Archive for June, 2011



It haunts me when I hear mainstream Americans say they can’t afford gold.  Our readers already know a life without physical gold/silver is a life of financial insecurity and one only needs to look at their dying dollars as proof.  Let’s look at this realistically, for $175 anyone can immediately begin to take control of inflation and dependency with what many falsely believe as a rich man’s investment.  Today we spread the word that American gold is priced so every American can afford to play.  American Eagle 1/10 oz  gold coins for $175 each is the beginning of your road to financial freedom.  Today we look at gold everyone can afford.

Yesterday while digging around in my garage I realized how much worthless stuff most of us have collected worth a fraction what we paid for it.  I bet 90% or more of The Prospector Site readers can afford a few coins mentioned above, and free up clutter, by selling off unused personal treasures.  Soon we will feature a young man who got his precious metal start doing just that, not to mention won a 1/2 ounce silver round for sending us his story.  Now let me be clear we don’t sell gold or silver on this site.  We provide unbiased information and then provide solid sources if precious metal is your choice (see the Gold Shark attachment below).


The American Gold Eagle is one of my favorite bullion coins of all gold offerings available today.  With just over 91% gold the rest of the coin consists of 3% silver and 5% copper.  But the sad fact is all this value is worthless if not in your possession.  So many repeat misinformation how gold bullion, coins, are only for the wealthy but this is the furthest from the truth.  Sure it is true many governments and reserve banks have invested in gold but this doesn’t mean regular Joes can’t do the same but on a smaller scale.  You may have noticed by now that silver is more volatile than gold making gold a perfect choice for those not so daring.  Call your broker today or better yet visit Gold Shark to see who is most competitive on physical gold.

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CNBC:  Jobs Picture Remains Ugly as Weekly Claims Still High

The continued elevation of claims could raise concerns that the economic soft patch in the first half of the year could linger. The economy has been slammed by bad weather, high gasoline prices and supply chain disruptions after the March earthquake in Japan.  Read it here.

PROSPECTOR:  The media continues to be “surprised” by stubborn unemployment making excuses like weather, earthquakes, and something about supply chain?  The fact is debt has tightened around the neck of America and Europe and the only relief in unemployment will be when citizens take back local commerce ( buy local) and control debt.


BLOOMBERG:  Silver-Coin Sales Booming at Perth Mint on Demand for Haven

Immediate-delivery silver, which rallied to $49.79 an ounce on April 25, was at $36.33 at 4:40 p.m. in Perth, 42.6 times cheaper than gold. Over the past year, silver has beaten all the commodities on the Standard & Poor’s GSCI index apart from top- ranked corn. Spot gold, rallying for an 11th straight year, has gained 25 percent.  Read it here.


BC LOCAL NEWS:  $20,000 reward offered for return of stolen silver

“The guy with the gun, the leader of the two, he was very skilled,” he added, and quickly opened the safe that usually took 10-20 minutes to open.

The victim said he kept the bullion at home because, unlike gold, silver takes up a lot of space and no bank safety deposit boxes were big enough to hold it. He has since learned a bank in Toronto would have rented space in its vault.  Read more here.

PROSPECTOR:  We have followed this interesting story for some time and it just keeps getting better.  It seems the victim was taken off guard by the two thieves dressed liked uniformed officers.  Once again, the thieves caused a distraction ( impersonators acted like they were responding to a domestic call).  Discretion is the first word, home protection is the second.

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GOLD & SILVER   No comments yet

The problem with grasping the crisis in Greece is that most of us watch it unfold through the same lens we watch entertainment.  Think about this for a second.  One hour your viewing 5000 police officers trying to control a mob in Greece than the next hour we watch the season finale of The Voice.  If the Greek riots were happening in the city next door I bet folks in your town would be at full attention.  The question would be, should be, will it happen here and what can we do to stand strong.  I have news for all by saying the path that led to Greece’s problems is the path we are on RIGHT NOW!!  Today we ask can we learn from Greece before it’s too late?

