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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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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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WHY IT’S HARD TO JUSTIFY PRECIOUS METAL

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

It’s hard to explain the value of physical silver and gold to someone clueless. I often hear people ask, “Why is it so important to buy PM (precious metal)” or “why do you buy silver?” The very fact a person asks such a question tells me they’re not ready for PM, not personally at least. This is okay. Each person first has to come to terms that our economic recovery is an illusion before giving an ounce of thought to gold. I find myself comparing it to a gravely ill loved one who is imminently facing death. Like a life ending, the transition of currency back to sound money (hard assets) is a natural occurrence often repeated throughout history.

It usually takes on hour with a client – by phone -to match the right metal, where to buy it, and how to store it. This assumes the person is really interested in buying PMs in the first place. Some folks aren’t ready for the party to end. They’re still holding out for “normal” to return and, honestly, suffering from a self-centered perspective.

Buying silver or gold is a timing thing. My decision to own PM developed along with an overall life plan for independence. Growing wealth by way of PMs is a byproduct of self reliance. Sure I like the fact my savings grows each year but I like being a spectator during times of economic calamity most. I’m not sure what others think when I compare PM to monetary insulation.

Some have emailed asking how to convince a spouse or adviser of PM’s relevancy in this age we live.  I’ve even had some clients ask me to speak with a spouse which, by the way, is rarely enjoyable for either party. It’s not uncommon for one spouse to eventually buy silver or gold behind the other one’s back. I don’t recommend this in most situations.

I personally don’t believe in convincing people to own PMs. I’ve seen this turn into a blame fest the first time gold dips or silver turns volatile. It is much more productive to establish signals of relevance; below are but a few examples.

1.  Keep track of food costs; even to the point of writing costs down (rising costs are signs of inflation).

2.  Watch how often Washington solves fiscal problems by borrowing and taxation, never cutting.

3.  Begin to track values not in dollars but gold grams.

4.  Pay close attention to your local economy (a local economy is far more relevant than a national or global one).

5.  Make yourself aware how often elected leaders blame others or an event for a bad job’s report, growth, etc.

6.  Be aware how often the media distracts viewers in regard to “real” economic events.

7. Make note the ways the US simulates the failing path of Greece and Spain.

8. Research and track where the money comes from (who backstops the mortgage industry?).

Well over 90% of those sitting on PM sidelines are waiting for metal prices to rise. They gauge silver and gold’s relevance on rising metal values. The last couple of bubble decades have ruined too many small investors. They fail to ask themselves “why” an asset rises. This is why so many lost a fortune in the last housing bust. This is why others will lose a fortune in the next housing bust. We used to be “buy low” investors and good money stewards. Now, we’re “buy based on demand and a rising price” investors.

I began my gold voyage when it sold in the high 300s. I viewed gold’s protectiveness first and potential wealth gain secondly. The fact so few have the same view only proves far too many folks today underestimate the gravity of today’s economic situation. They are, in all actuality, still looking for the quick buck and care less about protecting their assets.

Dare to guess the number one reason folks aren’t buying precious metal? It is because precious metal hasn’t experienced a big price jump in the last year or so. This inaction leads to complacency. The one thing this writer can just about guarantee is this next point.  We will reach a time, in the near future, when everyone with a dime to spare will long to own PMs….. without convincing.

 Question: Thanks for TPS. I’m struggling with a safe way to protect my PMs from confiscation and theft. I’ll get to my point quickly since I’m sure you receive many emails. If I decide to store some of my gold internationally will these depositories notify the IRS when I sell? Any ideas how to discretely buy and sell?

TPS Reply: Thank you for reading TPS, and asking such great questions. As you know, today’s administration is adamant with everyone paying their fair share. This means your PM profit has a big bull’s eye on it. I would expect to receive a 1099 when you decide to sell, and this includes all assets…..not just PM. I recommend keeping record of price paid, price sold of all reportable gold.  To answer your question I would expect a 1099 form regardless where the metal is located.

Here is my plan, for what’s worth. I’m a long-term PM owner. I believe I can outlast our overreaching government. This means I have no plans to sell my gold anytime soon. Things change quickly and my plan may have to adapt along with this change. At some point precious metal values could get ahead of themselves (bubble).

I believe silver and gold will eventually back a new or existing currency. How can this not be good for those of us holding physical PM? If my choices are to chance paying high PM taxes or losing my wealth in dollars, I’ll pick gold seven days a week. The “Golden Rule” always works in favor of those holding real money.

Now, your last question about discretion is good. We still have choices as of February 2013. This means you can legally buy physical silver and gold with no records attached. I strongly advise each person reading to consider exercising this freedom. Thanks for the questions and send new ones over anytime.

 

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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THE WORLD AWAKENING TO GOLD

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

Bill O’Reilly is on our side of precious metal and doesn’t even realize it yet. It only took Mr. O’Reilly 3:37 minutes to explain why each person with wealth must exercise a plan to protect it, regardless the monetary size.  Please take a moment and listen for yourself before we continue.

 

To fully understand gold and silver’s future we must first absorb the impact, or awakening, when a person as polarizing as O’Reilly uses words like “unsustainable fiscal path” or “collapse of savings” or “dollar collapse” in his opening prime-time monologue. Such a truthful 3:37 minutes I’ve yet to hear in front of an audience of millions.

