Archive for January, 2012



Isn’t it great to invest a couple of hours watching an old movie you’ve seen several times before?  Even though you know the ending, even though you know the progression, an epic movie always seems to entertain us over and over again.  Watching today’s gold (and silver) market reminds me of an old classic film of yesterday.  For those of us who follow gold closely, gold’s progression is not only obvious but predictable.  Many disagree on timing but, in all honesty, timing is impossible to pinpoint and attempting the impossible comes down to luck more than anything. Today we’ll explain why stage is set for PM to go mainstream.

Do you own physical gold or silver? If you don’t you will and in all likelihood compete against some heavy hitters to do so.  I say this with confidence because in my mind I have a few criteria that must be met before gold does what I know it will do, someday.  One big criteria is for gold/silver to find mainstream populace during a time of currency debasement.  We already live with global economic uncertainty and anyone doubting this as fact is not living reality.  So the question is when will mainstream gold ownership collide with current uncertainty?  We think the moment may be at hand.  There is no chance mainstream investing will stand idle while gold and silver climb, especially when other investment types destabilize.

The reason we feel the moment is at hand is because three things must happen to trigger the mainstream toward precious metal ownership. One, an overall lack of confidence in recovery.  No matter the country, state, or city, folks worldwide are losing confidence in recovery whether they are willing to admit it or not. Two, Fed commitment to never-ending quantitative easing (Fed announced last week the need to keep near zero interest rates till 2014). There soon will be twice the debt as when President Obama took office.  Three, a run toward protection by mainstream investment, pensions, insurance, health plans, and private capital.  Even those in power don’t want the game to end, they can no longer ignore the power of real money like PM (especially considering an age of imaginary money).

Can I hear a BINGO? The big question is what will a mainstream run do for your stash of gold and silver? I can describe the future of PM in one word, pressure.  PRESSURE; urgent claim or demand….,a burdensome condition that is hard to bear. The kicker is gold and silver value is not containable, they are compelling.  They are compelling because a limited supply of each exists without the opportunity to create much more.  Combine this limited supply with an urgent claim or demand and it’s easy to predict gold/silver’s outcome.  This is a perfect description of long-term gold and silver!

I urge readers to not take my word but look to current events as proof the above information is factual. Why does the Fed really need to keep interest rates near zero?  Is this the only way to pay on record levels of borrowed money?  Why are countries around the world (central banks too) buying gold at record levels?  Is this a signal of self acknowledgment that reckless printing is ruining currencies?  Is this acknowledging gold as the only true source of money and wealth preservation? Why does gold and silver continue to rise year after year?  All signs how events of the day will influence gold and silver into a urgent claim or demand.

What is your take, is gold going mainstream or do prospective PM owners have plenty of time?  Tell us your thoughts here.


Really enjoy the site and especially enjoy reading what others have to say.  I do own some PM but probably not as much as I should.  To me it seems the gold and silver market is in a state of volatility far over other forms of savings.  I see no reason to pull money from a money market (guaranteed) then buy something that could drop in price (gold or silver)?  At least I know my money will be there when I need it.

PROSPECTOR REPLY: Thanks for following our site (I also enjoy comments and questions most).  You make a valid point concerning the safety of money market accounts but the long-term trend for such a source of saving is not good.  Since 1971 to now, we punish the savers of the world.  We know this by how little savers earn from deposits of hard-earned cash.  The Fed just announced this punishment to savers will continue but disguised it well with trying to stimulate the overall economy (just looking after your best interest right?).

I have no concern if the goal is to keep savings in cash over short-term.  One benefit of this site is providing several options but ultimately the decision is yours alone (I also keep a bank savings in cash, small savings). But the long-term benefits of cash will be devastating to say the least and it’s important that you realize this.  Eventually interest rates will rise and eventually the buying power of your cash will decline.  To be honest, it is already because interest earned is less than real inflation.  It only appears the same amount of money because you’re comparing dollars to dollars and not dollar value to gold value.  To me holding too much cash is similar to the ground splitting open in front and toward you but you doing nothing. To do nothing is certain destruction but moving left or right offers hope.  My point; being proactive is necessary and my money is on PM. We are living history while watching a monetary collapse fueled by too much debt and invisible currencies.

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Will someone please just give us the facts so we can make an informed decision. One reason we choose to not sell gold and silver on The Prospector Site is to avoid bias confusion.  Do you feel sorry for the guy out looking for economic straight talk because sources, to me at least, seam skinny at best?  Separating facts from straight out fiction is not easy these days and my bet is it will worsen as metal prices continue to climb in price.  Our goal is to always look after the gold buyer’s best interest even if it is not exactly what’s expected. Maybe today is the right time to clear a few misguiding opinions before things get out of hand?

Let me dive in here starting with residential real estate and then tying this into gold and silver. The Commerce Department said Thursday (1-26-2012)  that 2011 new-home sales numbers the worst on records dating back to 1963!  This means 2011 was the weakest year for new home single-family construction ever. Of course, this dropped median sales prices since builders found themselves cutting prices just to move inventory.  I doubt anyone is too surprised by these numbers, but one source is seeing it differently.  Do you want to guess who?

NAR (National Association of Realtors) has an entirely different forecast for 2012. They expect new-home sales to slightly rise and buyers may not get the same bargain they got last year.  In fact, they forecast new-home sales to rise over 15% in 2012 over 2011.  Of course these are projections only but what I don’t understand is why the leader in real estate doesn’t take a more factual approach to a worsening market. If gold prices dropped several years consecutively I certainly wouldn’t gain creditability by forecasting a spike during the worst economy since the Great Depression. Look, I’m not knocking Realtors here because I work with plenty of professionals within the industry.  My point, it’s time to deliver unbiased information because everyday Americans are relying on industry professionals to provide facts even if they’re not what we want to hear.

