader can take it for what’s worth. I do offer consultation for those who’ve made their mind up to buy metal but want to make sure they’re buying the best metal possible, at the lowest price, but from a reputable source.

It’s easy for me to suspend my purchasing plan because I’m already PM protected. I own both physical gold and silver; my PM plan is on cruise control. Please don’t confuse my temporary action as a loss of PM faith, far from it.

If I were yet to own physical silver or gold I would buy immediately, regardless of today’s PM market volatility. Who knows when the economic shoe could drop leading to an overnight depletion of an already thin inventory of PM?

I will resume buying physical PM when prices stabilize, not before. Thanks for the question.

QUESTION: After reading Storing Silver & Gold I would like to add my two cents. I’m looking to purchase a standup style safe but a little conflicted over investing money for a block of iron when I could invest the same money into PMs. Right now a $1000 will buy a couple rolls of silver bullion!!! What about a compact safe instead? What is your opinion on PVC storage?(edited)

TPS Reply:  Thanks for the comment and question, as well as making the effort to properly store your PM. You’re correct, a thousand bucks will buy a substantial amount of bullion these days, but. Someday soon this silver will rise in value and your ability to safely store this stash is imperative in order to protect your family’s financial future (this is the goal, right?).

I’m not against using a compact style safe, depending on the situation, but prefer something weightier and less mobile. The important issue here is how it’s mounted more than size itself. Regardless, insure the safe’s contents just in case the unlikely worst-case scenario happens to you (the book’s last chapter provides private PM insurance information).

Also, you must consider that money spent on a good safe is also an investment; investing a $1000 bucks for peace of mind sounds very reasonable to me when we view such an expenditure as an asset, too. Since you read my book then you also realize safe manufactures, like Liberty Safe, can’t keep pace with consumer demand. I doubt this trend will do anything but compound – especially when we have an administration taunting gun control.

Now let’s discuss PVC storage. For those who are unfamiliar, storing PM inside a buried section of large diameter PVC pipe is extremely effective. This process includes capping each end to ensure all contents stay dry and airtight. The PVC section is usually buried vertically just long and deep enough to allow access as needed. My only concern with storing metal buried in the ground is who will know where to look if something were to happen to you? Be sure to let someone trusted know of your PVC storage plan.

Thanks for the comment and questions.

 

DC Carlton is founder of The Prospector Site and author of the Amazon Kindle #1 Bestsellers Why Silver and Gold Will Go Higher and Storing Silver & Gold. If you’re looking for trustworthy PM assistance feel free to contact DC regarding his personalized consulting service. TPS doesn’t sell silver or gold; we represent you, the buyer, looking for affordable precious metal from honest trustworthy sources. 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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PM FREEFALL: What should you do?

BUYING GOLD/SILVER, GOLD AND MONEY, SECURING GOLD & SILVER, STOCKS AND GOLD/SILVER   No comments yet

Are you losing faith in physical silver? The question I hear most is “why”. Why are precious metal prices dropping when all the fundamentals are in place for it to rise? International economic volatility, threat of regional wars turning worldly, a flood of paper currency; the list is long and growing. The answer, my friends, is obvious, yet concerning, and the topic of today’s post.

It is unfortunate that we invest so much time, effort, and space in order to justify the only tried and true worldwide currency.  I agree, it’s impossible to ignore such  volatile erosion as we’ve witnessed over the last few months. No doubt this decline is disheartening to those new to PM (precious metal). For this reason alone we’ll invest time and space in hopes of answering why silver is dropping, should you buy now, and when silver will rise again.

Anyone with $11,700 can buy 500 ounces of American Silver Eagle bullion and have it shipped to their door (or local USPS). Comparing today’s silver offering to March 2011 is astonishing, to say the least. I founded TPS (The Prospector Site) in 2011 when the same 500 bullion ounces sold for over $21,000…… crazy! Precious metal experts, who coincidentally also pedal bullion related assets, can spin it anyway they desire but the loss, at least at this point, is very real.

In Why Silver & Gold Will Go Higher I expose the mystery behind silver and gold’s true value. Each coin in existence has literally two sides, value speaking. The first side is intrinsic, or has inherit value. The intrinsic value includes the grand total of effort to mine, mint, and distribute each PM ounce. No different than the land, concrete, lumber, wire, roofing and labor value it takes to build a home or an apartment.

The second side of a metal coin offers value too, but this value is much more subjective than the intrinsic counter side. This side is all about demand, nothing more. If demand raises so does the coin’s value. If demand declines well, I guess, today’s PM market is the best proof as we all watch silver/gold retreat.

So how can prices fall if demand for physical metal is up? After all, today’s PM peddlers and experts talk little other than how worldwide demand for PM is through the roof, right? If true, then why has gold declined from just under $1800 to less than $1300 per volatile ounce? The answer to these questions goes far beyond the paper manipulation argument so commonly made by the PM faithful.

PM manipulation?

The words “manipulation” and “precious metal” play over and over again reminding us of a late-night HBO movie. You’ve undoubtedly read countless articles – written by PM aficionados – that repeatedly prove how PMs fall victim to Wall Street entities like JP Morgan and other “cartel”. I have no doubt Wall Street giants work the PM system but this doesn’t explain why physical precious metal is falling.

Physical silver and gold are in decline because PM can’t compete with today’s level of money printing. Never before are so many currencies simultaneously committed to printing fiat in order to appease a rising tide of concern. This printing offers a false sense of financial security, built on a foundation of debt, which only temporarily relieves the inevitable correction soon to fall upon each of us. Nevertheless, printing money to artificially support handpicked assets hasn’t bode well for gold holders.

Never underestimate the power to create currency (money).

It is only because of FED support that giant banking institutions (the same who manipulate silver and gold to their advantage) even exist. Remember, these giant Wall Street banking institutions should have disappeared September 2008, and would have if not for the biggest bailout in US history. Organic assets like precious metal cannot compete, not while we have an administration and financial structure hell-bent on picking winners, and therefor losers too.

What to do?

With a deep breath we must ask ourselves, as PM faithful, what to do. Obviously, we can’t fight the billion dollar status quo toe to toe. Nonstop bitching won’t help either. Far too many promote staying the PM course but with silver $19ish and gold $1200ish I for one no longer support, at least without question, staying a course that hasn’t worked for some time now.

