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Archive for October, 2011

WILL GOLD BE CONFISCATED, AGAIN?

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

The thought of someone taking something you’ve worked hard to accumulate is almost unimaginable.  Unfortunately, this is exactly what happened to physical U.S. gold owners in 1933 (gold holders were actually paid in exchange for gold).  We’ve spent the last few posts answering “newbie” questions knowing sooner or later every new buyer, of both gold and silver, asks, “Will gold (silver) be confiscated, again?”  Fact is, a great confiscation of wealth takes place everyday, growing worse, with few outraged at all and the culprit is inflation.  But today we’ll do our best by comparing our current worldwide gold market with a time when most private metal ownership was illegal.


Right off the bat I want to put new buyers (owners) at ease by saying I see less risk of gold confiscation compared to inflation and asset bubbles. My opinion, it’s far riskier to NOT own physical metal than to.  But the concern is real and needs to be addressed, so we will.  In 1933, the penalty of not returning your gold was up to $10k and (or) ten years in prison.  I was unable to find one case where a person paid a fine or spent one day in prison for failing to return private metal to our government.  My research found some folks returned gold but plenty did not and none, that I know of, went to prison.

Gold, in 1933, played a much more significant part of our economy than it does today. We have mentioned many times that less than 2% of the today’s wealth is in gold.  In 1933 gold was very relevant since a “gold reserve” or inventory dictated the number of dollars in circulation, this is not the case today.  Many economic experts believe the “call-in” of gold was more about keeping real wealth here in the US in a time when gold was flowing into Europe.  If true, this was about controlling real money and less about what U.S. citizen owned it.  The result was the same by taking private ownership away from citizens, ending the gold standard system.

Our  global gold market is much bigger today with many more countries, citizens, able to physically own gold and silver, unlike 1933. It is possible for a citizen of the United States to own physical metal keeping it in Canada, by example.  To me, the threat of confiscation is much less than the possibility of a new tax or fee when metal is bought or sold.  This brings up the next very real option of an underground gold and silver market.  Think directly trading gold or silver for something else without trading metal to dollars first (a currency within itself).

By nature, those who own gold and silver are independent types. The thought of big government controlling more aspects of day-to-day life is nauseating, at best.  A gold confiscation will push most of these types to trade “underground” exactly like many countries of the world do today.  In home searches, for precious metal, seem like a long shot especially in a wrecked economy trying to make do with less law enforcement and prison space.  Remember, if the economy is bad enough to confiscate metal than city, state, and federal agencies stretched and underpaid.  Law enforcement will have more to worry with than your 50 ounces of gold.

Real Risk:

To me, a bigger risk exists today for new gold buyers, as related to gold confiscation, with the belief some gold is non-confiscatable. This “non-confiscatable” gold (collectibles, rare coins) may bring peace of mind to new owners but really only brings big profits to those selling.  This assumption comes from a sentence out of the 1933 gold confiscation hand book saying, “gold coins having a recognized special value to collectors of rare and unusual coin…” are exempt from confiscation.  There is no guarantee this will be the case if confiscation becomes law again.  Paying far more than real gold value, in my opinion, is rarely a good idea for those wanting to protect wealth by way of gold and silver.

YOUR TURN:

We often hear interesting feedback at www.theprospectorsite.com and like to share views with other readers.  It’s great when comments show folks are thinking about their future unwilling to take the advice of mainstream “experts”.  We have said, for some time, the most beneficial financial adviser you can hire is yourself, since no one looks after your money like you.  Below is a comment from our SHOULD YOU OWN PHYSICAL OR PAPER GOLD post.

“My issue with “paper gold” or “paper silver” is that what happens when the SHTF? let’s say you have paper gold. the dollar collapses. now you have a fancy piece of paper saying you are owed gold, what happens when the person who actually owns the physical gold your paper says is yours won’t come off of it? you now have a fancy piece of paper and no gold.”  KYLIE.

PROSPECTOR: Great point Kylie and thanks for the comment.  My point was more about when is enough physical “enough” and diversifying physical and paper make sense?  Maybe I’m too optimistic but I’m not expecting a complete societal breakdown, no doubt “middle class” numbers will decline and this concerns me.  Thanks for reading and making a good point.


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HOW HIGH WILL GOLD & SILVER GO?

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

By human nature we want to know more about our financial future especially in days like these.  Current trends for both gold & silver are positive but maybe it will help new holders to understand what motivates metal values to grow.  Some investors look at $1700 gold and $35 silver thinking no way this bull run will continue not looking at the economic fundamentals behind precious metal.  The odd thing is they don’t have to go up at all to help you as a precious metal owner.