We will not awaken one morning to $400 or $500 silver overnight. Nor will we awaken one morning to $15,000 – $20,000 gold overnight, either. The progression from where we are now to where we’ll soon be is chucked full of necessary steps of awakening. The video above is yet another one of the steps we’ve spent the last 22 months describing.

Just three people; only three people stood in front of me while I waited to buy more silver ounces from my local coin shop this week. It’s worth questioning why in such an age of economic calamity the line doesn’t wrap around the corner. Is it possible Mr. O’Reilly is correct when he mentioned that most Americans simply will not listen or, worse yet, too stupid enough to care?

I refuse to believe folks in this country are inherently lazy, selfish, or too wrapped up in individual pursuits. Sometimes facing reality takes multiple knocks to the head before we realize the same old same old is not only not working but draining generational wealth byway of inflation and dollar debasement.

The awakening that will propel silver and gold much higher is full of postponement and laborious.  One postponement; 99 weeks of unemployment benefits. Another postponement; the 65% increase in food stamp participation over the last four years. Another postponement; the number of dieing industries still standing thanks to taxpayer bailouts and endless stimulus.

Our silent economic depression hides well behind a 17 trillion dollar deficit and an administration more concerned with growing government than impoverishing our nation.

The words Mr. O’Reilly use in the video above are all PM (precious metal) triggers. These “trigger words” snap the viewer holding a bag of Cheetos to attention. Our nation slowly gravitates away from mindless entertainment to a thirst for monetary truths. O’Reilly understands this thirst leads to more viewers, more book sales, and ultimately more folks no longer willing to accept political manipulations.

The video also mentions a Congressional agency called Government Accountability Office (GAO) preaching the ill effects of too much national debt on our economy. Being honest, I had to look up the GAO…. and guess what? The GAO site should be a warning, or awakening if you will, to everyone with a computer.

Look for more media figures, sports figures (pro golfer Phil Mickelson just this week mentioned his disdain of paying a tax rate of 62%, read it here), and everyday Americans to join the minority unwilling to accept the monetary status quo. Guys like O’Reilly and Mickelson may not own silver or gold yet but I’m willing to bet their willingness to publicly call B.S. will eventually lead them to the same mindset we share. All while the rest of the world awakens to gold and silver in their own way and time.

Question:  After reading your book it inspired my husband and I to buy silver. We refuse to believe a growing deficit will take our country back to “normal”. It is now very clear that those in power have their best interest far over ours. Care to guesstimate future silver values? Also, what about Morgan silver dollars? Thanks DC.

TPS Reply:  Thanks, and congrats on making silver part of your financial future. A few PM experts are throwing around some hefty silver values so maybe today is a good time to fact check. I recently heard Doug Casey mention $300 silver.  Miles Franklin team often mentions $1000 an ounce physical silver.  With that said who knows what to believe?

Ones willing to predict future silver values do so by dividing currency in circulation by known gold ounces. Then, they guess what the silver to gold ratio could be according to historical ratios; this number in dollars is staggering compared to today’s standard. Here is my take for what it’s worth.

I believe this administration, like so many before, will continue to print and grow our deficit therefor debase the buying power of the very dollars you and your husband work hard for. The problem is we have continued this reckless spending for so long now we no longer get the same boost as before. This is why economic negativity grips all corners of the earth as you’re reading today.

Silver, as mentioned many times on TPS, is reactionary. It will rise, or react, as high as necessary until monetary reasoning returns. Right now, few currencies in existence are not participating in printing so it’s hard to say how high silver will climb before bubbling down someday. My guess is the dollar value of silver will far surpass what most can imagine.

But even $1000 or $10,000 per ounce silver is as relative as each dollar’s buying power. Eventually we will reach a point, if the printing continues, when silver will not be assigned a dollar value. At such a point silver and gold will be the first currency choice and USDs (or whatever currency is second most dominant) will become a distant second.

Mike Maloney pointed out a real case scenario in his book Guide to Investing in Gold & Silver. The Roman Empire debased their currency over several decades until finally minting coins with little or no silver. Roman soldiers eventually refused to protect politicians and people of prominence unless they were paid in real silver. Everyone else had little choice but accept the new fiat currency coins and the rest is history. The US is dangerously close to reaching such a point.

Now let’s take a moment to discuss the Morgan Silver Dollar question. Morgans are cool old coins and just this week I contemplated adding more to my silver arsenal (my local coin shop sells melt-grade Morgan Dollars $30 -$36 per coin). Unfortunately….. Morgans are not a full silver ounce (I believe they’re 90% silver weighing around .77 an ounce… depending on wear) so keep this in mind when buying old coins. Personally, I will only buy melt Morgans that hold no numismatic value since I’m only interested in the coin’s silver content. Due diligence are the two words that pop in my head. Thanks for the great questions.

PS – If you’re buying or own rare coins, like Morgan Dollars, please share your knowledge with other readers. We would love to hear from you.

 

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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THE ONLY PROTECTION LEFT…..SILVER & GOLD

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

Listening to Congress argue over increasing your taxes reminds me of trick I used to play on my boys many years ago. As they crawled into bed I would lean into their room all while hiding the light switch closest to their door. With my free hand I would raise it high in the air asking my boys if dad had the magic to cut the lights with nothing more than a snap of the finger. What they didn’t realize was my other hand, blocked by my body, could flip the switch off simultaneously. The trick worked many times before my oldest let reason supersede the magic of his father. Today, our elected officials play the same cute little trick on the masses as we fall for the same taxation dog and pony show over again.