I own both silver and gold and have for many years. But if I were new to PM, and didn’t own physical, I would buy some now, just in case something black swanish happened in the near future, but keep most powder dry until prices stabilize. But for those looking to add more physical I’m not so sure I’d be in a big hurry to stack more, not with such PM volatility. Here is why.

Folks have lost faith in PM. This hasn’t helped support prices in the least. Eventually low metal prices will discourage mining output and this disruption will dry metal inventories. I truly thought demand alone would vaporize such a limited inventory of PM but this isn’t the case. When miners can no longer profit they will decrease output. A decreased output of physical metal will do more to separate physical from paper than anything else I know. At such a time, physical metal premiums will rise regardless of Wall Street’s paper party.

We must put the age we’re living in context. From the $50k car we drive to the $500k homes we live, they all hold value only because of manipulation thanks to the power to print. This debt won’t and can’t last forever. Eventually something will sever the ability to print and at such time physical PMs will find equilibrium of true value and worth. I base this on history far over my opinion. Not one person walking this earth knows when the fiat printing will cease or no longer work thanks to inflation.

QUESTION: DC. I enjoy and value comments and reply of TPS. I recently overheard a conversation in our local coin shop – ” nobody has any silver” – ” there is a serious shortage of silver” – “silver is constricted” – ” the mints can’t get the raw material” – surely some “PAC MAN” monster didn’t consume all the silver that was out there not TOO long ago.

With spot being 20ish it seems more likely there is a lot of holding and hoarding going on, also I have recently purchased a few MONSTER boxes, so those ASE’s are available with considerable discount from months past. What’s keeping silver at 20ish? Is intervention and manipulation that controlling? I don’t question that silver is suppressed, my question IS WHY and by WHOM. Based on your experience and expertise, how constricted do you think DEALER or secondhand supply will be when silver is $100ish? Also, would you care to guesstimate when $100ish silver will be probable rather than possible?

TPS Reply:  Ah, the questions of when and how much. First, thanks for the great questions. I realize you’ve made a substantial PM investment and certainly have earned the right to ask “why”. For what’s worth……. my long-term PM opinion finds deeper validation with each passing day. In the meantime, PM is as volatile as I’ve seen them.

Let’s dive into your questions. Those selling PM are no different from anyone else selling anything else. Demand is an emotion. If a seller can convince a potential buyer that demand is high, and inventories low, then this potential buyer is more likely to buy. I have no doubt inventories are low but physical silver is still readily available, without a long wait time I should add.

Far too often we hear about a Chinese thirst for PM. Recently a photo of an alleged crowd of 10,000 aligned buyers has circulated the internet all hoping to buy physical gold or silver. I’m not buying it. I’ve done business in China and can tell you for a fact that the Chinese play their cards close to the vest. Sure, the Chinese are buying PM but the truth is this public option has only existed for a few years. Up until recently a Chinese citizen could be imprisoned for buying or possessing physical PM.

The Chinese have but one motive. Their plan is to hoard enough metal to reestablish a gold-backed currency, and this is exactly what they will do. Can you imagine the offering for physical metal when the yuan unseats the USD as a world reserve currency? The one Chinese question still unanswered is will the Chinese have to sell their gold if and when their economy corrects and how will this affect their reserve currency plan? My guess is the Chinese government will confiscate private gold/silver holdings sometime over this decade, just my opinion.

You asked about who is manipulating metal and why. This manipulation is about Wall Street profit more than anything PM personal. For Wall Street, it’s all about making money and few care who is hurt along the way. Our financial system is run by distrustful thugs with little integrity or concern over the hardworking fabric of America.  Central banks benefit, monetarily, and enjoy nothing more than watching a competing currency, like silver and gold, decline. Again, never underestimate the power to print money or those willing to manipulate such power for personal gain.

The true injustice, or risk, of falling metal prices is not a loss of wealth. It is a loss of ounces that concerns me most. When a PM buyer pays more than necessary, because prices drop soon after, this inhibits the ability to buy more ounces for the same dollar exchange. In the long run all PM owners will appreciate such monetary prudence, but this doesn’t help over the short term.

When will we see $100ish silver is like asking when hot water will boil. Silver rising will happen only after the US dollar index declines. The world still invests in the USD and will right up till the point they won’t. Only after the dollar loses trust will silver see $100, then $200, then? I would hate to be shopping for my first physical silver at such an age. Look for the secondary PM market to swallow today’s dealer/broker trade as soon as metal prices rebound.

I was once asked who should buy (own) physical silver or gold. My answer, the best person is the one who buys metal, stores it away, and then lives life like PM never existed. It’s hard to do, for some, but over-analyzing PM will drive a person to drink; we’re living in interesting times no doubt. Thanks for email.

 

DC Carlton is founder of The Prospector Site and author of the Amazon Kindle #1 Bestsellers Why Silver and Gold Will Go Higher and Storing Silver & Gold. If you’re looking for trustworthy PM assistance feel free to contact DC regarding his personalized consulting service. TPS doesn’t sell silver or gold; we represent you, the buyer, looking for affordable precious metal from honest trustworthy sources. 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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MONEY YOU CAN BANK ON

BUYING GOLD/SILVER, GOLD AND MONEY, SECURING GOLD & SILVER   No comments yet

Banks in California’s Central Valley are on high alert, and they should be. There is a young man, around 20-years old I’m guessing from his picture, who has robbed at least six banks over the last few months. He doesn’t use a gun, doesn’t wear a mask, or does he make threats to the bank tellers. Most customers or bank employees never know the bank was robbed even though the man committing these crimes flaunts his face in front of high-tech surveillance cameras time and time again. The young robber simply walks into a bank, hands over a note, and then walks out with stacks of other people’s cash. Local banks are warning employees and urging people to be aware.

My motive for sharing this story of brazenness is less about warning than observation.  Today’s banking industry shows concern over such theft but the truth is they’re more concerned with endangering employees than losing dollars. The mother-ship bank, better known as the Federal Reserve Bank, can….. and will, replace stolen fiat with a keyboard stroke, no worries.