But is the precious metal industry doing any better separating fact from opinion, I’m not so sure? Bullion dealers constantly remind customers to hurry and buy because some experts expect gold could double. The fact is no one knows what gold will do in the short term.  Yes, of course, gold’s long-term trend is to skyrocket but we don’t know what PM prices will do next week, month, or year. Other dealers and shops are quick to point out rare coins undervalued and poised for steep gain. Maybe rare coins will see improvement but most haven’t since new buyers care little about collector value and only concerned with gold or silver metal. Online dealers market gold and silver like their coins are the last minted. The truth is inventories can diminish quickly but most mints have increased output to meet growing consumer demand.  Not only is new metal (bullion coins, rounds, and bars) available but the secondary market is an option too (you will pay more on the secondary market).

Isn’t it time honesty supersedes a motive, quota, or whatever it takes to sell a few more ounces. Remember, today’s buyers are relatively new to both gold and silver and most will trust a professional’s opinion as FACT.   I’m the first to preach due diligence and a buyer beware concept but somewhere down the line responsibility must start with those most familiar with metal volatility. I fail to believe anyone selling an asset should insinuate the asset will climb in value unless they truly know it will. It is okay to sell metal under the pretense of insurance against everything bad that can happen in an unstable economy like today.

If you’re in the PM market or looking for an entrance to gold and silver please read this closely. Education is the best defense against buying overpriced or fake gold or silver.  I know because my first gold purchase was fractional rare coins and I paid far over market.  There is no reason for something like this to happen to our readers, not in this age of instant information and technology.  Take your time; do your homework, whatever it takes to stack the PM deck in your favor. Base your next purchase not on a crafty sales pitch but solid facts all while realizing short-term metal could experience major corrections and spikes.  This is all about long-term protection in an age of economic uncertainty.

WARNING: Next Gold & Silver Trend!

Do you agree with mainstream media sources who continually repeat economic recovery is real?  Nope, neither do we, and this is why we want to encourage readers to stick with the PM plan. Part of the plan is buying the right metal, right time, and right price; I’m sure few disagree.  The gold/silver bullion market is becoming highly competitive and to be truthful margins are low, very low.  You may have noticed the increase in PM advertising both on radio, internet, and Television.  You probably realize advertising is not cheap and companies investing millions in advertising must sell high profit PM products to keep doors open.

The next metal trend we see is a push to convince consumers, you, to buy rare coins over new bullion metal.  Rare coins allow sellers to charge higher premiums and a high premium is good for the bottom line.  Unfortunately, this may help sellers (coin dealers, bullion dealers, etc) but might not help you as much.  We recommend investing in plenty of research before investing in the rare coin market.  If you are one of the lucky who inherited rare coins don’t worry because they are a safe way to own PM.  I wouldn’t rush to trade old inherited metal for new bullion anytime soon but the choice is yours alone.

WANTED; we want to hear from you and your opinion as it relates to gold and silver.  Do you feel comfortable with your PM dealer?  Do you buy in person or online?  Tell us here.  Thanks for spending time with The Prospector Site!

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It pains me to admit this but I have a personal debt problem.  The founder of The Prospector Site is man enough to admit he has a serious spending problem and my problem affects your gold and silver value.  Since I’m confessing like a two-year old elbow deep in a cookie jar, let me also admit I have a drug problem too.  I’ve heard the first step to correcting problems like such is admit and confess a problem exists, I guess this is what I’m doing now? But as I look deeper I’m realizing the same addictive type problems I have you have too, so let me explain.

Up to this point, neither of us have done a good job controlling personal problems alluded to just a moment ago. Even though I don’t use illegal drugs my drug problem is worse now than ever before, I know this because overall drug use is as rampant as ever before.  Like my debt problem, our addictions are to a point where authorities claim it’s almost non containable.  This could be the point where you argue back, “Listen Doug, I don’t use drugs and I have little debt.  There is no way I should be included on the list of major addiction, not me.”


If ever there was a case of guilt by association it is now. I, like you, have a drug problem because others on my street have drug addiction.  I, like you, have a debt problem because our entire economy requires new borrowing just to continue this destructive course.  It is virtual impossible to separate ourselves from a society, no culture, as addicted as us.  To falsely believe you’re excluded will eventually play out costly even as this denial becomes the norm.  From your Main Street to the halls of DC, we can easily see the ill effects continue to erode our economy and, worse yet, our American way of life.  To our readers abroad, your way of life is as affected, and in the same way, as my drug and debt association.


It shocks me how few can connect dots of today with increasing prices of precious metal. We don’t “get it” because we refuse to accept problems mentioned are to a point of disruption and control.  We still hear leaders say if only a few will pay a lot more, if only some will bring jobs back, if only you and your spouse will pretend all is okay by spending more.  We are willing to lie, blame, confuse, and contradict, before admitting our path is not the road to prosperity.  The world watches and grows increasing less willing to play the game like nothing is wrong.  Why is the rest of the world concerned with our domestic addictions?  Because the world trades in US Dollars and we are the only one who can legally print them.

My point is this and I want all readers to fully understand. You can do everything as you perceive right and still drug down by societal ills.  I often hear readers say they are debt free or own their home outright but this isn’t true on either account.  Each of us must understand debt dependency now controls all economic aspects regardless of your personal financial position.  The rising tide of inflation water will not bypass your home, job, or lifestyle.  Of course protecting with gold and silver will help but it will not change our overall economic climate.  Eventually this economy must grow, must profit, to improve decades of fiscal insanity.


