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INNER CITIES & STACKS OF SILVER

BUYING GOLD/SILVER, GOLD & SILVER, GOLD AND MONEY, SELLING GOLD/SILVER, SOCIAL UNREST, SURVIVAL & GOLD/SILVER   No comments yet

Sometimes one “REALITY” so grabs our attention it awakens us from a state of denial. My wake-up call came during the aftermath of Katrina while watching desperate citizens of New Orleans cope with the unthinkable. Katrina exposed two things I want to share with you today and both should keep everyone dependent on entitlement up at night (yes it has everything to do with owning silver & gold). I’m not sure what surprised me most, watching helpless folks stranded on rooftops plea for help while streets turned into rivers or multiple layers of bureaucracy so large, so inept it couldn’t simply react to an emergency without first establishing blame and protocol.

The incident I’m discussing today is a prime example of what happens when an ideology transforms a society to a point of inability.

The fact is our overall economic condition is much worse than perceived; this is why food stamp participation has doubled over the last three years. This means many once in the middle class are now part of the dependent poor. They are, if you will, future roof top dwellers holding signs for help.

Katrina was my wake up call because it proved to me we really have few safety nets in life. We can expand social programs but in the end they only create a lethargic economy, new taxation, and unsustainable deficits. What happens when a tax base can no longer support under funded food centers, housing subsidies, school lunch programs, farm subsidies, and the million other programs that can no longer fill the gap of a real economy?

I have great concerns for inner city America. I see plenty of anger and blame when someday soon entitlement programs admit they can no longer fulfill obligations. This massive and publicized outcry will not go unnoticed and this will lead to more money (currency) printing as governments desperately try to literally feed the giant they created. The alternative is to watch cities burn.

Most folks receiving government aid don’t consider themselves among the poor. They fail to recognize a lifestyle or condition without the help of programs.

I doubt most gold/silver holders truly recognize the layer of protection they’ve provided for their families. The benefits of owning PM continue to grow each time we allow central bankers and governments to print currency in order to fill budget shortfalls. It is very important you recognize the two primary benefits of physical silver and gold well before buying it. The first benefit, real money provides sustainability and keeps its participants from sliding from middle class to dependent poor.

The second benefit is both protective and highly profitable for the few willing to trust silver and gold.  This benefit allows those holding physical PM to expand wealth while the rest of the world realizes fiat currencies can no longer print themselves out of fiscal mistakes or promises. This is why an ounce of silver or gold will soon be worth ten times its value today.

Right now each of us has choices. We can accept dependency – like most of us eventually will – or we can begin to provide for our families a layer of INDEPENDENCE one ounce at a time. Yes, it really is this simple.

QUESTIONS & COMMENTS:

COMMENT: Here is how I see it so please tell me if you disagree. I too believe ones who still hold wealth will frustratingly turn to physical PM when the “realization” you often discuss becomes reality. But who’s to say the same folks buying silver at say $100 an ounce, or gold at $3500 an ounce, won’t eventually have to sell the one wealth-holding investment just to feed a family or put a roof over their heads.  To me, it seems most who buy silver or gold now will end up having to resell when things get tight.

TPS Reply: Great comment and thanks for sharing it with us today. Yes, you’re probably correct, many who buy silver and gold today will have to sell, barter or trade it down the road as our economy continues to correct, I won’t argue this probability. Precious metals are the ultimate savings account – the reason we save is so we have options when the unexpected enters our lives. To not save is to rely on a failing ideology, the same ideology that left Katrina folks on roof tops, for our family’s well being.

You make valid points but miss the true benefits of owning physical PM. I have great concerns over the short term and bigger concerns over the longer term. I feel budget strapped cities and states will reduce the same social programs many now depend on to survive. This will cause a backlash so disturbing – burning cars and looted buildings – eventually leading to more entitlement only supported by digital currency creation and taxation (remember, our country is broke – just like many other countries around the world).

Okay, stay with me here. When we print too much money the buying power of our currency declines, this is why a box of cereal is twice the price it was not so long ago. This is why a box of cereal and other necessaries someday soon will cost far too much for the average family budget to afford. At such a point, the only option is to forgo a healthy diet or rely on government assistance that is only available by borrowing (printing) more currency.

Now let’s tie this all together. Let’s say a family sells the camper trailer today and then buys physical silver at $30 an ounce (300 ounces of physical silver). You mention $100 silver in your comment above so let’s use this number since I feel $100 silver is not only possible but a fraction of tomorrow’s offerings.

By trading a declining asset (camper trailer) for a growing asset we leveraged the power of wealth relocation. Wealth relocation is something I wrote about extensively in Why Silver & Gold Will Go Higher, probably the most powerful weapon for wealth expansion and independence. Now that we own physical silver, or gold, we have the luxury of watching all things priced in dollars rise but stay relative in terms of PM. By example, an ounce of silver buys around 8 boxes of my favorite cereal today. When cereal prices rise so will silver making it possible to buy the same number of boxes regardless of price.

The power of PM is beyond questioning since history shows all fiat currencies eventually print themselves worthless (we are witnessing this right now) proving only one true source of money – gold & silver.

 

 

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POLITICIANS SOON TO MAKE GOLD HOLDERS VERY RICH

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

Elected officials around the world are in the process of making me very wealthy. Each precious metal fan should view this as the reward for staying true to the one true safe haven.  I’ll be honest here, I don’t give a rat’s behind about politics since regardless what’s said, actions rarely favor the few pulling the wagon. My only interest is how political miscues affect those trying to raise families and live productive lives. Regardless, if you’re one of a hundred sitting on physical metal than prepare to soon enter the highest tax bracket.