After all, 99.4% of the perceived money safely stored in your local bank doesn’t exist. It’s nothing more than a digit assigned to an account number.

Oddly enough, the same 99% percent of folks staggering your neighborhood streets, and still believing their dollars are stored in a bank somewhere, fail to understand the difference between money and fiat currency. This monetary ignorance separates these folks from sound money like physical silver or gold, respectively.

The Wells Fargo bank building in my local community is hands down the nicest and most expensive building on Main Street. I’m not a commercial appraiser but guessing this building has a value worth several million dollars, I’m willing to bet your community is no different. Just down the street, but on the same side, sits my humble-looking local coin shop (I would estimate this building’s value around $250k, but no more).

One building, the Wells Fargo one, reflects a perception of wealth and security even though it houses no intrinsic source of sound money. The other building, our local coin shop, needs some updating but houses many times the building’s worth in physical silver and gold, or, real money. Unfortunately, less than 1% of the folks passing by recognize the difference.

Folks living in the US are at a real crossroads. Monetary confusion influences them to store wealth in dollars, by way of banks, even though most folks realize something is not right within our banking system in a overpopulated fiat currency age. These same individuals view silver and gold as valuable but fail to recognize how significant PM (precious metal) is in such an age. The fact both metals have declined recently only adds to this confusion; my fear is this confusion will cost the unknowing dearly.

It’s obvious since you’re reading this you understand the difference between sound money and a fiat currency, congrats. Our banking system not only drums a fiat melody of wise investment but relies on this trickery for its very survival.  The fact remains physical silver or gold is the only money you can bank on.

1984 is now:

Our world is buzzing over yet another Orwellian fruition. It is obvious to all that nothing written or said is secret now that we’re living in a technological age combined with governmental overreach. The great salesmen peddle such intrusion as necessary to protect us but the truth is such intrusion is a choice between freedom and security. This writer will take his chances, if the choice still exists.

George Orwell called such propagandists “crypto-communists”. What amazes me is Mr. Orwell made such timely prediction in 1948-49 just one year prior to his death. He also refereed to individualism, or independent thinking, as thoughtcrimes. Time has now turned Mr. Orwell into Orwellian.

I’ll climb the highest mountain, if necessary, to once again explain the availability to store wealth in undocumented physical metal is a closing window. It is still 100% legal to trade dollars for real money, like silver or gold. We can argue when PMs will rise and by how much but only after safely securing the right metal for you. Please take a close look at physical silver and/or gold soon.

QUESTION:  If we’re talking silver, are we investing or jumping into a safe haven?  I’ve read plenty of your writings but still slightly confused on the financial goal. Thank you for taking the time to take my call (edited).

TPS Reply: You’re welcome, and thanks for asking. My opinion is that physical silver offers both the benefit of investing and safe haven storage. The primary goal is preservation but the byproduct of such prudence is wealth building, aka investing. My belief is silver, at around $27 physical, will soon double, double again, and then continue to surprise even the most PM optimistic.

Silver, and gold, have always maintained true value compared to effort, other assets and tangibles. This is why a $1 legal tender silver coin is worth just under $30 as of June, 2013. This is why a $50 legal tender gold coin is worth over $1400 dollars, too. It is only because of our USD’s devaluation that silver and gold rise in dollar value.

We have reached a very unique time both historically and monetarily. Never before have so many had an option to own physical PM while simultaneously living under a fiat currency age. This means all currencies have the option to print as much fiat as necessary to appease her people. This printing will not fix an economy but will offer temporary stability. The long-term effects are not historically good. In fact, the long-term effects of overpopulating a fiat currency impoverishes most who fail to understand how safe-haven investing works.

Over producing a fiat currency weakens the currency’s buying power; this is why milk, fuel, and your favorite soda continue to rise in cost. Most working for a salary, or living on a fixed income, believe the answer is to earn more but fail to understand we will soon reach a point where it’s nearly impossible to out earn inflation. But for now, printing currency has somewhat stabilized our economy but this stability will not last forever without real jobs paying a fair wage.

Hope this helps clear the confusion. Thanks again.

QUESTION: Experts are predicting $19 silver by late summer or early fall (2013). I don’t own silver but I’m taking a hard look at trading some savings for physical silver in the near future. My reasoning has to do with an administration that refuses to practice fiscal restraint. My question, is it wise to wait for silver to fall in price? I obviously don’t want to be like the ones who paid 50% more than necessary – not that long ago.

TPS Reply:  Great question and comment. You’re wise to consider trading dollars for physical silver, in my opinion. No offense, but I know of no PM experts anymore, only informed prognosticates. Because of this no one truly knows what silver prices will do over the short term. This is why I rarely mention short-term fluctuations especially during such an age of economic volatility.

Now long-term speaking, physical silver has to rise if for no other reason than the one you mention. By the way, both political sides have leveraged debt for political gain, power and control. You’re correct, this administration has added the most but mark my words the next administration will also fail to practice fiscal restraint. Wall Street, and our banking system, have too much control and will always put profit over prudence.

Going back to your question, I don’t offer pinpoint financial advice. If in your shoes, I would consider a 50% entry into physical silver, soon, and then spread my silver budget over the next few months. It is always possible silver prices could drop, like you mentioned, but a long-term fiscal plan should be the focus far beyond the possibility of a short-term dip. Thanks for the question.

By the way, I too bought silver only to watch it drop from its recent high. I lose no sleep over price drops because it’s all about ounces owned, properly stored, and an overall foundation of self-reliance built on a foundation of sound money. Dips and rises have no effect on my overall plan.

 

DC Carlton is founder of The Prospector Site and author of the Amazon Kindle #1 Bestsellers Why Silver and Gold Will Go Higher and Storing Silver & Gold. If you’re looking for trustworthy PM assistance feel free to contact DC regarding his personalized consulting service. TPS doesn’t sell silver or gold; we represent you, the buyer, looking for affordable precious metal from honest trustworthy sources. 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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IS SILVER WORTH IT?