A crushing rumor circulated earlier this week (1-24-2012) how India and Iran negotiated oil trade not in Petrodollars but GOLD. This isn’t the first time rumor like this has surfaced and expert economists agree it won’t be the last.  Adversities stemming from debasement, never-ending debt, and a failure to correct both will have worldwide complications.   All while gold turns from a tool to a weapon.

So what is your take on this?  Have we reached a point of no return as it relates to debt and gold?  Tell us your thoughts right here.

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COMMENT (REGARDING “ARE WE LOSING “IT”)  I have owned both silver and gold for several years and still can’t believe how many people refuse to admit things are not getting better.  My family fails to see the signs of despair even while they struggle to pay credit card and house payments.  I don’t know one person still making the same money as a few years ago but it amazes me others don’t realize our past is finally catching up with all of us.  I think more should be “losing it”!!  Great article and keep them coming.

Prospector Reply: Thanks for commenting and thanks for the encouragement.  Being honest, I thought we would hear from more readers about this post, but we haven’t.  You said it best with your point how our past is finally catching up with all of us because never before has this been as true.  I still believe PM remains a mystery to most even though more search for something real and protective like gold or silver.  Who knows what it will take for Americans to snap from a state of denial?  Glad to hear you have a realistic understanding and congrats to you for making the effort to do so, good job.


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You may not know this but you have a confidence problem, at least according to three large city mayors interviewed on Fox News January 23, 2012.  All three mayors passed blame to the federal level pointing out if only both sides of Washington could unite, confidence would be restored.  They believed, mayors that is, this confidence would lead to more jobs, more prosperity, and an overall better quality of life.  But according to Gallop polling (1-12-2012) your top three worries are jobs, debt, and politicians.  Gallop’s polling also shows 83% of you dissatisfied with the state of the nation’s economy.  The same poll shows nearly 70% dissatisfied with size of government and power of federal government.

Does all this dissatisfaction lead to a lack of confidence? I guess the answer is yes but we believe it goes deeper than confidence, we also feel this difference is good news to those holding gold & silver.  We believe it actually comes down to fear and faith.  Nothing, and I mean nothing, will drive gold and silver higher as quickly as fear induced uncertainty.  Our government, with help from the Federal Reserve, attempted a long-shot effort to say the least.  They attempted to support a consumer based economy since you no longer could or unwilling to go into debt to do so.  Now it’s 2012 and you no longer have faith this type of government supported economy is sustainable.  This is why more folks are buying physical gold and silver at the same time losing faith in USD.


Our generation finds today’s economic vulnerability unnerving. Why shouldn’t we feel vulnerable since few of us have faced economic adversity on today’s level?  I can tell from the questions we receive on The Prospector Site, folks are no longer willing to accept lip service as economic fact. We are witnessing a transformation to self-reliance and gold is this trend’s cornerstone.  Like most transitions, we should expect an era of uneasiness as we move from an economy stimulated by federal influence and debt to a life of independence and confidence. Think back to the Gallup poll mentioned a moment ago.  The same folks many of us trust to fix our economy’s problems are the same ones we worry about the most.  Deep down, we are beginning to realize a bigger government and more influence will not put Americans back to work, will not reduce debt induced slavery, and not make us feel less fear (it will produce uncertainty and this will grow PM prices).


We see questions of concern regarding gold or silver confiscation with gold owners worried their stash of PM could be in jeopardy. The fact is all wealth is in danger when overreaching governments reach desperation point.  We are nowhere near desperation point as of early 2012 and here is why.  Even though folks worldwide have growing concerns they are still willing to buy US debt.  One day this will change and when it does we will buy our own debt (debt monetization) until inflation and higher interest rates decide the party is over.  This is when government creativity will step in for betterment of all American citizens.  Until this point we feel owning domestic gold and silver is a solid investment not only from profit potential but from creative steps to separate you from your gold and silver.

We also recommend having your head on a swivel ready for the unsuspected worst case scenario. A few reputable bullion brokers feel your concern and have put a plan in place for those interested in international storage (email me for a referral or two).  Remember, using a reputable dealer is key for your peace of mind.  Once gold storage crosses borders personal possession becomes more complex.  We will keep an eye on international metal storage as it impacts our precious metal market.

Tell us what you think about storing metal out of country.  Is this something you are considering?  Will you store some of your metal internationally as things continue to decline locally?  Let us know what you have to say here.


COMMENT:  I can’t imagine storing my bullion in some other country, especially a country I know no one.  Let me get this right, I mail my gold to a strange place then hope it is there when I need it?  I don’t think so, not on your life, I’ll take my chances with local crooks over foreign ones.

PROSPECTOR REPLY:  Hear you loud and clear and thanks for your comment, and honesty.  It really comes down to storage options you feel most comfortable with.  I’m sure everyone’s first choice is to keep PM as close to home as possible and few will disagree.  We have said many times there is not a 100% safe way to own physical gold or silver, in fact, there is not a 100% safe investment of any kind.  International storage is a viable option to diversify locations of your precious metal and using a reputable dealer will allow newly purchased metal delivered straight to the international vault of your choice.

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GOLD & SILVER, GOLD AND MONEY   No comments yet

You can’t visit the Internet without someone writing about China as the next superpower.  China has two things the US doesn’t have.  One, a giant wall around part of the country and two, citizens willing to work for far less than ours will.  But China wants a Western lifestyle as much as any country I’ve seen.  In fact, Chinese take pride in wearing clothing  MADE IN THE USA.  Figure that out in a day when everything else made in China?  The Chinese have another badge of honor and its gold.


