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Archive for April, 2011

LOOK WHO IS BUYING DISCOUNTED GOLD & SILVER

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

Most commodities offer discounts for volume or bulk but silver rarely does and gold will but you better have a fat check book.  Ask nearly any broker or shop for a discount and watch how quickly they look over your shoulder and to the next customer willing to pay full price for metal in inventory.  So where does that leave metal buyers/sellers looking for a fair deal?  Maybe we should be looking at discounted silver and gold from a different perspective.

Yesterday after I picked up my son from school he asked if we could visit a pawn shop in town.  I had not been in this shop so I had no idea what to expect but something my son asked me just before entering made me think about discounts.  He asked if I thought it was possible this shop had silver and might sell it for less than market by not knowing current prices.  This might make sense to a kid but I can tell you there is not one shop that doesn’t know silver is hot and unless they are facing cash flow issues full price is the offering.

But the fact is many buyers are getting 5% to 10% discounted metal even in this day and most of these transactions are right under our noses.  The problem is the guys buying are paying spot and then reselling for market which is always over spot.  Unlike the traditional investment mentality of buy low and sale high most sellers are content to give up profit based on an outdated mind-set.  I recently went into my local coin shop and asked if he was willing to sell a couple of gold pieces on consignment.  His reaction was quick and firm by telling me no way, no how, since most sellers don’t even question selling at spot so why should he accept consignment?

Of course coin shops and brokers argue the difference in spot and market leaves room for market fluctuations but this excuse only holds water in days gone by.  Most shops and brokers can’t keep inventory in stock so why should sellers give up 5% to 10% in an explosive market like today?  Five minutes on Craigslist ( see it here) and you will see buyers 5:1 over sellers looking to capitalize on discounted (spot) metal for those willing to sell.

The only thing standing between fair prices for sellers is the nerve to ask for a better than spot price.  The time is right for this type of bravery since soon shops and brokers will be hungry for inventory realizing sellers will only be encouraged by spot +.  If you are looking to trade gold to silver or just liquidate some of your stash look outside the traditional box of normal buyers for your metal.  You are the one who took the risk so why sell short? The precious metal market as you know it is about to change so our thinking must change with it.

QUESTION:  My local coin shop is selling silver $5 over spot, is this a good price?

ANSWER:  It depends on how much you are buying and what type of silver.  American Silver Eagles are the top shelf of physical silver but foreign silver and rounds will go for less. If you are buying twenty ounces or more at a time it might pay to go online for a deeper discount even with shipping.  The benefit of a coin shop is cash and carry when some online brokers will be weeks, maybe months, to receive metal.  Of course your price is “locked” so any market movement is your benefit or loss.  Online buying and selling will be the next emerging precious metal market because of security and value.

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DAVE RAMSEY TALKS DOWN GOLD

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

For those that don’t know Dave he is a leading authority on motivating folks to break the chains of debt in order to live a life of financial freedom.  The only place I disagree with Mr. Ramsey is his trust in the financial markets over the value of gold and silver. Dave is exactly correct in saying gold, or silver, are historically horrible investments but what he isn’t saying is they are great insurances against fiscal mismanagement.  The reason for this post is to give our readers a look at both sides of gold from obviously a man who has helped, or motivated, thousands to taste the freedom of a debt free life.  Watch a short clip of Dave’s stand on gold here.

If you watch this short video of Dave you will see that he makes a good point about investing in goods of necessity over services by way of mutual funds.  He also gives a good example of a failed economy realizing more value in water or gasoline compared to gold.  Where his point falls off is his example of the Dow showing more return than gold historically and this is where we differ.  Since early 1900′s gold was not an investment but a “standard” to keep dollars in circulation in check and it did a great job of it until irresponsible leaders scrapped the gold standard.  What Dave fails to also mention is for years American citizens couldn’t own physical gold so how can it be fair to compare gold to a free market like the Dow or inflation?