BUYING GOLD/SILVER, GOLD & REAL ESTATE, GOLD & SILVER, SECURING GOLD & SILVER, STOCKS AND GOLD/SILVER   No comments yet

The truth is only the precious metal faithful are still buying silver or gold……. at least here in the US. Those who aren’t continue to irresponsibly invest, directionally speaking, thanks to the greatest wealth intervention in history. Far too many weigh PM (precious metal) up against other investments without considering the monetary difference, challenge, and purpose. Today’s DOW explosion is the purest example of such intervention. If we are to compare the two assets, DOW vs. PM, intervention gives the DOW a half track head start over precious metal all while spectators ask, “what’s up with precious metal and why is it pacing so far back?”

I see just two types of investors these days. The first type chooses to remain clueless as long as “experts” drum a rising DJIA and housing market. This type cares not to question “why” and too busy living life to question manipulation, intervention, record borrowing, or anything else for that matter. The second type is as concerning because these folks perfectly understand why the DOW and housing are rising but don’t care as long as they’re getting theirs.

The tiny sliver (sliver not silver) nestled between the two types aforementioned is you, the PM holder. You discretely stack discounted metal realizing the law of economics will soon and suddenly forever change this generation’s view of investing. I congratulate you for your tenacity.

It’s hard to get up each morning and then tell ourselves to stick to the plan. Metal experts sound like a broken record each time they predict a PM breakout that never seems to happen. Are these experts wrong? Is it possible the days of rising silver or gold are over? We both know the answer is “no way”.

Once wealthy countries like the US can no longer afford our current fiscal path. Our job market will no longer support the costs of everything from education to mortgages, pensions to property taxes. This tension causes a fiscal conflict that adversely affects nearly all aspects of our lives. This tension is also the reason politicians and governments have stepped beyond our constitutional rights of privacy and capital control.  Neither form of overreach will change anytime soon.

The word selfish surfaces in my mind this morning as I try to explain today’s complexity while living in a 21st century world. Investors succumb to selfishness as they watch a debt derived DOW add inflationary dollars to a bottom line. Politicians practice selfishness as they print dollars in order to maintain another round of power therefor appeasing a growing class of dependency.

Someone recently asked, “Where does it all end?” This is a good question but one far beyond my pay scale, sorry. My guess, it ends right where it all started some time ago. Was it that long ago when folks relied on each other and not a gov’t program? Was it that long ago families, churches, and other private organizations took care of those in temporary need? Was it that long ago we traded effort (cash) for healthcare, cars, houses, meals, etc. - not debt?

Could the end actually be a beginning? Is it possible the end is nothing more than a recurrence built from sound money and limited government? Can monetary intervention last forever without true growth within the economy? Maybe I’ll keep stacking silver and gold just in the off chance I’m right!!

I heard several great questions this week but two in particular really caught my ear and eye. I’m guessing if someone is willing to ask then others are quietly doing the same. As always, thanks for sharing your time with TPS.

QUESTION:  I’m new to precious metal and have a simple question, thanks. What will keep silver from someday dropping to a point of no value? It appears headed in that direction now.

TPS Reply:  Boy, no kidding. What a great question so thanks for sharing. Although highly unlikely, silver could decline to a point well below today’s offering. Such a scenario is, in my opinion, a short-term possibility when we consider today’s economic climate of accumulative fiat debasement and devaluation. The fiat currency experiment is building toward a climatic end that won’t bode well for most investors.

The majority of those considering silver, maybe you too, are judging the worthiness of physical metal on past performance. In other words, we buy or don’t according to today’s price far over the overall economic picture. Falling silver prices must mean silver is no longer a worthy investment, right?

Here is my recommendation to you and all those considering physical silver. Ask yourself if you truly internally believe economic recovery is real. Is the DOW rising because corporations are profitable or is the DOW rising because everyone is blindly jumping in? Is US housing in recovery or too-cheap-to-be-true mortgages spurring the next real estate bubble?

And the most important question to ask; what would the economic picture look like if not for the trillions of FED/US Treasury created dollars supporting everything from food stamps, healthcare, housing, military, banks, DJIA, pensions, Social Security, foreign banking, foreign government, etc? Because if you believe an economy 100% dependent on printed money is sustainable, please don’t buy physical silver.

Regardless, thanks for the question and following TPS.

QUESTION:  Although your book (Storing Silver & Gold) is interesting – I have a better plan. I’ve owned, and personally store, gold jewelry and bullion at home without a floor, wall, or standup style safe. It makes more sense to keep something of value in places a thief would never consider. To me, a safe communicates storage of wealth but something hidden says the opposite. Am I off base with my storage plan?

TPS Reply: No, not necessarily. A storage plan is extremely personal for obvious reasons. I wrote Storing Silver & Gold to make one huge significant point for those practicing the independent voyage into PM. Each person storing wealth within PMs must spread the risk among two to three storage options and methods. Simultaneously, it is recommend to keep at least 1/3 of your physical metal within arm’s reach or with someone trusted and close by.

TPS has other readers who also store bullion and jewelry in fake drawers, cabinets, tubes, walls, rooms, toilets, fireplaces, firewalls, etc. My opinion is if hiding PM outside a safe is what makes you most comfortable – then so be it, but. I encourage all readers to consider the possibility of fire damage along with the risk of theft. Gold will melt, as most know, and such a risk is as real as the odds of your home or office burning down (by the way, the PM insurance often mentioned at TPS will not cover PM improperly stored outside a safe, to my knowledge).

For what it’s worth, here is what my book research proved. The right safe, as part of a complete storage plan, sends a signal to a would-be thief that this family is prepared and protected from such an intrusion. Maybe the best plan for you is a combination of my recommendations and your existing plan? Thanks for the comment, reading my book, and question too.