If you’re new to gold and silver let me say congrats on putting time and effort into precious metal. So many find themselves sidetracked by these mysterious metals never getting past the initial intimidation phase.  Our goal at www.theprospectorsite is to help clarify, simplify, gold and silver making your next purchase painless as possible.  We understand no one wants to throw hard-earned money into something only to watch it disappear.  The fact remains gold & silver can be highly volatile having days that test even the most seasoned investor.

WHAT DRIVES GOLD UP!!

We think of gold value in terms of dollars but actually gold is much closer to stationary than moving. What gold does so well is keep up an exact accounting as a benchmark of value.  In times when gold increases in dollars, what is actually happening is our dollars are losing purchasing power.  This can be tough for some to understand because we have grown accustom to judging “things” in currency not real money (gold & silver).  A prime example of this is when hyperinflation hit the country of Zimbabwe recently.  An ounce of gold traded for trillions in Zimbabwean dollars.  It took massive amounts of currency to buy one simple ounce of gold, food, everything.

Gold, and silver, prices are climbing in dollars because of massive money printing via The Federal Reserve & Treasury. The idea is to jump-start the economy but as you can see this “investing” is not paying off so well.  What is paying off well is real money like gold and silver.  If this spending pattern continues (it seems to be the choice of most currencies) then an increase in gold and silver should be expected, possibly big increases!  Again, precious metals transport wealth along an inflationary path willing to go as high as possible to keep pace with inflation.  There is no guessing how high and we can look at Zimbabwe as proof!!

WHAT WILL GOLD BUY?

What gold can buy is the true gauge of its value. As mentioned earlier, we find ourselves caught up in dollar terms of value when actually dollars can be misjudging.  A new car today will cost around 21 to 23 ounces of gold.  Twenty five years ago a new car would cost 21 to 23 ounces of gold.  The difference is gold went from around $420 (ounce) in 1986 to somewhere around $1700 today.  Gold kept up with inflating car prices just like it keeps up with nearly everything else.  A savings in dollars cannot do this!!

Here is where this gets interesting. Have you noticed how other assets are declining (real estate, stocks, toys) while gold and silver are rising?  This means the buying power of metal is growing far beyond dollars, it’s growing in value compared to other assets.  Does this mean a typical 3/2 home can someday be bought with 500 ounces of silver, absolutely.  I suspect both gold and silver will not only grow in dollars but, more importantly, buying power (value).


Last Word:

For those new to our site, we are answering the top 15 questions, or so, new gold owners are asking.  We recommend not buying metal until fully understanding things like risk, timing, benefits, and options.  We will be covering all the above and more over the next few weeks so sign up for our weekly online newsletter recapping important information each gold prospector must know.

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IS GOLD BETTER THAN SILVER?

GOLD & SILVER, GOLD AND MONEY   No comments yet

Well, here we go again by answering yet another common question for those interested in practical gold and silver knowledge.  Our goal is to provide unbiased and accurate information allowing you to make the best “money move” in an uncertain economic climate.  Gold/silver continues to boggle both new and old owners leading us to ask if gold is a better buy than silver?  Both are going up but the question is what will each do over the next few months and years ahead?


THE GREAT FLIGHT TO SAFETY:

By human nature we gravitate to things of security during times of disruption and uncertainty. Faith, family, and precious metal all fall firmly under sources of security, some folks use all three in times like today. Gold and silver have been a source of real money since biblical times outlasting societal currency schemes of debasement and corruption.  This is not changing anytime soon.  A “realization” is beginning to root itself across America, across the world, that a lifestyle derived from debt and deficits is no longer sustainable.  This correction is causing some (the prudent) to liquidate declining assets then parking money in strong, secure, and reliable assets like gold/silver.  This trend will only grow.

Have you noticed how small crowds of people draw a bigger crowd? My personal phone rang off the hook, several months ago, when silver spiked to nearly $50 per ounce.  Friends asked where and what to buy, like silver was on sale, when actually it was as high as modern time had seen.  By nature, we pile into assets after they’ve lifted off and the run into precious metal will be no different.  The price of silver and gold will rise by demand if the economic herd runs its way.  Actually, neither metal needs the herd’s help because trillions in printed currencies is all it takes to lift metal (both gold & silver) to new highs.

THE “DOLLAR STORE” METAL:

I love to buy silver.  This is the one metal you can actually feel for a few hundred bucks. Silver is a cool metal in a world of gold but, unlike gold, it’s priced where everyone can play.  I remember an auctioneer struggling for an opening bid at a fundraiser when he finally lowered the bid to $10 dollars so, “everyone can play.”  Silver is the one metal we each can afford without excuse.  Precious metal brokers are reporting dollar to dollar sales the same for gold and silver.  This means silver has the same current demand as gold but trades 50 to 1 compared to gold’s value.  Know let me ask you a question.  If silver has the same buyer demand how long will it be before it closes the gap in relationship to gold?  Remember, if silver is trading 50 to 1 to gold (but dollar sales are the same) this means folks are buying 50 times more silver, right now, than gold!!