I love the exposure power of precious metals. Regardless the deceit, regardless the monetary games, silver and gold continue to expose the obvious for those willing to accept that ones in power refuse to admit a failed fiat system will only continue to erode what you and I have worked hard to amass.

Some of you reading today are new to precious metal which means you’re new to TPS (The Prospector Site). First, thanks for joining us today but especially thanks for joining the minority that refuse to accept the word “recovery” at face value.

There is zero chance that record debt creation will create a long-term healthy economy and the only way to protect you and your family is to make a proactive approach by insulating your wealth from taxation and inflation.

The trick we must discuss today now plagues not only the USA but most countries worldwide. All of us living in the US must burden the lion’s share of responsibility since we are the only voters capable of stemming the trickery I wish to discuss today. We are the only nation capable of creating more of the world’s reserve currency (US Dollars); therefore, each citizen of this country is responsible in some capacity or another.

Think back, if you will, of my silly trickery shared with my little boys and the hidden switch. My left hand represented today’s argument for taxation by drawing our attention. The news over my shoulder, as I write this post, cackles with left and right leaning personalities arguing who should pay more taxes in order to resolve this “fiscal cliff” rhetoric that fills our news.

This is the same argument we heard last year, and the year before. What if I told you this argument is nothing more than an illusion, or distraction, while central banks around the world create more currency backed by nothing more than your continuation to accept paper as money!

The argument of taxation creates the smokescreen necessary to push the problem one more day down the road and only because we continue to watch a political version of my hand slowly rising to an attention grabbing position. Some of you might ask what the big deal is since we’ve had deficits as long as most reading lived. I’m glad you asked.

Those elected need not raise taxes as long as you accept printing more money. You see, the easiest taxation ever created is the power of inflation since inflation doesn’t appear on a W-2 or year-end tax returns. Those requesting your vote realize the danger of taxing you directly but relish in the ability to tax you by way of inflation.

Please don’t take this wrong but such political power derives from our monetary ignorance, sorry.

If you ask how high silver or gold will rise I have a simplified way to answer your question. Real money (metal) will rise as high as necessary to counterbalance real money with inflation. Will gold rise to $5000 an ounce, maybe silver to $500? Can you imagine what happens to PM prices when we dump fear, uncertainty, and a very limited supply of silver /gold into our bowl of inflation?

The evidence is all around us. It’s at your grocery store, gas station, local utility, everywhere. It’s most evident at your local coin shop who now charges around $24,000 for $1000 of face value legal tender coins made from silver. Folks, these coins…… not long ago I might add, traded dead even with dollars. Now it takes 24 times more dollars to buy the same amount of silver. Welcome to inflation 101.

Our silver example exposes inflation when we consider 95% of our dollar’s buying power disappeared over one generation. Folks, we borrowed more money as a country over the last 5 years than over the previous 200 years. How can anyone argue recovery over inflation?

This type of inflation is tolerable when a debt based / consumer based economy supported growing wages but these days no longer exist….at least not for most of us. Can your income keep par with the level of inflation I’m describing today? If not, my advice is to relocate some of your wealth to precious metal, SOON.

The trick that steals your money is this simple. One way or another we all pay for the monetary mismanagement described today, we pay more in taxes or we pay more thanks to inflation.

LAST WORD…..at least until we try to answer some of your questions. Since the presidential election TPS has received an extraordinarily number of comments and questions. Thank you. This tells me folks are very concerned and looking for real answers in a time of uncertainty but fortunately many of you are considering silver and gold. I encourage each reader to continue their quest to find monetary truths and congratulate each of you for your effort.

WORTH REPEATING:

 November 9, 2012: “The Fed’s paper money system is the major source of economic suffering today. It is the reason that Congress can’t control its spending. It’s why it can fund wars and the police state. The paper money monopoly distorts economic signals and causes booms and busts. It robs the American people with the insidious tax called inflation. We must never forget that the Fed has the massive power it does only because of paper money. If it were restrained by a gold standard or monetary competition, the Fed would be a menace, but not a mortal threat. As it is, the Fed, and, by extension, the government itself, holds our entire economic future hostage.”  Dr. Ron Paul

For those who believe taxing the rich is the answer I want to share the Youtube clip below. It is sobering to say the least.

 

QUESTION: Why does the price for gold have such a close relationship with the price of oil? It’s easy for me to understand the price of gold [PM] following the value of the fiat dollar, but how is that related to the price of oil?
I might note that I have dealt with Don Stott, coloradogold.com on six different purchases, and could not give a stronger recommendation. Everything goes exactly as they say, and you have nothing to worry about. Thanks for the help.

TPS Reply:  Great question so thanks for asking. Oil, since the early 1970s, is priced in USDs and this is why we often hear the term “petrodollars“. It makes sense that oil and gold appear in lockstep when we consider both expose today’s declining power of fiat dollars.

Something else parlays oil and gold together and it can be summed up in one word, volatility. The conflict building in the Middle East has the potential to send both commodities beyond the affordability of over 90% of the world. Think how our economy now depends on oil to make the economic circle complete. Many folks in the US rely on goods transported over 1000 miles yet never consider how $200 a barrel oil affects the household budget. We have a choice to buy silver or gold, or not, but all things oil dependent are a much different story.

