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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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STORING SILVER & GOLD

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

Protecting your family’s wealth by trading dollars for physical silver/gold is one of the wisest decisions you’ll make. We can debate silver vs. gold but at day’s end both metals are shaping themselves into the last safe-haven currency while all other currencies race toward debasement. This not only means the value of your physical metal will rise but so will the temptation for others to take what you’ve worked diligently to own.

Below are few paragraphs promoting my newest book Storing Silver & Gold. Each chapter is an extended answer to the many storing questions readers like you are asking. Questions like how to insure the PM you have stored at home, what is the best way to discretely buy silver or gold,  or the only time you should store SOME metal within a bank box, and when it’s time to consider storing metal abroad (internationally). I hope you enjoy this tiny taste of my newest book release.

 Storing Silver & Gold: How to Safeguard your Precious Metal.  I believe at least fifty percent of those practicing home storage do so with sub-par safes improperly mounted to the structure’s sub floor or foundation.

Wow, this means half of you should be reading very closely. Now, I’ll be the first to admit I am not a safe or vault expert. (We’ll hear from those who are in the next chapter.)

My goal is to not discourage home storage, but encourage proper protection for the assets you’ve worked so hard for. Storage must be part of our overall PM plan, but you’d be surprised how often it isn’t. If you’re not ninety-nine percent comfortable with your form of home storage, I encourage you to take the money and time to correct this before buying more silver or gold!

Again, in-home theft will most likely never be an issue, but why not provide one last level of security, just in case I’m wrong? Would you be surprised to hear that the number one source of your PM’s security is the one least considered—you!

Let me explain. The best way to defend against bad guys is to beat them at their own game. This starts with a refusal to let anyone take what’s yours. Most robbers try to take something of value from someone unsuspecting and weaker. Their plan is to enter a home full of valuables, and quickly transfer ownership from you to them, unnoticed and un-caught.

Think of it like an offense-defense conflict. The criminal is on the offense and you’re on the defense, trying to keep what’s yours. This usually works out okay, but I propose we change ends of the field.

What if we are the proactive ones? What if we turn this storage plan into an offense success story, leaving bad guys scratching their heads while looking for easier prey? We are about to throw out several proactive ideas; then it’s up to you to determine the best fit for your needs.

I have readers who are so supportive of our Second Amendment rights, they’ll slap NRA stickers on everything in their front yard. I also have isolationist readers who believe the world will soon turn into anarchy. They trust hardly anyone. I also have readers that know nothing about guns, NRA, or personal defense, but see PM as a necessity (and some live under strict gun control laws). Each must find the most appropriate means to store PM, within their beliefs.

I’m hesitant to include the real life story below, because it’s so shocking some readers might elect not to own PM. I want to make this perfectly clear: This is the worst-case scenario and, in all likelihood, will never happen to you or someone you know. It is quite disturbing, I warn you now.  Read more here.

QUESTION:  DC, I read your blog religiously and have been buying silver from Colorado Gold as you recommended. I plan to work another 7 or 8 years and I own my house and land, vehicles, etc. outright. My husband died last year, so I have only my income but I do have a 401k and stocks. Should I plan to get out of the stock market and buy PM? Would you draw the money out of the 401k? I think I’d feel safer putting that money into PM and I could live comfortably on my income. I have a farm and grow a lot of what I eat. Thank you for what you do…you have opened my eyes.

TPS Reply:  Thanks for the email and nice words. It sounds like you’re making wise choices since losing your husband…… I can only imagine how difficult this last year has been. What impresses me most is how you’re utilizing PMs as a foundation for an independent lifestyle, very cool.

As you may know, I’m not a fan of retirement accounts or the stock market. I’m not saying that all stocks are risky or all retirement accounts are in jeopardy but we have certainly entered an age when politicians salivate over exposed pools of cash. My bet is most pensions and retirement accounts will fall under some form of capital controls.

Let me ask you; does this risk, of a bureaucracy controlling your capital, fit into a life built around self reliance? Your situation is unique in that you have personal wealth stored in both PM and “typical” investments too. I would favor PMs over traditional investments (given the times we live) and here is why.

I don’t have a crystal ball but here is how I see things playing out. Wall Street, the Federal Reserve, US Treasury, and this Administration are too wise to outright steal the wealth from those invested in stocks or bank deposits. Oh, don’t get me wrong, they will take some of it somehow but not as directly as what we’re seeing in Europe.

A more likely scenario is one that presents itself as a “takeover” that protects your wealth compared to flat-out stealing it. Those who understand currency debasement and capital controls realize confiscating wealth (like the retirement account you mentioned) allows a government to pay it back over time and with debased dollars. This also empowers a growing government as millions more rely on trusted politicians for groceries, shelter, healthcare, you name it.

Millions of other folks are asking themselves the same “do I or don’t I” type monetary questions. I wish I could offer more but…… honestly, no one knows how far an overreaching government will go in such a time.

Regardless, you’re miles ahead of most Americans….. good job!! Oh, be sure to read the next question because I’ve purposely combined it with yours. Thanks again.

QUESTION:  Why is it that my financial planner has nothing favorable to say when I bring up relocating some wealth into physical metal? It’s getting a little old.

TPS Reply:  I hear you loud and clear…… and couldn’t agree more. You can’t believe how often I hear this question from readers who are, like you, growing uneasy with the same nonsense. It’s not only monetarily foolish to not consider physical PM; it’s also playing out to be financially catastrophic in some cases.

Equities have benefited from the creation of a currency that can no longer sustain itself. The U.S. can continue to solely print US dollars (causing worldwide tension) but we can’t print jobs. Nor can we fool ourselves into using printed currency to create temporary jobs while simultaneously believing this is our path to a true long-lasting recovery. IT IS NOT.