Some of us did not buy silver or gold to become wealthy, I didn’t. Sure having real money is nice but at day’s end the papers are full of unhappy wealthy. The primary benefit of owning real wealth (silver or gold) is the insulation value it provides while knuckleheads decide how much debt shackles your child’s future.

Today’s candidates drum a recovering economy but fail to mention our economy is  dependent on near zero interest rates and never-ending borrowing. I find it funny that super committees pass off trying to reduce the deficit still growing, how is this possible? Don’t we need to stop the bleeding before all else. The truth is we cannot stop deficit bleeding. If we could we would!

I find it odd that some in society view food, power, water storage and self-reliance as overreacting when history clearly justifies such prudence considering the length of our USD fiat reign. Our age of “assuming” life as normal is turning dangerous in my opinion.

Political leaders are making two gigantic mistakes as you read this post (both will eventually push metal prices higher than most view as possible).

Mistake #1:

It is rumored 83% of the US Senate & House of Representatives are male, I seriously doubt this is true. Please don’t mistake this as a sexist statement because my only point is to question the anatomical strength of today’s male politician. The first mistake soon to drive your net worth skyward is an unwillingness to admit the USD can no longer sustain the world’s lifestyle (make no mistake, the USD is the cure and disease).

This requires all sharing public office, at all levels we should add, to honestly explain why we can no longer borrow $.40 of every dollar spent. Yes, this will cause chaos and discontent, how can it not? But will hyper inflating our dollar not lead to a life like camping?

Do you feel the average politician underestimates the character of hard-working folks around the world, I do? An explanation of “why” we are where we are and “how” shared pain will allow future generations more opportunity is something most reasonable folks will grasp. The ones only concerned with themselves will fall lockstep, eventually, since they are destined to a life of dependency regardless.

Think about this if you will. The upcoming “pain” worsens with decades of deficit spending allowing most to live an unrealistic lifestyle.  This deficit spending allows wars to rage, bubbles to expand and pop, and a USD dominance built from debt and inflation. Not to mention the few who grow richer at the expense of so many others.

Mistake #2:

Part of living a life of political integrity requires ones in control to separate from those most motivated by wealth. This is proving difficult, maybe impossible, since Wall Street now singularly drives political leaders around the world. It could appear your best interest is in mind but comparably speaking you and I are small players when compared to the handful controlling wealth.

This failure to separate is what leads us to a common four words we all know too well, Too Big To Fail. Does is make sense that a banking entity can be too big to fail? How is possible we are willing to bankrupt America to save a handful of institutions TBTF? This defeats the purpose, right? TBTF is nothing more than an excuse for political favors in exchange for one more term.

Yes I realize your retirement (not mine) entrusted to the TBTFs and politicians use this as excuse to continue the bailout party. But each of us must carefully review our options here since the alternative to fiscal responsibility is eventual inflation that gobbles a typical pension allowance with only a handful of groceries.  This “alternative” is now a $16 trillion deficit on cue to reach $21 trillion in an evolutionary blink. My point, everyone will eventually share the pain of today’s individual and political sins!

What about gold & silver owners?

My book editor didn’t like my Introduction to Why Silver & Gold Will Go Higher and I’m forever grateful she encouraged me to rewrite. To be honest I changed the intro to one of opportunity over despair. My heart is torn as a gold holder since I realize my individual monetary protection is not worth the overall pain of a collapsed dollar. This monetary understanding allows us a peek into the future.

The monetary sins coming from D.C. and Wall Street are far-reaching and will cause generational pain, this I’m sure of. Since you are fortunate to still have a choice I strongly advise each reader to take a proactive approach to self-reliance and then make a political stand at a local level. You will be surprised how many feel exactly like us.

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“FEAR FACTOR” SILVER & GOLD

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

Have you stopped to ask yourself why you own PM (precious metals)? When asked twice last week my motivation behind founding TPS (The Prospector Site) and personally owning gold, I found the timing odd.  The first came from an interview request outside the U.S. where the host asked if I was a “prepper” or “survivalist”.  I understand the question, and it’s fair, but find it interesting with all the questions reasonable to ask the first one is about surviving. My goal is to not only survive but thrive. For the record, here is my view of prepping straight out of my recently released book introduction.

The information you are about to receive does not come from a fringe “doomsday” point of view. I own gold and silver because I understand them as the most reliable transport of wealth in an age of printed money. I’m not thumping away on some keyboard in a cave with a long extension cord. I don’t live off the grid (but understand why some folks now do). From “Why Silver & Gold Will Go Higher”.

Our society is so far removed from a realistic perspective it’s almost scary. They still view silver and gold as risky but accept raising our debt ceiling as responsible to pay past obligations. The masses view those “preparing” as alarmist while justifying $2 to $3 billion lost by one of the largest banks on the planet.

Is it easier to discredit individuals seeking an independent lifestyle than admit four decades of fiat spending is proving unsustainable? Maybe this is why my second “fear” encounter of last week accused me of capitalizing from fear. This leads me to set the record straight, for all of us. I don’t own silver and gold because I’m afraid, I own PM because I’m preparing for a future full of unknowns caused by decades of greed and monetary mismanagement.

I realize many of my readers are what the mainstream classifies as “preppers” and often victims of ridicule without reason. But how is preparing for a time of uncertainty ridiculous? Is food storage, alternative power sources, a proactive plan of defense, home first-aid, and self-reliance anything but prudent regardless of good times or bad?