Today’s ratio (gold to oil) shows oil under priced so don’t be surprised to see oil rebound over the short term. The average ratio since 1970 is 14 – 15 oil barrels per gold ounce but today’s gold buys closer to 20 barrels. My bet is oil will rebound well before gold prices decline but who knows in such a volatile age of monetary manipulation.

Good call on the oil to gold relationship and thanks for validating Colorado Gold as a reliable source for physical silver and gold.

 

COMMENT:  Just found TPS.  After reading Aftershock (Wiedemers’ version) and Doug Eberhardt’s “Buying Gold and Silver Safely“, reading what I have here and seeing the same logic being applied to the world’s bubble economy and the realities of money printing, it is good to continue to find sources that agree with the Wiedemer’s and Doug in how to protect ourselves.

TPS Reply:  Yep, I agree and thanks for pointing out solid economic and PM information. Aftershock book is one often mentioned on this site since I’ve had long conversations with one of the three authors. It is impossible to not recognize economic bubbles after spending a couple hundred pages reading example after example why assets spike and then quickly lose value.

One event that helped me to truly understand PM comes from the 1980 gold era when metal spiked to just over $850 an ounce only to tumble in the months soon after. The gold bubble of 1979 to 1980 proves how the herd rushes into an asset late but just in time for the slaughter. Wise metal owners sold gold from the backdoor while the masses pushed and shoved trying to find the front door as coin shops struggled to meet demand.

I encourage each person new to PM to research how 2012 /2013 are different than the bubble days of 1980. Gold is off the radar of most investors /individuals considering it is estimated less than 2% own physical PM. Will gold’s relatively unknown status change someday? You bet it will and we’ll be right here to break down how current events affect today’s PM market.

Thanks for finding TPS!!

 

QUESTION:  Hi, I’ve recently become interested in buying gold and silver.  However, I am not thrilled about owning physical metals.  I would much prefer to own something like the SPDR Gold Trust.  I just wanted to get your opinion on owning gold via this method rather than the physical option and also if there is an equivalent silver trust that you like.  Thanks for the help.

TPS Reply:  Thanks for your questions. SPDR Gold Trust is one of many ETFs (exchange traded funds) that allow an investor to invest in metal without actually physically owning it. An investor sends cash to Wall Street and then hopes financial institutions promote your wealth in a favorable fashion. You are wise to show interest in silver and gold but I have reservations about anything owned but not held (allocated).

Owning silver and gold is part of a overall plan to shelter a family from uncontrollable economic conditions stemming from a fiat currency explosion.  The reason more and more search out assets like physical PM is to create an individual monetary system outside the financial establishment. PMs are the foundation to financial independence and have been for thousands of years, this will not change anytime soon.

The monies we hold in our bank accounts and wallets are no longer money, they are promissory. Too many have abused this fiat system we still call money and this is why TPS readers prefer real assets like silver and gold. I’m far more comfortable with you owning real physical metal first and then speculating on PM ETFs down the road.

By the way, if storing metal is not for you why not check out BullionVault or GoldMoney since both allow investors to buy real metal, close to spot (paper) price to boot, without the hassles of personal storage. Regardless, thanks for the questions and thanks for reading TPS.

 

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, SILVER & Facebook

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

Two weeks ago the buzz on Wall Street was Facebook’s IPO (initial public offering). As I write, Facebook stock is down nearly 23% from the original offering leaving many investors questioning such a sure thing. This leads me to ask how comfortable you are with your investment portfolio? From your emails, most are still on board with silver, gold too, but will we feel the same if gold drops below $1400? My bet is $1400 gold would make for nervous investors even though true metal owners know the best days for PM (precious metals) are still to come.


It is easy for me say the recent drop in gold is nothing to worry over since I bought most of my physical gold years ago, some of you cannot say the same. I won’t attempt to justify why gold is down lately since the answer is trivial compared to what motivates gold over long term.

Some of you are thinking of jumping from gold all while I’m timing when to add more. The only difference between “us” is perspective. You perceive gold as risky and I perceive gold as the only protection against fiat supported governments unwilling to go down without a fight. I perceive the crises of 2008 as a monetary siren and you perceive the economy as in recovery.

The type of investor willing to buy Facebook stock is the same one willing to accept forty years of a fiat based economy as sustainable, it is not. Facebook stock is declining because more folks around the world are beginning to dispute today’s fiat Ponzi scheme.

A few weeks ago, most investors perceived Facebook a wiser investment than physical gold/silver? We must realize the one thing Facebook and today’s gold/silver prices have in common is volatility. Putting a value on Facebook is nearly impossible just like putting a value on silver and gold is too (for two completely opposite reasons). With that said, here are the differences between PM and Facebook.

  • Facebook is socially popular, gold is not.
  • Facebook is a very young company, gold is the oldest form of money.
  • Facebook is moving toward global status, gold is a global currency.
  • Facebook’s future value is in question, gold’s future value is in demand.
  • Facebook unites the internet world, gold unites the wealth of the world.

It is no secret that I feel social sites, like Facebook & Twitter, will play a major role in PM prices extending beyond what most view as expectant or realistic. Nothing will transport the news of another bank holiday, Lehman collapse, or government bankruptcy like social networks can.

To be fair let’s talk about the long-term projections of a giant like Facebook. After all, Facebook stock should offer promise since this is a young company founded by some of the sharpest minds in our tech world, right? Maybe not. Will economic instability help influence Facebook stock upward? Will social unrest, the S & P in retreat, worldwide housing declines, or market volatility in general help elevate Facebook stock over long term?