Thanks for reading The Prospector Site. So many current events validate ownership of physical gold and silver it is nearly impossible to discuss them all.  You already know that fear and unrest have historically played on the side of precious metals and I have to say today’s news is full of unrest. I want to break down several news sources on exactly what is happening in Europe and why you should care, can it happen here, and what can be done if so.  First let me bring all up to date by highlighting EU news.


“If we don’t get the money, we face a terrible scenario … a return to the drachma, with banks besieged by terrified crowds wanting to withdraw their savings,” he said. “We will see tanks protecting banks because there won’t be enough police to do it,” he added.

Greek policymakers hinted that they had no contingency plans in the event of a defeat. “We don’t have a Plan B, we don’t have a plan omega – the last letter of Greek alphabet,” said one.  Read it here.


The country is in the grip of its worst recession since the 1970s, with youth unemployment at more than 40 per cent and public finances shattered by a debt equivalent to some 150 per cent of annual economic output.

‘They cut our pay by 25 per cent and a lot of people in my department have not been paid for two months,’ said 52 year-old civil servant Yannis Zaharopoulos.

‘We have got to the point where families cannot make it. We are financially and psychologically wrecked.’  This a must read if for no other reason than the pictures.


The economic problems in Greece are a result of too many earning more than tax payers can afford to pay.  Fingers can be pointed each direction but the fact remains Greece is bankrupt and the only choice its citizens have is to accept austerity or not receive bailout money from the EU.  This second round of bailout proves throwing money at the situation only prolongs the pain and eventually something will break down.  Unions as well as private business blame a corrupt government but regardless of who is to blame a serious situation is happening as you read this post.  In a nutshell, the people in Greece, and other parts of Europe, are losing it, literally. If your asking can it happen here let me say this, “yes”.

The only difference between Greece and the U.S. is we can PRINT MONEY to cover a tax shortfall and they can’t. Greece is part of a seventeen country euro zone governed by many decision makers thus printing money, euros, is not an independent option. But printing in the USA is more than an option it is a way of life and has been since we turned from gold (about the time we left the gold standard).  But if Greece’s problem is angry citizens unwilling to accept a broken reality, ours on the other hand is denial of unsustainable debt.  The result is the same but the path is opposite, broken governments and broke citizens.


Yes it can happen here in fact to a lesser degree it already has, remember Wisconsin? States with high government employment, entitlement dependency, and strong union representation will see the most unrest as entitlements clash with tax revenue.  Right to work states will see less unrest at least in my opinion.  Now might be a good time to see how your area could react to austerity measures like we see in Europe.

Remember the Rodney King riots? Some feel about 10% of the rioters were actually trying to prove their point and rest were just thugs breaking, stealing, and destroying what others had worked hard for.  You don’t need me to tell you if this is possible in your area.  What we don’t learn from Greece we will live like Greece.


REUTERS:  Violence flares before key Greek austerity vote

“The government cannot govern and apply the program and the political opposition is lying, this is the problem. It does not dare to tell people that there are no magic solutions, that sacrifices are necessary,” Bakoyanis said.  Read it here.


MARKET WATCH:  Could You Live Off the Grid?

Alleged mobster “Whitey” Bulger lived off the grid for 16 years before the Feds finally caught up with him. Kelsey Hubbard talks to MarketWatch columnist Brett Arends about how he did it and how an average person could do it too.  See it here.


LOS ANGELS TIMES:  Economic crisis: Should the U.S. brace for European-style riots? [Most Commented]

The violence in the streets of Europe will be in American cities before the end of summer. None of this is an accident. The same groups calling for riots there are based here. Wake up. The hard left is trying to fundamentally transform America and many of us don’t like their new model.

– JamesAndrews

And, btw, the USA is much closer to a Greek situation than people like to admit. Austerity will work here, still, but just. Much more debt, and we will be in a situation where no conceivable amount of economic growth – particularly given the Baby Boom demographics – could pull us out.

– RobM1981  Read more here.

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GOLD & SILVER   1 comment

Few things strike me as more unfair than a person wanting to work and support their family but can’t find a job.  For nearly three years we have heard about this jobless recovery and if you think the job market is getting better than you are still working.  Yesterday Yahoo News featured an article called Out Of Work Long, read it here, asking the jobless to comment explaining why and how they became unemployed.  Today we look at some of the comments and then answer why so many are jobless and what it will take to bring jobs back.  For the record there is no recovery without jobs, thanks for reading The Prospector Site.

