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Archive for November, 2011

WHAT GOLD DEALERS WON’T TELL

BUYING GOLD/SILVER, GOLD & SILVER   No comments yet

Welcome back to our loyal readers and welcome to our new ones.  Are you over relying on your precious metal dealer?  Are they your best source for gold & silver in today’s competitive market, how do you know for sure?  Is your dealer placing an order or pushing you into one? The difference can cost you thousands over the long run. Intent of today’s post is not to bag on metal dealers because many reputable companies sell gold & silver.  Maybe you’re asking the wrong questions? Today we expose what gold, and silver, dealers aren’t telling.


I have been on both sides of supply and demand. My perspective as a twenty-five year business owner is different from a buyer’s point of view.  A business looks at an item’s profit potential compared to what a market will pay.  A buyer’s point of view is opposite.  Buyers ask who will sell for less but in a trustworthy and reputable fashion.  The best gold buying situation you can hope for is somewhere in the middle.  Knowing the difference begins with a simple understanding of the best gold or silver for you.

ONE QUESTION TO NEVER ASK A METAL DEALER:

Most precious metal dealers won’t admit that the worst question to ask is also the most common question they hear.  The question is, “What gold or silver do you recommend?”  The problem with asking this question is multiple.  One, you just put the seller in a control position.  Second, you are now dependent (that word again) on someone else to tell you what’s best for, well, you.  We do not recommend putting your financial future in the hands of a commissioned salesperson.  Now this is not to say good information can’t come from those trading metal because it can.  We just want you to have the last word by way of a confident and informed decision.

Here is another problem or two we have with asking such a question. Will a commissioned sales person take  time to ask necessary questions to decide the best metal for you?  After all, today’s market moves quickly with new potential buyers calling in every minute.  How much time will a seller allow you before realizing the commission on twenty silver bullion coins is not worth thirty-minutes of free gold consulting?  Remember, the end game is to close the sale not give basic precious metal consulting.  Many questions should be asked prior to advising someone on what to buy since all of us are at different places along our gold/silver journey.  The same advice for you could be bad for me.

THE HOOK:

Competition is creating smooth presentations from both online and brick & mortar precious metal dealers. E-commerce has changed the way we buy everything from gold to vacations.  The “hook” has never been more important as thousands of products compete for our attention and dollars.  A perfect example is two words I heard recently from a gold/silver dealer, “high-potential“.  Now if you’ve just asked a seller what they recommend I bet a couple of words like “high-potential” will help clinch your decision.  But what exactly does high-potential mean?  Doesn’t all gold have high potential; is the potential highest for the one selling or buying?

Hook words usually find themselves describing types of gold we don’t recommend for those new to physical gold/silver. The metal we recommend is not flashy or risky.  The metal we recommend doesn’t need another “collector” to discover value in your precious metal treasure.  Save high-potential gold and silver for collectors or the naive.  Please read “BEST WAY FOR NEW BUYERS TO OWN GOLD & SILVER” if you have any doubt.

WANTED:  We are looking for new readers so feel free to pass along or site to anyone that can benefit.  Some of you already are passing www.theprospectorsite.com along so thanks.



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LOST DECADE EXCLUDES GOLD/SILVER HOLDERS

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

Welcome to our new readers (loyal ones too) as we move forward with yet more proof of true value within gold and silver.  In case you missed it we just wrapped a series called “Keeping Gold Simple”.  We realize most of our readers are new to gold/silver so our goal is to keep information as simple and straightforward as possible.  As you may know, we don’t sell precious metal but do make soft recommendations for those looking for first metal options.  Feel free to look back a week or three to find the best metal for new buyers.


The barrage of serious economic news hitting us nonstop is almost overwhelming. It seems mainstream media sources have realized what grabs attention of most viewers.  We choose to take another approach unwilling to accept being a victim by learning a proactive approach to a worsening situation.  But making commitment requires a plan and a plan requires us to take a closer look at typical investment assets over the last ten years.  Unfortunately, most investments over the last decade are far below stellar, gold/silver excluded.