No, aforementioned forces will not help Facebook’s stock value. Just because Facebook itself will find popularity around the world doesn’t necessarily justify it as a worthy investment, at least not as priced.

To find comfort in silver and gold requires a realization more than anything else. This realization must include the need for nontraditional monetary decisions during nontraditional times.

This “realization” must include a basic understanding how not one fiat currency has experienced long-term success, not one! On the other hand, gold has never experienced monetary failure. Now, with that said, who wants to buy some Facebook?

News Worthy:

REUTERS:  Biggest Greek Bank Warns of Dire Euro Exit Fallout

If Greece left the euro, living standards would plummet, incomes would be slashed by more than half, and inflation and unemployment would skyrocket, the National Bank of Greece warned on Tuesday.

The bank said per capita income would collapse by at least 55 percent, the new national currency would depreciate by 65 percent against the euro and a recession, now in its fifth year, would deepen by 22 percent. Read more here. TPS (The Prospector Site) adds, what is not reported is how US political forces are now pressuring European countries to PRINT stability into Europe’s economy.  This should be painfully obvious that those elected are willing to destroy currencies before facing political defeat.

News Worthy:

Congressman Ron Paul: Capital Controls Have No Place in a Free Society

The characteristic mark of a tyrannical regime is that it eventually finds it necessary to erect walls to keep people from leaving.  This is why we should be troubled by the “Ex-PATRIOT Act,” an egregiously offensive bill recently introduced in the Senate.  Following a long line of recent legislation and regulations attempting to expropriate more and more wealth from hard-working Americans, this new bill spits in the face of overburdened taxpayers and tramples on the Constitution.

If they wish to escape the Federal Reserve’s inflation by emigrating to lower-cost countries so their dollars will go farther, as many Baby Boomers are starting to do, the federal government will penalize them, and continue to penalize them for the rest of their lives as long as they hold any money in the United States.

No wonder increasing numbers of Americans feel this government is engaged in outright warfare against its own citizens. Every day the noose grows tighter, yet anyone who sees the writing on the wall and seeks to leave must pay exorbitant taxes just for the privilege of leaving, and increasingly the possibility looms of never fully breaking away from the government’s tentacles no matter where they go. Read more here. TPS adds, several international sites are now committed to provide accurate information to those interested in international dual citizenship or relocation. I’ll be the first to admit that this is not for everyone, but. Remember, life can change on a dime so don’t rule anything completely out. Check out International Man for more information.

News Worthy:

Financial Sense:  So You Think You Own Gold?

One of the most common reasons investors cite for buying gold or silver bullion is that they are losing confidence in fiat (paper) money systems and the over-indebted governments behind them. Many investors prefer to own “physical” gold rather than “paper gold”, meaning they want to own the real thing as opposed to a paper promise – a contractual commitment to deliver gold at a later date, or in other cases a contractual commitment to pay the equivalent of a future gold price to the investor.

But there is an alarming deficit of understanding among investors relative to how the precious metals markets actually function. In fact, I would go so far as to opine that most investors who believe they own gold really don’t! Read more here. TPS adds, Mike Maloney says it best, “If you can’t hold it then you don’t own it!!”

QUESTIONS & COMMENTS:

Question: This whole precious metal thing is confusing considering each so-called expert has a different opinion than the last. How do I know what is safe haven silver or gold? Two, who is trustworthy within the PM community? I don’t want to buy only to lose money like many others have over the last few months.  Please help since I’m not having much luck !

TPS Reply: Wow, you are loaded for bear but thanks for the questions. Let me start by taking some pressure off, ready? Don’t buy silver or gold, at least not yet, since first comes education (PM understanding) long before the steps in question.Don’t worry about prices going up since the risk of buying “wrong metal” far outweighs the risk of prices zooming.

Part of becoming comfortable with gold involves a basic knowledge of a fiat based economy now driven from consumerism. This understanding provides a solid foundation built from confidence that sustains a physical metal holder during times like today (this is why I pay no attention to media misinformation, dips or bubble talk).

Next, realize you’re not a coin collector and have no interest in rare coins. The goal is to trade currency for real money AS CHEAPLY AS POSSIBLE!! This is why we encourage readers to buy bullion coins, rounds, bars, or junk.

Now, as far as the who to trust question. TPS often interviews small family operated bullion dealers who have strong long-lasting reputations. Dig into our achieves to find one you are most comfortable with or visit a local coin shop asking to see their lowest premium silver or gold. Leave if they attempt to redirect you toward rare metal.

You mentioned a fear of losing money but this is far from the case. We can’t compare PM with typical investments of the past, i.e., real estate, stocks, etc. Precious metals are money. A wealth transport of sorts happens the minute you convert currency (what you called money is actually a currency) into PM.

Like all transportation the path to protection and prosperity is not a straight-line destination. Hills, valleys, dips, rises, are all part of this journey. No educated PM owner will sell physical silver or gold during a paper dip like the one we see today.  Thanks for reading The Prospector Site.

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MEMORIAL DAY 2012

BUYING GOLD/SILVER, GOLD & REAL ESTATE, GOLD & SILVER, GOLD OR SILVER BUBBLE, GOLD/SILVER CONFISCATION, SECURING GOLD & SILVER, SELLING GOLD/SILVER   No comments yet

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


News Worthy:

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

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

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

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

News Worthy:

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

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

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

News Worthy:

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

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

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

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

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

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

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

News Worthy:

SILVERSEEK.com– Illegalities

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

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


Comments & Questions:

Hello,

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

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

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

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

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

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

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

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

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


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THE PRICE OF PRECIOUS METAL INACTION!