Yes we write about all things related to gold and silver but lately there are many issues affecting the value of precious metal and we can’t keep them all straight.  Like an algebra problem these issues connect by a common thread all affecting the true value of your precious metal.  But today we must look deeper into this jobless recovery so let’s get it started.


Here is what Jack has to say: “Been out of work since Nov. 2009 when my job (and 23 other IT workers at my company) was outsourced to India. All of us were highly skilled, degreed employees. There are too few jobs to go around now, some have found temporary jobs at skill levels way below what they previously held, most are still out of work. Instead of paying taxes, we now rely on unemployment or welfare. And the company we worked for sends US money to India.”

PROSPECTOR:  This gentleman nailed it on the head because outsourcing jobs out of America is almost as bad as not selling American made products in America.  If citizens of the U.S. would immediately start buying local, and American made, we would instantly see signs of improvement in our job market.

HERE IS WHAT JEANNE HAD TO SAY“I made the mistake of going back to college full time in 2006 at the end of my last job. I looked for work, but not seriously. When I graduated in 2008, I looked seriously for work but couldn’t find anything so I went back to college to work on a Master’s. I’ve worked off and on since 2008 but nothing near what I was making at the height of my career. I’ve spent the 2005 equity in my home and am slowly working through my savings. It seems like the longer I stay out of work, the harder it is to find a job. I’ve got to learn how to make my own money instead of depending on an employer. I’ve got at least another year before full disaster. Hoping and praying it doesn’t come to that.”

PROSPECTOR:  We also will be hoping and praying it doesn’t come down to full disaster.  Jeanne points out what the NIA (National Inflation Association) has proved in that the price of college is no longer worth going into debt.  Consider the added debt most graduates are leaving with and it certainly puts many behind the eight ball.  It is bad enough to be jobless but tack on debt and it is easy to see why the illusion of education leads to employment is false.

ROBERT SAID THIS:  “Got out of the Marine Corps 2 years ago and still haven’t found work. i get the same 2 answers for all jobs i go to. I don’t speak SPANISH and I was a Marine so i am too dangerous to work here. tell me the USA isn’t screwed up to Vets.”

PROSPECTOR:  Robert thanks for your service and we are hoping the best for you.  Robert makes a great point that gets little attention and the point is many of our vets are coming home to few jobs.  We recently posted The Biggest Conflict in America and part of this conflict will include the number of illegals taking jobs away from the unemployed.  When times were good few cared about labor jobs taken by illegals but now any job is a good job and this will only continue to cause conflict.


Other comments were quick to blame government for job losses but the truth is government doesn’t create business.  Government is only the size the people allow it to grow so to blame politically motivated leaders for unemployment is overlooking the root of the problem.

Most have little idea how debt steals jobs right out from under willing workers by driving businesses to survival mode.  Plenty show anger at bailed out banks unwilling to lend money to small business but the fact is most small businesses don’t want the money if it must be paid back.  Up until 2008 our debt driven economy seemed strong and our working class content but living off revolving debt, equity lines, and credit cards could only sustain for so long.  What we are realizing now is all a result of uncontrolled debt, world-wide, showing symptoms in real estate, jobs, banking, currencies, cities, states, in all countries.


We must understand that gold and silver are reactionary by nature.  No analogy, no thinking it over, precious metals just move upward by reacting to fear (jobless possibility), greed, mistrust, debt, deficit, and war.  For those that question if metal will hold present value I ask you.  Do you believe there is a quick fix to the above sentences?  If not, please consider the power of precious metal ownership.

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Let me start by saying thanks for making yesterday’s post RISING TIDE OF ECONOMIC COLLAPSE one of our most popular posts.  It truly seems readers from all over are seeing the urgency of today by grasping independence.  We named ourselves The Prospector Site for a good reason because today’s metal owner doesn’t wade streams or dig deep tunnels anymore.  The average person trading dollars for gold and silver is searching for legitimate avenues to buy and sell, unbiased information, and overall sources of an independent lifestyle.  Today we refer to these folks as The Last Prospectors.