Financial advisers have little to gain when your cash leaves the status quo and then reinvests into physical silver or gold. Why would an adviser recommend an asset that profits them nothing? The answer is pure and simple, at least from my viewpoint.

QUESTION:  A relative sent over a site that sells junk silver for as low as $24 per ounce. Why should I pay the premium for American Eagles?

TPS Reply: Thanks for the question. Why would anyone sell physical metal when today’s premiums are around 30 to 40% over silver’s spot price? I would be very skeptical since it’s way too good to be true. If true, please send over the info because TPS has several thousand readers who will buy a boatload ASAP. Thanks again.

BERNANKE WATCH:

FED chief Ben Bernanke will be the first chairman to miss Jackson Hole in 25 years. This event is the Super Bowl for central bankers and I’m not buying the conflict in schedule excuse (this would be like Tom Brady too busy for America’s biggest NFL game). It leads me to ask if Bernanke is on his way out as the most abusive banker in world history. Trust me, we will keep a close eye on Bernanke’s exit and whoever fills the position of the next most powerful person on earth.

 

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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WHY SILVER & GOLD ARE PRICELESS

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

Today’s title could sound odd considering gold just had its worst day in 30 years. As I write, and probably as you’re reading, economic prognosticators still relish in repeated “I told you so.”  We will keep this short today because I have what I want to say and nothing more. The last few days were draining for not only those willing to own PM but for the few willing to justify PMs in a published sense. For us, a PM shakedown is twofold when you add credibility into the equation. Nonetheless, let’s dive into why silver & gold are priceless.

Good day to all and thanks for joining TPS. If you’re new to PM (precious metal) then you picked a great day to join us, congratulations by the way. It appears the smoke is starting to clear from the PM arena and it’s looking like both silver and gold took a real beating, at least at first glance.

Every situation is a learning experience, do you agree? Personally, I have but one question left to answer. It’s not why PM prices fell so suddenly or quickly.  Nor is my primary question one that asks who is behind such PM brutality and volatility. The above questions will twist and turn themselves into history and certainly don’t need my help.

My only question is “Why?” Why did so many paper PM holders sell because of fear while the majority holding physical PM line up to buy more? The answer to this question is the very foundation of precious metal. A truer understanding to this question is the cornerstone.

Paper PM investors proved over the last few days their inability to think for themselves. If precious metals have taught me anything over the last decade it is the ability to tap into my own mind to make prudent monetary decisions for my family. We are nearing a point when this is the most valuable asset (ability to think for yourself) a person can claim.

TPS doesn’t sell PM, but we keep a close eye on those who do. All PM sources are reporting record sells of both gold and silver all while the paper PM market experiences the biggest paper liquidation in history, why?

How can two sides sharing the same asset be so far apart? How is one side, paper PM, so disconnected from the true benefit of PM while the other end stills view PM as the last asset to go?

This next statement will sound odd but I’m going to roll it out anyway. For me at least, PM has served its purpose and if both metals dropped to zero tomorrow they still provided this owner with a lifetime of knowldege. If I’ve learned anything from physical PM it is the ability to question what so many take as factual.

Precious metals have taught me the difference between money and currency, the difference between real wealth and the illusion of wealth, between fiscal restraint and a politically motivated smoke screen, and, most importantly……. the difference between building a life of independence over a compromise of freedom and liberty.

A person willing to make the effort to buy physical PM is the same person equipped with the ability to think on their own feet without input from an overreaching bureaucracy. If silver or gold dropped to worthlessness tomorrow this gift will sustain us forever. There is nothing more valuable than the combination of knowledge and effort.

SILVER & GOLD’S FUTURE:

Many of you are silently asking, “What’s next for PM?” First, I’m 100% convinced silver and gold will skyrocket beyond the belief of even the most skeptical. I’m also convinced that the last few days of volatility are nothing but a taste of the future, here is why.

Think how nerve racking it was to watch silver drop from $30ish to $20ish, like April 2013. Can you imagine the confusion when silver, valued in dollars, dips from $180ish to $150ish? What about a dip in gold from $3200ish to $2400ish? My point is each person breathing air should expect economic volatility from here forward as “normal”. Yes this includes, especially includes, precious metals.

I believe the paper PM market will separate from the physical market. In fact, we’re seeing this already but this doesn’t mean we should expect a steady incline. Our fiat currency age will not transform itself to real money without huge spikes, dips, valleys, and everything in between.

No one can accurately tell you when to buy more precious metal no more than when to sell it. Personally, I believe we’ll reach an age when it just makes sense (according to our ability to think for ourselves) to trade silver or gold for something else. I’m not so sure today’s dollar value perception will play part of such a day.

 

DC Carlton is founder of The Prospector Site and author of the Amazon Kindle #1 Bestseller 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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WHY I RECOMMEND BOTH SILVER & CASH

BUYING GOLD/SILVER, GOLD & REAL ESTATE, GOLD & SILVER, GOLD AND MONEY, GOLD OR SILVER BUBBLE   No comments yet

In all likelihood your home or apartment has an inconspicuous looking device attached to the ceiling, probably more than one. This device has saved untold lives and is a priceless addition to your family; by law each new home or new renovation must include this device. By now you realize the item I’m describing today is a smoke detector.  The primary goal of a smoke detector is not to detect smoke; it is to sound alarm of eminent danger. Unfortunately, few can hear the harmonic sound of an economy in correction, even less realize where there’s smoke there’s usually fire.

Not a day passes without a reader emailing, or calling, TPS to ask what PM I’m buying. The answer is “silver” and the reason is nothing more than the primal desire to survive and preserve. Why so few Americans fail to react to this internal beacon is beyond me. I’m so very glad you’re excluded from this clueless trend sweeping our nation but what if I said physical silver alone is not enough?