When researching our soon to be released book Keeping Gold Simple, the idea to release it in China came up. It didn’t take long to realize a book like mentioned would make little sense without a major rewrite.  To say Chinese love gold is like saying Paula Dean likes butter.  Gold is sold differently in China compared to the US and Europe.  Picture jewelry store like display cases (bright lights and clean glass) presenting bars of gold like engagement rings.  Gold sells by way of ATMs, outdoor markets, and everything in between.  They just can’t get enough of PM and will buy it in jewelry form, bars, bullion, and coins, all like it’s on sale.


But we must understand this hasn’t always been the case for Chinese precious metal owners. Up until 2009 a private party owning physical gold in China faced a prison sentence or worse.  Boy how things have changed for our Asian neighbors.  Several things about China remain a mystery to us here in the States.  Nothing more than why a government so controlling, so power-hungry, allow its citizens to buy and hold gold/silver?  We have no way of knowing what motivates the second largest economic power to do what they do but we have our suspicions.


What’s Up Their Sleeve?


If I’m spending too much time in China I’m sorry. It’s hard to not talk of gold’s demand and then not spend time explaining how gold hungry 1.3 billion perspective customers can be.  Yes, nearly everyone in China wants to own gold, even silver.  Of course, like so many of us, not everyone can afford something as costly as PM, but many can.  The ones that can are encouraged to do so by the very government willing to imprison PM holders not long ago. Crazy isn’t it?  Yes the perspective on gold & silver is changing around the world and it comes down to one simple word, POWER.


When we were children most of us were taught something we all remember as the Golden Rule.  Do you remember it? “Do unto others as you would have them do unto you.” In other words, treat folks with respect and they will do the same and we all will get along, at least most of us.  The ever-changing world has rephrased the Golden Rule to describe power and authority.  Today’s Golden Rule, “Those that have the gold rule” is never more accurate than today.  Some, maybe most, fault lies at the feet of fiscal irresponsibility of a US Treasury.  Some of you will mistake this last statement as unpatriotic but you are incorrect if you do.  The fact is only one government can devalue dollars and it is our US Treasury with help from our Federal Reserve Bank.


China and other countries are heavily invested in America for several reasons. It’s no secret China is the #1 owner of US debt but many don’t realize the connection goes far beyond an investor debtor relationship.  China manufactures billions of dollars in consumer goods that end up purchased by folks like you and me.  Their economy is now dependent on this trade to prosper and grow to the respected superpower they desire to be.  If our economy dips so does China’s production (regardless of what Chinese officials claim). But only if they can continue to buy our debt allowing our economy to kick the proverbial can down the road will they.  China noticed something of great concern of late and this concern is leading to buying gold.

The second leading economy, China, is buying gold to foster transition from US Dollars. The goal is to minimize risk without disrupting a lucrative export trade with US.  We have no doubt this influence will push gold prices higher over the long term.  We have no doubt this influence will adversely affect the USD too.  Please take a hard look at gold and silver soon.

This is our take so tell us yours.  Should the US Government urge citizens to own gold and silver?  Let us know your opinion right here. Feel free to sign up for our weekly newsletter here to receive The Prospector Site delivered straight to your email.



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For those that don’t know him Gerald Celente is an entertaining man that just happens to be one of the most accurate trends forecasters of our time.  I’ve had the pleasure of following Mr. Celente for years and to be honest have made a little money by heeding his trend warnings.  If you have the chance to hear this energetic forecaster interviewed it won’t be long before he says something like, “When People Lose Everything, and They Have Nothing Left To Lose, They Lose It”.  Is it possible Mr. Celente is trying to enlighten readers with a glance into our future?  Even bigger, what does “it” have to do with owning gold & silver?

The New York Times bestselling book Aftershock devotes an entire chapter on How Not to Lose Money. One could assume these authors must feel we are losing it or they wouldn’t devote a chapter on losing money. I have to admit it’s one of my favorite chapters of the book. Unlike other typical economic books this one does more than point out today’s problems.  I recently heard a real estate expert say trillions of the world’s equity wealth has disappeared.  Does this mean we lost this wealth and it’s never coming back?  It appears we are still losing it if “it” is equity in our homes.

Our society has been fighting several domestic battles over the last decade. The war on drugs,  the war on poverty, and the war on no child left behind.  Are we winning any of these wars?  We must be losing it when we talk of poverty because the news of late is full of record numbers on food stamp assistance.  The news also said not since the Great Depression has so many children been homeless.  I guess you can say we are losing it when it comes to poverty and children. I haven’t seen the numbers but my gut says the war on drugs is not looking so good either.  What about inflation, are we winning “it” by printing our way to prosperity?

Our administration said JOBS is priority number one.  This was back in 2008/09 and two million jobs have disappeared since jobs became top priority. With millions more unemployed, millions underemployed, and millions giving up, I guess we can safely say we are losing the battle to create new jobs. We’re not trying to depress anyone here but simply taking a realistic look at today’s situation.  Remember, we can’t make wise choices if we don’t have the facts straight.  The fact is we along with most other countries are losing what ever “it” is.

But not everyone feels the way the facts show. They must not because I’ve noticed more new cars over the last month than over the last two years when driving around.  My radio said today there is no better time to buy a new home (interest rates are historically low).  My television said recovery, although slow, is growing our economy toward prosperity.  With all this good news we certainly can’t be losing it, can we?  Is it possible so many see our plight opposite of the facts?  Can the facts be wrong this time?