Physical silver and gold serve two purposes. One, preserves wealth in times of economic calamity while offering wealth building opportunity. Two, provides another layer of independence (along with the list above) in a time of overreaching government, fiat correction, class warfare and Wall Street manipulation. Fear might kick-start this motor but long-term motivation comes from a realistic revelation of what’s true compared to what is unsustainable.

Folks, gold will go “mainstream” but probably not for the same reasons you own it. The same ones casting ridicule today will pay multiple times the price of your silver/gold.

News Worthy:

GOLD NEWS:  World Gold Council: Q1 2012 Demand Up 16% year-on-year.

The World Gold Council are out with their first quarter 2012 report. They report that whilst the tonnage amount of gold sold dipped 5% from Q1 2011 the US$ value of the gold sold was up some 16% from a year before.

The report highlights how investment demand is becoming more important than jewellery demand. Jewellery demand was down 6% from Q1 2011 at 519.8 tonnes. However investment demand was up 13% to 389.3 tonnes over the same time period. This is definitely worth the short read.

News Worthy:

US GLOBAL INVESTORS – GOLD: The World’s Friend for 5000 Years

Gold—A Reality Check
Investors have “defriended” gold recently in favor of the dollar, as Greek and French voters rejected austerity measures. Greeks have been responding to their escalating debt issues for a while by steadily pulling money from overnight deposits. I often say, money goes where it is best treated, and these deposits will need to find a safe haven.

In the end, I believe governments in Europe lack the courage to be fiscally disciplined. Earlier this week, I told Aaron Task and Henry Blodget on The Daily Ticker that when push comes to shove, Europe will likely continue to print money. This should be positive for gold. Read the rest right here.

News Worthy

CNN- Grow Up, Congress: Make a Deal on Debt

Confronted with record-low approval ratings, Congress seems determined to drive them down even further by planning another game of chicken with the debt ceiling this fall.

The last time they tried this game, the United States lost its Triple-A credit rating as Standard & Poor’s opined that “the political brinksmanship of recent months highlights what we see as America’s governance and policy making becoming less stable, less effective and less predictable.”

Talk about a zero percent learning curve. As you know, the definition of insanity is doing the same thing over and over again and expecting a different result. Well, this asylum is being run by the inmates.

House Speaker John Boehner told CNN’s Erin Burnett at the Peterson Foundation Fiscal Summit that “allowing the debt ceiling to go up without addressing our fiscal challenge would be the most irresponsible thing I could do.” In other words, there’s a showdown waiting on the other side of this election.

That’s not just the debt ceiling he’s talking about. That’s the full faith and credit of our country. That’s our economy. That’s your bottom line. If you can stand it, read more here.

COMMENTS & QUESTIONS:

COMMENT: I was happy to read your Ebook for you.  I found it easy to understand.  Your presentation of the PM market was very clear for someone who has no previous experience in this area.  I still learn something new about PM every day.

You might also point out any balanced portfolio should have PM in it.  PM people normally refer to this as ‘insurance’.  The recommended percentage is usually around 5% of the total portfolio amount.

Also, most people have no idea (I didn’t until recently) that one can own physical PM.  As you mentioned in your comments, the topic can be easily overwhelming, so I think your book gives a good jumping off point for the novice without being too detailed or boring.

As I watch the news from Greece, one can see how a ‘run on the bank’ works.  With PM, there is no need to panic as you have your wealth where you can physically put your hands on it.  No Federal Reserve Notes to worry about.  I guess this is one reason why bankers poo poo the idea of you having physical PM!
If the Central Bankers in China, India, Russia and Japan buy Gold for their reserves, I think it is a very good idea for me to follow along……


PROSPECTOR REPLY: Thanks for reading/commenting. It’s funny you mention not knowing a person can own physical gold since this is more true than folks can imagine. Paper ownership is looking less wise with each passing day since I’m convinced paper manipulation is hampering physical values. Yes, Central Bankers are buying record amounts of physical and this should be a sign for all of us. Thanks again.

QUESTION: Love TPS and read each new post, which brings me to ask my question. If PM prices are currently unstable then when why buy physical silver now? Would I be better off waiting for prices to decline more?

PROSPECTOR REPLY: Thanks for reading, and the great question (s). Yes, you can wait if this is what you’re comfortable doing. But I remind you and others too, that timing a bottom is nearly impossible but at the same time buying a good dip allows us to own the most metal for our cash. My advice is to keep your $ liquid and ready to strike at a moment’s notice. I will pass along good offers as bullion dealers pass them to me.

For what it’s worth, some folks find it easiest to buy, store, and then move along with life without constantly watching day-to-day metal fluctuations. Again, it’s your choice, your money too, so watch the silver market closely and then pull the trigger at will. Thanks for the question.

SEND OVER YOUR COMMENTS, QUESTIONS, AND BOOK REVIEWS RIGHT HERE. THANKS FOR VISIT US TODAY.

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TWO FACES OF SILVER & GOLD

GOLD & REAL ESTATE, GOLD AND MONEY, GOLD/SILVER COINS, SURVIVAL & GOLD/SILVER   No comments yet

You know who you are, to be honest; I know who you are too. Well, I have it nailed down to one of two choices. There are only two faces of PM (precious metals), owners that is, and each one motivated to own silver and gold for opposite reasons. One side is more vocal, aggressive, and independent if you will. The remaining side is calculated, confident, even consuming. The one thing both sides have in common is the desire to amass as much silver and gold as possible. My view, I think both sides are very wise in the last regard.

Just to simplify let’s break each side into type one and type two. It makes sense to start with type one since I hear from this type most often.


Type One Silver & Gold Holder:

Last week’s post Rivers of Silver found favor among this type. In fact, tens of thousands read the post and we heard from readers around the world, thanks. Regardless of location, regardless of motivation, all comments sounded similar.