There are exceptions, in fact, several months ago we wrote a true story on The Lost Gold Of Jarbidge and if you are the adventuress type please read my first hand experience with lost treasure.  But the fact remains few of us are willing to walk away from normal life and begin prospecting for buried gold.  Another truth is regulations will soon push most domestic precious metal mining into history leaving only storytellers to tell the life of a prospector.  The fact remains every American needs ownership of gold or silver to protect against inflation, debt, deficit, and dying dollars.  You are no different.


Digging up bargains of gold and silver are still possible and recently we posted how few understand the value of a simple nickel with a worth of around $.08 each.  Intrinsic value of metal is changing daily and those willing to watch and learn will profit the most.  What many called “junk silver” now refer to as investment silver willing to pay 400% over days of old.  To understand modern-day prospecting is nothing more than educating yourself on metal trends and then follow the money flow.

Some websites provide true values of gold and silver by pricing stocks, oil, real estate, currencies in gold not dollars.  This type of prospecting tells prospectors where to dig to find necessary value and trends.  This might sound confusing to some because we have grown to accept value as noted in dollars but this is misleading because of the US Dollar decline.


We have been beating the Gold Shark drum since it plays a tune all metal buyers should hear loud and clear.  This site provides a simple service, free, allowing metal prospectors to find the best immediate price at any given time.  Log in, punch how many you want and metal type, and then watch several reputable brokers compete for your business.  Modern day prospecting.

New sources of information are popping up daily and we will pass them along as we hear but the important aspect to understand is the most prosperous way to prospect is by creating a think for yourself program.  We often hear of scams by folks buying into too good to be true sells pitches but the best weapon against being taken advantage of is knowledge.  Like prospectors of old had to protect so do today’s precious metal owners and holders.


PRICED IN GOLD is a unique site provided by a colorful fellow self-named as Sir Charles.  This guy has done his homework and if you want to see what assets are really worth spend a few minutes here.

THE DAILY CRUX is another great source for modern-day prospectors.  Porter Stansberry founded this site and it provides insightful information for all.

WHY “JUNK SILVER” SHOULD BE YOUR NEXT PRECIOUS METAL PURCHASE is a good junk silver article that should be read by modern-day prospectors.

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GOLD & SILVER   1 comment

Folks in North Dakota have hands on experience just how destructive swollen rivers are to homes, farmland, and lives.  As you read this post many in this state are asking how high the water can get and how much longer extended dirt banks can hold back historical flooding.  I’m willing to bet where you call home will not be affected by this flooding but what you may not realize your own water of concern is rising and now is the time to ready for the economic flood.  Today we look at the rising tide of economic collapse.

We recently posted asking how much silver is enough to protect in this age but the fact is just like the state of N.D. had no idea how high the water would rise neither do we from a collapse point of view.  For certain debt, inflation, housing, and overall economic water is rising and those unprepared will find it most destructive.  Most don’t realize how powerful gold and silver are as economic sandbags by holding back ill effects of debased dollars and will only realize when swelling costs put ownership beyond reach.  Like North Dakota, the severity of the situation sweeps possessions away as helpless watch and worry.  You don’t have to be a victim.


Daily we watch world government leaders meet trying to solve what governments caused.  People protest loudly but their cries are misdirected and energy wasted.  Most governments are reactive to problems or issues long after they have taken root by choking out true prosperity.  Every century or so it takes a wall of water to flush away everything allowing new growth and those willing to bury dying industries to get to work.  What we are seeing today is a flushing of top-heavy governments indebted in entitlements no longer able to keep promises made long ago.  Again, the economic water rises and soon to be victims cry for help to the same source that opened floodgates.

Ben Sherwood in his book Survivors Club points out most people become victims of disaster because they never plan what to do if the situation arises.  He points out how witnesses of a subway fire tell horrific tales of folks not running for safety but asking others fleeing if this life threatening disaster could delay their travel.  Unwilling to face the tragedy and unprepared to help themselves.  If you are new to gold or silver ownership and asking how physical metal can protect your family please keep reading sites like this and others to fully grasp the insurance value of precious metals.


