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What will it take for Precious Metal to Rise?

GOLD & SILVER, GOLD AND MONEY   No comments yet

When David Logan (name changed in respect for family) drove himself to the ER on a spring day of 2012, he complained of shortness of breath and discomfort spreading to his back, jaw, and throat. Although these symptoms are often related to a heart attack, the ER doctor found it unlikely a healthy-looking male in his early thirties fit such a diagnosis.  The medical staff admitted Mr. Logan and soon after the doctor on duty put a plan in place that included looking deeper into why a young fit person was in such agonizing pain.  No one would have guessed that this afternoon would be Mr. Logan’s last.

Pain and discomfort is the #1 reason people visit their primary care provider. Their motivation to invest effort, time, and cash stems from an uncomfortable state that reaches a point of “doing something” in hope of relief. The same type of pain is what it will take for PMs (precious metals) to rise far beyond what most of you can imagine.

As most know I live in the United States. I also live in a flyover state that has seen more winter than any sane person should see in a lifetime. But other than a few winter annoyances life here in the US is pretty darn good. In fact, it’s so good that most individuals never consider the monetary “pain” that will eventually grip even the most wealthy of all countries.

The fact you’re making the effort to explore physical silver or gold amazes me. I have no idea what motivated you to make such a decision but I commend your insight, congratulations.  You are, medically speaking, the person who practices routine checkups to eliminate a painful problem before it develops.

But most folks living life are too busy to live like you. They assume all is economically well because everyone else does. They see a steady paycheck paying monthly bills and they still have enough left over for pizza and adult beverages at week’s end. These same individuals also assume a rising DOW, and housing market, are signs of a stable economy. Buying physical gold or silver is at the list bottom for the aforementioned.

The folks too busy to invest in PMs fail to understand why things appear normal in 2014. Honestly, this may sound harsh but most folks don’t care what it takes to maintain normalcy. They suffer from a term call normalcy bias which enables them from accepting the fact that someday a situation nearly unimaginable will happen if we continue to defy economic law.

The monetary reckoning we’re describing should not be interpreted as “dooms-dayish”. It should be viewed more as imminent than unusual. so let me explain.  It would be unusual that a society, or economy, continue along as normal while simultaneously compiling mountains of debt and deficit in order to do so. Your neighbors on each side accept this normalcy because this form of “mortgaging the future for a better life today” has lasted their entire lifetime.

Why can’t perpetual borrowing lead to never-ending economic normalcy?

Most of you reading this are not happy with today’s governmental  leadership. You often ask why it is that the majority continue to elect leadership that allows the government to expand, not to mention infringe, into the very freedoms this country is founded. The answer is describable with one easy word, APPEASEMENT.

The same reason your hunk of gold or silver hasn’t risen is the same reason failed leadership is reelected. Politicians have figured out that a simulated state of economic normalcy will appease the people just to the point of complacency. This is why our national debt rises to historic highs and the same reason why we as a people allow a congress to borrow $.43 of every dollar allocated and spent.

The world is aligning into a new age, and this tension is growing obvious. A global economy based on a USD (US Dollar) reserve currency has never been in question as it is as you read this. The tension stems from countries heavily invested in our currency, thanks to decades of buying revolving debt, yet angry that only one country can print USD. The tension increases when we consider the economic instability of the same debt-holding countries that rely on a strong US economy.

Today’s tension will eventually lead to economic pain. Again, it would be unusual if it didn’t. As countries around this spinning globe retract from a USD acceptance, so will a US life of normalcy. Ordinary folks will question failed leadership and monetary over indulgence and this will not bode well for the political status quo. The pain will cause nearly all to question “why” on every level of what not long ago was normal, both politically and economically speaking.

This awakening is imminent but timing such an era is impossible. Until this day the value of silver or gold will elude most and rising prices shouldn’t be expected. The true reward for your prudence will come only after the world awakens from normalcy bias, and they will!

QUESTION: DC, are you okay? Haven’t heard much from TPS in awhile!!!

TPS Reply: I’m fine…… but thanks for asking. Like most of you, I’m, too, very busy with raising a family and running business. I one day looked at TPS and realized precious metal was on hiatus and honestly this site now has the unbiased information someone needs to make an informed decision when it’s time to buy physical metal.

I have plans to update TPS more often but until PMs break from hiatus neither will I. Thanks for asking, and the concern of many readers.

QUESTION: I am very appreciative of TPS and the information you provide, thank you. My husband and I often discuss how things have changed in our lifetime (both good and not so good) wondering how life for our grandchildren will be influenced by today’s misgivings? We both vividly recall our parents describing the pains of the Great Depression and worry that society has forgotten how quickly wealth can disappear. We own physical PM and have for years. We don’t own PM to get rich but in hopes of providing economic stability for our family long after we’re gone. Just wanted to share this with you and your readers.

TPS Reply: Thank you for sharing, and you’re welcome. I love to hear from our readers, like you, who share great concern for this great country. You mentioned something that made me really think with how quickly wealth can disappear and how today’s society has forgotten the pain, both monetarily and socially. It’s sobering how quickly paper wealth can vanish and it’s unfortunate how few understand the benefit of owning, or storing, some wealth in physical PM.

I also agree with your motivation to preserve family wealth over riches. It is important that each of us educate our youth on the difference between real money and fiat currency. As you know, what most call money today is intrinsically valueless and only holds value thanks to other people’s faith. As the faith diminishes so will a currency’s value and worth. At such time physical metal will shine as a safe store of value and this will lead to a PM scramble.

By the way, I hope you and all readers are following the recent news event of found gold treasure. It appears some lucky soul in Northern California unearthed several million dollars in gold bullion and rare coins. The value is speculative, but my research shows a melt value over $2 million and a collector value nearly $10 million. Now, here is what interests me. The backstory has gone completely missed by today’s overzealous media.