I hadn’t heard the term “lost decade” until Japan fell off the radar in the 1990s. Despite trillions in government capital, Japan’s economy has done nothing but trade sideways leaving those looking for profitable investments lost. If this story sounds familiar it should because governments worldwide are following suit with the same miserable results.  Somehow even something this obvious goes unnoticed even to seasoned investors here in the US. We doubt this complacency will last much longer in a time gold can no longer be ignored?  Once again, and keeping it simple, here is yet more proof why gold and silver is a must RIGHT NOW!

LOST U.S. DECADE:

The S & P 500 is a true indicator of historical stock value.  But something very concerning appears when we compare the S & P of 2001 to our current one a decade later.  These results are even more concerning if you’re one of the investors counting on this income anytime soon.  Ten years later our S & P 500 offers loyal investors a – 20% return.

The Dow Jones is a combination of 30 blue chip stocks.  The “Dow” is a common and universal worldwide term describing iconic corporations millions hold stock in.  Unfortunately a decade of savings is now worth – 13% less.  It appears the stock market is no longer a solid source of savings.

We’re told for decades our homes are the safest source to save. This seemed true up to the point of a housing bubble burst unseen since the Great depression.  We have no idea how low before housing bottoms but as of this writing it’s showing no sign of slowing.  Years of high unemployment and the loss of easy credit continues to send any savings in our homes downward (down 37% from its peak).  Nevertheless, average national housing values are up +10 to 20% over the last ten years (varies depending on your region).

GOLD & SILVER:

Gold continues to be an extremely profitable way to save that eludes 99% of investors.  We can’t help but wonder how long gold can be ignored especially when the above facts become more blatant each day.  Since you’re reading sites like this one it only proves more folks are taking their future in their own hands unwilling to accept old advice as fact.  The last decade has been good to those holding gold.  Gold is up 370% over the last decade.

Silver is gold’s little brother.  Silver experts describe silver as the two-fold precious metal.  No doubt silver’s industrial uses contribute to its value but we think silver is far more than just an industrial metal.  Silver is a precious metal priced where all investors, fireman, plumbers, and students, can afford.  For twenty bucks anyone can be a silver holder.  The last decade has been exceptionally good to silver since it is now worth an incredible 430% more today than a decade ago!!

The Pudding:

Percentages can be confusing so I want to break down what a $100,000.00 investment made in November 2001 is worth today according to the above investment choices.

1.  S & P 500 is now worth $80,000.00.

2.  Dow Jones is now worth $87,000.00.

3.  A house is now worth $110,000 to 120,000.00.

4.  Gold is now worth $470,000.00.

5.  Silver is now worth $530,000.00.

Several readers will read this only to surmise gold/silver must be peaking soon ready to burst. Others will read the above information thinking they’re too late to jump into gold at this point.  Our opinion is both ways of thinking are incorrect and here is why.  Gold/silver is keeping up with massive money printing and currency devaluation worldwide.  A real gold bubble will take more demand than 1 – 2% of the world’s wealth, in our opinion.  Our question for you is this, if not gold/silver than what?  Other assets are in retreat and this is not a maybe.  Please take a hard look at gold and silver soon.

WANTED:  We’re looking for new readers interested in straightforward gold & silver facts.  Please forward our site over to anyone you feel could benefit from unbiased information on real money like gold/silver.  Thanks for reading www.theprospectorsite.com.


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MAKING A CASE FOR SILVER

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

Have you noticed how silver fell off the radar after a monster run earlier this year?  Silver went from outselling gold around 5 to 1 to, now, gold outselling silver.  This has to be confusing for new precious metal buyers so maybe we should clear the air with a couple of silver facts.  As you know, the Prospector Site tries to stick with facts and the fact is silver really has something to offer those willing to trust it.  A simple yet affordable metal so many shrug off as risky or volatile.  Today we make a case for silver.


The goal here is not to sell you silver or sell you on silver. As always, we want to lay out the benefits then challenge you to make an informed decision that’s best for your situation.  Silver, at one time, was a vital part of the history of most currencies (up until 1964 most US coins consisted of 90% silver). As you read this, a pre-1965 quarter has a melt value of $5.65 derived from the coins intrinsic value alone.  If you are new to precious metal I want to make sure you truly understand this next point.  The example above means you can take a typical quarter (dated pre-1964) and spend it as $.25 or trade it to a coin shop for $5.65.