There is no doubt some will email me asking why I posted a counter argument to gold when the premise of The Prospector Site is clearing confusion over precious metals.  Well this may blow you away but I have no attachment to gold, or silver, other than right now they are one of the safest forms of trading dollars for security that I know of.  If blue chip stock were down I would be sending some of my money that direction too.  As real estate corrects I will be sending money that way.  My money stays in gold and silver because this is the asset that now provides the most safety and return on my money in these days of fiscal irresponsibility.  This is the only reason.

The cold truth is the gold and silver bus will someday run out of gas and it will be time to move money into another asset.  Some of you will have a hard time letting loose of the golden life raft but this day will come when fiscal sanity returns or mania drives gold off a cliff.  Until then gold will increase not only to keep check with inflation but by masses jumping on the gold and silver bandwagon.  Each day this site  looks at examples of not only how to buy or sell but how current events are shaping gold and silver.

Dave Ramsey misses the most important function of gold and congrats to you for understanding the most relevant aspect of yellow metal.  The #1 benefit of gold is its anchor by way of a gold standard to keep governments from printing trillions of dollars backed by nothing.  Mr. Ramsey speaks sternly about inflation and how gold doesn’t hedge against it but over the last ten years gold has certainly proved him wrong.  Time will tell but owning an insurance of gold, silver, or both can’t hurt as I see it.  I’m sure you, me, and Dave will all survive this economic calamity able to compare how we would do it differently next time.

QUESTION:  This all confuses me and I’m not sure to buy gold, silver, stocks, or save money in cash.  I don’t really have a question but it seems everyone has a different opinion.

ANSWER:  This is a great non question.  You are in good company because lots of folks are confused with what is happening and what is the best way to save (survive).  Let’s look at the facts first.  Fact #1 is record high debt is eroding the buying power of our dollars because more borrowed money is thrown at old borrowed money.  The result is you pay more than you used to not so long ago.  Gold is reactionary so it is going up to keep up with soaring prices and now so is silver.  When we trade dollars for gold or silver it allows us to ride the inflation train for free and then get off later when things stabilize.  Your confusion comes from relying on others to understand basic economic principles so my advice is to read sites like this and others until you understand before investing anything.  There are no guarantees since we are historically in uncharted waters but I hope this helps.

TIP OF THE DAY:  Gold is starting to run along side silver so take a look at fractional gold ownership if full ounces of gold are too expensive for your budget.  Fractionals (1/10, 1/4/, 1/2 ounces) carry a slightly higher premium but can be passed on someday when you sell, at least that is the plan.

FAIR PRICES OF PHYSICAL GOLD & SILVER (9:30 am MST)

  • ONE OUNCE SILVER BULLION:                 $53.57

  • ONE OUNCE SILVER ROUND:                     $51.23

  • ONE OUNCE GOLD BULLION:                     $1623

  • ONE OUNCE GOLD BAR:                               $1583

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SELLERS DON'T WANT CASH THEY WANT GOLD OR SILVER

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

I can’t say it surprises me in fact I’m a little surprised it hasn’t happened sooner.  The online ad was  a pickup for sale, around $8000, but the seller doesn’t want cash but prefers a trade for gold or silver.  If you have asked yourself how the heck to spend an ounce of silver or gold without first turning back into dollars then listen close.  If I were to bet I would bet we will see an increase in sellers not only asking for gold, or silver, but preferring it over dying dollars. After all gold is up nearly $100 since January and silver is up nearly $20 year to date.

FOR SALE:  2000 Ford F-150 XLT Supercab with 102k miles but in good condition.  Asking $8000 but will trade for gold or silver.  Call 888-8888.

If you’re one of the super smart that bought gold at $300 per ounce this means you can buy this truck, even at asking price, for five ounces or $1500 dollars ( $300 gold).  How long can it possible be before houses are purchased with real money like gold and silver?  If you needed to sell a home at this time would you rather have dollars or precious metal?  I believe the way real estate to gold exchanges will get off the ground is by splitting dollars and gold using both to complete the exchange.