The Prospector Site is not as much a promoter of precious metals as it is an advocate of self-reliance.  The best person to handle your savings is the one reading this post.  The days of blindly trusting others to protect and grow savings are over and now replaced with self-educated willing to protect their own interest.  Physical gold and silver should be top of this list of independence along with anything else that provides a buffer of self-reliance.  Several times we have posted how many individuals will grasp this trend and profit from it.  I hope it’s you.

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Have you noticed the interesting precious metal opinions circulating the internet? We didn’t see the fuss back when physical silver sold for $4 but now with metal around $40 it seems many metal holders are truly seeing the power of  ownership.  This is what it is all about folks and congrats to you for having the foresight and now option to use real money any way you choose, very prudent.  Let me say there is not a right or wrong answer but we should look at several options before selling a perfectly good asset like silver.


It all comes down to debt service so if you can afford a short-term payment consider hanging on to the silver.  Your silver is in the prime of its life and according to precious metal experts has plenty of room to grow.  Factor this growth in real buying power, not just dollar value, and it’s easy to see why 1:10 physical silver owners are sellers compared to buyers.  Looking back silver has appreciated over 400% in the last few years.  I know of few cars that are realizing this kind of appreciation.  It is hard to justify selling a real money asset like silver to buy a depreciating asset.

I’m not big on debt unless one, someone else is paying for it or two, the interest is fixed and costs less than what my metal is earning.  In this case I’m guessing your car is new enough to qualify for 5% interest or less meaning borrowed money is cheap and return on silver is high.  My other concern is once the silver is gone it could be hard and expensive to get back.  Cars are as common as any asset I can think of.

Another option is to sell a few ounces of silver to raise a down payment and then finance the balance.  It is always good to keep your term under 3 years.  Enjoy your car.

Thanks for reading The Prospector Site and feel free to sign up for our weekly newsletter.


YAHOO FINANCE:  Layoffs, housing data point to chronic problems

“We have had a worrisome string of soft numbers which is painting a fairly bleak picture of the recovery,” said Sal Guatieri, senior economist at BMO Capital Markets. “The labor market is weakening according to the jobless claims numbers, confidence appears to be slipping among households and small businesses and home sales are still very depressed.”  Read it here.


MARKET WATCH:   Late-hour Sell-off Sends Gold to 5-week Low

The decline was “follow-through selling after yesterday’s strong drop,” said Brien Lundin, with the Gold Newsletter. “The dour economic news recently, combined with dwindling hopes for any further quantitative easing in the near term, are weighing heavily on the metals.“  Read it here.


MARKET WATCH:  The U.S. is too big to fail, right?

Since the 2008 crisis, we have seen an implosion of sub-prime and other private debt replaced by an explosion of U.S. government public debt — currently $14+ trillion — and this is coupled with the very real risk that we could default on our debt payments in August if our politicians continue to play a high stakes game of fiscal chicken and are unable to increase the debt limit.  Read it here.

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Some things are easy to calculate.  If we are taking a trip determining the gallons of gas is simple by dividing total miles by mpg.  If we need to know the square footage of an area we multiply length times width, simple enough.  But lately many newcomers to gold and silver have asked how much silver is enough?  Although the answer is different for all a number jumps into my head and I will tell you why.  Today we ask how much silver is enough to protect your family from the economic tsunami coming our way.


I’m old enough to remember dinner table conversations about hardships of the last depression.  To say it was a tough life lived out by strong people is a huge understatement.  But today’s depression is different from the one of yesterday and silver will play a much larger role in your personal comfort then it did “back in the day.”  We have posted several times that 2011 will be remembered as the year many wake from denial because of foreclosure, inflation, and unemployment.  My fear is by the time these folks run to silver, for sure gold, the change in their pockets will have no value.

Fed Chief Mr. Bernanke is a study of the Great Depression and believes the problem with the last depression was not enough money made its way into the economy to stave off deflation, he’s not going to let that happen today.  The result is and will be paying more for less while we watch the dollar dinosaur fall closer into extinction.  But how does this fact help decide how much silver one should own?