THE “BLING” FACTOR:

No one will question that gold is the “Big Daddy” of precious metal. If big players move millions, even billions, into precious metal I can guarantee the majority goes to gold.  Central banks, governments, big players all buy gold over silver because gold is the truest source of real money, at least up to this point.  Emerging buyers like China and India, once unable to own private metal, are now free to own both.  China has cities with gold peddlers on every street corner as wealth transfers into gold.  India is another story since private possession is more in the form of jewelery than bullion coins.  Can you imagine wearing your net worth, literally, around your neck (should I say wife’s neck).

Here is my take and then I’ll leave the decision up to you.  I believe silver will follow gold’s draft upward but close the gap far closer than the current 50 to 1.  If masses pile into precious metal I have little doubt silver will be the blue-collar choice allowing many to transfer wealth via silver.  How can this not push silver prices upward?  Having said that, I believe both metals should be part of your plan according to how much money you have to throw their way.  I started my precious metal journey 100% in gold then traded some for silver down the road.  An argument for both is possible and each will find their respected place, soon.

THE WRAP:

One last thought completely unrelated to our topic but should be said. For what it’s worth, think how our economy here in the U.S. has changed over a relatively short time.  Not long ago, the support of our government was by hardworking people developing a better way of life by way of a capitalist driven economy (free market).  Today, our government is the backstop for financial institutions worldwide, byway of debt & deficits, where citizens, small business, and corporations depend upon.  Are you comfortable with a debt & deficits based economy with your financial future?  Please take a hard look at gold and silver soon.

If you’re new to gold and silver email us with your gold/silver related questions. Our guess, if you are asking so are others so email them over.  Also, feel free to sign up for our weekly online recap sent straight to your email.  Keeping informed is key to protecting your families financial future.

Thanks for reading www.theprospectorsite.com and watch for our next post when we answer “How High Will Gold & Silver Go”.

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DO YOU OWN ENOUGH PHYSICAL GOLD/SILVER? TOO MUCH?

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

Welcome back and thanks for joining our discussion on gold and silver as it relates to new buyers.  Not a day goes by without someone asking how much precious metal one should own especially in uncertain times like these.  Our goal here at www.theprospectorsite is to answer a few confusing questions you may have (please look here for a list of questions we will be answering over the next few weeks) on the mysterious source of real money we call precious metal.  Our last post answered the difference between physical and paper gold/silver and can be read by scrolling down this page or visiting our site.  Today we discuss how much is enough physical metal for your arsenal.


The gold and silver business has its share of scams just like any other profitable source of investing. This scenario will not happen to you if I have anything to say about it.  Finding honest brokers (sellers) of precious metal is not hard, finding ones that will steer you into the best metal is another story.  What you are doing right now is the best method to make sure you get the most for your money (education).  We recommend buying bullion type gold and silver as close to spot price as possible from a trusted source.  We will talk at length about this in future posts.

Your first exposure to gold or silver should be in the physical form for several reasons.  I recommend a simple start by visiting your local coin shop especially if buying just a few coins (bullion).  This will build confidence and allow you to see exactly how easy the process can be with a little guidance.  A plan on what to buy, the cost, storage, and how much should be determined before entering the store.  Remember, just because the person behind the counter sells gold/silver doesn’t mean they understand the dynamics behind precious metal.  Stick to the plan especially when starting out.  Silver is cheap so start there if nervous about the process.  Don’t worry if the price drops as soon as you leave the store, prices move up and down all the time.

Eventually most gold and silver buyers find an online dealer to buy physical metal as they become more comfortable and trusting. The problem I’m seeing today is some gold holders are convinced the only way to own metal is physical.  I don’t agree with this at least not at this point and the reason is security. The thought of hundreds of thousands of dollars in metal hidden in your home or safe is fine unless someone figures it out.  So this leads us to ask how much physical gold/silver is enough?

Just yesterday I received a comment saying physical metal is the only safe way to own gold and silver. My reply, there isn’t a 100% completely safe way to own gold or silver.  In fact, there isn’t a completely safe investment of any kind in this day and age.  All we can do is stack the deck in our favor and not worry about what we cannot control.  The fact is physical metal can be as risky as paper metal each in a different way.  Diversifying how you own gold and silver is just as prudent as owning precious metal.  Sooner or later you must ask if you own enough physical gold/silver according to your financial situation and risk of theft?

Our new readers are miles away from the concern of how much physical they should own but good planning makes for good results. Trust me when saying something about owning physical metal makes a person paranoid and it doesn’t matter the amount.  If you are not comfortable with self securing your metal do some research on other options.  We have discussed several ways to physically own gold/silver without storing it in your home.  I have used several option with no problem but the world is changing quickly so be aware of what’s happening in your neck of the woods.  Eventually owning paper gold makes sense (after securing physical) and adding it to your portfolio is worth considering.