BUYING GOLD/SILVER, GOLD & SILVER, GOLD OR SILVER BUBBLE   No comments yet

Do you view silver and gold as necessary?  In a moment you will read a quote from New York Times best-selling author Ben Sherwood. Mr. Sherwood wrote one of my favorite books called the Survivors Club. If you haven’t read it please do.  I had not heard the term behavioral inaction before Sherwood mentioned it while promoting his book several years ago. Since, I can’t help but compare today’s economic correction and lack of urgency to Sherwood’s definition of behavioral inaction.

“The best way – in the moment – to respond is to have spent a small amount of time anticipating that you could find yourself in this situation. One of the reasons why behavioral inaction happens – when people see the wing on the plane on fire and they sit frozen in their seats rather than making a run for it – is that they never imagined that happening. They literally search in their minds for a correct response to this situation and there is none.” BEN SHERWOOD

A common question from a PM (precious metal) Newbie is why more don’t see silver or gold as important enough to  own. I believe the answer is because of behavioral inaction. I also believe a reversal someday soon will propel your stash of both silver and gold values far beyond what most can imagine.

Average Americans view economic correction as past tense. Their mindset is the worst is behind us and recovery is upon us. This belief (behavioral inaction) certainly doesn’t prepare the masses for a realistic future, in fact, this belief doesn’t prepare the believers for anything but failure.

Progression from today’s “do nothing” mentality to tomorrow’s “panic buying” point could be great news for you (assuming you own physical silver or gold) but can be devastating to the rest unprepared.

Let me explain it this way. On this date one year ago gold’s price bounced around $1435 per ounce. On this date two years ago gold’s price was $1124 an ounce.  Now many look at gold’s rise and quickly chop it up to yet another asset preparing to bubble. But this view holds little water and here is why. PM is not popular, only 1% even own PM other than a wedding ring or a few jewelry pieces. Also, PM is not a victim of easy credit like yesterday’s housing.

PM, both silver and gold, is rising to keep up with worldwide currency devaluation.  What does this mean for the guy working hard to pay bills and feed his family? It means the same amount of silver and gold buys equal, or more, amount of life’s necessities.

This makes little sense to those practicing behavioral inaction.  In action prompts the willing to support a system trumping recovery without proof. In action prompts the willing to view worldwide money printing as a necessary path to “normal”. There is nothing normal about stealing your wealth’s value!

I mentioned a moment ago recovery perception will change and how when it does metal’s perception will change as well. Sherwood used a burning plane wing example. This type of emergency requires quick action and then devastating effects to those inactive. But our example today is a much slower burn. The ones in monetary control are able to postpone, for a while at least, a complete engulf.

Shadowstats continues to disprove controlled inflation. PM owners see this each year as silver and gold rise both in value and dollars. This proves the plan to print currency appears beneficial when markets rise (Dow or S&P) but a different story when compared to silver or gold.

The price of silver or gold inaction is shaping into a slow derailment compared to a head-on train wreck. Regardless, the results are the same and the price of inaction just as damaging. We are talking about a major loss of wealth, hope, and future.

I’ve mentioned before how my entry into PM also broadened my view of all things real from things not. This is not by coincidence. The same energy pushing you into PM also enlightens owners or, better yet, creates a spirit of action.

This independent spirit of action does not fit in well with overreaching government! It does provide security during a time of massive behavioral inaction.


COMMENTS & QUESTIONS:

QUESTION:

I’m almost ready to trade dollars for silver or gold. I have around $40k to invest but want to structure the transaction without bringing attention to new PM ownership. What do you suggest as the best means to secure PM without a recorded paper trail? Thanks.

PROSPECTOR REPLY: Thanks for the question. This question comes up more lately but rarely with as large a trade as $40,000.  The options are to break purchases into smaller sizes (dollar cost averaging approach). This could include buying discreetly from a local coin shop. Most states don’t require buyer ID but a little research on your end can answer questions like these. By far the majority of larger PM purchasing is online via bullion dealers (see GoldShark for competitive pricing). I’m told wire transfer information is not shared with anyone outside of banks, but. We live in an era of digital currency and this makes it very difficult to discreetly trade. Your wire transfer should go unnoticed but my guess is a record will always be available somewhere.

Silver and gold ownership still has ability of a paperless trail but local research on your part is recommended.  Remember, the downside of trading discreetly, or paperless, creates risk in other ways (counterfeit, theft, robbery, etc). Many large PM owners use several methods to buy silver and gold, some more discreet than others. Hope this helps.

QUESTION:

It seems paper gold is dragging all gold value down. I see no reason to buy when prices of gold bars or bullion manipulated or in decline. What do you say?

PROSPECTOR REPLY: Thanks for the question. I have waited for his one especially considering all the internet chatter of  PM manipulation.  For those new, paper gold is exactly as sounds and most is not backed by physical gold (or silver). This leads many to believe large PM paper players, and central banks, can manipulate overall PM prices buying or selling (trading, shorting, naked shorting, futures) paper metal. This certainly appears to be the case.  So what does this mean for physical gold holders?