Wealth Cycle expert Mike Maloney recently provided evidence how 500 ounces of silver could soon trade for a typical residential property, watch it here.  His point is while precious metals are increasing real estate is declining at a rate unseen at least in many markets.  This makes the “perfect storm” for gold/silver holders to leverage metal bought at much lower prices into solid once in a lifetime bargains in real estate.  Given gold and silver is easy to manage, especially compared to rental property, it doesn’t cash flow very well.

These days are interesting to say the least but what we do know for sure is nothing is guaranteed regardless of asset or investment. This type of economic climate creates a “necessity is the mother of invention” mind-set so why shouldn’t we expect gold to other asset exchanges to become the norm.  This is just another feather in the hat for precious metals for the few willing to commit trading dollars for gold or silver.

NOTE WORTHY:  There has been a boat load of talk about $1500 paper gold but this means little to physical holders like you and I.  Wednesday of this week we watched physical gold reach $1600 plus with no signs of slowing down.  See it here if you dare.

QUESTION:  I want to sell two ounces of gold that I’ve owned for years but don’t want to take the spot price being offered.  Any ideas?

ANSWER:  I hear you loud and clear so let’s look this over to see how we can do better than spot.  Soon enough gold buyers, like coin shops, will pay a premium to buy just like when they sell because of simple supply and demand.  In your case you don’t want to wait for this day since it sounds like you want the cash now.  Try advertising, in print or online, your coins for sale at market price to see what local interest is in your region.  Security is key if you decide to set up an exchange so meet only in a public place, public but discrete, to complete the transaction.  Every seller must realize we live in an age of scams and counterfeiting so I recommend having a bank run the cash to confirm legal tender.  Now you know why most people sell by auction or surrender for spot.  If any readers have a better idea please let us know.

TIP OF THE DAY:  If you decide to sell your own metal do not put yourself in a vulnerable situation.  It would be wise to have one other person tag along just to make sure this doesn’t turn into a one-sided transaction.  One seller in Salt Lake City sets his exchanges at his local bank which is smart since cameras and currency verification (counterfeit) machines are available.  Soon the day will come when the “norm” is to trade metal straight to another asset bypassing dollars.  This will be a good day for gold and silver holders!

FAIR PRICES OF GOLD & SILVER (9:00 am MST)

  • ONE OUNCE SILVER BULLION:                      $54.23

  • ONE OUNCE SILVER ROUND:                          $51.89

  • ONE OUNCE GOLD BULLION:                          $1612

  • ONE OUNCE GOLD BAR:                                    $1573

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GOLD HOLDERS DON'T FALL FOR DOG & PONY SHOW

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

Today is a perfect example of why I put my financial trust in physical precious metals and not in government.  I’m going to say something today you will rarely hear in that I’m truly starting to believe fiscal irresponsibility has a good chance of making metal holders very rich.  This afternoon Federal Reserve Chief Bernanke will give a live press conference many are calling historical (watch here to see how right Mr. Bernanke has been in the past).  What is historical is the amount of debt being thrown at a situation caused by borrowed money.  Today we look at how gold, and silver, holders are not falling for the dog and pony show and others will follow suit if smart.

Days like today I really appreciate common sense and the value of gold and silver.  I hate to beat this debt fiasco to death but it’s crunch time so I’m going to break it down as simple as possible.  The fact is we have now reached the point where we are asking the robbers for help to improve security. The sobering fact is more debt equals increased costs of nearly everything your family needs to live but the catch is household incomes are shrinking.  I want to break down how we are all in this together regardless if liberal or conservative.

The newest form of religion is protection of the environment so let’s look at what a continued journey down this debt path can mean for environmental issues.  Fresh water and air is a hot topic so let’s peek into what our debt path could mean for water and air.  As inflation pushes up costs of necessities many folks will begin to live a life a lot like camping.  Now I have spent many days hunting, fishing, and camping and will tell you rule #1 is to find water first and then build shelter close by.  For those concerned about fresh water let me ask you what thousands of families camping along our streams and rivers will do for fresh water supplies ( please don’t take my word read it here)?