ADVANCED GOLD/SILVER HOLDERS:

As I’m writing this both metals found a way to break out of typical day-to-day trading. Gold is up over $50 bucks as nervous investors don’t like the tone coming out of Europe.  A bad housing report among other bad news didn’t help either. Today is one of the few days stocks dropped but gold didn’t. The book Aftershock explains Money Heaven and how wealth will disappear before sellers can liquidate assets like real estate, stocks, and businesses.  Each day we hear more news of student loan defaults, housing values in decline, and yet more businesses closing adding more unemployed.

Our goal at www.theprospectorsite is for folks to see gold not only as a way to prosper but as an insurance. I do believe folks will prosper but many in our middle class simply need to trap or preserve enough savings (wealth) to survive the next few years of economic uncertainty.  Watching and understanding how current events shape our financial world is as important today as ever before.

Thanks for reading and feel free to sign up for our weekly recap emailed straight to you.


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SHOULD YOU OWN PHYSICAL OR PAPER GOLD?

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

This next sentence could scare our new gold or silver buyers but it must be said.  There isn’t a risk free way to own precious metal regardless if physical or paper.  The next few weeks are geared toward the new precious metal buyer by clearing up the mysterious side of gold and silver.  Each day we’ll answer at least one common question or concern hopefully providing insight and comfort before you trade dollars for metal.  I’m hoping you are beginning to see some ways are better than others and knowledge is the key to precious metal success.  Most hardcore gold owners will say invest in physical but there truly are benefits to both.


PHYSICAL METAL:

In this day of uncertainty, schemes, and devaluation it is nice to hold something tangible not in decline. Year over year gold is up $300 per ounce and silver is up as well all when most assets or investments are taking a beating.  The financial world is turning into a volatile place and having access to real money (gold & silver) is wise.  Gold/silver hold so many independent benefits allowing you to control your savings even in times of bank holidays or financial interruptions.

The term physical metal simply means you have possession of your own precious metal in some form. It could be in your home safe or your bank’s deposit box but you have access to it.  I recommend owning the majority of your gold in physical form especially when starting out.  Unfortunately physical metal has a few negative aspects you must consider before buying but it’s still worth owning obviously.

Physical gold or silver costs more to own than paper metal. During our last post (Best Way For New Buyers to Own Gold) we discussed premiums and how much these premiums add to metal cost.  Shipping and insurance drive up costs of physical metal too but my concerns are more related to safety and theft.  Just as metal grows in price and popularity so do crimes related to them.  Everyday someone thinks up a new creative way to part you from your metal so proactive planning on your part is recommended.  We are seeing an increase in gold related crimes from coin shows to cash for gold joints.  Can you imagine when gold is up another 25% and employment worsens?

PAPER GOLD & SILVER:

Please don’t misunderstand because I’m not trying to scare anyone just provide facts. A person could drive themselves crazy worrying about theft, the future, etc but the fact is we must do what we can letting faith take care of the rest. Paper gold is a broad term but defines some form of metal ownership without possession.  Some forms of paper gold/silver claim to backed by physical metal but the question is how do we actually know if they are?  What we do know for sure is money will be made, likely, over the next few years in paper precious metal.

Exchange Traded Funds ( ETFs) are available to both gold and silver investors. ETFs trade like stocks but are not backed by 100% gold which concerns me for the new investor trying to shrink risk (the only exception to this is the PHYS ETF).  There is a premium when you buy paper gold in the form of ETFs and they are easy to sell, liquidate, when it’s time to move into another asset.  At this point ETFs seem safe but I still like the idea of working past physical metal first and then to paper metal.

It’s hard to read about metal investing and not hear about mining stocks. As you might have figured mining stocks allow investors to not only cash in on gold’s bull run but profit from those digging it out of the ground.  Right now appears to be a good time to consider mining stocks since most are undervalued compared to the price of precious metal.  The fact remains you could invest in mining stock with gold going up but still not profit.  If your company isn’t finding affordable metal then it doesn’t matter how much stock you own.

Please do your homework before buying mining stock and realize this can be profitable but risky too.  I recommend saving this source of paper investing until after your physical metal arsenal is fully stocked.



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BEST WAY FOR NEW BUYERS TO OWN GOLD & SILVER?

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

Earlier this week I spoke with a New York Times best-selling author on the subject of buying gold.  This person is what I consider a leading economic authority but since I don’t have permission to name this person I won’t.  More important than who they are is what they said when we got to the juicy part of buying gold and silver.  This best-selling financial author told me many clients they consult with have no idea how to buy gold or silver.  Millionaires to middle class included.  It seems the only true source of real money is a mystery to the wealthy and the masses.  Today we’ll expose the best way to own gold & silver.