 

DC Carlton is founder of The Prospector Site and author of the Amazon Kindle #1 Bestsellers Why Silver and Gold Will Go Higher and Storing Silver & Gold. If you’re looking for trustworthy PM assistance feel free to contact DC regarding his personalized consulting service. TPS doesn’t sell silver or gold; we represent you, the buyer, looking for affordable precious metal from honest trustworthy sources. 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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THE SILVER PRICE MYSTERY

BUYING GOLD/SILVER, GOLD & SILVER, SECURING GOLD & SILVER   No comments yet

Most folks completely misunderstand today’s silver market. Even more are unaware of the disconnect between physical metal and the highly leveraged paper promises, most commonly traded, thanks to large investment banks and bullion dealers. Oh sure, they believe silver’s spot offering (price) is relatively close to the physical silver market…… but they are mistaken (today we will prove just how unfortunate this is playing out to be). The PM crash in April of 2013 disrupted, maybe added is a better description, an alternative buying option, but this new option does come with a hefty price. If you’re one of the many silver hopefuls, and looking for immediate silver possession, please read today’s post closely. With that, welcome to the mysterious world of secondhand silver.

Lake Tahoe is one of the most unique lakes in North America. With 72 miles of shoreline and a depth of over 1600 feet, Lake Tahoe also has one other very unique characteristic. Although invisible to the eye, a state boundary runs through the middle of Lake Tahoe. Both California and Nevada lay claim to the pride of the Sierra Nevada mountain range.

Today’s silver market reminds this writer of Lake Tahoe because it too has an invisible barrier. The line between online physical silver for sale compared to cash-n-carry physical silver is now obvious. Let me explain it like this. A silver order placed today could take a month or longer to reach a nervous silver buyer; but an in-person silver transaction is immediate. The latter option is one our industry often calls the secondhand PM (precious metal) market.

Over 90% of the world’s investors view the price of silver in a paper dimension, as aforementioned. They see silver’s recent decline and say, “Thank goodness I didn’t invest in silver”, but not realizing paper silver is running a distant third in the great PM race of 2013. To expand this racing analogy, online physical silver (silver available to purchase but weeks or months until deliverable) is running a respectable second position.

Our silver runner in first place is our focus today. This, of course, includes all physical silver available in real time AND held by some entity willing to sell. The list shown below illustrates the mysterious three silver options of ownership priced in one ounce bullion.

1.  Paper silver. $24.00
2.  Online physical silver (back-ordered). $30.00
3.  On-demand secondhand physical silver. $34 – $37

No one knows when but it’s almost a sure bet that someday very soon silver buyers will have no other option than secondhand silver (most costly of all silver offerings) or speculate within the paper PM market. Sure some buyers will win the silver lottery with a limited opportunity to buy rationed online silver (Blanchard, Miles Franklin, Colorado Gold, etc) but this certainly will not be the norm. What will be normal is the realization of paying what the few willing to sell will accept.

It’s impossible to accurately estimate the additional premium for future secondhand silver. If I must, I would guess the secondhand silver market will soon escalate to a 100% premium over spot (or paper value) and then eventually reach a constant somewhere around 500% to 1000%, over silver’s spot offering, just as our economy reaches the epicenter of economic correction. I only base this estimation on the similarity between 2008s silver market to today’s – realizing the world’s fiat currencies then are nowhere close to today’s level of printing.

Please take one more glance at the three options listed above because 99% of the folks contemplating silver, but yet to own any, STILL BELIEVE THEY CAN PURCHASE AN UNLIMITED AMOUNT OF PHYSICAL SILVER FOR $24 PER OUNCE. This miscalculation will become more costly from here forward.

Precious metals are an unsolvable mystery. Today’s economic and political actions affect tomorrow’s silver availability. Then, a limited availability affects, or drives up, the price of physical silver. What affects the price of physical silver the least is paper silver. If you’re relatively new to silver please pay particularly close attention to the next sentence or two. The price of secondhand silver is worth it ESPECIALLY if new to physical silver. After some accumulation it is perfectly okay to purchase online physical metal (back ordered as I write this) while patiently waiting for its arrival.

QUESTION:  A large standup style safe will not work under my PM storage situation. Do you recommend using a bank box or passive method of storage in such a case? Thanks.

TPS Reply:  Not exactly but thanks for the question. My view of a secure PM storage plan includes using up to three storage options. I believe in taking a proactive approach to PM storage by thinking like a thief who is willing to part you from your metal. Most individuals storing silver and gold think in one dimension and this greatly concerns me. The right PM storage plan really does come down to each individual’s situation.

I recommend storing at least 1/3 of your PM within arm’s reach. This 1/3 can be stored many ways and a standup safe is one of but several options I recommend in Storing Silver & Gold. For less than $200 a security minded individual can purchase, and install, a compact safe perfect for securing what you’ve worked hard to amass (please check out Costco.com).

Bank boxes serve a limited purpose and I only recommend this storage option during extended travel or for the elderly uncomfortable with personally securing something like PMs within the home. BTW, don’t forget to insure all of your PM regardless how or where it’s stored. Thanks for the question and reading TPS.

COMMENT: Continuing to read and enjoy the straightforward approach at TPS.  I’m recommending TPS to anyone waking up to reality and wondering what is going on economically and how to protect themselves.

TPS Reply: Great, thanks for the recommendation. You mentioned something that caught my eye regarding protection. This really is about protection in an age when preservation is so important. So many complain about today’s fiscal insanity and all the economic and social volatility that accompanies such an age but few actually make a personal attempt to insulate themselves when possible.

I see the option to protect by way of PM as a closing window; even silver will soon become either too expensive for most or flat out unavailable. This is why I’m beating the PM drum ever so loudly while we still have choices to transfer our personal wealth beyond traditional avenues exposed to heavy taxation and capital controls.

Looking back……. I made a few PM mistakes by not knowing the best metal to buy and from whom. But each miscue led me to a new monetary understanding that now allows me to think for myself. My hope is each reader spending precious time with TPS develops this same understanding as well. Thanks for the comment.

BERNANKE WATCH:

The world’s most powerful man continues to tease our media with hints of slowing the printing pace, but those trusting PM know this is only lip service.  Unfortunately, our press repeats such nonsense without verification (see the quote below). Central bankers now realize economies worldwide depend on currency counterfeiting just to sustain today’s level of a failed economy AND support the millions who depend on some form of government assistance to live. There is zero chance quantitative easing will end anytime soon.

“A bigger-than-expected rise in tax receipts to Washington has improved the U.S. fiscal outlook, and the Treasury and private analysts have been taken by surprise by how quickly the deficit is shrinking. Belt tightening in the wake of the series of mandatory budget cuts worth $85 billion – known as the “sequester” – could further reduce federal borrowing needs if it doesn’t inflict lasting damage to the economy”.  Reuters May 2, 2013.