It should be said that all 1964 quarters, and earlier, where worth only $.25 when they rolled out of the mint. The intrinsic (silver value within each coin) has grown 2000% over original value regardless what’s stamped on each quarter.  A ten thousand dollar 1964 quarter investment would be worth over $210,000.00 today because the silver value within each coin.  Now let me ask a very important question.  Does $.25 today buy close to what it did in 1964?  We must ask ourselves why silver within each coin is up 2000% but the quarter’s buying power is down 70% over the same period in time.

So many new to precious metals confuse the true value of silver by watching prices move up and down daily. We hear economic experts speak of silver’s volatility like the USD is the most stable force on God’s green earth.  As you can tell from our example the USD is no comparison to silver.  We are often asked if we invest in physical silver and the answer is 100% yes!  Silver has the benefit of history on its side and we don’t feel this is changing anytime soon. Why so many fear silver we have no idea but our advice is to take a hard look at silver soon!!

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NEW WAYS TO BUY GOLD IN 2012

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

If you are one of the millions planning to buy gold in 2012, or shortly after, you will want to read this post in its entirety. The one obvious gold flaw we’ve noticed is how clumsily physical gold/silver trades especially in the Western part of the world.  This realization became blatant as we wrap up our first E-book on keeping gold simple.  We, www.theprospectorsite.com, are not big on predictions but some things are easily apparent and how gold will trade in the future is one of them.  Not a moment too soon in our opinion.  Today we look at how you will buy gold post 2012.


Gold by the Gram:

Gold has a unique feature unlike many traditional assets of today, DIVISIBILITY. The ability to sell smaller quantities of any asset is remarkable and a profiteer’s dream.  The housing industry made a good attempt at divisibility at its peak by offering “fractional ownership” properties.  Several owners shared title and time on the same piece of real estate.  There is no longer a market for fractional home ownership for obvious reasons.  But gold is a growing asset and creative ways to sell equal more participants and profit for all.

It takes 31.103 grams to equal one troy ounce of gold.  The problem is gold’s prices continue to increase making it less affordable for those on tight budgets. A perfect remedy is to mint smaller bars of gold making the entry price for new gold buyers more affordable.  We see this as a complete game changer in the physical gold market just as gold’s popularity and value becomes clear around the world.  New buyers will understand less about reasonable prices (premiums) and more about the fact they can now afford to buy gold, even if tiny.  Yet another gold perpetuation driving prices even higher.  Look for more gold sold by the gram, literally one gram at a time!

Jewelry Store Gold!!

I’m not sure how many of you have noticed but the jewelry business worldwide is taking a beating( India excluded). The reasons are simple.  Less expendable income and a misconception in the value of jewelry.  Up until know, the jewelry market sold itself on tag lines like “because she’s worth it” and “isn’t she worth two month’s salary?” but, unfortunately, these days are long over as well.  We see two big changes for the jewelry store industry at least for owners wise enough to change with the market.  The biggest includes removing traditional inventories and replacing with bars, coins, and rounds of gold/silver!

Brick and mortar jewelry stores make for perfect venues to sell precious metal. Display cases, security, personnel, and a partial understanding of gold and silver, all make a change like this not only possible but necessary.  Necessary for the masses in search of physical metal and necessary for jewelry businesses to prosper.  Even with the explosion of E-commerce in 2012 there is something to be said for cash and carry gold/silver.  Actually this is nothing new seeing jewelry stores across Asia are making a killing off bullion, bars, and rounds of gold.  New ways to buy gold/silver are closer than you think.

HAPPY THANKSGIVING and thanks for following The Prospector Site!