There is one more indicator for those still willing to test our theory of losing it. This last indicator is a beacon of truth even it the truth is something we don’t want to hear.  The same indicator carries no bias, no distortion between good or bad, and no opinion one way or another.  Yep, you guessed it right if you said gold & silver.  The reason I know we are losing it (whatever it is for you) is because gold is an issue.  If we were truly winning “it” we wouldn’t be discussing gold or silver.  Thousands wouldn’t read this site asking for more unbiased information.  We could sell our stash of gold and then do something fun with it.  The only reason to hold PM is to hedge against “it”.

This is our take so tell us yours.  Have you noticed others losing it or are we blowing the situation out of proportion?  Reach us here with your comments.

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


QUESTION:  When I stop by our coin shop to buy the type of metal you recommend (gold & silver bullion) they never seem to have any in stock.  If the do it’s only an ounce or two.  Should I have them place an order for me since they said they will?  Not sure what to do at this point.

ANSWER: Thanks for the question and thanks for reading too.  Since the year-end dip coin shops are struggled to keep inventories on shelves.  The reason is most folks are like you, buyers, and few are selling.  As my shop owner said,  “90% of the metal goes out the door, not coming in.”  It might not be a bad idea to have your local shop place an order for you but it comes down to what they will charge for this service.  I would check with www.goldshark.com to compare online prices with shop prices.  If close, pick your local coin shop, you may need quick cash someday.  Thanks again.

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Who is to blame for your gold or silver (hopefully both) going up to a point that most will soon find incomprehensible?  We often mention that the same forces sending PM (precious metal) skyward are the same forces wrecking our economy.  As things continue to tighten worldwide a movement to cast blame on the guilty grows.  After all, someone has to be causing this worldwide decline only kept afloat by borrowing more money, right?  Let’s take a look at who is to blame and why this blame only increases your gold’s worth.

An interesting article circulated around California last weekend. I only use California as example because this state is the closest to default of any I know.  If being honest, California is a snapshot of what most states; most countries in fact, have to look forward to over the next decade or so.  Nonetheless, the article describes a conflict between Tulare County (California) and California’s State Controller.  The state is trying to cut funding for a probation program that may cost the county 16 parole officer jobs.  In return, Tulare County is suing the state for nearly $700k to keep the program funded another year (trying to save the 16 jobs).

Let me take a second to explain to our new readers what a conflict in California has to do with owning gold. This site doesn’t sell gold or silver.  Our goal is to expose how current events confirm necessity of self-preservation by way of owning real money like gold/silver.  We also provide simple unbiased advice on when to buy, what to buy, where to store, and when to sell.  Most of this information is no cost to you but we do offer one on one consulting services for those committed to buying the safest PM possible (for the best price possible).  Now let’s move forward with today’s post.

This conflict in California is leading to an expensive blame fest. Tulare County will lawyer up and the state will do the same.  In the end, both sides will spend hundreds of thousands of dollars fighting over money that does not exist.  What we are now seeing, and will see much more of, is an assessment of blame that will eventually, regardless, lead to loss of jobs and programs.  No one can do anything about this.  Determination of blame is too far overdue to benefit anyone or any program.  We expect the same blaming process will lead to litigation across all government agencies both state and federal, all fighting over non-existent money.

The blame is not limited to government. Open any paper, turn on any news channel and watch the finger pointing continue. Main Street blames banks (Federal Reserve).  Politicians blame Wall Street.  Wall Street blames the Federal Government.  US Government blames China. All across the board someone blames the other but our question for you is who or what is really to blame?  Maybe we should look at who’s behind the wheel driving the most powerful force in human history.  All fighting over something that doesn’t exist.

The drivers we refer to today are economists and economic experts. You know them; they are the same who didn’t see the crash coming who now tell us recovery is at hand.  Put thirty in a room and the only thing agreed on is their own necessity.  But why do we continue to rely on “experts” who only continue to compound our economic problems?  Could it be to cast illusion of control?  You bet it is. Think about this for a second.  If you are dependent on others all you can do, right now at least, is cast blame hoping someone will divert the little money left your way!  This isn’t a life for me folks.

Here at the Prospector Site we have another idea. We choose to save blame casting for those pointing fingers all while their own net worth burns down.  We also believe, regardless of course, the end game is the same and much wealth will be lost or transferred to those willing to control their own financial destiny.  Yes gold & silver will play a significant role in this process. The blaming process is distraction from real issues at hand; we choose to not take part.  While the blaming process grows so will prices of real money like gold & silver.

Now this is our take on the blame game but we want to hear yours.  Should we sift through the blame like a referee after a fumble?  Tell us your thoughts right here.  Thanks for spending a few minutes with us today.


COMMENT:  I do agree that gold is the best investment considering today’s crazy world we live.  My husband and I have bought both metals for over a year but still have concerns.  Our primary concern is how will gold protect us if the economy worsens and we lose our jobs?  Even you have mentioned gold doesn’t provide income without selling it (this seems to defeat the purpose to me).  I guess nothing is certain in today’s world?

ANSWER: Thanks for the comment and question.  Almost everyone is asking this question even if they are not asking this question (hope that makes sense).  You are correct in believing gold does not provide passive income like a job or dividend.  Gold will not protect a person from losing a job either, you’re correct on this point as well.  Yes it is counter productive to sell gold to provide income if our focus is long term (once metal sells, you are now back in the inflation arena along with all other soft money owners).