In case you missed Rivers of Silver, we peeked into silver’s future and into a time when one ounce silver is no longer affordable to the masses. An age of expensive silver justifies fractional coins, bars, and rounds for trade and affordability.

Let’s get back to type one PM holders. Better yet, let’s let them speak for themselves.

“If you don’t hold it, you don’t own it”…

or

“What the future holds?…well….get ready today for the way that you want to live tomorrow.”

or

“I will only release coins to jump start the barter system and for the black market because sooner or later…”

or

…”the answer is to use real money, money that is just as good in China as it is in the USA.”

and lastly

“I wish we didn’t have checks, much less plastic, I hate paper trails… : )”

Type One metal owners see the end of this debt debacle as nothing short of a full dollar collapse (nearly all currencies). The plan is to hold something of monetary value which will someday function as money. The plan is to trade silver coins for eggs, milk, bullets, or whatever necessary.

This type doesn’t necessarily view silver as a wealth transport but a tool to barter or trade. This type doesn’t trust government and is very unhappy with our loss of liberties. They view the world as distracted, off course, maybe unwilling to accept the inevitable economic collapse.

Some still own silver they bought for $3 or $4 or $5 per ounce. This type owns fractional silver fully understanding silver trade and barter. This type is not wealthy but they are prepared, prepared for whatever comes their way.

Type Two Silver & Gold Holder:

This type views trade or barter silver as background noise, maybe necessary or maybe not. They own silver and gold with no interest in how it has appreciated but more concerned with how it will appreciate. This type includes those interested in wealth preservation and wealth accumulation. They make comments like the following.

“…your view on storing gold in Zurich?”

or

“Junior gold mining stocks are….”

or

“Please discuss transferring an IRA into silver or gold…”

They view silver and gold as part of an overall wealth building plan. They see real estate as cycling downward while PM cycles opposite. They understand wealth cycles, recessions, corrections, depressions, and eventually recovery.

This type is less fearful and more calculating, economically speaking. They want what is best for their family but themselves too. They see opportunity over protectionism.  This type will continue to buy silver and gold only until they see the next under priced asset.

WHAT ABOUT YOU?

Here is what you must ask.  Are you trying to preserve wealth or planning how to feed your family when eggs cost $65 per dozen? Aren’t both necessary?

Both sides bring something beneficial to today’s PM table that I want to point out. Type one, they are unassuming and survivalist. We all can learn from their ability to prepare for an uncertain future. They are a growing minority.

Type two offers yet another aspect we can all learn from. Unlike type one; they understand a need for cash flow or fresh income. PM used for barter and trade work well but eventually consumed. Cash flow fills the coffers like a year around stream. Type two understands leapfrogging wealth and the need to transport by way of silver and gold.

Here is what both types should also understand. Silver and gold offer many benefits to those who willingly trade currency for real money, but nothing more beneficial than a hedge value or insurance value. I truly believe both metals offer protection against monetary miscues and fiscal irresponsibility.

At this point some are asking, “Ya, so what, what does it matter as long as I’m protected with PM?” You are correct, kind of. We often hear from PM newbies and all ask the same questions on what, when, and where to buy. Just as necessary is the need to pinpoint your PM objective.

Just like a percentage of wealth should rest in silver AND gold, so should a plan include preparedness (type one) and wealth preservation (type two).

The final question is one only you can answer. Where do you fall?

WE WANT TO HEAR FROM YOU. SEND YOUR COMMENTS AND QUESTIONS TO US RIGHT HERE. DON’T FORGET TO SIGN UP FOR OUR FREE ONLINE NEWSLETTER TOO. THANKS FOR FOLLOWING THE PROSPECTOR SITE.

COMMENTS & QUESTIONS:

COMMENT (Regarding Rivers of Silver post):

I think you’re right. Fractional silver could very well become a necessity before we know it. Which reminds me that China’s currency used to be silver. I wonder how much they hold now?

You answered very well the argument of why gold and silver will be important when the current system fails. I get a lot of people who say to me you can’t eat gold or silver and live, so it’s better to stack no perishables and learn to grow. But those people in the big cities, in the apartment complexes, they are not going to be able to grow enough to live on other than some herbs in a window.

PROSPECTOR REPLY:  Thanks for the comment, and observation. Correct, most no longer have option to farm, raise cattle or chickens. This has changed over the last 100 years as folks migrated to the comforts of big city life. This migration also created an assumptive nature as we find ourselves dependent on passive services.

Silver and gold offer a fresh level of independence. Like our big city migration, our wealth has migrated too. Unfortunately, this wealth migration has allowed those less than trustworthy entrusted with our savings and retirements. It is now estimated that 56% of America’s economy rests in five Wall Street banks, the same ones too big to fail (joint bank assets compared to a percentage of US economy).

A wealth migration into silver and gold could come quickly or not, we just have no way of knowing. It will arrive and when it does the premium for PM will rise beyond what most can imagine. Now might be a good time to plan for such a time.

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WILL THE ECONOMY COLLAPSE?

BUYING GOLD/SILVER, GOLD AND MONEY, GOLD/SILVER COINS, SURVIVAL & GOLD/SILVER   No comments yet

We received several great comments and questions over the last day or two but one stands out from the others.  By the way, we will work your comments and questions into future posts.  The goal of The Prospector Site is to build a forum where everyday gold and silver holders can discuss ideas that work (ones that don’t too) or simply state their mind.  Now if we can move back to this question for a paragraph or two. Well…take a look for yourself.