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FAUX GOLD

BUYING GOLD/SILVER   No comments yet

Nothing strikes more fear into gold holders than the idea of fake gold. The goal of this chapter is not to scare new gold buyers but to educate and disclose facts as we know them to be true. We believe 99% of existing gold to be genuine, valuable, and worth spending your money on, but. Gold is not excluded from counterfeit temptation no more than any other currency across the world. It pains us to have to say the only situation possible to bring gold to its knees has already happened, all without much media attention.


 

Something very unusual happened in October 2009. China notified US officials voicing great concern over several thousand gold bars recently traded. Chinese routinely core test gold bars to confirm purity and in this case the tests were nothing short of alarming. Bar after bar, core and core, tungsten medal bled from the center of what everyone believed to be pure gold. America had a problem far beyond creditability.  Once trustworthy bars of gold now all in question.

The story blurs from this point forward but here is what we believe to be true. It seems 15 years prior an American company minted thousands of gold clad tungsten 400 oz bars fooling officials by matching density tests (gold and tungsten weigh nearly the same). The fake bars stored at Fort Fnox until traded to China years later. But like two trains colliding, the why and who’s to blame was less important than the actual incident. Information and investigation became ongoing and only the chosen few found privileged answers.

This post is about keeping gold simple as possible and not conspiracy. Did a country usually known for authenticity really sell to a country known for knock-offs? Is American gold patiently waiting in Fort Knox actually tungsten filled gold bars? We will never know the total truth in times like this, do we know enough? The question each and every gold buyers must ask is if the their gold is real. If our gold, regardless if Chinese, American, European, Japanese, etc, loses creditability we will all suffer greatly. We are not talking about fake gold, we are talking about the potential loss of trillions in wealth worldwide.

The goal here is to not scare new buyers of gold or silver but to make the point of being proactive. Gold prices will rise and gold scams will rise along with precious metal.  The most valuable weapon we have is knowledge especially during a time when even the most trusted asset is tested.  The Prospector Site feels precious metal dealers will step up by protecting their own interest, and yours.  We recommend sticking with reputable dealers realizing discounted gold is more likely over priced scams.

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PITFALL WARNINGS FOR NEW GOLD BUYERS

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

We wish we could say pitfalls related to gold/silver are few but this is not the case. Unfortunately not everyone associated with gold/silver has your best interest in mind.  Thanks for following our series “Keeping Gold Simple” at www.theprospectorsite. Our goal is to make sure pitfall victims don’t include you.  Precious metal experts agree that higher metal prices equal more scams and misrepresentation. Let’s take a look at a few pitfalls all too common among new gold/silver buyers.


 

Fools Gold:

The Prospector Site receives plenty of promotional emails from precious metal traders jumping onto the band wagon. Recently one jumped out at us from an online company selling gold and silver bullion. At first the prices seemed competitive, so competitive we had to take a second look into what exactly this company sold. Upon further review, the one ounce bullion coins looked very real but actually were only silver/gold clad. This means buyers who believe they’re protecting themselves with gold and silver are not. We’re not sure how much precious metal is in “clad” bullion but it can’t be good.

EBay is a legit auction site where gold/silver trades by the boatload. EBay has gone so far as to set up a category for precious metal in which some online stores trade only through this auction site. There are a few very creative sellers on EBay selling one gram silver/gold bullion at affordable prices. The problem is one gram bullion is not one once bullion and the difference is huge. Most buyers don’t complain for one reason, embarrassment. It is very important to realize if a price of gold/silver is too good to be true it’s a scam, 100% of the time. No one will discount gold and silver in a market like today.

Private mints now coin gold, silver, and copper coins, as flawless as government mints. The confusing part is some rounds (coins) look like legal tender coins but aren’t. If you’re wondering how this is legal the answer is simple. The rounds are not minted exactly like legal tender coins and most sellers disclose somewhere that these coins are not bullion but rounds. The problem is most buyers assume they are what they look like unwilling to question. The copycat rounds are still made of gold/silver but they certainly aren’t worth government minted bullion.

Fractional rare coins are fun and easy to own. The problem is many fractional rare coins floating around today are not really rare or old. They are made of gold but are not coined by government mints. They are nothing more than black market rare coin replicas worth what ever scrap gold is worth. We advise all rare coins be examined by a reputable coin dealer or expert before investing your money. You may be asking why would someone go to the trouble to make a knock-off coin using real gold? Rare coins carry a premium over gold value with in the coin and sometimes this premium is 15% to 40% over spot gold.