At the time this stack of gold was buried our monetary system was on a gold standard. This meant a twenty-dollar bill, or any bill, was exchangeable for the same dollar value in physical gold (twenty-dollar bill for a $20 gold piece). These days are long gone and we all know that a twenty-dollar gold coin is worth many times more than face value. But here is where it gets interesting. What if the party who hid this treasure would have put dollars into the cans, not gold coins? It is estimated that the value of the gold at time of burial was around $27,000. If in dollars, the unearthed value today of $27,000 is only a fraction of the long-term value of gold. Think of it, $2,000,000 in gold compared to $27,000 in USD?

One day your family will be very appreciative of your insightful thoughtfulness. Thanks for sharing.

 

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

 

 

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

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

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

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

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

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

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

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

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

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

Why it’s nearly time to buy more gold.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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SET FOR LIFE?

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

There is an interesting commercial making its rounds where a gentleman travels the world all while shouting, “Set for life” along each stop. Obviously this guy recently won the lottery and is now out enjoying the experiences of only a lucky few. Now, for the record, I’m not a lottery player. In fact, I bought lottery tickets several decades ago when California first introduced a state lottery but never scratched them. Who knows, maybe I missed out on my own “set for life” opportunity – but I doubt it, and here is why.

Each person has their own perception of what it means to be set for life. Unfortunately most perceptions are unrealistic considering the time we live. “Yes” this includes those who store wealth in physical silver or gold, too. Somehow most of us walking God’s green earth falsely associate wealth abundance with a “set for life” situation; not true.

While consulting with those interested in storing wealth in PM (precious metal) I usually ask, “Why”. In other words, what is the goal of making such a nontraditional monetary effort when 99% of the pack is content on striving for the proverbial American Dream?

The answers vary between leveraging PMs as insurance (please see the Q & A below), wealth preservation, or even financial stability – but some flat out admit the goal is to ride gold, or silver, to a point of filthy rich. The ones motivated by the later fail to recognize what a world with $500 per ounce silver means for a society unfamiliar with economic correction yet victimized by decades of monetary intervention or the asset bubbles derived from such unrestricted intervention.

As of October 2013 things are clicking along pretty good, right? Sure we have Capital Hill arguing over Obama Care. Sure we have our national parks closed while the powers in charge battle over how to spend the next record level of borrowed money (currency), too. But all in all most Americans view life as improving somewhat content by the illusion of recovery. For most, they view the future as improving.

But those entrusting PM are not experiencing improvement. Many of you bought gold and silver only to watch it plummet, in dollar terms, well below what most PM experts could imagine. Some of you are to the point of doubting your prudence all while dismayed by a safe haven not looking so safe – I understand. The benefits of wealth stored within the confines of such discretion are yet to be realized, but imminently closer with each passing day.

For you – physical silver or gold is a world away from creating a set for life financial situation.

For you I offer this comfort. Enjoy this temporary era of monetary stability derived from the ability to debase a currency by creating trillions of dollars from thin air. Some, maybe most, trusting hard assets awake each morning thinking today is the day all monetary hell brakes loose sending PMs soaring to the moon. You underestimate the power to print money and the temporary stability it provides.

Looking into our future we see a set for life mentality replaced with the longing for opportunity. The dream of a never-ending retirement portfolio will be replaced with the dream of enough employment just to get by. The home on the beach replaced with a roof over the head along with a warm meal on the table. This new perspective will be the ultimate monetary education most are yet to comprehend.

But for now all those entrusting physical PMs live with the daily love-hate relationship that comes from a global currency yet to find its legs in an age of global monetary intervention. This writer will not pretend to guess when PM will break from the pack but if history is a good indicator then metals rising should be expected. Until then we stay the course realizing most living in the USA live a life well beyond what most of the world could ever dream.

COMMENT: I view precious metal as insurance just like any other “what if” insurance policy used to protect any other asset. Accumulating additional wealth byway of gold is not my expectation as much as protecting what I have. My PM goal is to preserve and my expectation is nothing more.

TPS Reply: Good, and thanks for the comment. I too view PMs as insurance but my opinion is you’re selling PM short by failing to factor the vulnerability of other dollar-based assets or the benefit of a universal currency (physical silver and gold).

Honestly, other assets will not hold today’s “value” in terms of comparable value. We must agree that a currency victimized by debasement blurs true value in a currency sense (cents). This is why hyper-inflated economies of the past used billion-dollar bills to buy loaves of bread. We cannot compare today’s bread value to such an era of debasement and economic calamity, agreed? Nor can we view those holding substantial wealth in hyper-inflated dollars as wealthy or financially protected.

I don’t singularly hold wealth in gold to “insure”  or hedge against the value of my home or other personal assets. I realize gold rising will not support my wealth derived from other assets (insurance) as much as replace it.  This is why PM experts refer to such a time as a transfer of wealth. Wealth transfers to countries, and individuals, holding hard assets. This is nothing new or just my opinion, this is historical monetary fact.

One other point, please. Overgrown governments do not go away without a fight. They first consume the wealth of her people in order to appease the masses (those feeling entitled). Five minutes watching your evening news will validate we are living in such a time as you read this reply. You can call it insurance if you like but I call it financial freedom stored in inconspicuous ounces.

Thanks for the comment.

QUESTION: I read how you store your savings away from traditional banking institutions. Can you expand on this?

TPS Reply: You’re correct, and I would love. The risk of capital controls in today’s age is very real. Some call it a banking “bail-in” – some call it a banking holiday. Regardless the term, the result is a separation of wealth which means a separation of personal freedom. A society separated from their wealth is vulnerable to those controlling it.

I choose to maintain control of my savings by storing most of it in physical silver or gold. This sounds unusual to most but up until the last forty years this is how everyone stored wealth (gold-backed dollars). A twenty dollar bill was easily exchanged for $20 in gold from a bank which means your savings was stored in PM.