For those sensitive to preservation of animals and birds let me ask you if a father of hungry children will come home empty-handed or poach fresh game or fowl?  If you are into fresh air what do you think broke families will do with trash when no longer able to pay for refuge services?  If you are into peace and goodwill what do you think will happen when desperate folks decide your front door is the only thing standing between hungry children and food?  This list could go on all day but my point is putting a stop to The Feds dog and pony show is in the interest of all.

Our current administration has  changed borrow and spend to “invest.” I wish someone would tell me how spending more borrowed money to profit less is prudent investing.  Building new roads and bridges, by the way of debt, seems ridiculous if we are riding around on donkeys and living under them.  The crime of the century is happening before our very eyes and only a handful are willing to call B.S. My apologizes if I sound cynical but we are reaching a breaking point where each one of us must pick a path.  My path will be one of self-reliance and independence that only assets like gold and silver can deliver.

QUESTION:  Will gold out perform silver?

ANSWER:  That is a good question since as of late silver seems to be the hot metal.  Why shouldn’t it be since silver is cheap compared to gold and surely this is helping drive the silver market.  Much is reported lately about “short positions” coming due and how some paper investors betting against silver have artificially stifled white metal.  I’m personally bullish on both gold and silver especially when we consider what governments around the world are doing with fiat currencies.

TIP OF THE DAY:  Part of owning physical assets like gold and silver is maintaining faith even when the precious metal market dips or others give expert opinion.  The same problems exist today that have driven real money like gold/silver up so I see nothing that tells me this will change anytime soon.

FAIR PRICES OF GOLD & SILVER (9:30 am MST)

  • ONE OUNCE SILVER BULLION:                   $50.14

  • ONE OUNCE SILVER ROUND:                       $47.80

  • ONE OUNCE GOLD BULLION:                      $1584

  • ONE OUNCE GOLD BAR:                                 $1546

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WHAT WOULD A RON PAUL PRESIDENCY MEAN FOR GOLD?

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

News broke yesterday that Congressman Ron Paul is forming an exploratory committee to start his third bid for the Presidency of the United States.  It is no surprise to most folks but America has not had a president like Dr. Paul and to be honest the only way we will is under extreme circumstances.  Well let me break the story because we are looking right down the barrel of extreme times and this gentleman has a legitimate chance to win the White House in 2012.  If America is not ready for a Ron Paul type in 2012 they soon will be. Today we look at what a Ron Paul Presidency would mean for gold holders.

I try to keep politics out of The Prospector Site but like a car wreck it is hard not to look. To fully understand what Dr. Paul would mean for “real money” like gold and silver we must first look over his style of politics.  The days of bailouts, quantitative easing, printing money, and general disrespect for the US Dollar would surely end at least if Congress matched the same fiscal discipline as President Paul.  A conflict between those that want fiscal responsibility and those that enjoy the milk from entitlements will surely rage and an increase in social unrest should be expected.  Subsidies of all kinds would dwindle and most propped up dying industries would be replaced by beneficial, and profitable, stand alone industries.

Nailing down how gold would react to a president like Ron Paul is nothing short of amazing with several possibilities.  We must understand that in all likelihood most on this earth will have never seen an administration like the one we are discussing.  In all likelihood this new administration would not rescue the economy of today with more debt and the result would be a collapse, maybe correction is more accurate, of some form.  I would first expect precious metal to increase sharply as stocks around the world sell off, or should I say die off, from a lack of stimulus money that once freely flowed to the ones on the inside.  I’m not sure everyday Americans are ready for a day without dependency on Big Government.  Gold and silver would most likely been seen as a financial life raft as private citizens try to out bid governments for the little inventory from those willing to sell .