A bigger-than-expected rise in tax receipts is only beneficial under fiscal restraint. The latest housing boom, and then bust, provided both record levels of tax receipts and a continuance of record deficit borrowing. This means in good times or bad, the size of government grows regardless. Does anyone really believe a reduction in government spending will happen voluntarily or redirect government to live within their means?

Everything from funding pensions to printing food stamps now depends on the next level of debt creation to sustain itself. The thought of reducing debt, or a reduction in currency printing, is no longer an option. This fact alone will continue to create adverse economic conditions and cause PM prices to rise beyond what even the PM faithful can imagine.

 

DC Carlton is founder of The Prospector Site and author of the Amazon Kindle #1 Bestseller Why Silver and Gold Will Go Higher and Storing Silver & Gold. If you’re looking for trustworthy PM assistance feel free to contact DC regarding his personalized consulting service. TPS doesn’t sell silver or gold; we represent you, the buyer, looking for affordable precious metal from honest trustworthy sources. 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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WHO WANTS TO BE A MILLIONAIRE?

BUYING GOLD/SILVER, GOLD & SILVER, GOLD AND MONEY, SECURING GOLD & SILVER   No comments yet

Actually, who doesn’t want to be a millionaire?  As founder of The Prospector Site I have the opportunity to work/consult with many hardworking millionaires. I’m guessing many of you reading today are on the millionaire list……. congratulations. If your name isn’t on the list, yet, then please read today’s post closely because many preconceived wealth notions are false. In fact, by post’s end you may rethink your wealth goal well beyond joining the elite list of millionaires. Welcome aboard and thanks for joining our precious metal discussion.

This could come as a surprise but I can say with 100% certainty that millionaires worry about money just like those living check to check, it’s true. Could this be why the same millionaire who worries while building wealth then worries how to keep it? Just as surprisingly, I’ve heard a few actually compare wealth to a ball and chain as they cautiously maneuver wealth away from taxation and into safe havens (some have actually said they enjoyed life best when worth less!).

Nearly all millionaires still live on a budget. I’m estimating over 50% are self employed and somewhere around 20% have a master’s degree. You would be shocked how many have nothing more than a high school diploma. Over 80% are self-made and fewer than 20% inherited the wealth that adds their name to the millionaire’s list.

The question must be asked, “Are today’s millionaires nothing but a bunch of whiners?” I personally have my doubts. My opinion is that today’s millionaires are scared, tired, and frustrated by the economic challenges of the day. Their (millionaires) despair only validates my belief in faith, self-fulfillment and independence (freedom) as the truest source of happiness.

What nearly all millionaires have in common, at least up to the point of trading dollars for PM (precious metal), is the mistake of building personal wealth in dollars or dollar related assets. Actually, it all comes down to a loss of confidence in the US dollar and the realization that those with exposed wealth will pay for their entrepreneurial sins.

Taxation, fees, penalties, and capital controls are words the wealthy will become all too familiar with, at least those not protected by PMs.

The problem actually goes beyond the aforementioned as millionaires realize, in their own time I should add, that dollar wealth is much different from “money” wealth. Wealth stored in dollars may appear to offer stability but recent asset bubbles, then bursts (i.e. Dot-com, real estate, DOW, and soon bond, dollar, ?), remind those invested in dollars how quickly this wealth can disappear.

It is at this time we must compare a dollar millionaire to a PM (precious metal) millionaire. I seriously doubt few traditional millionaires give the difference a second thought. This is most evident by how few actually own physical silver or gold even as currencies worldwide constantly spew warnings of a great fiat demise.

The few who do “own” PM only own a few ounces of gold or, worse yet, own paper precious metal; paper silver or gold may appear protective but realistically are nothing more than speculative. Even our country’s millionaires suffer from monetary normalcy bias as their wealth falls under attack or, at least, subject to historic debasement.

I like to compare dollar to gold wealth with today’s spirited world of innovation. Innovation has forever touched our lives by making information the new industrial revolution. Anyone living within 200 miles of California’s Silicon Valley will attest our age of technology has only reached the tip of the iceberg. If not for the decline of the US dollar, I would have to compare today’s age of technological innovation to the implementation of fire, penicillin, telephone, or the combustion engine.

The problem isn’t innovation; the problem is our means of monetary exchange. The US dollar is the only component that will stifle our growing age of innovation. The reason I believe this is because all new innovations are built around capital and the availability to invest dollars in R & D. Today’s disruption of capital (dollars) will eventually devastate, or at least disrupt, the wealth of those investing in tomorrow’s innovation.

Now, please give the next sentence or two your full attention. The same folks at the tip of innovation are also the same folks invested in an outdated source of wealth storage and saving! Saving in dollars is no different than attempting to forward an email through a manual typewriter. Even our wealthy fail to compare old innovations to a dying currency; ironic isn’t it?

One reader recently asked why I’m so convinced the dollar is on its deathbed. My opinion; why else is it we have to inject perpetual transfusions of blood, QE1, QE2, QE3, QE?, if not for a terminally ill currency? This is not about economic recovery; this is nothing more than not letting the dying die. This, my friends, is why each person walking God’s green earth must understand the difference between dollar wealth and PM wealth.

QUESTION:  Precious metal prices have fallen far below the expectations of nearly all PM experts. Have we reached a bottom in your opinion? I’ll never hear the end of it from my family if I buy now and the PM market dumps lower!

TPS Reply: Thank you for asking such a timely question and congrats for at least considering PM. Let me put your mind at rest by mentioning the one fact all PM owners must grasp. Precious metals will rise/ fall and not one person, expert or otherwise, has a clue when either will happen next.

Most “experts” get paid when you spend your cash on their offering of precious metal. I’m not insinuating that today’s PM experts don’t know what they’re talking about, I’m only exposing fact. Truthfully, it really doesn’t matter how PMs perform over the short term since it’s only short-term minded PM investors who worry over volatility.

Please keep your eye on the larger picture by not over thinking physical silver or gold. Here is what I do for what it’s worth. I buy silver or gold each month, store them over three locations and sources, and then look forward to my next monetary chess move. Why would I worry about something I did yesterday when yesterday is already in the books?