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WHEN TO SELL YOUR GOLD

GOLD & REAL ESTATE, SELLING GOLD/SILVER   No comments yet

This could surprise some readers but the most important decision gold owners will make is not buying but when to sell.  Of course we recommend buy and hold at this time but part of formulating an independent understanding of precious metal is knowing when to sell it.  This fact is very important because most gold advice, up to this point at least, comes from entities that profit from selling folks like you gold/silver.  The problem with this source of information is obvious and it’s doubtful those peddling gold will advocate selling, regardless how big of a gold bubble.


If we agree there will be a best time to sell gold then the next question has to be how will we know when? Will the time to sell be the same for Chinese as Americans?  The simple truth is no one knows exactly when gold will tumble downward but understanding that it will is very important. Again, we understand people new to gold are asking why bring up selling to those recently committed to buying gold?  We want everyone to realize gold is a wealth transport and like all transports there will be a time to depart and move on.  Those that don’t leave will ride gold back to the bottom.

Look no further than housing by example. Not long ago folks stood in line to buy residential real estate like it was on sale.  Actually, homes were the furthest from on sale as greed and credit inflated a housing bubble lasting for years.  Our question for you is where did the equity go?  The home once worth $400k but now worth $200K (and still declining) still sits at the same location.  Few Realtors, bankers, or mortgage brokers, warned new buyers of a bubble even at bubble’s peak. No one making money wants to hear that the party is over, not the ones selling and not the ones with growing equity.

But what if a homeowner sold toward the top of the bubble? What if a person realized masses of fresh money clamoring into any asset will create a bubble?  The equity was only real when those prudent sold or moved equity into another asset PRIOR to the bubble popping.  Gold will be no different. We receive many emails from readers asking how to know when gold has reached a bubble.  If gold finds itself in the same housing frenzy then a bubble is forming.  No one will know the peak until after the burst but we are willing to share a few indicators.

Guessing gold’s peak is different from guessing our housing example above. Housing exploded purely out of greed and easy credit.  Gold’s spike is entirely different at least in our opinion.  Sure some will buy gold motivated by greed but we feel the masses will buy gold from pure desperation.  Look at the economic instability gripping the world today.  The best many countries can hope for is a new bailout, again.  There has never been as much economic volatility as today leading many to ask what’s next?  Default is a word the next generation will know well.  Desperate folks will not ignore gold in such a time and this will only compound its demand, and price.

Recently our local high school football team made it to a state championship game.  The stadium was full of fans, both sides, eager to watch local talent compete.  The oddity was less than a month earlier both teams played each other in front of just a few hundred fans.  By nature we gravitate to excitement.  When gold becomes exciting, even to those not following gold, then you can bet speculation is in full bubble participation. This could go on for years or it could move a long quickly.  Watch for nonstop chatter of a “New Gold Rush” or “Gold Spikes Again” as headlines and breaking news.

Ben Sherwood wrote a best-selling book called The Survivors Club.  Mr. Sherwood spent time with survivors of all kinds of disasters to see why some survive when others don’t.  He found the difference between the two is survivors locate exits, before disaster strikes, willing to react quickly.  Few survivors find themselves caught off guard because survivors realize assumption and complacency have no place among the independent.  What we can learn from The Survivors Club is old sources of saving/making money no longer work today. Knowing where the exits are, before financial disaster hits, is a must.  Understanding when to sell your gold is the most important decision a gold holder will make.

Thanks to all our new readers, loyal ones too, for following our series on “Keeping Gold Simple”.  We realize new and unbiased precious metal information is difficult to find and this is a big reason we started www.theprospectorsite.com.



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SHOULD YOU SELL YOUR SCRAP GOLD?