Bells and whistles are blaring all around us even as your read these words. Few hear the ringing because most folks view danger based on the reaction of others. It is a proven fact that if enough folks take flight others will follow without knowing why. Unfortunately, the opposite is true too. On a 1-10 scale, I would gauge the flight to precious metals slightly above 1, as of April 2013.

This lack of urgency spawns inaction by business owners, college students, wage earners and retirees. All the above are on the cusps of no longer controlling their monetary future because they fail to recognize how quickly technology can separate our wealth from our control; the video below is but one real-time example.

Economists often compare the Great Depression with today even though this is impossible. The Great Depression was a slow burn that consumed untold wealth over several years. The US economy was primarily “local” in nature unlike today’s global age we’re living. At such time, silver, gold, and the US dollar were all real money.

A monetary life in 2013 is much different. Almost instantly our financial world can be contained by a banking lockout, this usually happens on a Friday afternoon. The video above accurately describes the challenges of every individual who still trusts, therefor stores, personal wealth within a banking system. The powers in control realize the best way to control your wealth…..not to mention preserve their power, is to quickly lock the exits before you can transfer personal capital (savings).

NOTE:  Cyprus bank depositors are allowed to withdraw no more than a few hundred euros per day; this came after an eight day bank holiday.

The political machine realizes the best way to keep the village distracted is to pipe in the soothing sounds of recovery, stability, and economic opportunity. It matters little if true, it only matters that you believe it because if you don’t the powers in control will enforce control. Reminds this writer of an abusive spouse who punishes but only because the victim deserves it.

I’ll say it loud and clear, I’m not a good victim. Since you’re reading today I’m guessing neither are you. The thought of an overreaching bureaucracy divvying out my wealth byway of an ATM ration doesn’t resonate well. I refuse to allow a bank to control how much I spend, where I spend, and on what I spend. This reason alone is why I recommend storing cash as well as physical PM.

Precious metals are in my opinion the best long-term store of wealth. The problem is the only way PM can convert to cash is by selling. We don’t want to sell our silver, or gold; this is why it’s important to understand a world accustom to trading in dollars, a.k.a. cash, will confuse real money with physical dollars, especially in times of banking volatility or unsuspected bank holidays. A Cyprus glimpse proves my point better than I can.

This is why cold hard cash is king, short-term speaking, as shown at the 3:00 minute segment in the above video. A loss of faith within the banking industry will lead to a run on cash.

The play of the day is twofold. I strongly encourage each reader to consider physical silver, while still available, along with a couple thousand dollars in cash and, as always, 1/3 STORED WITHIN ARM’S REACH. If you’re finding this confusing please email or call TPS for assistance in formulating a personal plan that best fits your need.

QUESTION:  I made my first gold purchase a few months ago and ever since it has done nothing but decline. I realize this is all part of the risk but it is a little discouraging. Any words of encouragement?

TPS Reply:  Thanks for reading TPS and taking the time to send over your question. It is always somewhat disheartening when metal prices decline like they have over the last few weeks. For what it’s worth……I too bought physical gold only to watch it decline 23%. The only difference is this was back in 2008 when I paid somewhere around $980 per gold ounce. I recall feeling a little foolish with my “investment” but today my only regret is that I didn’t buy more at the time.

The key word just mentioned is time. We can’t ignore the great economic or monetary challenges of our day. A rising, and soon to bubble over, DJIA is not a sign of an improving economy, neither is a low interest rate infused housing market. Both the DOW and housing are responding to the benefits of currency creation, the cash must go somewhere, right?

Since you’re taking the time to read unbiased PM sources then you must also realize precious metal is a long-term play. Don’t confuse month to month PM movements with validation. Safe havens and real assets are still the best options for realistically minded individuals; regardless how they measure up in dollars (by the way, gold is rising in other currencies. This is why it’s impossible to validate PM gauged in just one currency OR over one moment in time).

I’m not a good gambler; this is why I continue to invest my dollars into PM while watching other investment foolishness from the sidelines. Your decision to buy gold cannot be validated by a rise no more than vilified by a decline soon after (purchasing). My advice is to keep an eye on the long-term goal of wealth preservation realizing what is “real” is real and what is “not” isn’t.

If the price of gold drops to $1300 an ounce tomorrow, so be it. If it jumps to $2200 next week, so be it too. The dollar (number) next to gold means nothing since all markets are affected, either positively or negatively, by forces well beyond our control. Historically speaking, such market interventions rarely last longer than a season. This is why I view my PM as a long-term safe haven.

COMMENT:  Couldn’t agree more with your book’s chapter on real estate. Thanks for keeping it real in an age of confusion.

TPS Reply:  Thank you for taking the time to self-educate. It really comes down to knowledge, doesn’t it? Too many are rushing back to real estate with an improper mindset. Housing is a place to raise families and extinguish birthday candles. It’s always great when it appreciates but the primary goal of home ownership is not an avenue of saving or wealth building.

Here is the question each potential home buyer must ask PRIOR to inking an offer. How much of the home’s value derives from nothing more than the ability to borrow currency at a low rate of interest. This portion, or percentage, of the home’s value is susceptible to market volatility beyond the realm of short-term fluctuations.

It is only because of those who benefit from lending, building, or selling real estate that so many have a false belief in real estate as a good investment. The cheap money used to buy today’s real estate is nothing more than a byproduct of a government in perpetual money creation mode. Cheap interest rates only punish the savers of the world and blur true housing values.

My opinion is we’ll see a day when 20 ounces of gold will buy more homes than not.

QUESTION:  What is causing gold and silver to drop so suddenly today?

TPS Reply:  Great question. The only words I can think of to describe such PM brutality are manipulation, intervention, greed, fear, and corruption. It is impossible to believe a free unrestricted market is the cause of our recent PM correction.  The games happening within the PM market are nothing short of criminal and here’s why.