It is hard to say if a gold standard would take hold but I’m guessing a Constitutional man like Mr. Paul would make a good argument proving how a gold standard would virtually eliminate a future deficit like the one we see today.  I see no way that this wouldn’t be good for gold holders but who knows for sure.  One thing is for sure, a Ron Paul Administration would look entirely different from the one resting in DC today.

QUESTION:  I’m looking to invest in silver and was thinking about checking into our local pawn shop.  Can good deals be found at pawn shops?

ANSWER:  Lately we have heard of many silver buyers using pawn shops as a silver feeding ground.  It appears some folks don’t realize pre 1965 coins are loaded in silver and worth far beyond face value of each coin.  It sounds worth your time to me so let me know how it turns out. As silver hits the mainstream “good deals” will become less common and premiums will rise in all likelihood.  Congrats on trading dollars for real money like silver.

TIP OF THE DAY:  No one knows what the economic future will bring and anyone willing to say they guarantee any investment is simply trying to make a sell.  The Prospector Site was created to offer sensible information on gold and silver to help folks make independent choices with their hard-earned money.  The truth is you may buy metal today and it could decline in the future but my question is if not real money like gold or silver than what?  For me and my family gold and silver makes sense over dying dollars.

FAIR PRICES OF PHYSICAL GOLD & SILVER (9:30 am MST)

  • ONE OUNCE SILVER BULLION:                   $50.11

  • ONE OUNCE SILVER ROUND:                       $47.77

  • ONE OUNCE GOLD BULLION:                       $1576

  • ONE OUNCE GOLD BAR:                                 $1538

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COST OF FOOD STANDS BETWEEN GOLD AND MIDDLE CLASS

BUYING GOLD/SILVER, GOLD & SILVER   No comments yet

Gold and silver continues to shine but only for those that pulled the trigger.  Congrats to those that had  forethought and courage to establish yourself as what some believe to be 1 in a 100.  If you have followed The Prospector Site then you know my prayer is for $500 gold since this would surely mean sanity has prevailed but like most of you I have my doubts.  My biggest concern is what today’s prices mean to the middle class and down.  Today we show how food costs stands between gold and the middle class.  Feel free to substitute debt for food.  Thanks for sharing the next few minutes with our site.

If you are one of the many on the gold or silver fence please take this post to heart. The fact is, regardless of what well dressed experts are saying, the cost of living is going up and it has little to do with weather.  The reason your family is paying more at the pump and grocery store is because the world’s number one form of exchange, the US Dollar, is sliding into a devaluation point never seen before.  The dollar has been propped up, pinned up, held up, to the point all major producers of products your family, and mine, use daily have increased by passing costs to the end users like us.  For those waiting on a “dip” at the grocery store I have one thing to say.  Wake up please.

Not everyone can trade dying dollars for silver, gold is out of the question for most, for one reason, they need to buy groceries instead.  Producers of almost every item on our grocery list can try to mask this inflation by shrinking box sizes but this will only last so long before hungry mouths object.  As I researched for this post I spent time looking over old black and whites of food lines during the last depression and two things jumped out.  One, most people dressed nicer than most folks do today and second, not one person was over weight.  I hate to say this but my gut tells me Americans, heck the world, is about to go on an involuntary diet like most have never seen.

This is a real breaking point for millions of families just getting by and to underestimate the situation is to give up a shot at independence and self-reliance.  Don’t get me started on our poor elderly dependent on Social Insecurity. We posted recently about how Survivalists ahead of Gold and Silver and the fact is that post could have been the size of most best sellers and still not cover what many could learn from modern-day preppers.  Even those on tight budgets must research ways to turn dollars into something real like silver, gold, or guns.  Please research an option that works for your family SOON.

QUESTION:  You lightly mentioned EBay as a silver source but I want to say many times I buy below market.  Why not more emphasis on EBay as a silver source.