Let me see if we can cast some light here because this is a heavy question and comment.  We hear from all kinds of readers and all are at different points in their lives.  Some are preparing to retire and want to work gold into their plan.  Some our struggling with debt and income loss and looking to gold to help anyway it can.  One fellow said he lived in a cave like structure sounding like he is waiting for a complete societal break down (not sure what his plans are for gold).  As you can see the motivations vary from one end to the other.

Maybe I can explain it this way.  I found interest in gold & silver over ten years ago while looking to diversify a few bucks.  As I dug into importance of gold/silver I discovered other things along the way.  I discovered how one aspect of our economy affects another.  How some debt works in my favor and other debt robs my future.  I listened to what experts and economist voice as certainty only to see it not pass the test of time.  You are where I was not long ago.  You mentioned an interest to a point of buying metal a year ago but obviously you didn’t stop there because you still read this site.  You are searching for more ingredients in the recipe of overall protection; you are wise to do so.

What we are talking about here is positioning.  Our hopes are that readers like you will find the same forces leading us to gold/silver will trigger an urgency to make other changes as well.  For example, one change I made several years ago was to downsize big.  I felt the need to pick between what I wanted and what my family needed.  Did I take some heat?  YES, but decision makers always take heat.  Did I want to stay comfortable and not make career, relocation, and everything in between type changes?  YES, of course.  But I also didn’t want to rely on others for my future, independence, freedom, self-reliance, etc, either.  Precious metal is the foundation for a new infrastructure you may need to rebuild.

The next couple of years are critical for those feeling the same.  Many jobs and businesses will continue to go away.  Necessity industries will continue to fare better than other jobs sectors.  I’m not going to sugarcoat this next statement.  Jobs and businesses will evaporate if the current trend continues, millions of them. If job loss is a great concern take the next few months to research what sector (according to where you live) will hold up best.  If you believe home’s equity will continue to diminish then give serious thought to how you can trap it and roll proceeds into something powerful like gold or silver.  Critical times require critical choices; nothing will change this anytime soon.  Your last question is the most important of all.  Yes, you’re correct by saying nothing is certain in today’s world. Uncertainty is the lifeblood of both gold & silver.  This uncertainty will only drive precious metal prices higher over long term.

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There is a professor who begins each new class by asking students to take ten minutes and write down their three major weaknesses.  Most answers are typical college age weaknesses like staying out too late, unorganized, not calling home enough, and not taking school serious enough.  Only after each student verbally confesses one weakness does the professor explain the assignment.  The professor explains most weakness are actually misuses.  He gives examples of what some perceive as unorganized as simply a misuse of time.  When some neglect to take eduction seriously it’s really a misuse of opportunity. The professor takes the entire first class to explain the value of misuse, from marriage, faith, to volunteering, using the lesson to challenge his class.  Today we look at the misuses of gold & silver.

I see gold related misuses daily. Some confuse misuses for mistakes but the majority I see misuse by calculation more than mishap.  One common example I see is a confusion (misuse) between opportunity and greed.  Greed and gold usually end with a catastrophic collision.  Have we entered a time when do-overs are soon to be extinct and misuse will be very costly?  I certainly believe this time is close at hand.  Maybe before we look at common gold related misuses we should ask you a question.  Are you misusing an opportunity to protect your family’s future?

I remember the conversation like it was yesterday when actually it was years ago. Over coffee, a gentleman explained his position to capitalize (by way of borrowing on his personal residence) a sure investment in tech stocks.  His plan was to make a fortune, by way of leverage, but unfortunately his greed outpaced commonsense.  The great bubble burst of the Dot-com industry wiped out his plans, dreams, and home.  If you have quick plans for gold or silver I want you to read this next sentence closely.  Owning gold & silver for short-term opportunities is more risky than not owning at all.

The bubble generation, us, were mislead by non-sustainable earnings all derived from asset bubbles. Do you recall the run to real estate just before the crash of 2006? Millions used leverage to the point of nearly collapsing the banking system.  The true victims of the housing crisis rarely are identified.  They’re our elderly, our savers, and our frugal. The principals that built our economy, heck our country, now penalized for being responsible.  They are now asked to not whine and pay their fare share.

The run to precious metals is no where close to full speed. I caution buyers to not get caught up in the frenzy and confusion soon to hit both gold & silver.  The first step to owning gold/silver is to first educate yourself on what to buy, how much to pay, and where to store it.  The second step is realizing this is a long-term plan that needs very little attention.  The next step is developing an exit strategy.   Yes demand will push gold well beyond its true worth requiring owners to sell before the metal bubble bursts. Until then enjoy the ride, and profit.

Our primary fear here at The Prospector Site might surprise you. We are not afraid of being discredited or afraid of advising folks to buy only to watch metal drop like a rock.  Our primary fear is folks will become so attached to gold’s wealth preservation and profit they’ll refuse to turn loose down the road (years down the road).  There will be a time to release interest in PM and begin buying other severely discounted assets.  Failure to recognize this as fact will be a misuse of gold.

This is our take so tell us yours.  Send questions or comments here.


QUESTION:  Enjoy reading this site very much but something makes little sense to me.  Why spend so much time encouraging readers like me to own gold only to preach selling it soon after?  Maybe I’m missing something but this seems more like a card game than investing?  Do enjoy and agree with most of what you say, thx.

ANSWER: Thanks for the reading our site and thanks for the great question.  This question falls lock step with today’s post (hopefully today’s post answers part of your question).  We must view the economic world around us differently if we want to preserve and prosper.  We have little control of the rules but, unfortunately, the rules are changing.  Think of owning gold like a storm shelter in turbulent times.  A shelter’s purpose is to provide protection until life-threatening weather passes by.  Without this shelter we are vulnerable and unprotected against unknown forces.  But once we enter a shelter we don’t make plans to spend the rest of our lives there, do we?