Oh, by the way, you’ll never live up to all family expectations…… so quit trying.

QUESTION: Okay DC, you know my situation and you know I store my gold in a local bank. Cyprus has me worried sick and I’m not sure what the heck to do. What if a bank holiday traps my PM and I can’t get them when I need them? Sorry to be a weekly burden but I’m worried. As always, thanks for being patient.

TPS Reply: Man, no softballs today. I understand your situation and, honestly, there is no easy answer. Living in a large city complicates in-home PM storage. The risk of being burglarized must be compared to the risk of storing PM in a bank box. The question is not what the safest way to store PM is; the question is what the best way is considering your situation.

As you know, I’m not against using bank boxes for short-term storage that includes traveling or winter escape. I’m far more hesitant to recommend such storage options as part of a permanent storage plan. Regardless, you must diversify your storage in such a manner that includes keeping at least 1/3 within arm’s reach (this could be in home or with someone trusted).

I hate to say this but it must be mentioned. There is not, to my knowledge, a 100% safe way to store/own physical silver or gold. In fact, there is nothing in this world 100% secure or safe. This is a challenge we must accept and then move forward with the best plan possible.

With the risk of sounding commercial like; Storing Silver & Gold will hit Amazon.com the week of April 8th, in digital format. The book does offer a source, affordable source to boot, who will insure all PM stored at home OR in a bank box. I highly recommend taking the extra effort to insure all PM, especially in your situation.

COMMENT:  A friend recommended your book and I want pass along how much I enjoyed reading it. The simple manner in which you explain silver and gold to our current economic plight was just the motivation I needed to make a monetary change. Record levels of debt will not fix our economy and it angers me that more educated individuals can’t see the overall picture. Anyway, we started our plan by committing to buy silver bullion at the first of each month. Thank you for what you do.

TPS Reply: You made my day, thank you.

 

BERNANKE WATCH:

FED chair Ben Bernanke is the most powerful man on earth but other central bankers are quickly becoming powerful in their own right. The Bank of Japan just doubled down on its latest version of QE by devaluing the yen and, unfortunately, punishing currency savers. Once again, the banks win, exclusively, as Japan outpaces Mr. Bernanke with a fresh commitment to print currency.

The world is awash in printed currency and today’s video only proves the level of desperation among today’s central bankers. This fact cannot be overstressed when we compare a rising supply of currency to precious metal. Please add worldwide quantitative easing to the growing list of reasons to own real money like silver or gold.

 

DC Carlton is the founder of The Prospector Site and author of Why Silver and Gold Will Go Higher. If you’re looking for trustworthy PM assistance feel free to contact DC regarding his personalized consulting service. TPS doesn’t sell silver or gold; we represent you, the buyer, looking for affordable precious metal from honest trustworthy sources. 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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BEWARE OF PRECIOUS METAL SCAMS

BUYING GOLD/SILVER, GOLD AND MONEY, GOLD/SILVER COINS, SECURING GOLD & SILVER, SELLING GOLD/SILVER, STOCKS AND GOLD/SILVER   No comments yet

A few events are forever etched in our minds, literally. John Medina, a developmental molecular biologist, claims the reason some memories “stick” and some don’t is simple. Even the brain finds a few events so worthy of record that the mind actually strikes a deeper line in the brain.

Mr. Medina is also quick to point out another fascinating mind nugget. If not for the ability to instantly forget most information….. we will die, within days in fact. Honestly, I can’t deny or verify what this professor of bioengineering claims as factual. What I can say without doubt; I will always and forever recall the moment I decided to buy gold over a decade ago.

Before we dive in today, the Q & A section is all about dealing with PM (precious metal) crooks, be sure to catch it.

Every once in a while someone emails or calls TPS (The Prospector Site) looking to argue precious metal. They usually hangup thinking, “Gosh, this guy doesn’t know much about physical silver/gold for a bestselling precious metal author?” So be it. My goal is not to argue the worthiness of PM for those not ready to own silver or gold.

If I have to convince someone to buy they’ll like me less the first time silver or gold turns south. Before a person is ready to own PM they must first reach a point of realization. Maybe realization is the wrong word, maybe acceptance is better. Regardless, the old way of saving, investing and entrusting your wealth to someone else is over, period.

Until then silver and gold appear just as “risky” as a credit default swap or a Bernanke promise.

Politicians, corporate executives, and media pundits can drum recovery and economic stability but only the most hopeful continue to believe what PM faithful have know for some time. Each new day is another one closer to the demise of a fiat reserve currency. Your decision to own physical metal is a de facto admission of the dollar’s eminent demise; welcome aboard.

This liberation goes beyond silver and gold. My acceptance of monetary truth changed my perception in more ways than space. I found satisfaction beyond things driven by debt or greed. I found myself questioning everything, even to the point of questioning my faith. After all, it’s only after questioning what others blindly accept we learn, and then grow wiser.

Trading dollars for PM goes far beyond investing in the typical sense. Trading dollars for sound money offers savers the ability to grow wealth beyond the risk of confiscation that fills today’s evening news. Pension funds, retirement accounts, bonds, stocks, and real estate can’t offer the same peace of mind. Not that the aforementioned are bad investments, just not protected in this cannibalistic age of taxation and confiscation.

My Prospector Site email blew up Sunday as rumors of Cyprus bank runs filled my smartphone. Someday all bank accounts will face similar capital control challenges from central banks and/or government.  At such a time, you too will remember when and why you decided to buy physical silver/ gold.

 

QUESTION:  For your information, XWZ Corp (edited) is a con artist willing to sell old folks like me overpriced gold coins. Its been over two years and the coins are worth half of what we paid. A local coin dealer appraised the coins so I know what they’re worth……HALF, OR LESS. Something must stop the con artists in the bullion business!!!!!! (EDITED, A LOT)

TPS Reply:  First let me say how sorry I am.  You’re right, it sounds like you paid far over market for the nine rare coins we discussed during our phone consultation.  This deceptive practice is unconscionable – but I hear stories like yours far too often.  If I were in your position, I’d safely store the coins away knowing someday soon the PM market will, in all likelihood, surpass this over-market premium you paid. I realize this doesn’t help much but it’s not a loss unless you decide to sell short.