ANSWER:  Thanks for bringing this up so let me expand on EBay.  It’s nothing against auction sites in general but more of a problem I have with risk takers giving up so much when selling gold or silver.  One of the goals of The Prospector Site, in the very near future, is create a way for buyers and sellers to transfer metal without giving up 5% to 10% so common in today’s precious metal industry.  I’m sure there are decent deals on EBay for those willing to seek them out.  Good job.

TIP OF THE DAY:  Gold and silver took off overnight pushing silver to a new high then corrected sharply this morning with gold in the red and silver at break even. As of post time silver took back off like a gun dog at opener pulling gold along with it. For those waiting for a big dip let me say there are far more buyers waiting in the shadows than sellers.  Be quick on the dips because there are masses, world-wide, just waiting for a moderate dip in order buy more.

FAIR PRICES OF PHYSICAL GOLD & SILVER (10:30 am MST)

  • ONE OUNCE SILVER BULLION:                     $52.81

  • ONE OUNCE SILVER ROUND:                         $50.47

  • ONE OUNCE GOLD BULLION:                         $1588

  • ONE OUNCE GOLD BAR:                                   $1550

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WHAT A WEEK

GOLD & SILVER, GOLD OR SILVER BUBBLE   No comments yet

Not a day passes without someone asking about the gold, and now silver, bubble.  Being Easter Sunday I want to make this short but will add a few  links to recent news worthy articles.  If you are one of the few asking if gold has spiked to bubble proportions let me just say multiply the hysteria of late times a hundred and that is what the last gold bubble experienced.

The first article is fascinating to me because it breaks down relevant dates in the history of gold starting in the 1970′s.  It is a short read and it starts here.

The second article confirms what we have posted for sometime but also mentions how the cash strapped are selling scrap for gas money.  I completely expect to see much more of this with both gold and silver.  The last line in the article is true when it mentions we all will benefit from a day of cheap gold.  The article is short and starts here.

The last one is interesting since it mentions a weekly gold survey by a “group” of twenty and how over 70% believe gold will go up.  The bad part to the article is hidden at the bottom exposing the accuracy of this same group  over the last six years.  I guess not even the experts are as smart as some would like to think.  The article starts here.

LAST WORD:  Happy Easter and God Bless!!

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SURVIVALIST AHEAD OF SILVER AND GOLD

BUYING GOLD/SILVER, GOLD & SILVER, GOLD/SILVER COINS, Uncategorized   3 comments

It’s easy to judge folks that roll along in life to a different tune than the mainstream.  Survivalist, preppers, anti establishment types, call them what you want but this class was way ahead of what newly independents are striving for today.  Today we look at similarities between the mainstream compared to a typical independent lifestyle of a “survivalist”. Laugh as loud as you please but let me first say most of these guys still own $2.00 silver and $300 gold.  Let’s see what we can learn from those that live a life off the grid.

A typical survivalist has become a master at cutting out the middle man of economics.  Typical Americans go to work each day to earn money hoping it is enough to buy what many preppers grow or raise themselves. Most survivalist live a simple life, by choice I might add, so life is unaffected by economic swings or loss of luxuries.  A survivalist raises beef, goats, and chickens therefor cutting out the butcher.  Many bake bread cutting out the baker.  Most live off the grid bypassing the power company.  Some grow vegetables and fruits and then preserve the surplus for off-season consumption cutting out the farmer.  They live a life of independence backed by a 100% belief in the 2nd amendment of the Constitution and are not afraid to defend it.

Gold and silver, and guns, has long been part of this independence and this is where a survivalist lifestyle is intersecting with mainstream America.  The Prospector Site often talks of how precious metal creates a self-reliant lifestyle one ounce at a time.  Middle America is starting to realize “Big Gov” is only going to take care of the selected few and this is leading many to develop an independent lifestyle.  The lifestyle progression simulates more of a preppers life than a typical suburban lifestyle that most are learning to part with.  Just look at how many lawns are removed and replaced with vegetable gardens.  Just look at how many folks are patching up, passing down, use it till worn out way of life, just like a modern-day prepper.