Gold or silver are nowhere near bubble territory, the charts below clearly show how quickly an asset, like housing, will climb just before correcting or bursting. It is understood that when a particular asset raises too quickly that eventually it will become prone to correct.

Now, let’s look at the bigger picture here since it’s becoming extremely obvious that PMs are under full assault. With the threat of war (both militarily and monetarily), economic uncertainty, and perpetual currency printing, precious metals priced in dollars should be steadily climbing. But this is not the case.

What is not declining is the demand for physical metal. This demand is quickly depleting metal inventories as buyers like you, I hope, take advantage of cheap silver or gold. Such a demand will continue to disconnect physical metal prices from paper price manipulation. At such a time no one selling physical PM will give an ounce of attention to the paper PM market.

Speaking of a gold bubble, it could help to show what a true asset bubble bursting looks like. Below is a chart showing how quickly housing values rose just before the housing bubble burst back in 2005-06. Then compare the next chart showing the Dot-com build and bust back in 2000-01.

 

And now, does the last six months in gold look anything close to a bubble?

 

Below is one last chart I want to add just before posting. It shows the virtual currency Bitcoin just days before it recently corrected. If gold were as vertical as this last chart then “yes” I would have to say PMs have reached a dangerous level in need of correction, but not the case.

 

BERNANKE WATCH:

FED chief Bernanke is the most powerful man on earth. Unfortunately, his ability to accurately gauge how money printing and market manipulations lead to asset bubble’s bursting should be of great concern. Dr. Paul Craig Roberts offered a commonsense approach to why precious metals are under FED assault.

“The exchange value of the dollar is threatened, and if that collapses the FED loses control over interest rates. Then the bond market blows up, the stock market blows up, and the banks that are too big to fail, fail. So it’s an act of desperation because they’ve got to establish in people’s minds that the dollar is the only safe place, it is the only safe haven, not gold, not silver, and not other currencies.” -Dr. Paul Craig Roberts.

 

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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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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GOLD RUN

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

On an otherwise uneventful February day in 2009, Criss Angel walked on water…kind of. Millions watched this event dumbfounded even though Criss explained it was all an illusion. My youngest son bribed me into viewing this televised miracle with hot buttered popcorn but I must admit this illusion looked as real as the nose on your face. But even walking on water fails to compare to the monetary illusions soon to shift untold wealth into precious metal. Today I’ll do everything in my power to expose the greatest wealth transference on earth. Thanks for joining TPS (The Prospector Site).

A run to gold or silver is NOT a natural occurrence. It is a reactionary result derived from a separation between you and your wealth. Nothing will cause monetary panic faster than a separation of wealth. Below is a must read paragraph that truly describes my point better than I can depict.

Some walk around in a financially comfortable delusion about our current system (banking) even though we all realize that we will never payback our $16 trillion in national debt.  You also have a banking system backing $7.4 trillion in insured deposits with $32 billion (that is, 0.43 percent).  Yet in our current system the Fed is digitally inflating away our currency and limiting available banking options.  Are we simply ignoring the too big to fail? Source: Budget 360.

Let me put the above information in proper light since this financial writer is spot on. If all depositors simultaneously demand physical proof of individual wealth the banking intuitions of America don’t have it. What banks do have is less than 1% of real tangible money deposits on hand. This means a $100,000 depositor is entitled to a whopping $430 withdrawal (thanks to today’s fractional reserve banking system).

We often describe an age of capital controls but few actually connect the dots back to themselves. The banking system in parts of Europe is under stifling capital controls. They cannot, and will not, allow depositors to withdrawal tangible currency because the money doesn’t exist. The banking world has replaced real currency with digits (now two degrees separated from gold for those still counting).

Now we both know that here in the U.S. Bernanke can print the 99.57% necessary to make up the difference between a bank’s cash on hand and digits; and is more than willing to do so. But this Criss Angel like magic comes with a price at least if you’re one of the millions storing wealth in today’s banking system.

Controlling the capital (wealth, cash, money, currency, asset, etc.) is an overgrown government’s dream. Capital control corrals the wealth of a society and then allows the money divvied out in only small portions according to the controlling party’s timing. At such a time, technically your wealth still exists; you just no longer have any control over it.

We only have to look at Cyprus as a perfect example of how the world’s depositors should expect to be treated in the very near future. Capital controls use captured wealth as a tool of taxation and sustainability. They don’t call it theft because the word theft sounds too much like stealing; hence the modern-day term haircut.

Picture your bank account as a car in a parking structure with the entrance and exit blocked by capital controls. Your car is still safely stored but you no longer have control over it. This means the controlling party can decide all red cars are needed to say physically block city hall; then removed no longer within owner’s control. All trucks are to be crushed and then used to stabilize nearby creek banks; then removed…..and then crushed, no longer within owner’s control.

Capitally controlling your wealth allows the powers to be to tumble and recycle your financial future through the taxation machine over and over again. It is now reported that Cyprus bank depositors will lose upwards of 40% from this haircut round. Who knows what the next recycling round will take from depositors as they irritatingly watch wealth dissipate without another option.

Physical silver or gold is the only world currency NOT SUBJECT TO TODAY’S RISK OF CAPITAL CONTROLS. I’ve mentioned before that we are beyond arguing the “should we or shouldn’t we” of physical precious metal. If you’re looking for a safe way to store wealth beyond the reach of capital controls I strongly advise each reader to look beyond the doubt; while this option still exists.

 QUESTION:  Today I read that Arizona is considering accepting silver and gold coins as legal tender. However the article stated that only coins minted by the government would qualify. Further, that since they would be considered legal tender, they couldn’t be taxed as property. So now I wonder about my silver rounds which I bought as a result of this site. Will I be able to sell them in the future and avoid taxes on any gain in their value? Also, is your book available yet in paper format? Thank you.