If you are one of the many newbies to owning precious metal my goal is to help simplify the buying process by answering a new question each post over the next few weeks. As you can see from my conversation earlier this week you are in good company all while learning very important steps to wealth preservation and prosperity.  There are several ways to own gold and as you progress it’s possible you might use each one somewhere down the road.  Are some ways more risky than others?  Absolutely, but like a Vegas gambler risk is not as risky when we’re playing on house money.  But starting out we need to be as sure-footed as possible saving risk for down the prosperity road.

One other thing before we dive in. I recommend, if new, following closely over the next few weeks before buying metal of any kind.  Sure there is risk of metal going up in dollars but actually far more risk in jumping the gun making a not so good precious metal investment.  I will start off in order of what I feel is the safest yet prosperous progression of owning gold or silver knowing we have plenty of time to discuss more advanced ownership methods down the road.

PHYSICAL GOLD/SILVER:

There is something liberating about owning gold and silver. Not sure if it’s the feeling of independence but knowing I own something that can’t be printed or debased is satisfying especially in today’s economic climate.  There are countless ways to own precious metal and I have no doubt most ways will prosper down the road.  The fact remains the best method right now is to own physical metal paying as close to spot as possible.  To keep it simple spot price is nothing more than the price of metal you see on the upper right of this page.  This price moves up and down as metal trades around the world just like stock shares do.  You will not find physical gold at this price unless someone is really looking for quick cash.

The extra price over spot is the premium part of physical gold or silver. For example, a one ounce silver coin (bullion) is currently selling around $34.50 each or $4.00 over spot.  We have to pay $4.00 over the spot price for one ounce of real physical silver.  The four dollars is the “premium” added to the spot price.  Little confusing but we’ll spend more time down the road with spot and premium but one thing to keep in mind is most gold buyers or sellers like myself rarely pay attention to spot pricing since this isn’t what we pay for physical metal.  PLEASE NOTE:  The premiums are rising especially for metal in inventory (no long wait by taking possession quickly) and will continue to do so as long as demand for physical metal grows.

The bullion coin just below this sentence is an American Silver Eagle which consists of one ounce of silver.  This is a very popular silver investment and sells for around $34.50 at this time.  It also is a legal tender coin which means you could take it to your local Seven-Eleven store and spend like any other coin.  The reason we don’t is because the value in the bullion coin is within the silver content not the dollar number minted on it.

The above coin can be bought in gold as well but to keep things simple today let’s stick with silver. The next option to own physical silver, or gold, is rounds. Most rounds are one ounce too but are privately minted so they aren’t legal tender coins like the Silver Eagle above.  Nevertheless they usually hold one ounce of silver so they are a great way to invest in precious metal.  Below is a picture of a typical “round” of silver.  This coin will cost a buyer (varies) around $33.00 or a $1.50 less than the Silver Eagle.  Both coins have the same amount of silver.

Another great way to buy precious metal is in the form of bars. These bars can vary in weight and don’t look like a coin or round.  The bars are simply a hunk of precious metal hopefully with a minted stamp showing purity and weight.  Investing in larger bars will save money but will be harder to sell in most cases.  If your goal is to simply hold silver or gold as a long-term savings big bars could be what you’re looking for.  Below is a picture of a typical 10 oz silver bar.

FOR THE ADVANCED GOLD/SILVER OWNER:

Several things in the news lately pointing yet another arrow toward the benefits of owning precious metal. Geopolitical issues continue to apply pressure as governments across Europe solve debt problems with more spending.  Not a day goes by without the word “default” coming up and an end to the euro currency.  No one knows what will happen as austerity and greed battle it out but one thing for sure the euro zone nations are learning how to live off less.

Many Americans are asking if the same conflict is possible here and it certainly is worth watching. This administration is full throttle with quantitative easing but they are getting very good at rewording it.  New words appear daily like “investing” or “supporting” but in the end it’s about throwing more printed money at bad.  Gold and silver have stumbled along going slightly up one day and then down the other.  Part of the reason has to be a renewed confidence in the dollar but one has to wonder if it’s simply the least worst right know?

The stabilization of gold and silver is holding some along sidelines but even with that strong sales of physical metal are common. I can’t help but wonder what event will open precious metal gates in the near future.  No doubt with all the uncertainty and unrest something big will send metal just beyond what many folks can afford.

If you would have told me several months ago that a monster box of silver could be had for less than $17k I would have laughed.  Hopefully new buyers are seeing this stabilization as a discount and taking advantage of prices.  Who knows but my bet is higher prices soon.

Thanks for reading www.theprospectorsite and if you have friends, relatives, heck enemies that could benefit please send over our link.