Today nearly all savers view their savings as safe thanks to the FDIC. This safety net is less comforting when we consider this insurance will protect savers from an institutional failure but offers no protection from a capital control mandate. The difference should be researched if confusing.

This may come as a surprise but I’m not a gold guy. I own gold for many reasons but much prefer to store wealth in an emerging business properly structured and income producing. It is far easier to generate wealth from a small business than wait for gold/silver to appreciate.

Now, back to your question. If I need to use my “savings” I simply convert a few hunks of gold for dollars. This allows me take a vacation or do whatever anyone else could do with a more traditional bank savings. Email me, or call, to find out exactly how I safely make this PM to dollar exchange. Thanks for the question.

 

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

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DISTRACTED INTO POVERTY

GOLD & SILVER, GOLD AND MONEY   No comments yet

Atop the cake sits five candles. Each flame represents a year since our lives should have drastically changed, but undeniably didn’t. This September, September 2013 that is, represents the fifth summer/fall season since, for all intensive purposes, our economy experienced a credit crash. This correction should have propelled most Americans closer to poverty but only postponed an imminent lifestyle change unimaginable by most in our middle class.  The next few paragraphs will outline exactly how we didn’t dodge a bullet and, more importantly, what role precious metal will play in an economic undoing. Thanks for joining TPS (The Prospector Site).

Our primary goal at TPS is to justify physical PMs (precious metals) and their role in creating a life of personal independence. The ability to own a worldwide universal currency is precious and, in all likelihood, a road map for freedom. Most folks making the effort to afford silver and gold are most likely not as distracted as the majority of fun loving neighbors.

The art of distraction is nothing new. It works on puppies and kids, it works on students and patients. Access to easy credit is what distracts most Americans into a state of complacency. This lifestyle almost came to a stretching halt in September of 2008.

Our lifestyle will not function “as is” without credit. You will no longer accept the effort of those in power nor will you be as distracted in a world of low to moderate credit. The true state of our economy will surface as markets 95% dependent on easy credit turn nearly dormant. From college debt to low-rate mortgages, to near-zero auto loans to plastic money; all champion the illusion of a healthy economy.

We only accept the recovery lie because of the ability to leverage ourselves deeper in debt, both as a country and as a society.

Today’s media appears to fall lockstep into this dependency trap but is actually nothing more than a mirror of our society. Social networking fills precious time with personal and professional drama all while distracting intelligent individuals with wasted time and effort. Even today’s world of entertainment is nothing more than a Miley Cyrus report or another example of intellectual compromise. From the latest smartphone to tablet — Americans will stop at nothing in order to be entertained.

The cost to distract us is getting expensive. No longer will American’s accept lower-than-historically-normal mortgage rates. If you want us to buy, or leverage, then near zero rates is what it will take. The same goes for new car buyers as they grow annoyed with anything but zero interest auto loan offerings.

We view credit as an ability to further strive for an American Dream not realizing the puppet master changed the rules sometime ago. You may view easy credit as an avenue to live beyond your means (whether you realize it or not) but Wall Street now depends on this ocean of debit as a primary source of investing. Think about it– your retirement future is now dependent on a derivative of never-ending debt creation.

Physical silver and gold can’t compete in today’s world of paper wealth.  Metal’s smash-mouth method of wealth preservation is not fulfilling, nor is it entertaining, nor is it a viable distraction in 2013. Why “invest” in PMs when we can drive a new car or buy a bigger home?

Too few view the last five years in proper context. Less take advantage of this temporary reprieve to re-channel savings or wealth into physical silver or gold. The great distraction worked because so few understand a power committed to borrow at all costs jeopardizes her currency to do so. The end result is investors worth millions, probably billions (dollars), but still living a life in poverty.

We can no longer deny worldwide tensions that grow with each passing day. Syria is yet another example of an economic symptom as countries around the globe look for a justifiable reason to print money and further distract citizens. Americans grow tired of nonstop war drumming but fail to realize war is the ultimate political distraction. After all, how unpatriotic are those who fail to support our freedom, right?

As you can see the one commonality is the need to borrow and create more currency. Sure taxation and capital controls will find a seat within the first few rows but the big nut is credit/currency creation. I have no doubt physical metal will rise from the ashes as the world awakens from our great distraction. I also have little faith wages and lifestyles can keep pace with this next leg of monetary debasement.

Historically speaking the value of physical PM will rise in times of economic uncertainty and currency debasement. Folks, you don’t need me to point out that we are at the very intersection of economic uncertainty and currency debasement. The need to hyper-print our currency will only improve the wealth status of those safely holding physical silver or gold.

Reality will eventually snap us from our state of distraction. A hungry stomach, eviction, repossession, and foreclosure are hard to ignore. You have time to make a change; I strongly encourage each person to take advantage of this closing window.

QUESTION:  With the threat of war growing can you offer some insight on how this could affect rising PM. You didn’t mention war in Why Silver & Gold Will Go Higher, any reason why? Loving TPS, thanks for your effort.

TPS Reply:  Thank you for your support and questions. You’re right, I didn’t mention war in my book. In fact, lots of other PM influences didn’t make the cut either. Today’s book editors realize the attention span of most readers is retreating. We live in an age of constant information so her advice was to keep it simple, and she did.

But this shouldn’t undermine the effect of war costs that always lead to deficit spending and currency debasement. The belief that war is an economic stimulator is not true. Sure war spending will temporarily stimulate the economy but the long-term effect compromises a country’s national security and stability.

My opinion is that America is looking for another war. Look how many families now depend on a large military for employment, benefits, and retirement. I look for regional wars to expand into major conflicts as inflation/debasement tensions arise from currencies trying to keep their economies competitive. This type of conflict offers a green light for currencies to ramp up the printing process.

War legislation always carries pork in some fashion. Politicians realize few constituents actually follow the pork and most voters digest their news in tiny sound bites just before watching their favorite program.