TPS Reply:  Thank you for the comment and questions. I agree, it is exciting to see a handful of states pushing back by implementing a competing currency. Will Arizona follow Utah’s precious metal footsteps; it’s too soon to tell? Here is how I see this playing out for what’s worth.

A few readers have emailed with the same sort of legal tender questions so I would like to clear the air. Individual states could view silver and gold as legal tender and possibly exempt from state capital gains, but I have my doubts the IRS will view silver or gold with the same tax exempt status. I’m not a CPA but I would use due diligence, and the help of a good accountant, before assuming a tax avoidance.

Like I mentioned by direct email; I have no plans to sell my rounds in order to buy more government minted silver bullion.  But then again I have no plans to sell or spend silver regardless. Rumors spread quickly and this only proves the volatility of today’s monetary world. Thanks again for the questions and good job keeping your ear to the ground.

As for the book, I’m seriously considering combining two digital books into one paper formatted book. This will give readers twice the bang for their buck. I’ll keep you posted.

QUESTION:  It just seems unpatriotic to abandon the dollar for silver and gold. My family fought wars and spilled blood for this great country.  I would like to believe the US dollar is strong enough to lead us out of this recession and into a thriving economy. Maybe I’m just old fashion?

TPS Reply:  Thanks for the comment. Boy, where do I start. It is no coincidence most paper currencies appear patriotic, regardless the country issuing the fiat money. This purposely instills  pride, patriotism, and generational confidence while central banks spur inflation taxation among her people. Inflation is the one tax virtually unavoidable for most.

Your family did not spill blood for the US dollar; most likely they fought for freedom. A country who willingly debases her currency is not promoting freedom, not by a long shot. I truly admire your patriotic passion but please don’t misinterpret a fiat dollar as this country’s foundation of freedom.

I realize it can be frightening to let go of something we’ve worked hard to amass. Frankly, this anxiety is what keeps most from the protectiveness of PMs. They just can’t get past the dollar’s vulnerability in our fiat implosive age. Please look past this misconception while an alternate currency is still available. Thanks again for the comment.

BERNANKE WATCH:

FED chief Ben Bernanke is the most powerful man on earth. For this reason alone we must pay close attention to the FED’s actions as they relate to your financial independence. Below is an intriguing short video of Bernanke responding to the likelihood of bank runs here in the United States.

In other words, as long as you ignore today’s banking volatility and don’t “lose confidence” or allow fear to become “contagious” the most powerful man on earth will not have to implement capital controls. I find it interesting how Bernanke rolls out the FDIC as a source of protection for depositors. The FDIC’s primary goal in not to insure your bank deposits, its primary goal is to protect banks from Cyprus type bank runs.

 

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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SECOND HAND SILVER

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

Buying physical silver or gold is easy these days. Unfortunately, finding more PM (precious metal) in the future will become increasingly difficult, but possible. I don’t have a crystal ball, what I do have is an ability to understand what motivates folks to seek monetary protection….. and what doesn’t. Silver, especially silver, is the metal to watch as more folks realize a rising DJIA and housing market is nothing more than a temporary spike spurred from piles of fiat currency. Use ounces of gold to determine true value and it’s obvious neither the DOW nor real estate should be viewed with optimism. 

The coming age of second hand silver, or gold for big spenders, is smoke on the horizon. Record setting silver sales over the last couple months prove our world thirsts for tangibility in an age of digital promises. Please prepare to say goodbye to “on demand” physical silver or gold.

Today, the price for an ounce of physical silver adds a 10 -12% premiums (minimum) over spot or paper metal. A hunk of real tangible silver, aka money, sells for $32.50 an ounce as I click away this beautiful March 2013 morning. Even though greatly discounted compared to previous offerings, a silver buyer today can find a boatload of options . Buying second hand silver is not necessary, not yet.

Caliber 223 ammunition may offer a not so distant glimpse into silver’s future; just months ago, rounds of 223 ammo filled shelves all while reasonably priced – not cheap, but reasonable. Today sporting shelves collect dust where 223 rounds once rested. Oh, don’t get me wrong; 223 ammo is available but predominantly sells on the secondary market. Did I mention 223 ammo costs have tripled in 2013 alone?

This run on ammo is not by duress. I know of no city street’s burning, no riots, and no other out of the ordinary civil unrest here in the United States. The run on 223 ammo is on red alert because our liberties are under full assault. Caliber 223 ammo is nothing more than a 17th century pitchfork revolution.

This article’s primary focus is second hand silver, I don’t want to lose focus here. We can safely compare silver’s future demand on a monetary loss of liberty….that’s fair. But the point I truly want to make is how such an era of increasing silver demand will influence who and how we buy physical PM.

Some of today’s precious metal experts are misled, respectively. Silver sales will not cease when demand greatly outpaces output; there will always be someone holding silver who’s afraid it has peaked and therefor willing to take profit. Simultaneously, there will be buyers who believe silver will continue to climb…..no matter how many hundreds or thousands of dollars per ounce. The only difference in tomorrow’s silver world compared to todays is a SECOND HAND premium…..just like 223 ammo in a Obama second-term world.

Ammo prices in popular calibers have steadied. This means demand, price, and availability have found an equilibrium. But this lull provides a far greater indicator. It means ammo is to the point unaffordable for many, maybe most. Future physical silver wannabes will face the same fiscal fate.

We are reaching a point when everyone will “want” hard assets and sound money. But just like the 1000 rounds of 223 ammo for sale on gunbroker.com, only a few can justify or afford the second hand market.

QUESTION: Can you compare a currency like Bitcoins to silver or gold? Are they as good investment as precious metals?