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FOR THOSE NEW TO GOLD

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

If owning gold, or silver, is Greek then come on in and sit down because you’re in good company.  Sometimes those of us writing about the benefits of owning precious metal forget new readers are simply looking for new reader information.  This is why over the next few weeks we will divide each post with information for the novice to the expert.  If you’re new to precious metal let me start by saying congratulations for making the effort necessary to protect yourself in turbulent times.  Over the next few weeks you will learn far more than enough to comfortably enter the exciting world of gold & silver ownership.


FOR THOSE NEW TO GOLD:

For the record I’m not a creepy old man who spends my spare time looking through magnified samples of minted gold.  My name is Doug Carlton and I founded www.theprospectorsite for the same reasons you are reading it today.  I’m 46, married for 23, and have two boys that think their dad is a nerd for talking about gold in every continent that has internet. Like you, I realized something wasn’t right with our economy and was curious why products and services kept rising in price.  I wasn’t overly concerned because my other company provided more than enough income to live and invest comfortably.  Unfortunately the good old days of stocks, real estate, and business profits are behind us leaving only one true asset standing, gold.

My concerns grew stronger late 2006 and into 07 as I noticed assets, like real estate, turning from upward to downward very quickly. At first I noticed my business sales slowing and of course showing less profit.  Then I noticed for sale signs sitting longer in yards on my street.  I also noticed the only asset not in decline was my investment in gold and silver.  I had researched how to safely buy metal, how to safely own metal, but really didn’t grasp why gold and silver was the one asset everyone must own especially in times like these.  Friends and neighbors thought I was crazy when I sold perfectly good real estate investing proceeds into precious metal.  My banker later told me he thought I had gone off the deep end.  Somehow I knew something was about to change my perception of “new normal”.

The fact is I didn’t go off the deep end and neither have you for committing to gold and silver.  What you’re thinking about doing is a big decision and I’m guessing it’s not something taken lightly.  You may be conflicted asking what your spouse, family, coworkers, and friends will think if you liquidate a recreational toy and buy precious metal.  Maybe I can help with that conflict by reminding readers of a few facts we sometimes forget.

You’re prudent to buy precious metal soon for several reasons so let’s break a few down. Trillions of borrowed dollars have been (are being) thrown at an unsustainable economy but with little result.  Not just in the US but over the entire world this process is repeating itself.  The stock market and banks are looking better than they should which in return allows most people to believe things are all right when they’re the furthest from it.  Real estate has reached a level not seen since the Great Depression and if reliable sources are correct this trend will continue.  Once solid jobs in city, state, and federal government are now in great threat.  Once solid pensions and entitlements are no longer safe either.  The unmanned inflation train is slowly gaining speed endangering those unprotected or uninformed.

I honestly believe the best protection, right now, is gold and silver.  I wouldn’t be invested in precious metal if I didn’t feel this is the safest and best odds to prosper in days ahead.  Over the next few weeks we’ll answer several questions I have no doubt you’re asking especially if new to gold and silver.  Here are just a few.

1.  What is the best way to buy gold or silver?

2.  Should I own physical gold or paper gold?

3.  What is the difference?

4.  How much of each?

5.  Is gold better than silver?

6.  How high will gold go?

7.  Will they someday confiscate gold like they did once before?

8.  Can I insure gold and silver?

9.  What is the best way to sell precious metal?

10.  How can I learn more about gold and silver?

11.  Why do some folks say it’s unwise to own metal?

12.  When should I sell my metal?

13.  What should I buy when I sell my metal?

14.  Where is the safest place to store my metal?

15.  When is the best time to buy gold or silver?

16.  Why does the price fluctuate so much?

All good questions and we will pick each one apart until you feel comfortable with each answer.  Thanks for reading www.theprospectorsite and sign up here for a weekly recap emailed straight to you.

PS:  Email our site over to friends or family if talking about the benefits of gold don’t come easy.  Give us a couple of weeks and we’ll make a believer out of the most skeptical.

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GOLD MINING ON WALL STREET

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

REUTERS recently ran a fascinating article on the only modern gold mine east of the Mississippi River cranking back up.  Historic Haile Gold Mine is hoping to mine 150,000 ounces of gold over 5 years with an investment over 650 million.  I have found Reuters to be somewhat accurate on their news but they missed this one by a mile.  Haile isn’t close to the only or biggest modern gold mine east of the Mississippi River.  The reporter must have forgotten the biggest gold mine ever to stake a claim, Wall Street.


The owners of this gold mine, Romarco, should seriously reconsider the risk and investment at a time when Wall Street is paved with golden bailouts. After millions in environmental impact studies, millions in restoration, and millions more in wetland improvements my math shows Romarco could earn around $600 million off this gold mine in South Carolina.  They could be wrong and not find as much gold ending up losing 100′s of millions too.  Romarco Mineral is taking more risk than needed since Wall Street mines are producing much more profit with no risk at all.