Over printing a currency always leads to higher silver and gold prices. Values may not change but prices do just to keep par with inflation. This is the beauty of physical PM. This is why it is so necessary to trade fiat for real money while the option still exists. Did I mention the discretionary benefits of storing wealth in physical silver or gold? Thanks for the questions.

QUESTION:  My local coin shop is making a good argument for pre-65 silver over the new bullion recommended on TPS. Any thoughts?

TPS Reply:  I’m all for low-premium pre-65/64……. better known as junk silver.  My question for you is what premium are they charging for junk? How does this premium compare to American Eagles, rounds or bars? I personally own both (junk and new bullion) but favor one-ounce legal tender coins most of all.

I realize you, like most readers, are focused on silver but please don’t forget gold. Gold is historically less volatile and definitely worthy of diversification. A 1/10 ounce gold bullion coin is not much more than five silver bullion ounces. Many TPS readers hold wealth in gold as a long-term method of storage and hold junk silver for when we reach a time of underground barter and trade.

I’m glad to hear you are trading at a local coin shop since it is important to support local trade. The ability to exchange some silver, or gold, for cash could become useful considering the age we live. Plus, most coin shop owners have short memories and little to say.

 

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

 

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THE ART OF BUYING OR SELLING GOLD

BUYING GOLD/SILVER, GOLD AND MONEY, GOLD OR SILVER BUBBLE, SELLING GOLD/SILVER   No comments yet

Precious metal is a well kept secret. Folks who own physical gold, or silver, seldom advertise their wise discretion. Few blab across social networking and less openly discuss the nuts and bolts of buying PM (precious metal). In most cases this leaves you, the novice, searching for the right metal offered at a fair price. It’s hard for me to put an exact percentage on how many newbies pay far beyond necessary but I will estimate more than half do, or receive less, than the metal recommended here at TPS (The Prospector Site).

FACT #1: Not all Gold is good

It is a misnomer that gold is always a good investment (paper gold can be the worst choice for wealth storage in many cases). Anything other than physical PM carries far too much risk considering our age of fiat correction and financial insecurity. For this reason alone paper PM is not worthy of today’s discussion or space.

Retail gold, like jewelry, is a blend of artistic effort and precious metal. An established value is always subjective but, nevertheless, still a store of value better than most of today’s “typical” investments. In times of economic despair jewelry returns to a value measured in melt worth. This is why I recommend new bullion, rounds or bars over jewelry.

All physical PM buyers pay a fee over and above the intrinsic value of a gold bar, round, nugget, bullion, etc. This “premium” is what makes those selling PM wealthy but offers no real value to you as the buyer. The older (or rarer) the gold hunk the higher the premium, very simple. In return…….. new bullion, rounds, and bars offer the lowest premium.

Most folks buying gold in 2013 are not collectors or speculators. They, gold owners that is, view the echos of economic recovery as back-ground noise and realize we very well could be facing the end of a great fiat currency experiment. For this reason alone all should own physical silver or gold.

I recommend due diligence before buying your first gram of gold. Old coins are cool but best saved for the experienced PM buyer. Proof coins are flashy but also best saved for those solidly vested in raw precious metal beforehand. Think low-premium PM offerings that are easy to store, insure, and someday sell or trade.

FACT #2: Not all PM advice is good

This site doesn’t sell silver or gold but I would love to know how many precious-metal peddlers hear, “I understand gold is a good investment. What do you recommend?” At such time the art of buying or selling PM is in the hands of a stranger who could be more profit inclined than making sure you receive the best bang for your buck.

I hear so many nightmare stories of good gold intentions going bad. These tales always include trust, deceit, disillusion, distaste, and eventually embarrassment. At the end of the day far too many pay far more than necessary, for PM, because they fail to arm themselves with education.

There is no reason to fall prey to the PM distrustful, not in the internet age. Your education should not come by way of solicitation. Hard asset sellers are always well rehearsed with trigger words and phrases. These trigger phrases stir emotion and prompt protection but have no place for those implementing a controlled PM plan.

The best source for education and advice always comes from the unbiased.

FACT #3: You will someday sell

I have a close friend that has owned physical silver for years. He has no plans to ever sell regardless the value, regardless the offering. What he doesn’t realize is that someday he or someone sharing his last name will sell, or trade, his buckets of silver. It could be for profit, it could be for freedom, or it could be to feed the family, who knows…… but it will trade hands someday.

I personally will not buy silver or gold that I can’t easily track real-time value. Sure owning a coin that spent hundreds of years lost at sea is cool but how does the average Joe know its true value. After all, the only guarantee we have is a fluctuating melt value, right? For this reason I recommend asking two questions before committing to buy; how much are you asking and how much you will pay me to buy it back.

The difference between the two prices is very important. As of August 25th, 2013, a one-ounce gold bullion will run a buyer around $1475. The same bullion, less the premium, will sell around $1390-$1400ish. A second-hand market will bring a few more dollars. By the way, some PM buybacks require a dealer or broker to notify the IRS, some won’t. Do you know the difference?

But our faith in PM has less to do with dollars with each passing deficit day. Gold’s true value is its exchange value. For instance, I pay less attention to what gold trades in dollars compared to how many ounces of gold it takes to buy an average home in my neck of the woods or a sandy retreat countries away. This exchange value is the future gauge of your net worth. Dollar value is relevant now but this could change quickly.

QUESTION: Thanks for answering my questions, DC. Yes, it’ll be scary if the governments get creative and do something like Operation Rize. Can’t agree more about diversification. As for the insurance, I think I’ll ask a jewelry store nearby first.

And what do you think is likely to happen in the future? Will we have a repetition of what happened in 1980, where PM prices skyrocketed and retraced later? But considering the world’s current level of debt, can the central banks raise the interest rates like they did back then? Or will we have hyperinflation? But are the central banks so stupid to allow that to happen? Will we stick to PMs forever, or will we have to switch to other assets someday?