TPS Reply:  Thanks for sending over a couple of great questions. BTC is a virtual currency completely independent from a banking system or government. I’ve watched Bitcoins since March of 2011 with great interest. It amazes me how BTCs have appreciated when you consider this currency is nonexistent and attached to no commodity.

The creation of a currency….. like BTC, is only possible because of technology. The advancement of a currency like BTC is only possible when citizens revolt against the merger of government and banking to create a means of wealth preservation. No government can control a virtual currency, bitcoins have no physical corporate location.

What governments can do is tax profit and income. This is when and where competing currencies, like BTC, will conflict with an overreaching gov’t hellbent on more taxation. It is very possible a currency like BTC could be the precious metal of the virtual world, time will tell.

Now, to your questions; are BTCs a good investment? Below is a chart that goes beyond the need for explanation. Will such BTC appreciation continue? I have no idea but I do recommend using due diligence; no appreciating asset is reason alone to invest. If I were to buy BTC, here are the questions I’d ask beforehand.

1.  What or who controls BTC output (creation)?

2.  Is my BTC investment protected by way of discretion?

 

Below is a chart comparing Bitcoins to gold, not dollars – thanks to our friends over at www.pricedingold.

 

COMMENTS: TPS (The Prospector Site) received several comments regarding our last post, The MONEY CURE. First, thank you for commenting. Secondly, thanks for forwarding TPS over to friends, enemies, and everyone in between. Keep sending over your comments and questions since many are not only finding their way to this site but also mentioned in an upcoming book (never a name attached to a comment or question).

 

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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The MONEY CURE

GOLD & SILVER, GOLD AND MONEY   No comments yet

It’s unlikely you’ve heard of John Snow or the millions of lives he continues to save long after his death. Before I introduce Dr. Snow I would like to paint a picture. The year is 1848, London, and we’re living in the midst of one of the worst epidemics in human history. The only emotion left is fear as thousands lay dead, or dying, from an outbreak we now call cholera disease. Both wealthy and poor wait to die while the only hope remaining racks his brain by candlelight deep in the darkness of night. His approach to a deadly problem literally redirects the fate of every human living on earth thereafter. Finally, hope.

A death by cholera is horrid. The body literally dies from dehydration by not allowing the digestion of water. Without water our only solution is death. Today we can only imagine the anguish, of both patient and caregiver, as someone loved loses life’s battle to such a horrible disease.

I apologize for today’s morbidity but the correlation between 1848 London and today is one we cannot take lightly. Like the cholera outbreak, today’s approach to solving our monetary disease only worsens the problem.  The course taken spreads both fear and poverty because the problem solvers refuse to approach today’s monetary outbreak with John Snow insight.

Dr. Snow didn’t solve the world’s cholera problem. What this amazing doctor accomplished was the ability to disconnect a human life from the tiny bacteria carrying this infectious disease. His abstract approach, certainly abstract to the medical world of 1848, proves why knowledge is a better cure than more medicine.

Today’s monetary leaders try to fix our economic disease with more medicine, and it’s not working, In fact, like the cholera treatment circa 1848, it’s compounding the devastation. Dr. Snow realized the water source was the problem. The cholera disease found its way into humans through tainted water sources. Caregivers unknowingly worsened the dehydration problem by administering more tainted water into a cholera stricken person.

Up until Dr. Snow’s discover, the medicine was literally killing the patient.

Dr. Snow’s sewer tainted water discovery harnessed a killer, but only after a willingness to accept the medicine and disease as the same. It’s no secret today’s fiat money system spreads impoverishment across the globe. The wealthy, and elected, are the only ones truly benefiting from such fiscal insanity. All others are living in denial.

If not for Dr. Snow’s brilliance this disease would have turned London into a morgue (hundreds of thousands died as is).  Like Dr. Snow, we must immediately change our mindset, and then approach, to what most call money. No amount of dollar printing will stabilize monetary imbalance, just like no amount of tainted water could cure cholera devastation.

INDIVIDUALLY:

Each person is accountable and responsible for their own financial situation. This requires each of us to become educated, and then empowered, to redirect our monetary position in today’s money world. It is no longer enough to entrust your family’s future in traditional investment streams DOLLAR DEPENDENT.

We have entered an age of instantaneous change. Technology has forever connected the influences of the world and without the ability to adapt we are left behind. The ability to see things from tomorrow’s perspective are far more important than today’s vista. Everyone from financial planners to stock brokers have failed to change perspective, they still view “wealth stability” through yesterday’s eyes.

The good news is this leaves you. There is a money cure but like Dr. Snow’s cholera approach it is not monetarily acceptable, not yet at least. Up to this point the words silver or gold are purposely not mentioned in this article. Precious metals cannot fix the currency outbreak that engulfs us. But like Dr. Snow’s discovery….precious metals can separate our wealth from this infectious monetary disease.

 

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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WHEN WILL GOLD GO HIGHER?

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

Agitation; this is the only word I can think of that accurately describes how the gold faithful feel today. I, honestly, have no precious metal worry. My lack of reservation…… while others try to find faith in falling gold prices, comes from a confidence that gold and silver will go higher, multiple times higher. It all has to do with a chosen course of action or, better put, CONFIDENCE. Not as much a confidence in gold but a lack of confidence in dollars. Please let me take the next few hundred words to thoroughly explain.

Thanks for joining TPS (The Prospector Site) today. I really appreciate your willingness to at least test nontraditional waters thus providing a true opportunity to preserve wealth in an age of economic uncertainty. If this is your first visit let me say I am not a pessimist by any stretch. My goal is to provide a sound money education for the few willing to no longer accept monetary misunderstanding.