QUESTION:

Hi, I’m brand new to your site and blog. I’m also new to investing in gold & silver, and I’d like to know what your opinion is as to which form to buy… American Eagles, or old legal tender coins? I’m thinking of future trading for supplies, should the US gov’t financial house fall down completely. Thank you in advance.

RESPONSE:

I want to answer your question and then comment on the question, thanks for asking it by the way. This question causes me to wonder how many of you own gold or silver because you honestly feel collapse is imminent (threat hanging over everyone’s head).  Hold your thought while we answer our reader’s question.  If, a big if, the U.S. Government’s financial house falls which metal is best American Eagles or old legal tender coins?  First let me say this.  Please find a copy of Aftershock and read it front to back before anything else.  This book will answer many questions and provide opportunities for your financial future.

Not that the book Aftershock will answer a question like the one above but it will give readers an idea of what the next decade or so could resemble. Both metal choices are similar in that each carries low premiums at time of purchase, I certainly like that.  The only exception is if the old coins are also uncirculated which we certainly don’t recommend as a wealth preservation metal.  Leave the high premium collector and numismatic coins to the wealthy. I would have to say either coin type will work under the circumstances described.  The trade value of any coin is within the silver or gold content not the coin itself (given the situation).

A WORD TO ALL READERS:

Here is what I want you to do.  Ask yourself if the goal is to preserve wealth or store nuts for financial Armageddon?  Give it some thought and then send us an email telling your take on the situation.  You can reach us here if you like.

Here is my take for what it’s worth. I think we, the world in fact, are in for a huge change of life in many ways.  I also feel most are completely oblivious to this possibility.  Governments, programs, and entitlements have grown so large they soon will collapse under their own weight.  But before they do we should expect many creative ways to pay our share and do our part. This is a nice way of saying those with wealth (regardless how much) will also have a target on their back.  Overgrown governments do not shrink and die easily, this time will be no different.

Volatility will become the norm along with anger and confusion. Blame will take many victims before it’s all over.  But I don’t feel complete breakdown will be as common as some survivalist and gold holders like to believe.  Certainly some countries, some neighborhoods will resemble breakdown but most wealthy countries will resize then rebuild by way of free market and hard work (if you want to see examples of “breakdown” don’t miss our New Year’s Eve post).  Gold, and silver, holders will have it best but have to fight to protect what’s theirs.  This is only my opinion.

Now tell us yours.  What do you think will happen over the next year, two, or ten and how gold will take part?  Reach us here. Thanks for spending 8.5 minutes with us.


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IS GOLD MODERN DAY MEDICINE?

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

Has anyone else noticed how economic conditions around the world are now described in medical terms?  I was listening to an economist describe today’s banking crisis when he used a word not usually used to describe banking.  The word used, several times in fact, was “systemic”.  I was 90% sure I understood his usage of the word but decided to look it up just to be safe.  The definition surprised me.  The definition for “systemic” is pertaining to or affecting the body as a whole. The interview got worse when words like “reaction” and “contagion” entered the scene.



It is common for new gold buyers to invest more than enough time and worry in their first few purchases. Some of you now own gold/silver but still on the fence questioning if gold is really the right choice.  We have spent the last few weeks justifying gold for folks like you. Your next step, after buying gold/silver, is crucial to your confidence and peace of mind.  The next few hundred words should help with both.  Maybe looking back at an epidemic from 1940 to 1950 will help clear confusion. The paralyzing time, and disease, called poliomyelitis, better known as polio.

In most countries, a generation has now passed since the gripping times when polio spread fear and worry. Never had so many scrambled to find a vaccine for something effecting millions worldwide.  It’s easy to compare the days before polio vaccination with today’s economic situation if we stop and think about it.  You probably know by now a successful polio vaccine all but eradicated this disease late 1950 to 1970.   But did you realize an “economic crisis” vaccine is now available for those willing to use it?  Let me explain.

Remember the banker story from a minute ago and how he used scary medical terms to describe our financial system? He is exactly right when he said the economy is connected “systemically” whether we like it or not.  Better explained, what he is also saying is your money in an American bank, Chinese bank, Canadian bank, etc, all affected by a European banking crisis like today.  Like seaweed, the world’s financial system is one big floating mass.  Here is where it gets interesting, hopefully.  The problem with this systemic seaweed like mass is that debt is bringing it down like a pack of wolves on a Yellowstone elk calf.

So the question remains will gold fix this problem?  No, it won’t, but it can protect you.  You may have noticed conflict in Washington (most governments) as politicians fight over how to handle such an economic crisis like today.  Some elected want more money “invested” and some what deficits reduced.  The truth is while this fiscal wrangling happens central banks around the world dish out money (debt disease, like polio), to banks mostly, like Halloween candy.  Our candy hostess, The Federal Reserve Bank, prints and delivers money (that you are accountable to pay back I might add) needing no oversight, no accountability, and answering to no one, not even Congress.

Right now your money, thanks to the Feds, is bailing out banks across Europe. Now some of our readers are thinking this is wise or central banks wouldn’t be doing it.  After all, we all realize printing money equals more worthless and devalued dollars, right?  Central banks (like our Federal Reserve Bank) don’t look at an overall picture like most of us do.  Their focus on the health of the banks, not your financial status or security.  Think of it like this.  The titanic is sinking but no room in the lifeboats because all seats are full of bankers.  The goal of central banks is to protect their own who in return hopefully will protect you, hopefully.