Looking forward to your reply and thank you very much.

TPS Reply: You’re welcome, thanks for asking great questions. What happened to PMs in 1979-80 was amazing but only a small sample of our future. So many things have changed on a global level that will affect us all on some capacity. Some will prosper but most will fall victim to an existence that only existed because of a debt-based lifestyle.  I have great concern for those not PM protected.

TPS often hears from readers who boast over their debt-free lifestyle. This is great, and recommended, but the truth is all will fill the pain of worldwide default as it becomes painfully obvious trillion $ obligations can never be repaid. This mess is what happens when we live in a society consumed by the here and now. Our commerce world has consumed the minds and energy of far too many.

You’re right; central banks will send all major currencies into a level of inflation unimaginable. I’m not sure if hyperinflation is the correct term but, nevertheless, it will not be kind to those attempting to live on a fixed pension or income. Most victims will view these days of economic correction (disaster) as “depressed” not realizing such a time is nothing more than another example of what happens when a fiat currency is overproduced. Silver and gold will account accordingly.

A dangerous trio has hijacked America’s future. The FED (central bank), Wall Street and politicians now control our economy. Washington DC proper now boasts an economic boom while the rest of America suffers from a myriad of challenges including, but not limited to, low-paying jobs, rising cost of living, financial tension, etc.

The world’s central banks circle the wagons in order to save our fragile banking system but not willing admit this effort is futile, destructive, and unfair. Anyone relying on a currency, not real money or hard assets, will, too, soon realize wealth stored in paper is growing worthless. Such an era will bode well for those holding physical silver/gold and my prediction is this run will not end anytime soon.

Although, we will reach a point when other assets will become so affordable, in terms of gold/silver, that the temptation to barter will flush wealth out of PMs and back to traditional assets (like real estate, stocks, etc). I don’t see a PM bubble anytime soon, nor do I see anyone holding PM in a hurry to trade. Thanks for the great questions and comment.

QUESTION:  Have you noticed the national debt clock? This is only possible because of our digital non-existent currency age.

TPS Reply:  Yep, it keeps rising, right? This is what happens when a government grows beyond its tax base. My recommendation is to keep stacking silver and gold until it stops.

Our transition to a digital currency is right on time. How else can a currency realize such creation on a global level? We are in the fourth quarter of a fiat currency meltdown created, and now propelled, by nothing more than greed and a political failure to transmit honesty, integrity, and strength. Other than that — this administration and other political leaders are doing a fine job by systematically dismantling our country piece by piece.

 

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

 

 

 

 

 

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BANKING RISK

BUYING GOLD/SILVER, GOLD AND MONEY   No comments yet

By definition, the word captive describes the action of something, or somebody, held prisoner by a person or group until specific demands are met or money is handed over. Today I’ll explain how this affects you and why wealth stored in banks, all banks, will soon fall hostage to a condition I can only describe as a banking prison. Please add this risk as yet one more reason to store some wealth in physical cash, silver or gold.

Just the mere mention of “prison” and we picture worse offenders serving time in places like Alcatraz or Port Arthur penitentiaries. Few picture our local bank as such a site of incarceration or captivity. After all, banks prism beauty, security, strength, structure, and trust. Depositors rarely question the risk of an imminent hijacking of wealth, not from their bank at least.

The articles below prove how powerful a grip our banking industry has on the political orientation of tomorrow. Remember folks, this money is yours. Congress is nothing more than the entity elected to disperse our money in a responsible fashion.

An Obama administration program is under fire, with federal investigators finding that community banks used the government’s funds to pay back recession-era bailouts – instead of lending the money to small businesses as originally intended. source -CNN Money (April 2013)

or

The Treasury Department does not require banks who have received the money (TARP) to show how they are using it, claiming that it is not possible to demonstrate on a bank-by-bank basis. source – CNN Money (August 2009)

or

And here comes Goldman Sachs (GS), the royalty of Wall Street, racking up a huge $3.4 billion quarterly profit and making plans to pay bonuses that could average well over half a million dollars per employee.

Goldman, of course, is accomplishing this with the help of a $10 billion TARP loan from the government. source –Seeking Alpha

Since September of 2008 the protocol is nothing more than saving banks regardless the cost, regardless the irresponsible risk that crippled a once strong banking system. The marriage between Congress and a private Federal Reserve Bank (Bernanke) appears innocent enough but has created a one-sided monetary structure with little accountability. This is by purposeful design.

Each week I present facts as to why physical PM (precious metal) will rise in value over the balance of your lifetime. But the issues we’re facing today go far beyond profiting from PM investments. Our situation has transpired into financial survival in order to maintain some sense of personal independence. Silver or gold, regardless the price, is one of only a handful of positions to store wealth outside a corrupt banking world.

For those willing to take notice….. big bank officials now bounce back and forth between political positions of advisory and private banking. Nearly all those who advise this administration have a vested interest in supporting this status quo. This collusion bleeds beyond a conflict of interest. Their only interest is greed, power, and controlling your money.

Someday monetizing debt and printing currency will no longer support this thirst or greed. At such a time something will give and panic will influence those in political control to accept more of the same misguided advice from bankers.

Bankers will warn, eventually, that the entire financial network is under threat of collapse and politicians will react accordingly. Like today’s Cyprus, our banks too will ration and tax your wealth by limiting transfers or withdrawal of your money. This monetary progression is exactly what happens when banks dictate political influence and capital control.

If this threat I’m describing today sounds real then buy physical silver or gold. If not, stay the course. But remember that the merger between banks and politics never bodes well for those entrusting wealth in either.

QUESTION:  All of our savings are in 401k roll-over accounts.  These funds are not easily gotten to without tax consequences so we are hindered in our ability to accumulate physical gold/silver.  So, we have allocated about 30% of our savings in Gold/Silver ETFs.  We have been able to accumulate some physical silver a little at a time but is there a better way to protect our lifetime savings?