GOLD & SILVER, SELLING GOLD/SILVER   No comments yet

One of the first questions we received after founding www.theprospectorsite.com was this very question. After all, it is a good question especially with so many cash for gold type businesses popping up. We do understand temptation of selling something that sits, broken, under old socks in your top drawer. We expect this temptation will only grow as gold grabs the attention that only high prices can.


Before we break down the best way to sell your scrap gold we want to point out a few things first. We don’t advise selling your scrap gold unless in a pinch. Why trade a solid asset for a currency (dollars, yuan, yen, etc) in decline? The only valid reason we can think of is to raise cash to pay for necessities. We understand these are tough times but once your gold, even scrap gold, is gone it’s gone forever. Gold is gold regardless how pretty or broken.

Scrap gold businesses popped up in the late 1970s but went away shortly after gold corrected in 1980. We started to see resurgence mid 2000s when gold prices began to grab attention and rise. Now it seems a new cash for gold style business pops up every week as demand for gold grows stronger. But the scrap buying business is not just about little old grandmas selling broken necklaces. Criminals have realized scrap gold buyers have created an easy transformation from stolen gold to cash.

New regulations are hitting those buying scrap gold making selling not so profitable. Most cities, counties, require scrap buyers hold all gold 30 days before reselling to a refinery. Suspicious gold has to be reported soon as possible. The idea of regulating scrap buyers is to discourage thugs from snatching gold off law-abiding citizens walking down the street. Big cities are having a hard time controlling such offenses. This type of crime will only worsen as gold prices grow.  The bummer of this 30 day grace period is buyer’s reluctance to pay top dollar for gold since many will have to wait a month before selling to a refinery.  Gold prices could drop over a month’s time.

If Selling:

We recommend selling your scrap gold in person when possible. Reputable scrap buyers will post “buy back” prices in a visible place and according to gold content (1ok, 14k, 18k, etc).  Never let a buyer take your scrap gold behind doors or out of sight without your approval.  The scrap gold should be weighed right in front of you, the seller, then calculate according to posted buy back prices.  Before committing to sale, tell the buyer you plan to solicit two other buy bids just to make sure you’re getting the best price possible.  This is a competitive business and the only way they profit is buying scrap gold like yours then reselling to a refinery.

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WHAT ABOUT RARE COINS?

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

Do you remember the old western movies where a thirsty cowboy entered the saloon looking to wash away two days of dust, with room temperature whiskey to boot? Can you remember the “ringing” sounds of real money as it hit the bar counter? This coin of real money most likely was a silver dollar or, if wealthy, a gold piece. Regardless, this was back in the days of real money made of gold and silver. Today we continue our series called “Keeping Gold Simple” by taking a look at rare coins.


It is very possible many of you are already gold and silver holders but have no idea what your holdings are worth. It can be tricky putting a value on rare coins so maybe spending some time discussing them is wise. We hope we’ve been clear that we don’t recommend new buyers start with rare coins. There is just too much room for error for those less than experienced. We recommend saving the rare coin market for down the road but the fact remains some of you already own rare coins passed down from a generation or three.

Rare coins originated hundreds even thousands of years ago dating back to nearly every currency. Putting a value on a rare coin is subjective, at best, since sellers tend to see the quality within the coin and buyers usually see the flaws. More than one rare coin dealer has found themselves in hot water for misrepresenting a rare coin’s value. Think of rare coins the following way. Each rare coin has two combining parts to determine its value. The first part is the gold or silver content within the coin (commonly called its intrinsic value). The second part, also hardest to determine, is the value derived from its rarity and condition. If a rare coin has only a few others like it, and in good condition, its value is high. The opposite is true as well.

We have no doubt the majority of rare coins sitting is shoe boxes or chest of drawers hold most value from their gold or silver content. Of course we would all like to believe the old coin passed down from grandpa is very valuable but actually it’s probably worth slightly more than the metal within. There are exceptions and any coin shop can help you determine worth but in most cases we are correct. This doesn’t mean you’re not holding a good savings in real money because you are. Just don’t quit your day job yet.