A positive mainstream reaction to this economic tsunami is the rebirth of family, faith, and values.  Tough times bring out the “pull together” mindset bringing families together strengthening the bond of relationships.  The realization that a government promise is a promise of more debt and redistribution is causing conflict among the ones still holding the boat oars.   Owning gold and silver fits in nicely with this independent lifestyle regardless if we are talking preppers or the mainstream.  Once rigid lines of division between the mainstream and survivalist are now blurred by an overlap of freedom, self-reliance, and independence.  Maybe there is something to be learned from a lifestyle that many once considered the fringe.

QUESTION:  I would like to own gold but can’t afford today’s prices but will be buying silver soon one coin at a time.  Should I buy online or local (coin shop) if buying one coin at a time?

ANSWER:  Good question.  The shipping on an individual coin runs around $3.00 in most regions.  You will likely pay more from your local coin shop but of course not pay shipping.  Compare the difference but if it’s close support your local shop since you may need access to quick cash someday by selling back a coin or two.

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IS TEAM OBAMA GOOD FOR GOLD HOLDERS?

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

It is hard not to talk politics when the gold subject is on the table.  History tells us gold reacts to poor fiscal policy and it is no secret that out of control spending has become a way of life.  Many precious metal tire kickers ask if metal has peaked not realizing what drives gold upward and out of reach for many.  My opinion is gold will stop increasing only when fiscal sanity prevails but who could possible know when that will be?  The question today, is President Obama good for gold holders?

Gold started a slow incline in the year 2000 increasing as the debt from two wars drug on under the leadership of Bush Jr.  By the time President Obama took office in 08 the two wars took a back seat to a financial collapse not seen since the great depression.  I remember the 08 election in a dead heat with only a few weeks left when the financial collapse took center stage leaving presidential hopefuls trading war topics for economic ones.  Today it is amazing that the economic advisers in DC that didn’t see the crash coming now tell us the recession is over so go out and borrow more money.  What should ring out loud and clear from DC is tough times are ahead and each one of us needs to prepare according.

The only hope for resurrecting our economy lies in the lap of government as President Obama eloquently pointed out early in his presidency but don’t take my word see it here.  But after two and a half years of bailouts, quantitative easing, stimulus plans, etc the economic engine has failed to prime.  So we still have a stalled economy along with trillions in new debt creating an “all in” situation that only pushes gold and silver to new highs.  I would like to know how the Federal Reserve justifies huge gains from a barbaric worthless metal like gold.  The rest of 2011 will find more and more Americans realizing the only improvements over the last two years have been the net worth of Wall Street insiders willing to trade greed over integrity.  I”m guessing a day of reckoning can’t be far off.

Gold and silver will only react in a positive way as Washington trips and stumbles over stacks of printed money used to paper over horrific mistakes started over 40 years ago, yes this goes further back than President Obama.  If you have your finger on the sale button I understand but let me first ask if not gold than what?  Are you seriously thinking trading real money, gold & silver, back into cash as a wise hedge against the largest deficit ever to exist?  It is possible gold or silver could see a correction but the odds of our dollars declining are for possible, in my opinion.  The line to buy near record silver and record gold starts right behind me and will for several more years.

My last words are better said by Treasury Secretary Geithner’s recent statement about the debt ceiling and you can read it here.  The problem for this administration is not within the writing or quotes of this article but the comments after it (30:1 with most folks disgusted by fiscal irresponsibility).  Polls now show over 70% of Americans don’t support new debt that would surely come from raising the debt ceiling.  Is it possible the people realize this ocean of debt is enslaving every person from the middle class down even though our government doesn’t?

QUESTION:  I enjoy your articles and I’m starting to agree that silver and gold are a safe way to save.  I’m waiting for precious metal to take a break but lately all they have done is go up.  Do you think a dip is around the corner?

ANSWER:  I have no idea to tell you the truth.  Traditionally gold and silver dip as holders take profit, causing the dip, then new buyers jump in, causing the rise.  Sometimes we get so caught up in buying on the dip that we overlook the true benefits of trading dollars for metal.  I will tell you what I’m doing for what it is worth.  I have bought silver nearly every week regardless of near historic highs.