The primary measure of silver needed is related to two things.  One, how much income you’re earning and two, how safe is it?  For example, an oil worker in North Dakota making $1000 per day is sitting better than someone recently retired worried about future pension checks.  Remember, the fear is not as much cut backs in benefits as it is the concern of skyrocketing food, fuel, health care, and housing costs.  More dollars to buy less sends those on fixed income into poverty removing all forms of independence and self-reliance.

Silver is the remedy if inflation is the disease and if you’re asking how much to buy let me ask you a question or three.  How comfortable are you with your income source?  How inflation friendly is your savings, do you have a savings?  Can you handle a 45% decline in your 401k?  Will another 25% decline in your home’s value derail plans?  Is $40 physical silver worth looking at as insurance against all the things that come with a decade of economic decline?


I have no magic formula but the number that comes to mind is 500 + ounces of physical silver.  It seems to me 500 ounces is a good savings for average America to secure against inflation.  Individual silver ounces also provides easy solutions for trading real money if the need ever arises.  Who knows?  I also like the upside potential of holding silver for its rarity, demand in crisis, and history as a solid store of wealth.  Of course if holding more than 500 ounces is an option then own as much as practical.

Thanks for reading The Prospector Site and feel free to sign up for our weekly newsletter.


CFACT: Natural resources fuel North Dakota’s economic boom

While the rest of the country suffers through unemployment, foreclosures, bank failures, and budget deficits, North Dakota is on a roll – thanks in large part to its abundant resources of oil and natural gas, almost all of which are on private land.  Read it here.


PR LOG:  Lack Of Supplies Of Silver Leading to Silver Prices Skyrocketing Taking A Commanding Role

Our objective could be to suggest numerous techniques you are able to make investments in silver, at the same time underscoring the significance of patience and self-discipline. Traders should stay patient to steer clear of chasing silver, overpaying, and draining their cash. Rather, we suggest which you use temporary price declines to steadily acquire the best silver stocks and your preferred type of bullion.  Read it here.

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Let me see if I’m missing one or possibly two.  Housing crisis, credit crisis, currency crisis, debt crisis, deficit crisis, financial crisis, and finally the economic crisis.  It seems the 24 hour nonstop news has caught on to what captivates our attention and pushes our buttons.  Not to downplay severity of today’s, well, crisis but am I the only one feeling a little over loaded with old news presented as breaking news?

I’m going to say this in all honesty and I hope it isn’t misunderstood.  The word “crisis” doesn’t scare me.  Like many of you I didn’t need a news conference to tell me inflation is climbing or the housing bubble burst.  Gold and silver has indicated for years something is amiss with our dollars willing to show anyone willing to look and listen. Today we look at the danger of “crisis” overload and why gold, silver, and faith keep me from being overly concerned.


There is a grave danger of life in constant fear and this danger is often worse than the crisis.  The danger is compromise and throughout history societies have willed freedom and independence to power thirsty leaders.  The problem here is most leaders are motivated by a personal agenda willing to use the crisis of the month to grow government. History shows time and again big government does not create a healthy economy.  Below is a video dated February 10, 2009 proving my point much better than I can.

Yesterday Mr. Bernanke admitted the road to recovery has taken a detour and inflation is worse than expected.  This is bad news for folks who bought into the recovery of 2011 but old news for most gold and silver owners.  To be honest most of us, certainly I didn’t, had no idea how bad real estate or inflation could get but planning for the worst made sense.


For sometime The Prospector Site has championed the need of independence and how gold and silver plays an integral  part in this self-reliant plan.  A savings in real money gives me the peace of mind of knowing no matter how bad the crisis at least my financial future is as stable as possible.  If social services decline it has less direct effect.  If quantitative easing declines so what?  If silent bank runs hit my community, and I certainly hope they don’t, then I will feel bad but I won’t worry that my life savings is wiped out.  Precious metal is the insurance for whatever crisis strikes next, real or not.  Faith takes care of the rest.

Thanks for reading The Prospector Site and feel free to sign up for our weekly newsletter.


PROVIDENCE: Greeks rush to buy gold coins, bracing for bank failure!

That’s right! The Financial Times reports that Greek citizens are withdrawing their paper money are buying tangible assets, among which gold coins topping their list of choices. The same Greek scenario can happen just as easily in the United States and every other economy exposed to a fiat currency risk.  Read it here.