TPS Reply: Your question arrived just in time to work into this post, thanks. As I’m sure you’re aware, I’m not a big fan of wealth disconnect of any kind, but. The 401k accounts you’re describing do offer tax deferment and the opportunity to store wealth within PMs. The question of the day is does the fund actually have access to an equal amount of physical PM as you have invested? I personally doubt most funds do.

The next question is do you stay the course or suffer the tax consequences from rolling the 401k into physical silver or gold? We can address the ETFs but my biggest concern is when you mentioned “we have been able to accumulate some physical silver”. This, to me, implies that you’re not comfortable with your level of physical holdings, right?

My opinion is that physical holdings should supersede paper PM holdings. We will soon reach a point where all investments are in question of “real” or “paper”. This could lead to panic as wealth attempts to find solid footing.

I’m not a financial advisor so I can only offer what I would do if in your shoes. I would do whatever it takes to accumulate a balance of physical allocations, regardless. I would then store at least 1/3 within arm’s reach or with someone very trusted. By the way — this transfer of wealth could include liquidating, or trading, any personal asset into physical PM, not just a 401k.

Now, as far as your ETF,  Sprott Asset Management offers a gold-backed ETF and claims to hold all investment assets in physical gold bullion.  Eric Sprott has a respected name within the PM community and is definitely worth checking out. As always, due diligence is recommended so invest time before money. Thanks for the great question, and reading TPS.

 

QUESTION:  How long is the typical wait time for online PM purchases? I’m new to PM (just found TPS) but don’t like the idea of wiring $ in faith hoping the silver arrives as promised.

TPS Reply: I hear you loud and clear…… and 100% agree. The PM industry has little regulations; this is both good news and bad. This is why it is imperative to find a trusted PM trader with a respectable reputation BEFORE BUYING ONE OUNCE. The wait time is unlike anything else shipped since demand and inventory affect how long it takes to physically receive a PM order.

Your online PM dealer doesn’t usually have the PM in hand when you place an order. Most dealers are brokers which mean they work as a middleman between you, the consumer, and the wholesaler. Any delay in shipment usually stems from a whole seller not able to keep par with demand.

Have you considered buying a few silver ounces from a local coin shop? This face-to-face exchange will allow you to build a local relationship, instill confidence, and provide a cash-and-carry exchange. When consulting with PM newbies I usually recommend starting with silver or gold bullion paying as close to “spot” metal price as possible.

Save the large purchases for online and only after your PM confidence grows. Email me for a list of reputable PM dealers, I’m glad to help. Oh, and welcome aboard.

 

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

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Signs of a REAL RECOVERY

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

Signs are a forewarning that something important is soon to happen. Arm numbness could be a sign of a heart attack. Night sweats could be an early sign of diabetes. Lately I’ve been searching for signs of a real economic recovery. How else can we explain the latest gold/silver decline, all while the DOW posts another new high, other than a true recovery, right? After all, the great metal sell-off of 2013 can only be attributed to a new found level of economic faith.

Is the city of Detroit a sign of economic recovery? Detroit dropped from a circa 1950ish population of just under two million to less than 700k today. No one counting can be surprised by the bankruptcy of a city when it loses over half of its middle class and industry all while simultaneously growing the state’s pension obligations. Detroit is certainly not a sign of recovery as we watch poverty overtake what was once declared the city of great opportunity.

Nearly half of the wealth of American is stored in real estate. The lion’s share of this wealth rests in single-family homes known as a principal residence. But just as we’re led to believe the great housing recovery is unstoppable (housing bubble 2.0) news of a recent major decline in new mortgage applications say otherwise. Is it possible our great housing recovery could be upended by a 1% increase in mortgage rates?

The signs of a housing recovery are few and far between when the three denominators holding RE values together are cheap money, faith, and leverage.

What is a house worth, in municipalities like Detroit, after stigmatized by bankruptcy? The value of your home is directly affected by the health, and obligation, of your state and local economy.

The anti-recovery list grows longer. The new-found affordability of the Affordable Care Act has to be a sign of recovery, yes? Cities collapsing under the strain of long-term debt and unfunded liabilities have to be a sign of recovery, too. The fact we’ve reached the point of unbridled QE must be the truest sign of real economic recovery.

Why Silver & Gold will rise!!

The positive signs of economic recovery presented by today’s media are nothing more than a monetary distraction. Most individuals have reached a point of no longer willing to think for themselves, not to mention the ability to question those who put motive over principle. If the media or internet says so then it must be true.

I know my stack of PMs will take care of my family’s future for one reason only; what most folks view as financially stable is supported by the ability to create (borrow, print, or tax) currency. Everything from social programs, pensions, real estate values, stocks, banks, etc have reached the point of fiat dependency. This recovery is as real as any structure built upon a foundation of debt leaving no other choice but print of die.

Only the minority now buck this trend of nonstop quantitative easing. The rest, the majority, only argue over how to spend it. Think about this for a moment, please. Can you imagine the Detroit inferno if the evening news reported a significant reduction in social services, section 8 housing, food stamps, disability, etc.? What if a politician announced a monetary commitment to stop deficit spending altogether? The clip below answers it best.

Not only would city streets in every major city burn but the outcry from those invested in paper assets would be so great that the very life of the one proposing such a foolish plan would be in jeopardy.

This “jeopardy” is why your stack of physical silver and gold must rise just to keep a natural order of monetary balance and buying power. The United States, most countries too, have reached the point of no other option than print to appease, both politically and economically speaking.

I know TPS has mentioned this before but we are long past the point of arguing if metal will rise. It must rise, and will rise, as our nation accepts we are to the point of print or burn.  TPS recently posted how debt has become a threat to our national security. I’ll go as far to say the domestic threat outweighs the foreign threat when we calculate the growing number of our entitled.