NOTE WORTHY:  Rumor is many coins shops are limiting the number of ounces each party can buy or better known as rationing inventory.  News like this only confirms metal shortages are just around the corner.

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GOLD TAKES ADVANTAGE OF THE CHEAP MONEY ADDICTION

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

Gold is a slippery little asset needing nothing more than a seem to shoot the debt gap heading straight into historic highs.  While most of us congratulated each other on cheap mortgage refi’s, gold and silver kept climbing the ladder of prosperity all while citizens, cities, states, and governments packed on extra pounds of debt.  What we have to show for this recent debt is declining real estate values, broke states, and bankrupt cites leaving even once solid job holders with future employment doubt.  Today we look at why gold is taking advantage of the cheap money addiction.

The news of recent tornadoes in the Midwest and East is nothing short of devastating and my heart goes out to families that have lost everything including loved ones.  Having personally witnessed the devastation of natural disasters, earthquakes, I can tell you it is sobering how quick nature can reshuffle life.  But one thing about a natural disaster is once the storm passes folks can pick themselves up and move forward rebuilding life.  Unfortunately with our debt disaster this is not as easy, at least not when the fiscally irresponsible continue to cure debt by borrowing.

I recently posted Cities on the Brink of how USA Today just rated San Luis Obispo, CA the most beautiful city of the year but what wasn’t reported is SLO is financially broke and becoming more broke by the day.  SLO is no different from most cities or governments that have used new debt to grease the economic wheels but did it fix the problem.  According to the latest from Standard & Poor’s (kinda fitting) the levels of debt are unsustainable at most levels and the cost to service this debt will only rise if a payback plan is not put into place soon.  All while gold and silver do what they do best which is expose inflation, fear of debt, and irresponsibility.

The cheap money intervention showdown is just starting as the debt ceiling battle rages around the blooming cherry trees at the US Capital.  The conflict is one side wants to raise revenue, tax, yet the other side wants to cut spending but neither side truly believes the fix is this simple.  Deep down both sides know it is check-mate and the debt ceiling will be raised in all likelihood kicking the full effects of depression down the road.  The change we can all believe in will only take place when borrowing is no longer an option.  The big question is how can a debt reduction take place when new debt ($.40 of every federal budget dollar is borrowed) is the only thing keeping the gig going?  The borrowing option will go away when debt holders ask for unreasonable interest on the boat loads of new debt that has quickly become the life blood of our economy.  All while gold and silver takes advantage of the ones strapped in debt.

The temptation to borrow money is like candy in my pantry.  If it’s in the house eventually, in a weak moment, I will fall short by supporting the Mars Family with my chocolate addiction.  The only true cure for the fiscally weak is to turn back to a Gold Standard economy like the days of old thus removing the debt option. I see nothing but blue sky for gold and silver holders but who knows for sure?

QUESTION:  Do I have to pay sales tax on new gold or silver purchases?

ANSWER:  It depends on two things.  One, if you are buying legal tender coins, like American Eagles, there will be no sales tax since they are money.  Two, if you are buying rounds or any other form of precious metal you maybe subject to sales tax or use tax.  Each state is different and some states only charge sales tax up to a certain dollar amount.  I believe California charges sales tax for purchases less than $1500 but laws change regularly so check in your state.

TIP OF THE DAY:  Many states are requiring online purchases be reported, use tax, since most states are looking for fresh revenue.  Keep this in mind when buying gold and silver out of state.

FAIR PRICES IN PHYSICAL GOLD & SILVER: (9:00 am MST)

  • ONE OUNCE SILVER BULLION:                   $50.98

  • ONE OUNCE SILVER ROUND:                       $48.64

  • ONE OUNCE GOLD BULLION:                       $1581

  • ONE OUNCE GOLD BAR:                                 $1543

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