It is also worth mentioning I’m not a gold bug. I own silver and gold (and have for over ten years) for one reason. They are the only source of money unprintable in a fiat currency age. Let me try that one another way. Gold and silver are money and everything else folks mistakenly call money are currency. Currency is a promise, a promise based on something without true intrinsic value.

Intrinsic value confuses some folks when its meaning is quite simple. The intrinsic value of a car is the grand total of all the components & effort to build/sell the vehicle. The intrinsic value of your home is the total of concrete, land, metal, wood and skill it takes to rebuild it (Yes, I realize this value can drop below intrinsic level but such an occurrence is very rare).

The dollars in your pocket have no intrinsic value (maybe $.06 worth of paper, ink, and effort). Gold and silver have true intrinsic value, their value is the cost and effort to extract, mint, and hopefully end up in your hands.

WHY?

Why do we trust something of no real intrinsic value with a potential of infinite creation? Gold will not rise to my point of prediction until the world truly understands the value of US dollars. To better illustrated this PM (precious metal) to dollar comparison think of an antique scale with brass trays on each end; now picture dollars on one side and PMs on the other. Gold will not rise until the dollar’s mass (confidence) declines.

If this is the only thing holding gold from $5000 or $10,000 or $75,000 an ounce we must ask what, why, and when. But to answer such questions we must first answer why so many still trust the dollar – and why so few don’t. By the way, at anytime feel free to substitute the word “silver” for gold; both are real money.

If you happen to be reading this at your local coffee hangout I want you to look around. You are the 1% if you’re a real money believer. The others comfortably sipping through their day have no clue of the messy divorce that occurred when dollars vs. gold split the sheets so many years ago. Honestly, most sharing your space don’t care as long as life resembles “normalcy”.

Folks, gold and silver’s relevance hinges here, please read closely. The US Dollar and gold were once the same. At any time a dollar holder could equally exchange paper for real intrinsic gold OF EQUAL VALUE (please take another look at the picture above. Notice what’s written clearly at the bottom of the bill, “In Gold Coin Payable to the Bearer On Demand”). At such a time, our dollars were money. Today’s dollars no longer mention payable in gold because they’re not worth anything of value.

Why so many still trust dollars is simple. Those trusting do so because they continue to view dollars as money, a secure source of wealth storage, and the best means to exchange effort (work) for money. The facts prove otherwise.

This gold and dollar disconnect, or divorce, is why economies around the world are under great economic duress. This is why folks in Europe have taken to the streets under protest, this is why currencies are fighting to devalue themselves, and this is why gold and silver will rise beyond the realm of what most view as possible.

Something detrimental happened before gold and dollars divorced in the year of 1971. Most major currencies connected (pegged) to the US dollar in hopes of stabilizing the world’s economy (Bretton Woods System). The dollar made for a perfect choice since it and gold were one and the same. This is why you commonly hear the dollar referenced as the world’s reserve currency, simple enough.

Now, here is the problem. The Gold vs. Dollar divorce set the dollar adrift no longer hinged to anything of real value. This is why the dollar went from an equal value of $35 per gold ounce to now just under $1600 per gold ounce. Most individuals out earning a living today fail to see the correlation of rising gold and decline dollars. They don’t think much of it.

This misunderstanding between gold and dollars is near breaking point, not just at home but across the globe. The world’s oil trades in dollars and has since the 1970′s (petrodollars), but only one country has the power to print more dollars as they see fit, no longer limited to gold or any other monetary standard . Is it any wonder other nations without this ability to print the world’s reserve currency (dollars) are conflicted?

Our society’s ignorance, or monetary misunderstanding, hides behind a printing press and a Federal Reserve unafraid to use it.

The power of printing dollars coordinately disguises real money (gold & silver) from fake pieces of paper. Education will eventually expose such monetary trickery. Today’s gold fluctuations mean absolutely nothing in the overall picture; this is why I pay no attention to short-term PM rises or declines.

The rising costs of food and fuel will be the breaking point here in the United States. The debasement of the dollar will be the breaking point for the rest of the world. At such time, silver & gold will go higher.

QUESTION:  Thanks DC for The Prospector Site. What is my first step?

TPS Reply:  Congrats, you’ve taken your first step. Education is the key to understanding PM’s relevance in today’s monetary age. Without education silver and gold are just another one of thousands of investment options. I don’t view silver and gold as investments. I view them as a store of wealth in a worldwide currency soon to experience a demand far exceeding potential output.

Your second step is actually the question….. so let’s start there. Your local bank doesn’t sell gold or silver (not the metal I recommend), this means you will have to do a little digging to find someone trustworthy AND willing to sell physical silver or gold. As of the last 9 -12 months this is the most common question I receive here at TPS.

The art to buying physical metal should be shrouded in discretion. The less who know you own PMs the easier it is to safely store. My advice is to make a trip to your local coin shop and ask to hold an American Eagle or Canadian Maple ounce of silver. Notice how it’s heavy, tangible, and expensive compared to the dollar number written on it. This is what real wealth feels like. It may feel odd in a day of fiat paper currency but trust me, this is real wealth.

Ask your local coin shop representative the spot silver price. Then ask how much more the price for real silver… like the one in your hand. The difference is the price between paper silver and physical silver AT A MOMENT IN TIME. This price could decline before driving away, or it could appreciate too. Neither scenario has anything to do with silver’s long-term justification. Now, the next steps I recommend is to find someplace safe to store and then continue this buying pattern each month, regardless the price.

Thanks for the great question.

 

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

 

 

 

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GOLD DISORDER?

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

By now I’m hoping my readers understand gold and silver’s relevancy according to the age we live. The benefit of such understanding extends beyond the typical layman’s confusion during PM (precious metal) decline, like lately. I pay little attention to the dollar number next to gold or silver. It means nothing when it rises and means less when it declines. I view both metals as necessary according to our real-time economic climate and will only change my opinion of PM relevance when fiscal sanity improves. Until then words like disorder, disturbance, disarrangement and decline mean nothing as others use these descriptions to label PM volatility. I pray you feel as I do.