COMMENT:  I personally believe the gold bugs are about to be squashed – maybe less than $1000 an ounce!!

TPS Reply:  Thanks for the comment. If every prudent person sitting on physical gold had to sell now then “yes”, the gold bugs are soon to be squashed, at least the most recent buyers. But your theory has one giant hole in it when we consider that few bugs are sellers. In fact, many are out buying discounted precious metal.

Let me guess, the DOW is your suggested new opportunity of safe haven? If so, what happens to the value of today’s DJIA if not for perpetual QE? What happens when the DOW has to stand on its own monetary merit? Will the 2008 DOW meltdown pale in comparison when those with wealth realize it’s nothing more than a paper promise?

Bernanke’s pile of printed money supports Wall Street because the lion’s share of this fiat rests on Wall Street. Of course investors in return support WS because they have little choice other than follow the next bubble; can’t you see this? I, for one, will side with the gold bugs by taking my chances with sound money (according to our US Constitution & 5000 years of history).

QUESTION:  In your last post, Fake Money Threatens our National Security, you mention the word “printing” but this is inaccurate. The money is nothing more than a digit, not only is it fiat but it doesn’t exist at all…. literally. Your point is noted but you should clarify. Thanks for what you do!!

TPS Reply:  Great point, thanks. You’re correct, less than 1/2% of cash deposited actually exists. This number can vary but never anywhere close to a percentage that would make most depositors comfortable. This is why the banking world is deathly afraid of a bank run similar to what happened in Cyprus.

This is also why I recommend keeping most liquidity in cash, silver, or gold form. In my opinion, at least 1/3 of this wealth should be within arm’s reach safely stored in-house or with someone trusted. I wish more folks understood the fragile nature of today’s banking world, fractional reserve lending (banking), fiat currency, and, of course, real money.

Good for you and thanks for the reminder!!  By the way to all readers, if this sounds like an overreaction just research the words “bail-in” as it relates to today’s banking institutions. Why not take a proactive stance while this option still exists?

 

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

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Fake Money Threatens our National Security, again!

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

Does the name Sam Upham ring a historical bell? Mr. Upham imprinted his name into history books in the most unusual fashion. In fact, Mr. Upham learned, well before Mr. Bernanke I should add, that the power to print is more profitable than the effort to work. Maybe this is why our gentleman of the hour printed nearly 15 million counterfeit Confederate dollars during this country’s Civil War over 150 years ago. Some respected historians believe our Civil War’s outcome was offhandedly determined by one “Yankee scoundrel” with the power to print money.

History is a road map seldom followed. So many readers are asking what it will take for physical PM (precious metal) to rise without questioning what happens when fake money rules the world. Like a wave building, the ill effects of fiat printing will soon position those holding sound money into a posture of wealth accumulation. Our country’s history is the only proof needed.

I would like to expand our history lesson for a paragraph, or two, before comparing a circa 1862 American currency to today’s precious metal alternative. The Confederate South created a fiat currency to afford a war. This new fiat currency, commonly called Confederate dollars, held no gold restraint because of a 100% reliance (sound familiar?) on those with the power to print.

Over creation, or over printing Confederate dollars led to rapid inflation as confidence in the money dropped all while volumes of Confederate dollars increased. It is worth mentioning that the cost of a man’s suit ran just under $3000 Confederate dollars as inflation gripped……. and then crushed this fiat money of the South.

For the record, the aforementioned Mr. Upham didn’t work for the Confederate Treasury. In fact, Mr. Upham was nothing more than a money bootlegger who realized the potential of combining cheap paper with barrels of ink. His ability to create fake money accelerated the Confederate currency into an inflationary spiral that led to the end of the Civil War!!!

I’m not a conspiracy theorist but it’s worth mentioning Mr. Upham was never caught, even with a $10k bounty on his head, and rumored to be protected by our country’s secret service till his death, hmm.

NATIONAL SECURITY:

Not a day passes without the mention of our country’s national security. The War on Terror rages long after September 2001 and the argument of a safer world is debatable. Less debatable are the costs of wars under the pretense of national security. To put it bluntly, we continue to borrow/print money in order to fight rotating wars.

The parallels between an extinct Confederate currency and today’s US dollar have reached an undeniable state of similarity.  The very act of overproducing our currency is now a compromise to our national security. This realization grows more haunting when we factor growing Middle Eastern tension and other threats of war.

Only a thin line separates the power to print, and then wage war, with the vulnerability of over creating a fiat currency that intensifies the threat to our national security. The Federal Reserve Bank promotes control but their actions say otherwise.

I’m not sure who tomorrow’s history will blame for the demise of today’s reserve currency. Will we print our dollar to death in order to sustain our consumer-based economy or will we destroy our currency in the name of national security while fighting never-ending wars?

Regardless why, physical silver and gold will protect the wealth of the few willing to accept today’s historical monetary lesson.

QUESTION:  DC, are we talking about someday trading pricey PMs back into a fiat currency (US Dollars)? Not sure I’m comfortable exchanging sound money for paper promises.

TPS Reply: Thanks for the comment and question; not a week passes without someone asking the same “what to do when it’s time to move on” question. You are correct, there will come a time to leverage wealth stored in silver/gold for another asset. We often envision this step, or process, transitioning through dollars first but this most likely will not be the case.

Complications arise the minute we convert an asset back into dollars. This complication could be a tax consequence (red flags or capital gains), wealth exposure, even security issues. The word that comes to mind is discretion. Discretion is a key component to owning, storing, and someday trading precious metal.

It’s worth mentioning that the same forces soon to propel PM higher will also have an adverse effect on other assets now over leveraged; real estate, stocks, and many businesses are a perfect example. When a business or property becomes overly leveraged it becomes vulnerable to a decline in revenue. The burden of leverage remains the same even if profits decline. This is the number one reason small businesses fail when a consumer-based economy cuts back on spending.