I personally have my doubts that central banks will save a space on the lifeboat for me, this is why I own gold/silver. I want to introduce one last medical term, inoculation.  The primary goal of inoculation is to boost immunity to a specific disease. We feel central banks around the world will continue to team up on our “debt crisis” by printing yet more money giving it to banks.  You and I can’t control what central banks do (neither can Congress) but we can “inoculate” ourselves with gold & silver.  Precious metal has proven effective in times like these for one reason.  They are immune to debt derived disease.  Yes, gold is modern-day medicine?

Thanks for reading The Prospector Site and please tell your friends about us.


NEWS WORTHY:

“Secret Fed Loans Gave Banks $13 Billion Undisclosed to Congress.” BLOOMBERG.

The Fed didn’t tell anyone which banks were in trouble so deep they required a combined $1.2 trillion on Dec. 5, 2008, their single neediest day. Bankers didn’t mention that they took tens of billions of dollars in emergency loans at the same time they were assuring investors their firms were healthy. And no one calculated until now that banks reaped an estimated $13 billion of income by taking advantage of the Fed’s below-market rates, Bloomberg Markets magazine reports in its January issue.

Read it here.


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GOLD MINING ON WALL STREET

GOLD & SILVER, GOLD AND MONEY, SURVIVAL & GOLD/SILVER   No comments yet

REUTERS recently ran a fascinating article on the only modern gold mine east of the Mississippi River cranking back up.  Historic Haile Gold Mine is hoping to mine 150,000 ounces of gold over 5 years with an investment over 650 million.  I have found Reuters to be somewhat accurate on their news but they missed this one by a mile.  Haile isn’t close to the only or biggest modern gold mine east of the Mississippi River.  The reporter must have forgotten the biggest gold mine ever to stake a claim, Wall Street.


The owners of this gold mine, Romarco, should seriously reconsider the risk and investment at a time when Wall Street is paved with golden bailouts. After millions in environmental impact studies, millions in restoration, and millions more in wetland improvements my math shows Romarco could earn around $600 million off this gold mine in South Carolina.  They could be wrong and not find as much gold ending up losing 100′s of millions too.  Romarco Mineral is taking more risk than needed since Wall Street mines are producing much more profit with no risk at all.

Wall Street protesters are mad as hell but can’t consistently tell us why.  Their movement has spread like wildfire but ask five why they’re there and expect five different answers.  More taxes on the rich, maybe end the Fed, how about free health care and eduction?  The gold, and anger, is at Wall Street because a shrinking underclass is catching on that the only giveaways are to those large enough providing power to leaders.  The protests are 100% related to the growing gap between rich and poor while the rich line pockets with gold.  America’s Middle Class sits around their televisions wondering why new age hippies are so upset all while their net worth drops like a rock.

We have written about the growing conflict here at www.theprospectorsite many times. Conflicts in currencies, conflicts in trade, conflicts among those bailed out and the one’s left out.  The injustice is on several levels as true capitalism rides backseat to governments desperately trying to save their bacon.  It would be bad enough if governments handed out tax payer money to the wealthy only but actually the money is borrowed making the situation much worse.  Eventually the bailout money will cease but only after your dollar’s buying power drops, businesses shuttered, and the Middle Class begins to resemble the poor.

GOLDEN ANSWER:

Most folks around the world have no idea what can be done about our economic situation. They watch Mr. Geithner blame Europe and Mr. Bernanke blame China all while wanting to believe the system isn’t corrupt when down deep they know otherwise.  The fact remains you can’t change the Wall Street handouts no more than I can.  You can’t stop the Fed or central banks from throwing trillions at a problem only to watch bubbles float away at the end. But we can outsmart the academics at their own game all while finding prosperity (and integrity).  You must realize gold is penicillin to the world’s financial infection.

The value of gold will grow as currencies around the world print themselves into worthlessness. Even if you don’t understand gold you must see the choice for governments is to protect their own and print more money!! Demand for gold/silver will grow motivated by distrust, desperation, prudence, and fear.  Inflation, deflation, and stagflation have never won over gold and this time will be no different.  Please take a hard look at precious metal until honor, dignity, and restraint find their way back into leadership.


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A PEEK INTO THE FUTURE OF MONEY

BUYING GOLD/SILVER, GOLD & SILVER, GOLD AND MONEY, SOCIAL UNREST, STOCKS AND GOLD/SILVER, SURVIVAL & GOLD/SILVER, Uncategorized   No comments yet

The movie industry has a term for feature films called movie trailers.  These trailers, or previews, give us just a peek into a future movie but not long enough to give it a way.  Of course the idea is to build market interest and eventually get your family back into the theater.  Lately, current events have allowed us to look into our future and to be honest it isn’t pretty for those invested in fiat currency or living off entitlement.  Indicators point to the safety of gold but my concern is few are listening.  Today we take a long peek into the future of your $.


PEEK #1:  GOLD & SILVER

On July 18th of this year we titled a post “What $1600 Gold is Trying To Tell Us”. Just last week gold surpassed $1800 if only for a short time.    Huge swings in gold and silver are to be expected as demand grows for one of the only true safe havens for saving/investing.  Fear brings out some buyers but realization brings out most.  Realization of no recovery, realization of too much debt, realization of too much government, too many bailed out, too many unemployed, and too many fooled by dishonest leaders.

Yes gold will climb and silver will follow suit but the unfortunate fact is so will other commodities that we all need to survive.  Just like Jeff Clark with Big Gold said gold is turning into a world-wide currency before our eyes.  Folks that don’t understand this will feel devastating effects of this historical monetary exchange.

WHAT YOU CAN DO: Gold may be out of reach for most but silver certainly isn’t.  Think of buying precious metal as an insurance policy if nothing else.  Find a way to make metal part of your life and if experts are wrong and things aren’t that bad then so be it.  If the trend continues you certainly won’t be sorry.