Even more ironic – while the world views hard assets as risky a growing minority are feverishly adding new stacks of both silver and gold simultaneously.  Metal buyers realize the dollar lid is no longer in jeopardy of blowing off, it’s blowing off. This is why over 7 million ounces of Silver Eagles found new homes in January 2013 alone. The time to buy physical silver or gold is upon us.

Political leaders are on the offensive. This means they will say anything to keep law abiding individuals from pouring into the streets under protest over record deficits with no plan to scale back the size and power of government.

Their offense (government) creates a defensive nature in most Americans. Look how quickly this administration rolled from PPACA (Obama Care) to gun control to immigration reform to who knows what’s next. Folks, it’s only February and the arrows out of Washington have every taxpayer, every business person thinking of nothing but self preservation.

This offensive role is no accident. You can’t ignite revolt, monetarily or otherwise, while circling the wagons. The gold disorder of today is part of such assault.  Keep PM volatile and less differentiate real money from promissory notes, aka dollars. There is no gold disorder, there is only fiat disorder. You must know and accept the difference in order to trust the same protective instincts that drove you to PMs in the first place!!!

We often hear economic experts try to explain wealth distribution. This means nothing more than the rich getting richer and the middleclass & poor growing poorer. I don’t see it this way, at least not exactly. I see it more like a power shift built around vulnerability, wealth distribution is only a byproduct of a society less interested in real socio-political & monetary issues and more enthralled with modern entertainment & entitlement.

We only accept the proposal of something unconstitutional – like gun control – because we feel vulnerable, or unsafe. We only accept governmental overreach because we feel vulnerable to economic correction. We only allow massive currency printing and dollar debasement because we desperately desire normalcy in exchange for vulnerability.

This feeling of vulnerability eludes those that control their own wealth. The governmental infringements aforementioned are inconvenient, yes, but nothing close to a level of dictating. I see little disorder among those prudent enough to store wealth within physical silver and gold AND living a life of self reliance. Again, the dollar sign attached to today’s gold and silver has nothing to do with it.

QUESTION:  What is happening to physical gold and silver? Why is it not going higher?

TPS Reply:  Thanks for the short question. Not only is gold not going higher but it’s down around 5% year-to-date. Your question is worth asking but unfortunately no one can honestly offer an answer. Gold has appreciated, on average, around 17% per year over the last decade; I expect this trend to continue over long term.

Most gold experts will answer a question like yours by trying to explain PM suppression. I rarely mention metal suppression because to me it’s wasted energy and discussion. We can’t control naked shorting, nor can we control Wall Street’s finest who are more interested in their own interest over trading with integrity. I refuse to be a part of such monetary recklessness.

No one thinking realistically will question gold’s relativity in such an age as we’re living today. The fact gold is suppressed is the good news since this offers readers like you an extended opportunity to add more silver and gold to your growing stack. I recommend we stay the course, regardless how gold performs in the short term. Thanks for the question.

QUESTION:  Love the Prospector Site and really enjoyed your book.  I have a question relating to reportable PMs at time of sale. Can you explain why some silver and gold sales are reported to the IRS and some aren’t (when sold). Is it that important to buy PM excluded from notification at time of sale? Thanks again for what you do.

TPS Reply: Thanks for the kind words. You are correct; some PM transactions will trigger IRS 1099-B. As of right now some won’t, the determining factor lies within how, what, and to whom you sell. Selling metal back to a PM dealer will trigger an IRS notification IF THE PM SOLD FALLS WITHIN REPORTABLE SILVER & GOLD.

Is it that important to buy PMs excluded from such income notification? Probably….. here is why. I have little doubt that a government so large and in debt will eventually demand notification of most reportable income. Silver and gold held in American Eagles, by example, are excluded and do not require an IRS notification after sale, at least for now. This means declaring such income is voluntary (of course you could face stiff penalties if hiding income).

The difference between amount paid and amount sold is income. This income…to my understanding falls under capital gain and is subject to taxation. This taxation INCLUDES all gold and silver sales, nothing excluded. Now back to your question, some forms of bullion, bars and rounds will not trigger an IRS notification. This doesn’t exclude the metal holder from a tax obligation but will exclude a seller from receiving IRS 1099-B form.

I’m not here to preach tax obligations or obstruction. Each person holding PM is accountable as they choose. I provide the facts as I see them and the choice, as always, is yours. Feel free to set up a personal consultation since buying the right silver and gold is something we’ll completely cover. Thanks for the questions.

COMMENT:  I was stunned to find this site.  These are my sentiments exactly.  It has taken me awhile to get myself together and begin the process of purchasing pm.  I would more than welcome info on where to purchase safely.

TPS Reply:  Fantastic, another one joins the growing minority of PM holders….good for you. The process of safely buying silver and gold need not be complex. The “right” PM is all metal offered as close to spot price as possible. Finding the right source is crucial in order to have the peace of mind that only comes from PM authenticity.  You can’t go wrong with new bullion American Eagles, gold or silver.

I recommend contacting Colorado Gold or Miles Franklin if searching for a reliable PM source.  Congrats for making the most influential monetary decision of your life.

 Worth Watching:

The video below features Paul Harvey. For those unfamiliar, Paul Harvey was a radio broadcaster very concerned with the economic and social decay of America. We lost Mr. Harvey in 2009 but his words ring loud as ever thanks to modern-day technology. Please take a few minutes to watch, or re watch, If I Were the Devil by none other than Mr. Paul Harvey. Oh, did I mention the message below was recorded over 47 years ago, amazing.

 

 

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

 

 

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