Gold and silver’s run is no different than a shelter during  vulnerable times.  Substitute inflation and fear for rain and wind.  Like everything else, this too will pass leaving gold/silver overbought and other assets (stocks, real estate, etc) undervalued.  Hope this helps and thanks for asking.

Worth Repeating:

Many of our readers ask how will 2012 affect gold & silver prices. Predictions are difficult to time and our opinion is long-term gold opportunities are all around us.  We ran across an interesting article this morning and it’s a must read for those interested in PM prices for the near future.  Please take a few minutes to read it here (JIM RICKARDS- War with Iran has begun, Gold to break $2000).

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Sarah Dawn McKinley thought it impossible for the week between Christmas and New Years to worsen.  How could it possibly grow worse since this was the week she became a widow with a 3-month-old son? Unfortunately, Sarah Dawn had no idea she would have to make one of the biggest decisions of her life just to save it. As gold holders something more than bravery must be taken from this story.  After all, the #1 reason to own gold is to provide a buffer of independence in times of control and manipulation.  I won’t try to compare gold to a child’s life today.  There simply is no comparison in my mind.  I will compare a person’s decision-making ability with mine, and yours.  Here is how it played out.

It started with a controlled question to a 911 operator, “I’ve got two guns in my hand.  Is it OK to shoot him if he comes in this door?” Not mentioned was behind the door stood not one man but two with the second wielding a knife.   “Well, you have to do whatever you can do to protect yourself,” dispatcher Diane responded. “I can’t tell you that you can do that, but you do what you have to do to protect your baby.” Moments later a 12-gauge shotgun took control of the situation leaving mother and baby safe but one bad guy wishing, if only for a split second, he had picked another home to invade.

Stories, like this, of the good guy winning sound rewarding at first but then the realization sits in this could have been any of us. I doubt anyone really wants to take a life to protect their family or stash of gold but this is a choice a small minority of us will have to face someday.  Somehow most gold owners believe they can toss their container of gold bullion in a gun safe and never worry for its security again.  I feel this is assuming and unwise in this day and age.  If you only take one thing from today’s post I want it to be this.  Gold & silver are the most defenseless assets you will ever own!!  They are nearly impossible to identify, easy to carry off (in most cases), and hard to secure.

While doing a rewrite on a soon to be released gold and silver book I found my self struggling with a chapter on securing physical gold/silver. Everything else in the book flowed together but this chapter was difficult.  It dawned on me late last night why this is.  Every one of you is different.  You live in different places, you have different convictions and beliefs, and you own gold for different reasons.  What you do have in common is you want to protect what you have worked very hard to amass.  The number one source of security your gold has in its favor (next to discretion) is you.  Like Sarah Dawn McKinley, your metals’ best defense is a well thought out plan and a willingness to protect as you feel relevant, convicted, and necessary.  Everything else is nothing but thick metal and hope.

Here is an example of what we’re saying if unclear. Some of you are very pro 2nd Amendment and have no problem protecting what’s yours, no problem.  Some of you are pro 2nd Amendment but as Believers feel taking a life defeats a belief in all things of this world as materialistic and a greater prize awaits those that believe.  Some of you have never given a thought to what you would do if you had to pick between gold, a gun, and a life (not once).  Here is how I want to leave this.  Take time over this week giving thought to what you would do if faced with the same situation Mrs. McKinley faced just over a week ago.  The time to make a plan to protect (defend) your gold is well before the unlikely situation arises.

This is our take so give us yours.  Are you willing to defend something as silly as a mass of metal?  Would you take the life of a person if they stood between you and your metal?  Contact us here since we would love to hear what you have to say.  Thanks for spending time with The Prospector Site today and don’t forget to scroll down and read what others have to say.


QUESTION: I just started buying silver rounds, I am not a coin collector. I am just looking for silver. I studied things for a few months before buying. This site is what made me go ahead and buy. I have a good job and almost have my house paid off. I have 300k in my 401k but I am always afraid that the money won’t be there in 20 years when I am ready to retire. My question is what is the difference between buying 1 oz coins or 1/2 oz coins. I was told two 1/2 oz coins are worth more then one 1 oz coins? What is your opinion?

ANSWER: Thanks for a great comment and question.  Congrats on taking the time and energy to not only protect by way of PM (precious metal) but build equity in your home and retirement (*).  Silver is extremely popular these days and compared to early 2011 it’s on sale.  I own silver but I do worry (a little) about how it will fare in the long term compared to gold.  Silver owes some value to its industrial side and as economies slow it’s hard to say if the investment side will compensate.  No doubt the metal will grow in value as long as printing presses continue to solve debt problems.

As far as the 1/2 ounce silver rounds go, I too own them.  They are not worth more than 1 ounce coins if we value rounds on their silver value.  If you account for the premium added to each round then “yes” they are worth more than 1 ounce rounds (ounce to ounce comparison).  Depending on your motivation to own 1/2 rounds, we recommend keeping premiums as low as possible and the best way is to limit the amount of “fractional” gold and silver as possible.  We recommend favoring 1 ounce silver with the lowest premium available.  You don’t mention gold but we feel it’s wise to own both metals. Thanks for the question and following our site.