Rare coins can be confusing for new precious metal buyers and the Morgan Silver Dollar pictured above is a perfect example. This coin is legal tender which means it was minted as a currency but made from silver.  The silver content within the Morgan dollar is worth far more than one dollar minted on the back it.  The confusing part is this silver coin is not made of a full ounce of silver (it has .77 oz of silver).  Many other rare coins, both gold and silver, are “fractional” as well.  Now you can see why we recommend sticking to bullion style gold and silver at least until you familiarize yourself with collector coins.

Q & A:

Question: I notice the numbers .999 on most of my silver but not sure exactly what this represents?

Answer: All minted silver should have the numbers “.999 pure” somewhere on it unless it’s legal tender coins.  This means content is 99.9% pure silver.  This includes all silver rounds, bars, and most silver jewelry.

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WHEN IS THE BEST TIME TO BUY GOLD OR SILVER?

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

Welcome back and thanks to those following our series “Keeping Gold Simple”.  If you are new to gold then you are at the right place.  www.theprospectorsite doesn’t sell gold or silver but we do offer unbiased information for both new and veteran gold holders.  Everyday we hear from our new readers asking solid questions clearing the air of confusion, feel free to send your questions over too. We realize no one wants to pay more for gold than necessary so today we’ll run through a few options making sure you get the most bang for your buck.


Timing gold is something that drives some new buyers crazy. Will gold drop right after I buy it?  Am I paying more than I need to?  Should I buy more, should I buy less?  I’ll be honest in saying I lose no sleep on gold/silver buying days.  The only reason I’m more comfortable than most of our readers is because I understand what motivates precious metal.  You soon will too.  This comfortable feeling came after plenty of anxiety and to be honest anxiety is part of the motivation behind founding this site.  I felt there had to be a better way of buying, and there is.

There are two ways to approach buying gold or silver and I recommend the one that fits you best. The first way is for the thinker type that enjoys calculating pros and cons waiting for the best time to buy.  This type of buyer patiently waits for a temporary market dip milking every cent of savings possible.  They realize gold prices never go straight up and dips grow bigger as metal prices climb.  This type will wait weeks, even months, holding cash until the right time to buy.  I understand this type but let me say one thing.  One year from now a 3-4% dip (savings) will make little difference in the overall picture.  Not saying it’s not prudent, just saying don’t over think it.

The other gold buying type is less pinned up. If they decide gold or silver is right then they go out and buy some.  Life is too short to sit and watch gold markets move and frankly the savings process bores this type.  If we’re going to buy some then let’s buy it and be done with it.  The oddity is most married couples make “it” work because one is this type and the other person more calculated like the first type.  If this type fits you best I have a suggestion.  Don’t run out and spend the entire nest egg at one time.  Pick your metal of choice and buy some once a month (averaging) until you’re vested as planned.  This puts the odds in favor of not buying too high at any time.

BLOOD IN THE STREETS:

It’s hard to do but the best time to buy an asset is when everyone else is running away from it.  A perfect example of buying high is those now underwater in real estate.  Now I realize some are underwater because they used their home like an ATM but plenty of others were caught in the real estate frenzy.  The same thing happened in tech stocks too.  Some in the media like to portray gold in the mania phase but this is the furthest from the truth.   Even with new precious metal TV/radio/internet ads appearing daily gold is nowhere near the frenzy we saw in housing or tech bubbles.

The next few years will catch many off guard as world economies adjust to adverse effects of asset bubbles popping. Savvy folks will react by trading assets and dollars into precious metal but most will try to move into gold/silver further down the road.  The time to buy gold and silver is not during desperation.  Unfortunately, this is the time most will run to gold as they see it as the only asset not in decline.  My goal is for you to be fully vested long before this happens.  Eventually this panic will push gold into a bubble much larger than real estate or techs.  You can bet we will be waving the sell flag long before the burst.  This gold bubble is a ways down the road.

Even though gold/silver has done well over the last few years we feel they are nowhere near peaking.  Most folks don’t understand what’s causing Europe or US volatility but they do understand something is very wrong.  I will be the first to say the situation is complex but one thing I do know is never-ending spending will not fix a debt problem.  Default is a word we will certainly hear plenty of over the next few years.  I see no way massive defaults won’t push gold and silver up.

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