The potential to buy (trade) severely discounted property, stock, and businesses for precious metal will increase over this decade and probably the next, too. Those storing wealth in silver and gold will eventually realize the financial benefit of trading PM for another distressed asset. This trade bypasses the need to liquidate PMs into dollars, if structured properly.

This site will discuss many other options to trade, or sell, physical silver and gold in the near future. Thanks for the question.

QUESTION:  How does someone new to PMs know the best time to buy? I hear experts mention a “bottom” but how is the bottom recognizable?

TPS Reply:  Great question, thanks. The PM bottom is not recognizable…….. anyone claiming to know differently is nothing more than a paid PM spokesman. Too many forces now control day to day PM fluctuations, unfortunately. This means we must keep our eye on the long-term goal of wealth preservation by creating our own personal gold standard.

If you’re new to PM, and unprotected, please consider buying ASAP. No one knows when some event will push our economy to the brink…… just like the days in September 2008. The world’s banking institutions are now risky investment houses and highly leveraged. Sure central banks have rolled billions in dollars of liquidity into some banks but this cushion is pale compared to the exposure of most financial institutions.

My opinion is regardless the price paid PMs are worth it, especially when we consider the potential to preserve wealth ever so discretely. No need complicating this gift by guessing an actual PM bottom that will someday soon seem irrelevant.

Contrarily, I often recommend those PM protected to exercise patience when adding to their growing stack. The trend of late is declining. This means, in all probability, the same dollars will buy more metal in the very near future but only recommended for those already PM protected. Thanks for the question, and reading TPS.

 

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

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PRECIOUS METAL: PROTECTION OR PROFIT?

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

September 2008 was not a good month for most DJIA investors. It took less than seven September hours to drain $1.2 trillion from shareholders as the DOW index experienced a meltdown the likes Charles Dow never considered possible. Today’s gold decline reminds me of September 08′s DJIA in many ways. The same fear, same economic darkness, the same “will values ever come back?“, too.

I have no idea what prompts you to read a blog like TPS (The Prospector Site). Some read for assurance, some search for protection, and some want nothing more than to leverage gold/silver for profit. The latter are greatly disappointed as of summer 2013; my fear is this disappointment has a short shelf life.

Brave DOW investors who beat back the uncertainty of 2008 were well rewarded. These vivacious souls understood a 7617 point DOW drop over a few weeks could equal huge returns for those more focused on profit than protection.

After all, it’s always the few who stand strong that profit the most while all others run for the exits.

I’m no DOW fan, but it’s undeniable that investors have profited greatly since the days of 2008 volatility. Is it possible these same brave investors realized that stock holdings within profitable companies should not have declined in such a waterfall fashion, as they did fall 2008? Smart stock investors realized that such a bargain was a closing window of discounted opportunity.

Today’s physical silver or gold opportunity reminds me of the discounted blue-chip stock offerings of late 2008. I won’t speculate when precious metal prices will rebound but I can guarantee one thing. An ounce of physical silver, or gold, is worth far more today than what a person can buy it for, just like a 2008 blue chip stock.

Profit or protection:

If you’re protection minded, PM speaking, then the latest PM price drop means little…… maybe even nothing. Your plan is all about long-term fiscal prudence all while realizing a currency built on overpopulation (printing) cannot sustain value or buying power forever. A temporary waterfall decline within your PM plan – although disheartening – means little when compared to your plan of preservation, self-reliance, and independence.

The PM protectionist views profitability as a byproduct of wealth preservation. They also view the ability to transport wealth as an avenue to rebuild after a currency and government prove themselves as less permanent than what 99% of our neighbors would like to believe. The fact is history has not ruled in favor of print friendly economies or fiat currencies, never.

July 2013 is extremely unique for those who still trust physical PM. Generally I write from a precious metal long-term point of view, you probably already know this. But today’s PM opportunity is on the verge of presenting a shorter term position for profitability. If this is of interest……. please read on.

From this point forward I want to be perfectly clear. This writing creation you’re reading is presented, and should be interpreted, as a form of short-term speculation. Speculation is nothing more than a tally of risk compared to monetary reward and only played by those who can truly afford it.

We are soon to hit a PM bottom, this I’m sure of. I don’t know when or how low but the price of physical silver or gold will soon change her recent course. When it does the potential for quick profit is very real, but still not for everyone. Make sure you don’t confuse long-term PM prudence with the risks of speculation.

QUESTION: I hate to ask but must, have we reached a bottom for gold? Oil prices are zooming but precious metal prices are still in decline. Care to speculate?

TPS Reply:  Thanks for asking, and reading TPS. “No”, my opinion is we’re not out of this temporary fog of PM volatility and gold prices could fall accordingly. It’s impossible to predict how many weeks or months this downtrend will last. But it will end and when it does paper investors will drum a rhythm of precious metal opportunity, and the bulls will run again. We’ve seen this many times before and this time will be no different.

As mentioned over the last couple of posts; I’m not buying silver or gold at this point. I’m storing the cash just like I would PM waiting for the PM market to stabilize. Why buy now when the same dollars will buy more ounces, most likely, in the very near future? I can do this because I’m already PM protected. What about you?

Now, as for your crude question, oil that is. The situation in Egypt is stirring oil uncertainty and we can only speculate how this volatility will translate into pump prices. My guess, this is only a sign of the times and I’m personally not expecting cheaper pump prices anytime soon. Will rising crude prices drag PM prices up, very possible but not worth betting the farm, IMO?

Some economists believe a rising dollar index has more to do with the current price of precious metal far over anything else. I won’t disagree, but believe the PM decline we’ve watched since April of 2013 has as much to do with a paper PM sell-off dragging down physical values too. Regardless, both forces are only temporarily influential over the long term.

 

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

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PM FREEFALL: What should you do?

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

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

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

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

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

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

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

PM manipulation?

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

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

Never underestimate the power to create currency (money).

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

What to do?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

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


 

 

 

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