Wall Street protesters are mad as hell but can’t consistently tell us why.  Their movement has spread like wildfire but ask five why they’re there and expect five different answers.  More taxes on the rich, maybe end the Fed, how about free health care and eduction?  The gold, and anger, is at Wall Street because a shrinking underclass is catching on that the only giveaways are to those large enough providing power to leaders.  The protests are 100% related to the growing gap between rich and poor while the rich line pockets with gold.  America’s Middle Class sits around their televisions wondering why new age hippies are so upset all while their net worth drops like a rock.

We have written about the growing conflict here at www.theprospectorsite many times. Conflicts in currencies, conflicts in trade, conflicts among those bailed out and the one’s left out.  The injustice is on several levels as true capitalism rides backseat to governments desperately trying to save their bacon.  It would be bad enough if governments handed out tax payer money to the wealthy only but actually the money is borrowed making the situation much worse.  Eventually the bailout money will cease but only after your dollar’s buying power drops, businesses shuttered, and the Middle Class begins to resemble the poor.

GOLDEN ANSWER:

Most folks around the world have no idea what can be done about our economic situation. They watch Mr. Geithner blame Europe and Mr. Bernanke blame China all while wanting to believe the system isn’t corrupt when down deep they know otherwise.  The fact remains you can’t change the Wall Street handouts no more than I can.  You can’t stop the Fed or central banks from throwing trillions at a problem only to watch bubbles float away at the end. But we can outsmart the academics at their own game all while finding prosperity (and integrity).  You must realize gold is penicillin to the world’s financial infection.

The value of gold will grow as currencies around the world print themselves into worthlessness. Even if you don’t understand gold you must see the choice for governments is to protect their own and print more money!! Demand for gold/silver will grow motivated by distrust, desperation, prudence, and fear.  Inflation, deflation, and stagflation have never won over gold and this time will be no different.  Please take a hard look at precious metal until honor, dignity, and restraint find their way back into leadership.


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THE NEW BUSINESS OF NECESSITY

GOLD & SILVER   No comments yet

If you are a true entrepreneur you’ll appreciate this post.  So many of our articles can be mistaken for bummer type news but, in reality, this is the furthest from the truth.  Our goal is to provide facts and trends that help provide financial direction with a big emphasis on gold and silver.  I believe the next decade will be disastrous for middle America but prosperous for those willing to stay proactive in a paralyzing time.  One way of staying proactive is to understand the next emerging business of our lifetime.  The business of necessity.


My recent visit to Denver’s Federal Reserve Bank and US Mint allowed me a day or two to visit businesses along my travels. One business stood out among the rest spanning several acres of interstate frontage with 10′s of millions invested. This business was as professional looking as any I had ever seen keeping millions in inventory spotless.  Beautiful building, beautiful landscape, just an overall picture of success at least from a first impression.  I’m concerned for this business, like many others, because it sells something unnecessary in an environment of necessity, travel trailers & RVs.

Interesting news recently came out of Walmart every business owner should take to heart.  The trend of growing customers looking for “Always low Prices” took another step few expected. Not only has millions of new customers appeared in Walmart by retreating from other food/products sources but now customers are buying more generic brands over name brands.  The race to necessity plays out time and again at the world’s largest market as folks look for the cheapest source of local food possible.  This is a very disturbing sign for those in the business of selling nonessential products and services.  But what does all this mean and is this just a temporary trend?

This means our technological age of commerce makes it possible for produce growers in China to compete with local growers just down your street. If your local Walmart, Costco, or Sam’s Club can sell foreign produce slightly less than your local fruit stand then your local fruit stand is in trouble.  Why?  Because more folks are trying to live off less income all while their dollars buy less.  A perfect storm of a necessity driven market with a long-lasting trend!!

This trend is progressive and here is a perfect example. A large portion of Americans can still afford to shop where they want (at least for now) but choose to now shop at discount places right along with the poor.  The reason these folks do this is to either keep their budget in check so they can still do fun things on weekends or the barrage of daily bad news scares them into cutting back on necessities.  Regardless the result is thrifty shoppers very driven by inexpensive products and services.  Is there time for you to redirect your business or career?  Absolutely yes.

The crisis of 08 scared leaders around the world and I’m starting to believe most governments are choosing to lessen the economic crash by printing its way into a softer landing. This may lengthen the crisis but give some folks more time to prepare for the next let’s say less prosperous years as asset bubbles pop exactly like the housing bubble did.  The prudent will take this time to redirect businesses, jobs, assets (think gold & silver) by setting up camp on the edge of the few rivers of money flow left, the rivers of necessity.  All of this as gold/silver rockets, as middle class becomes the new face of the poor, and as governments print new money worth less consequently buying less.