MONEY MORNING: What You Need to Know Before Buying Gold Coins

With gold having doubled in price over the last four years – not to mention a U.S. dollar that continues to weaken – it’s no surprise at all that the world coin markets are attracting buyers like moths to a flame. First timers often arrive and are confused by all that’s available – including rare and antique coins, and a numbing array of “collector” and “commemorative” coins.

But here’s a rule of thumb that will make things simple: If you’re an investor looking to bolster your portfolio with a modest helping of “hard assets,” there’s really only one category of gold coins to consider.

I’m talking about bullion-based gold coins.  Read it here.

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Do you like surprises as much as I do?  This morning’s news warmed hearts when a young baseball player got surprised by his dad’s homecoming from a war-torn land.  What a neat surprise it is when something special brings unexpected fulfillment to our lives.  But not all surprises are good certainly not when it comes to our money.  The truth is many gold and silver buyers will someday experience a surprise that could cost them plenty.  Ask any precious metal broker who today’s buyers are and they will admit it’s new buyers.  If you are  new to gold and silver please take note of what your gold broker might not tell you, but we will.

I have learned there are only two legal ways to prosper from gold and silver coins.  The first way to prosper from precious metal is to be on the supply side of metal economics by selling metal for a premium.  Gold Shark will direct new buyers of precious metal to competitive sellers guaranteeing the best price for your money but what isn’t guaranteed is the best choice for your money.  Let me explain.  The best way for new buyers of gold or silver to enter the metal market is through new bullion, rounds, or bars.  The problem for those that sell new bullion, rounds, or bars is low profit margins.  By the way, the second way to prosper is simply buy smart and own physical gold and silver, that easy.


Because of low inventories of new metal and low margins many precious metal brokers are pushing new buyers into the world of rare coins.  Now don’t get me wrong many investors have made fortunes off rare coins but you will not be one of these in all likelihood.  Every rare coin has two sides that make up its cost.  The first side is what interests you and this side is the gold or silver content within each coin.  The second side, or secret side, makes up the premium part of the coin and is very volatile and subjective.  The premium side of most rare coins is slipping away like a melting ice cream cone in August.

Gold and silver brokers won’t tell new buyers of this slide but we will.  The slide or should I say premium decline is because new buyers want to trade dying dollars for gold and silver not rarity.  They care nothing about collecting, hobby coins, or rarity but just the value in precious metal.  The premium side of rare coins is in decline at least with most rare coins.


The long-term value of rare coins will return only when inventories of new gold and silver are gone or very low, at least for most.  Certainly the rare coins that you can afford will be more volatile than say new bullion coins or rounds.  We have often posted the best question to ask your broker is what will they pay you (for the same metal they are asking you to buy) if you walked in to sell it instead of buy it.  The difference might surprise you.  Stay away from high premium metal until you fully understand the precious metal market and have a savings in new gold or silver.  It could take years for your rare coin to appreciate to a break even point.

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USA TODAY: Cash buyers are kings in weak home-sales market

In Las Vegas, the foreclosure capitol of the U.S. for the past four years, cash buyers accounted for 49% of first-quarter sales vs. 20% in the first quarter of 1997, says data from real estate site Zillow.com. In that area, home prices are almost 60% off their 2006 peak.  Read it here.


MARKET WATCH:  Your well-paid, middle-class job is in danger

The ongoing movement of jobs to countries where labor is cheaper, plus the development of new technologies, may mean fewer opportunities for some well-paid positions in the U.S. over the next decade, said Larry Katz, an economist at Harvard University.

“Employment growth has stopped, or even declined, among many middle- class jobs that are high wage” and don’t require a college degree, Katz said.  Read it here.


BEFORE IT’S NEWS:  If the Dollar Collapses, What Happens to You?