It means the plan stays the same. I personally take advantage of PM manipulation by buying more physical metal. This manipulation is nothing more than an intermission over the long term. I have little doubt physical metal will part with paper silver and gold someday soon. In some ways it already has but with new bullion availability it’s hard to recognize. This could change quickly since inventories are far less than most imagine. Waiting to buy silver or gold could be risky but certainly your choice. In my perspective this only prolongs the opportunity to protect wealth via affordable silver and gold. Regardless, thanks for reading our site.

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WILL GOLD & SILVER BE THE NEXT BUBBLE?

BUYING GOLD/SILVER, GOLD & SILVER, GOLD OR SILVER BUBBLE   No comments yet

One of the many highlights of founding a site like this is when we receive great questions from readers who truly hunger to understand PM (precious metals). Such a question came in recently asking for a further explanation why gold or silver could bubble leaving many falsely protected. My goal is to explain gold and silver without over complicating PM along the way. Today’s topic might be a little overwhelming for those new to silver and gold, if so, I’m sorry in advance.  But like most questions, if one person is willing to ask then others are asking as well. By the way, the question below is one long question broken into several replies.


QUESTION:

I appreciate the work you’re doing and have been an avid reader of your blog (The Prospector Site) for the past 6 months which is when I began to accumulate physical gold and silver. My question to you revolves around the so-called ‘exit plan’ from previous metals. Many precious metal experts seem to be of the view that the price of gold and silver will ultimately rise to bubble territory similar to 1980 and that it would be wise to switch to an undervalued asset such as property at that time before the inevitable crash. Reading your blog, I conclude that you share this view. Please correct me if I am wrong. PROSPECTOR REPLY: Congrats on jumping into the world of physical gold & silver. You are correct, I view PM as someday ramping into bubble territory.

QUESTION CONTINUED: However I’ve come across another long running blog which seems to suggest that despite paper gold becoming a bubble, physical gold can never become a bubble as its fixed supply can never be ramped up at will to support demand. The author argues that physical gold is essentially the opposite of bubbles and absorbs the monetary energy of bubbles that pop. He limits his theory to only physical gold and not silver as he is of the opinion that silver will behave as a commodity and not act as a future store of wealth.

PROSPECTOR REPLY: Silver is far more than a commodity, it’s money. I doubt this will change in our lifetime but no one knows the future. Please remember,  silver doesn’t have to be worthy but perceived as a worthy harbor for wealth. This silver theory goes against conventional wisdom especially when we conclude most (99%) still await some form of economic recovery. Nevertheless, it is wise to physically hold both metals in my opinion.  Unfortunately, many will soon find gold too expensive leaving silver as the next option, interesting observation.

QUESTION CONTINUED: He states that as the US dollar loses its reserve status, physical gold will rise in value tremendously many times over and then stay elevated as the ultimate world’s monetary wealth reserve while the paper gold market crashes. He uses the example of the world’s Central Banks accumulating physical gold to support his view and points out that they are not doing this with silver. He is also not accepting of the argument that silver will act as the poor man’s gold as he says that the difference between rich men and poor men is that the rich have inter-generational wealth that lies very still and maintains its value as savings whereas the poor would be forced to circulate their silver to meet their daily needs.

PROSPECTOR REPLY:  Great point and why we recommend owning silver rounds for such a barter/trade possibility. Rounds are easy to own and usually sell closer to spot than legal tender coins. Trading silver rounds for other assets, or necessities, could be necessary during a reserve currency reshuffle. One other point, rich men are buying silver since I know of several billionaires heavily invested in silver, as well as gold (David Hoffman with Miles Franklin mentioned a $5,000,000 silver transaction earlier this week, ONE TRANSACTION, wow). Back to gold for a second if you will, I don’t assume central banks will play the same role in future money as the other author.  Is it possible central banks like gold over silver because of gold’s ability to compact wealth? Central banks once held huge reserves of silver but this no longer seems to be the case, they seem more interested in gold.

QUESTION CONTINUED: He warns that silver may not play a part in the future monetary focal point as its supporters seem to think. The 1980 peak and subsequent fall of the gold price is dismissed by him as not a gold bubble event but rather a central bank intervention to save the fiat currency by raising interest rates steeply which he argues would be impossible for the current authorities to consider as it would lead to a financial collapse. Serial bubbles are formed by Central Bank inflationary policy according to him and are not a product of hard-earned real capital which he says will always flow to the safest point which is physical gold. I found his stance quite interesting and would love to know what your thoughts are on this matter. The author concludes by saying that unlike 1980, this time gold will go up and stay up. And that although there may be a temporary overshoot in actual purchasing power, with the threat of hyperinflation in the background, it may not be worth attempting to catch the overshoot as you may find yourself in the wrong paper at the wrong time which is something I am sure we would all like to avoid given how far we have come and are likely to go on this journey of ours.

PROSPECTOR REPLY: As you already realize, there is no easy answer to your question. I have given plenty of thought to the same questions you’re asking since timing a jump from PM can be challenging.  I just find it impossible to believe masses of currency chasing any asset can do anything but drive an asset (gold or silver) beyond relative value? What we must agree on is importance of real money, like gold and silver, regardless if they overshoot in real purchasing power (bubble). It really does come down to whether or not central banks choose to print currencies into worthlessness or a country like China pulls private gold to establish a new gold/renminbi (yuan) currency, we just don’t know yet. In the meantime, I’m buying both metals and recommend all readers consider PM in the very near future. Oh, one last thing if I may. Crazy times like we live create a tendency to over think issues, I know this firsthand.  Not one person on this earth can predict our future with 100% success, this only leaves us to make the best decisions possible with information at hand. Thanks for the great question, you make great points!