PEEK #2:  INFLATION

Not one restaurant or grocery store will disagree that things are going up. Inflation finds our middle class at the most vulnerable time possible as incomes decline.  This same income class used credit dependency to fill the household income gap but this option is disappearing for many.  As currencies around the world devalue consumers need more to buy the same.  The problem is most of us don’t have more ($) so making do with less becomes the norm.  Americans will find themselves getting off easy compared to super poor countries around the world.  Look no further than Somalia and its current famine as proof of drought and inflation taking lives of the poor.

WHAT YOU CAN DO: Until inflation runs its course plan on a life of needs over wants.  Trading out of dollars and into real assets, commodities, and of course gold/silver.  Educate yourself on what causes inflation and understand inflation should continue as long as governments try to solve a debt problem with more borrowed money.

PEEK #3:  VIOLENCE

Social unrest happens as you read this somewhere in the world.  Most Americans watch it happen in far away places not realizing the near future is another story. Riots and violence stemming from economic decline is at hand and those living in entitlement leaning states will fill the most pain.  Mix fear, pour in anger, add a little greed, and then watch the recipe for disaster boil over into a street near you.  Our youth are now armed with the most powerful tool and very skilled in its use.  Social networking organizes the masses to meet at one time and one place allowing frustration to take over.  Anger over unemployment, anger from rising costs of education, and anger over your wealth.

WHAT YOU CAN DO: Awareness is the best defense against violence at least if you’re not skilled with a weapon.  I refuse to live my life in hiding or on a mountaintop but I did move my family to a fly over state where folks enjoy self-reliance.  I can’t tell you what is best in your situation but a lot of thought and a little prayer might give you the answers you need.

PEEK #4:  MARKET SWINGS

The last few days of stock sales are nothing short of crazy even volatile. Billions of dollars flowing from stocks into bonds only to reverse the next day with money flowing into gold and precious metal stocks.  Panic by many will be the new normal as millions realize retirement money is not as secure as believed.  Not trying to be a bummer but stating facts as I see them.  If your future rests in mutual funds, bonds, or cash please research other options like precious metal.

Old days of panicked people waiting for their banking institution to open are over.  Silent run is a growing term relating to modern technology allowing depositors to transfer money day or night.  The 07/08 credit crisis proved folks are willing and able to react on fear causing great stress to our banking industry.

WHAT YOU CAN DO: You are on the road to understanding if your reading sites like this one.  Your best financial adviser is you since no one will look after your money like you will. Don’t leave yourself vulnerable and don’t worry what professional advisers, friends, and family say.  Moving money into a safe haven is prudent.  If the economy turns for the better well that’s great and we can all move on with life.

Thanks for reading The Prospector Site.  Feel free to sign up for our weekly online newsletter here.

NEWS WORTHY:

Since the 2008 crash, and our ongoing failure to pull out of it, most people should have a pretty clear idea about where gold is headed and why. I don’t have to tell you it’s going to be worth $2,000, $3,000, $5,000 or ultimately, two giant truckloads of canned food and ammunition, at the rate we’re going. But perhaps you’ve been distracted by naysayers along the way.  MARKET WATCH.  This is a must read.

NEWS WORTHY:

Tracking the money from stocks to gold.  CNN Money.  Watch it here.

NEWS WORTHY:

“When people are coming down to the question, ‘Do they want to have cash in the bank or gold in their hands?’ the answer is they’d rather have gold or silver,” said Jacob Chandler, CEO of Great Southern Coins, the largest seller of precious metals on eBay.

Gold and silver sales on eBay had already been rising steadily over the past several years — so much so that eBay Inc. created a special area in May to make it easier for buyers to find sellers. CNBC  Read it here.


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I'M NOT READY FOR $2000 GOLD!!

GOLD & SILVER, GOLD AND MONEY, SOCIAL UNREST, SURVIVAL & GOLD/SILVER   No comments yet

Do you think your ready for $2000 gold?  I’m certainly not and by the end of this post I bet you will agree most of you aren’t either.  Physical gold is speeding toward the $2k door and there is little anyone can do to stop it.  Sure it could dip $200 maybe $300 on the way but mark my words $2k gold is in your near future.  Most of my posts describe the benefits of owning gold but today we look at the underside of expensive gold.  Today we look at why I’m not ready for $2000 gold.


My recent family vacation found us waking early one morning resting so close to the Pacific Ocean we could hear and smell it. As I read the local paper I could hear my wife and kids chatter about making plans for a sun filled day.  But under the chatter I read an article of a middle-aged man who had lost his job, his home, and his dignity all in less than one year.  The man told how humbling it is to be unable to afford a few dollars so his son could go on a school activity.  He told how his wife and daughter lived in a family member’s garage while he and his son lived in his truck.

As I read the article I found myself thinking this is the underside of everything driving gold. We often picture what a life of extreme gold wealth is like not realizing over 90% of folks around us would be under some form of economic distress.  Not wanting to rain on my family’s vacation I hid myself, and shame, somewhere between the classified page and this story I’m describing.  The reality is only a few choices separate me from this man and the same could be said about you.  I could tell from this man’s sincerity he, and his family, will survive this next depression but will learn the difference between wants and needs.

As you read this and as gold works toward $2000 tens of thousands in Somalia have died of starvation from what is now being called the worst famine of our generation. As gold marches on so will starvation as millions realize true inflation and unfortunately countries wanting to help unable to afford to.  Two thousand dollar gold is telling us something and to be honest I don’t want to hear its call.  Gold is saying world currencies are abused to the point of worthless and the US Dollar leads the charge.  Like refugees, desperation sends currencies world-wide into one of the only safe havens still available, GOLD.