YOUR WORDS:

Dear Mr. Prospector,

I’m thirteen and have bought silver for over one year.  I sold old games no longer used on EBAY using the money to buy silver and recently 1/10 ounces of gold.  My dad keeps it for me in our safe.  I bought my first silver off Ebay when my dad wasn’t home but later realized it wasn’t what I thought it was.  Now my dad takes me to a coin store in our town when I have extra money.  I like owning silver and now gold because it makes saving fun and it keeps me from spending all my money.

Thanks, KJ

PROSPECTOR: Wow.  I wish I had been as wise as you when I was thirteen.  I’m proud of what you have done and it sounds like you are receiving great advice from your parents.  Keep up the good work and let me know how it goes.  Thanks for writing to us.

YOUR WORDS:

This came in from Hal about our recent post Has America Given Up.

I’m afraid I have to agree with the idea that a large portion of the USA seems content to just “tap out” as you say. And maybe it’s not just the USA.

It’s discouraging. Or rather, maybe it is discouragement and the feeling that nothing can be done. I just read a news item on a man who built a tree house for his kids only to be attacked by his city government. This came long after he had done due diligence to see if there were any requirements he must make before building it. They had practically laughed at him, according to the article, that first time telling him there wasn’t anything he had to do. Then of course after it’s built the other hand of government came in with fines and ultimatums.

It’s this kind of thing that I think is just one of the many factors leading many to that discouragement and the feeling of being powerless.

I sincerely hope you are right about those buying gold.

Thanks for reading www.theprospectorsite.com and feel free to comment or sign up for online newsletter here.


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THE TITANIC COURSE FOR SOME GOLD HOLDERS

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

I can only imagine the horror aboard an unsinkable ship that took the lives of 68% of its passengers.  I wonder how many passengers boarded paying little attention to an inadequate number of lifeboats?  Do you want to really know why so many perished in the frigid water this dreadful night?   From passenger to captain, from shipbuilder to designer, they all assumed everything was fine and failed to prepare for uncertainty.  History makes it obvious to us but only because of hindsight.  How many of you are sitting on the sidelines wondering if the economy is as bad as it is? How many of you are counting lifeboats?


Something very odd happened during my recent visit to the US Mint in Denver. As most watched dimes, nickels, and quarters pressed into legal tender I noticed a very concerned look on the face of our armed guard as he stared out a window. I joined my guard noticing a late-model car with its windshield completely smashed and several armed guards standing beside it.  I asked my guard what happened when he explained a roofing crew was working atop our building and must have thrown old roofing off the roof top and straight down on top of this new car.  The roofer assumed it was OK to toss debris from a three-story building without looking, maybe this is why they were the lowest bid?

How many of us assumed a good college education would equal a prosperous career?  How many of us assumed our homes would always be a safe store of value? How many assumed 401(k), stocks, bonds, and savings would provide more than enough income as we prepare for retirement?  How many assume buying gold is all they need to protect in times of economic collapse?  It concerns me how many jump into a lifeboat of gold only to soon realize even their lifeboat has a hole in the bottom.  It amazes me, even in this day of economic calamity, how many willingly buy gold from experts (advertisers) without fully understanding why they should.

I have received several emails complaining www.theprospectorsite is not defining enough with our information on purchasing gold and silver.  Some feel spending a few minutes in front of their computer should provide enough knowledge to make lifelong financial decisions.  I’m sorry but it’s not this cut and dry, not by a long shot.  I have spent over ten years trying to grasp the power of gold and silver only to realize I know so little about it.  Gold and silver can help stabilize ominous times but personal effort is needed to not be taken advantage of.  Education (knowledge) is the first and most important step to stabilize these economic waters.

The faint yet growing sound in the distance is no doubt the herd working its way toward gold and silver. Some in the herd will buy worthwhile metal finding protection there.  But most will follow salespeople’s recommendations trading dollars for high premium rare coins, numismatics, risky gold stock, and fake metal.  All will truly believe they’re protected finding false satisfaction in their prudence when actually most are taken advantage of.  Just like useless educations, just like homes that aren’t really assets, and just like trusting misguided financial planners.  Just to be clear I’m not saying rare coins are unwise I’m saying rare coins are unwise for the uneducated metal investor.

So where are you standing during what history will write as the greatest wealth transfer of our lifetime? I’m guessing since you are 600 words invested into this article you’re searching for the safest path to financial independence.  Congrats for taking the time to do this.  If you are searching for gold/silver buying advice let me say just this.  Buy gold and silver from someone trusted yet buy as close to spot price as possible.  Gold and silver bullion and rounds are a perfect start and a quick visit to our friends over at Gold Shark will provide competitive online buying options.  Your local coin shop will be slightly higher but possession is immediate in most cases.  Know what you’re looking for and what market value is BEFORE buying.

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