NOTE:  I spent at least an hour with this client and, honestly, the situation is not fixable; but due diligence could have saved a lot of hardship.  People are afraid like never in my lifetime. They hear about bank holidays (Cyprus), they see inflation stealing more from a fixed income, and then they hear some advertiser promoting gold as the answer to everything economically wrong. This, my friends, is when the trouble begins.

Now, let’s focus on how this never happens to you or anyone you know. Since I don’t sell PM let me first say the metal this author recommends exposes a PM crook in less than 30 seconds. Precious metal sellers can only take advantage of those lacking PM knowledge, this excludes you.  The majority of PM victims do not know what they’re buying; they just know it’s made from silver/gold. Buying any silver or gold is not good enough; we must put the “right” metal in your safekeeping….soon.

If you truly feel the need to trade dollars for PM but are not 100% confident in the process, then call or email me. I represent you the buyer, never the PM dealer, broker or seller. I don’t charge a percentage; regardless if you buy all the gold stored in Fort Knox or one silver ounce, it makes no monetary difference to me. I charge according to how much time it takes me to find and secure the right metal FOR YOU, I receive zero compensation from the seller.

Locating the right metal for a customer sometimes takes less than an hour, in many cases, or it could take a little longer. Regardless, you’re only charged for the time it takes according to your situation, no surprises. It is not unusual for my fee to total a $100 – $200 (is $100 too much for the peace of mind knowing you’re PM protected with the right metal AND at the best price possible?). It’s time we bring integrity back into the PM market and this is exactly what I intend to do. Contact me here for more information.

QUESTION: I just don’t understand, gold doesn’t pay a dividend or interest, correct? It rests in a vault, in a secret location, all while protected by the best security possible. Wouldn’t you agree that the only thing physical PMs can offer is the chance of appreciation?

TPS Reply: Thanks for the comment and questions. You are correct in regard to gold’s inability to pay interest, it typically does not. Respectfully, I 100% disagree that the only thing physical PM can offer is the chance of appreciation. Gold and silver equal money, everything else we typically call money is currency. Please stop thinking like an investor, think like an innovator (innovators are willing to change).

It’s time the PM skeptical face a few facts. Investors (savers) are long for the slaughter and Cyprus is proof. Eventually the entitled of the world will far outnumber the savers (depositors, pension holders; all investors with exposed wealth). At such a time, the entitled (impoverished) will not only condone new taxation and wealth confiscation – THEY WILL DEMAND IT.

The world’s stockholders fail to compare their risk to a Cyprus depositor (by the way, depositors in Cyprus are under capital controls by way of a bank holiday). A typically safe storage of wealth can no longer keep pace with inflation (certificates of deposit, money markets, savings accounts), they no longer pay a reasonable rate of return.

Even ultra-conservative investors now turn to stocks in order to preserve wealth; this is why the DJIA is at a new high. Someday soon the entitled of the world (impoverished) will far outnumber those holding wealth in stocks. At such a time, ones depending on entitlement will not only support new taxation – they will demand it. Remember, giants rarely die suddenly; they starve slowly but only after total consumption.

How can you or any other stock investor honestly believe your wealth glowing on Wall Street will not fall under confiscation, capital controls or painful levels of new taxation?

This is what happens when currencies die and governments lose power; this is what divides nations, states, communities, churches, and families, too. Thinking like an investor in an age of wealth confiscation is nothing short of dangerous. My advice is to transfer some wealth, if not most, into something less vulnerable to taxation and confiscation. Physical silver and gold are part of the few safe havens outside the banking/ investment system.

We’re past the point of arguing if silver or gold are worthy investments. The only questions left: how quickly can you turn dollars to PM, what to buy, from whom, and at least three safeguards for PM storage. Time will validate the aforementioned.

 QUESTION:  Just paid slightly over $33 per coin from an online PM broker. I’m seriously considering buying more silver but questioning if the price is fair? Thank you.

TPS Reply: Congrats to you for practicing such prudence; I just paid close to the same per ounce price. Now, I have a question or two for you. Do your coins contain one ounce of silver, many do not? Do you know the difference? Please contact me immediately if you don’t.

My suggestion is to view silver like a typical bank savings account. Most Americans no longer save; they spend every dime that comes in – plus some.

Using PM as a savings offers two huge benefits. One, it’s far more difficult to impulsively spend a savings in PM. Two, a savings in PM will rise beyond the imagination of even the most optimistic PM holder (my opinion, use due diligence). We’re living what history will someday describe as the largest monetary shakeup of mankind. The fiat currency experiment has reached the boiling point. Thanks for the question.

BERNANKE WATCH:

The most powerful man in the world is not a politician, not significantly wealthy….. yet rather mysterious to most folks obliviously wondering through life. His name is Ben Bernanke and it is certainly in your best interest to understand how his influence will directly affect your future. He is the most powerful man on earth and starting today we will feature a “Bernanke Watch” in each TPS post.

There is no doubt FED Chief Bernanke is a very smart man. His words are purposely patterned to instill monetary confidence and, unfortunately, monetary confusion. The trouble within our global economy is not Mr. Bernanke’s fault. Bernanke is nothing more than a very significant snapshot in time now controlling the most powerful, yet most secretive, monetary entity on earth.

In the above video Bernanke defends the FEDS actions with six powerful words. He said, “…..never lost a penny doing it. It is imperative to understand that it’s impossible for the FED to lose dollars. They are the only entity in the world that can create unlimited amounts of dollars from thin air. Today’s era of no restraint allows the FED to create dollars, secretly, and obviously accountable to no one (according to the above video).

Don’t miss our next Bernanke Watch when we discuss exactly how the FED not only influences the DJIA but controls it too.

 

DC Carlton is the founder of The Prospector Site and author of Why Silver and Gold Will Go Higher. If you’re looking for trustworthy PM assistance feel free to contact DC regarding his personalized consulting service. TPS doesn’t sell silver or gold; we represent you, the buyer, looking for affordable precious metal from honest trustworthy sources. 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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