*SIDE NOTE:  We emailed this reader directly discussing the other concerns they have on savings, retirement, equity, etc.  This reader brings up a great point and we want to spend a sentence or two on them.  We are in uncharted waters economy wise and once safe/secure assets no longer are as protected.  Ask the farmers and investors who lost millions when MF Global lost $1.2 billion of their dollars recently.  During times like these assets become manipulated and ones not in control become left out.  One thing I love about precious metal (for the record I’m not a gold bug) is financial control stacks in my favor.  When this control stacks in my favor, independence and self-reliance follow along like 2 month old puppies.  Just something to think about.

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I just turned and walked away.  What else could I do since my transaction was complete and it’s not place to represent the unknowing?  Let me back up a little.  The gentleman described came into the coin shop as I was wrapping up.  This is when I heard him say the absolute worst thing a new precious metal buyer can ask when he said, “I’m new to gold and silver and was wondering what you (storekeeper) recommend?”  If you take nothing else from The Prospector Site please remember this one thing.  Do not, and I mean ever, rely on someone selling metal to decide what’s best for you!!  A second opinion is fine, advice is fine, but to rely on anyone but someone you know and trust is crazy.

I’m certainly not picking on this gentleman; in fact, most new buyers feel the need to depend on biased information as reliable. It could be reliable but how do you know for sure?  Let’s break down the two huge mistakes in asking a question like the one above.  First, never mention that you’re new to gold and silver.  It’s no one’s business if you own one or a hundred ounces of gold bullion.  Second, never sign a check and then ask a salesperson to fill in the numbers.  This is exactly what you are asking when you ask, “What do you recommend?”

Does this sound cruel and assuming? I can tell you the list overflows with stories from folks buying wrong gold and paying too much for it.  I know because I did the same thing when starting out.  This shouldn’t happen to our readers.  Please don’t misread today’s post as a knock against hard-working bullion dealers and their staff.  Most have your best interest at heart but does this mean we should rely on good intention alone to buy smart gold & silver?  Of course not.

Owning gold or silver is only partially about wealth preservation (despite what most believe). The number one reason to own gold/silver is independence, YOUR independence.  The best way to achieve this independence is to take time to understand why, how, and when to own metal.  Once you understand gold and silver, issues like doubt or confusion fall backstage to importance.  It all starts with understanding by way of precious metal education.  This is why we founded the site you’re currently reading.  We don’t sell precious metal but we do provide information assisting folks, like you.


We are not trying to confuse readers here, please don’t misread our intentions. It is fine to ask your contact person questions and I do each time I buy metal.  But questions other than inventory, how long if ordered, and current pricing are more about opinion than factual.  Remember,  establishing what to buy, how much to pay, and where to safely store, must be determined before you enter a coin shop or call your bullion dealer.  Unsure of any of the three could cause a buyer to; once again, rely on someone else to decide what’s best for you and your family’s financial future.

So what do you think it?  Do you have a reliable bullion dealer or store advising your next purchase?  Are you comfortable making purchasing decisions on your own?  Let us know what works for you right here.  We would love to hear how our readers buy metal.


COMMENT RELATING TO “Is USA Turning “Third World”

You’re right! I’ll go even further: about the only things left in the U.S. that are ‘first world’ now are the prices –

THE PROSPECTOR SITE REPLY: Thanks for the comment.  You are correct in that prices from milk to medicine are high.  Is this a direct relation to trillions of new worthless dollars?  You bet it is.  The remedy to most budget shortfall is to create, borrow, more money which only postpones the inevitable.  You probably already know this drives up the price of your precious metal.  You are correct when you say prices are high, even prices of gold & silver.  They both will continue to grow as long as deficits do as well. Thanks again for the comment.


QUESTION: I think something like gold will be easy for a thief to steal.  What if I trade our savings for gold coins and someone breaks into our home and takes it all?  Then I have no savings or no gold!

ANSWER: Great question and thanks for asking.  Your concerns are valid and to be honest all gold holders have worried about theft.  Here are the facts on gold theft.  Around 75% of gold stolen comes from the neck of gold owners (jewelry).  Another 20% of gold stolen comes from home burglaries, jewelry too.  These numbers are rough and obviously vary according to your community.  A large percentage of the jewelry theft is from the hands of someone the victim knows.  Stolen gold/silver bullion is the lowest of all metal types taken.

The reason is simple.  Gold & silver bullion coin holders don’t advertise like jewelry owners.  Most bullion holders aren’t flashy, don’t need to impress, or vocal about their personal holdings.  All three of these things aid in securing private ownership of gold and silver.  Does this mean if you follow the same practices your gold coins will not disappear?  No.  There is “risk” with owning all investments and assets.  I can tell you of a crime already in progress (yes, against you too).  Your savings is eroding even as you read this post.  Inflation is “public enemy number one” on the theft chart.  Thanks for your question and I hope this helps.


QUESTION:  I’m not your typical Prospector Site reader I can assure you of that.  I don’t own gold and have always thought of it as a silly investment.  Lately I’ve changed my tune and have found myself reading sites like yours (someone passed it to me) attempting to makes sense of our current economic climate.  For someone like myself, what do feel is a safe entry type gold/silver investment?

ANSWER: Thanks for your question and thanks to the person who passed our site around.  You are the “new normal” in today’s PM (precious metal) market.  Millions of folks like you are trying to find answers in a difficult time and if they search long enough they will find the only source of real money, gold & silver.  This is the constitutional opinion of our Founding Fathers.

Entry level gold & silver is the same metal we recommend for 10 year metal veterans.  The best metal to own (regardless if gold or silver) is metal with lowest premium.  They are usually bullion coins, rounds, bars, and bags of junk metal.  The reason is we are not collectors.  Our goal is to wash dollars for real money as cheaply as possible.  You are wise to consider the insurance, not necessarily an investment, of gold and silver.

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