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PROOF MEDIA DOESN’T UNDERSTAND GOLD

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

The big story last week, “French Champagne Maker Finds $1 million in US Gold Coins”.  I agree, this is big news but the big story is not the find, not the number of coins either.  The big story is why the media doesn’t question how $10,000 in face value gold coins (497 coins x $20) are now worth nearly $900k in melt value gold.  If you own silver or gold, or thinking of buying PM, you must take a moment to wrap your mind around this story or better yet, lack of story.  The value of future gold is written between each line but only obvious to those willing to accept gold as money.  This type of news only proves my decision to trade dollars for PM back in 2002 was as wise now as ever before.


Would you read such an article if the headlines said, “$10k In US Dollars Found in Champagne Maker’s Attic”, why not? After all, a $20 Liberty coin or $20 Gauden both had a face value and dollar value of twenty bucks up until a tragic day in 1933.  Twenty bucks, the same gold coins that recently rained down on a French construction crew worth $1,000,000.00.  I searched the internet looking for one article willing to explain why or how $10k in gold coins turned into $1 million over eighty years, nothing.  Not one reporter, or editor, rolled the dice on such a delicious backstory as the one you’re reading today. It is important to understand that the person stashing 497 $20 gold coins was not hiding a million USDs; they were hiding $10,000 at the time (it’s believed gold coins were stashed in the 1930s).

So many questions run through my head with a find like this one.  Why did someone hide US gold coins in a French warehouse many years ago? Was it because of US gold confiscation? Was it to pay a foreign debt?  We’ll never know the answers to these question but the one I most want to ask is not to the construction crew, not the Champagne profiteer either, the question I want to ask is to non other than Mr. Bernanke (Federal Chief) himself.  The question, “Mr. Bernanke, why is it after eighty years the same 10,000 (in US dollars) is worth around $1500 today but the same $10,000 in gold is worth nearly $1,000,000 now?” Then just one other follow-up question, “How can you repeatedly say gold is not money when this find proves a true value of 100 times face value?”

It is imperative to comprehend how willingly citizens and media accept dollars as money when a find like this proves exactly otherwise. Mr. Bernanke can’t admit his monetary beliefs are jeopardizing a worldwide economy because this is validating decades of monetary mistakes.  We must also realize, just as our dollars continue to decline, the fault will lie with someone else well before admitting a fiat currency exists to empower government, not its people. I’m not sure why most refuse to connect obvious dots but keep buying metal until they do.  So now we must ask what a media awakening will do for metal prices and when will this revelation take place?

Today’s media age is much more about sensationalized news than reporting. We live an age of confetti and balloons which is unfortunate for things real like precious metals.  Our media will eventually find the story of gold but my guess is not approach it as worthy but popular.  The disadvantage of such a presentation is misleading and will drive uneducated buyers (gold ignorant) into a metal they know little about, this will push PM prices far above intrinsic value. The age of social networking will spread news of the next gold rush like 60 mph winds spread fire but, unfortunately, the masses won’t understand coming in too late is worse than not buying at all.  I see today’s prices as nothing more than fraction of future values but who truly knows for sure?

Timing of such an event is impossible and in all probability will take place over many phases before turning straight vertically, like 1979, 80. A conflict in Iran or a disruption in oil that leads to a spike are all reasonable explanations how something can trigger gold’s run.  A slow continuation of dollar devaluation, with inflation, could easily turn the pack toward PM.  The timing is far less important than an exit plan. Those who truly understand how masses fighting over a limited supply will drive any asset well beyond true value will profit most.  We know this to be true when we recall dot.com and housing bubbles of not so long ago.

THIS IS MY TAKE SO TELL ME YOURS.  DOES A FIND LIKE THE ONE WE DISCUSSED TODAY PROVE GOLD OVERVALUED?  WHY CAN’T MORE SEE GOLD’S DOMINANCE OVER PAPER CURRENCY? CONTACT ME RIGHT HERE WITH YOUR COMMENTS OR QUESTIONS.


COMMENTS & QUESTIONS:

Thanks for such a Great Website,

I check for updates everyday.You are right on with your message about Gold & Silver. I started with buying Junk Silver, then added Silver Eagles and then some smaller size Gold Eagles.  I will continue to buy some of each of the Gold & Silver Eagles as I’m able. My reasoning on owning Gold & Silver is it’s all part of a well rounded survival plan.  Having some sort of short and long term food stored. Having some protection in the form or guns and ammunition. Paying off debt, keeping some cash were you can get at it. And having a variety of PMs just makes sense.  Thanks Again for all the great information

PROSPECTOR REPLY:  Thanks for the comment.  You are wise to own both gold and silver as part of a bigger protection plan.  My understanding is Gold and Silver Eagles (that you now own) are the most popular bullion coins available since both have a guarantee of authenticity from the US Mint. You mentioned “Junk Silver” and I”m glad you did since we often overlook the value of bags of old silver coins.  If others are looking to find an easy entry into silver then I urge you to look into junk silver as one of today’s most affordable options.  Many online bullion dealers also sell bags of junk silver in several different sizes, many times at low premium over spot.  If any of our readers have more info on this type of physical silver (junk silver) please pass it along.  Thanks again for the comment.

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