Doug Casey also spoke; he laid out five “sure things” for the next ten years:

1. Short bonds/bet on rising interest rates

2. Short the yen/go long on Japanese small- and mid-cap stocks

3. Borrowed money: “It’s an excellent way to short the dollar, and you get a tax deduction.”

4. Gold: “It’s not cheap, but it’s going higher. Buy it and store it abroad.”

5. Small-cap mining stocks.  Read it here.

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There is a large group of gold, and silver too, buyers that believe hyperinflation possibility justifies buying loads of metal by way of credit.  Now we have posted several articles from NIA and I will be the first to admit inflation is real and is coming to a town near you, but.  The topic today is should you use your credit card to buy gold or silver, heck maybe both, speculating its future value will offset interest owed?  Before you whip out the plastic let me give you The Prospector Site’s two cents on both the pros and cons of buying metal on credit.

Let me guess, you have read about all the benefits of buying gold and silver and are now convinced trading dollars for metal is right for you?  Well congrats on this astute observation and welcome to the first leg of the self-reliance race of life. Not to burst your bubble but let me point something out.  Most metal holders haven’t secured gold or silver by way of credit.  Don’t get me wrong cause I’m all about owning physical gold and silver by nearly any means possible but before you do I want to point out three things to keep in mind.


Buying gold and silver by way of credit card is unlike most purchases.  Most products, other than gold and silver, sell for the same price regardless of payment method.   Sure there are exceptions but most of the time the price is the price regardless of payment method.  Not so with precious metals since brokers are on very tight margins and if you can find one to take your plastic you will pay the fee not the seller.

Right from the get go this tacks on a premium to your metal investment, check out Gold Shark to see how much it adds.  To be honest this doesn’t bother me since my observation of owning gold and silver is not about quick profits but more about preservation and a long term plan.  Measuring gold or silver in dollars is misleading anyway since buying power is the name of the game and this is exactly how precious metals benefit owners.


For years everyone talked of benefits of leverage as it relates to real estate.  Put 5% down and leverage an asset 100% sounds great right?  Well what if the asset declines all while you are still paying 95% debt service?  Leverage is amazing but it only works when someone else is paying the debt associated with it ( aka income producing property).  The problem with gold and silver is it DOES NOT provide passive income.  This means it is a great store of wealth but no dividend, no rental income, no income at all to pay the interest on debt used to buy.  If you decide to use credit to buy gold or silver you should have a plan to cover the interest and not bank on the metal to do this.


I bet when you read “risk” you think risk like it may drop in price but this isn’t the risk I’m talking of.  Owning physical gold and silver comes with theft risk but few of us what to discuss.  Recently in the news was a story of a poor fella in Canada that watched $750k in silver leave his home and drive off with a couple of thugs.  Metal is hard to insure and once it’s gone it’s gone for good with few exceptions.  My point is this.  It is bad enough to have metal stolen but can you imagine if you owed money on the lost metal as well?

We recently posted several examples of bad guys following both coin buyers and sellers from coin shows only to rob the goods somewhere on the path between work and home.  The fact is as our economy declines more will turn to stealing items of value so you in return must realize there is a risk in owning physical metal.  Now I’m all about the 2nd Amendment and my recommendation is that you become familiar with protection well before you bring metal home, especially if borrowed money is used to buy it.


If you are determined to use credit try to use only as a bridge loan.  A good example could be a great dip in price and liquidity is a problem but credit is not.  Using credit to lock in a dip with the understanding to pay it off soon is understandable.  My concern, like so often, is falling into the same debt trap that drives the value of gold and silver up yet wrecks our economy.  Please give it some thought before you whip out the gold card.


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THE STREET:  Federal Reserve Is Like a Drug Addict: Ron Paul

WASHINGTON, DC (TheStreet) — Congressman Ron Paul discusses why the Federal Reserve committment to money printing is like a drug addiction.  Watch it here.


BLOOMBERG:  Brazilians Buy Miami Condos at Bargain Prices

“Brazilians are drawn to Miami by the opportunity to buy property which they can rent the next day, generating income,” Gabriela Duva, director of Coelho da Fonseca’s new division, said in a telephone interview from New York. “Even those buying for leisure also plan to rent while not using their properties.”  Read it here.


CNBC: Traders Are Dumping Stocks and Buying Gold and Silver

“The government has no more bullets,” said David Greenberg of Greenberg Capital and commodities trading veteran from the pits. “Gold is the only asset that has held value over time.”  Read it here.

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