$2000 gold means more unrest like we are seeing across London, Greece, Egypt, etc.  $2000 gold means less employed, more homeless, more failed businesses, more school closings, less law enforcement, and no doubt more crime. More identity theft, less fresh vegetables, and higher prices of commodities like milk, grain, and meat.  It’s easy for gold holders to celebrate spikes in gold but the true picture leaves little to celebrate.  Don’t misread me I’m thankful for making a plan to own gold but the thought of family and friends suffering from severe economic decline is hard to accept. These relationships are more precious than my gold.  A wise man once said be careful what you wish for.  I’m not sure I’m ready to share my life with $2000 gold.

Thanks for reading The Prospector Site.  So many join us daily and we appreciate all of you.  Feel free to sign up for our online newsletter here.

NEWS WORTHY:

“Now the only viable option — I don’t mean to make light of it — is to leave the body at the medical examiner office,” Szykowny said. “After 60 to 90 days they’ll take the body to what’s called a potter’s field and bury it in a numbered grave.”

The state of Illinois has reached a new level of broke. Come Monday, it won’t have enough cash to bury its indigent dead.  NBC CHICAGO  Read it here.

NEWS WORTHY:

It seems like a scene straight from “The Grapes of Wrath,” but this is no Great Depression novel. This story takes place in 2011, and this New Jersey tent city is one of an untold number of such encampments across the United States, where unemployment has reached 9.3 percent and approximately 3.5 million people are likely to be homeless in a given year, according to the most recent estimates by the National Coalition for the Homeless.

“You’re either rich or you’re poor,” he said. “There’s no in-between anymore.”  FOX NEWS.COM  Read it here.

NEWS WORTHY:

“My long-standing forecast, made in a Barron’s interview in October 2003, is that $8,000 per ounce will be reached sometime between 2013-2015,” he told Reuters this week.

“I’ve stayed with that forecast over the years and see no reason to change it.”

The world’s current financial woes are only going to get worse if current policies continue, he believes, meaning the rally in gold prices is unlikely to stop here.

“Politicians and central bankers are making decisions that debase national currencies, and the resulting bad monetary policies they are following are causing the gold price to rise,” he said.  REUTERS  Read it here.


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WHY GOLD WILL ONLY GO HIGHER

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

The news media has finally realized what gold owners have said for some time now. The recovery of 2011 is turning into nothing more than a trillion-dollar band-aide wearing off faster than face paint on a three-year old.  As hard as governments try they can’t put this economy back together but when all you know to do is “invest” by creating more debt than more debt it is.  Today we look at why gold will only go higher and for those still on the fence let me say no longer is gold just a hedge or an investment.  Gold is slowly becoming a necessity for economic survival.


Jeff Clark with Big Gold said something over the last day or so that was so profound I had to read it several times. Mr. Clark is dead on when he said gold is no longer an asset that experts can argue over.  Gold is no longer just an investment investors can argue over.  Gold is now a currency just like dollars, yuan, yen, euro, etc but this currency, gold that is, rockets up in value while other currencies race for the bottom.  Mr. Clark, I congratulate you on this keen observation.

Yesterday I heard at least three financial advisers say the stock market should no longer be a source for long-term investing. Not one media host questioned this statement but I wanted to say, “Great, millions of loyal workers have invested a percentage of each paycheck for years only to hear experts say the market is a short-term gig?”  So where does this leave those loyal in retirement fund contributions?  Are these same financial advisers saying the market will turn up only to hear more bad news and then decline again repeating this over and over?  No wonder folks are running into gold, silver, and precious metal stocks.

Gold is going up for another reason and this reason penalizes those wanting to save.  As governments around the world empty economic caches in hopes of jump starting the economy it becomes more clear savers are the enemy.  Listen as world leaders talk of jump starting their economy by somehow getting you to spend even when it means borrowing to do it.  But gold is the opposite of spending since every dollar into gold is another dollar out of circulation.  Every dollar out of circulation ( in gold) is replaced with more printing so currency creation of some kind is the temporary fix.  This creation of fiat currency only drives down its own buying power causing devastation to those dependent on fiat money for survival.

Don’t you find it odd that world leaders aren’t asking folks to save at every chance to protect assets and retirement sources? I mean if we knew the next few years would bring major drought would our government tell us to water lawns and wash cars at will?  If we knew famine was in our future would leaders tell folks to eat hardy or ration food?  Then why is it economies around the world continue to grow government, print money, and encourage more debt if economic uncertainty is at hand?

Yes gold will continue to go up because it is slowly becoming one of only a few means to save, buy, and invest. Like the last spot of land in times of flood world wealth will continue to run to the high ground of gold until fiscal responsibility returns.  Until then gold will only go higher.

READERS QUESTIONS:

Why did TPS (The Prospector Site) stop posting Fair Prices of Gold & Silver?

Answer: For new readers our site used to finish each post with fair pricing of physical gold and silver assisting those looking to buy at fair market.  We took current pricing straight from online brokers to guarantee accuracy.  We are considering adding this feature back so watch for it in future posts.  We are introducing new features hoping to get your feedback on what readers want.  This site is entirely about you and the rest of our readers.

QUESTION:  Why hasn’t silver kept up with gold lately?

ANSWER: I think silver will come around soon but timing is tough to predict.  You should realize gold has big buyers like governments and central banks.  This helps push gold up and I have little doubt silver will find  gold’s draft.  I still buy silver in fact bought some this week. Thanks for reading and feel free to sign up for our weekly online newsletter here.

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