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GOLD, SILVER & Facebook

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

Two weeks ago the buzz on Wall Street was Facebook’s IPO (initial public offering). As I write, Facebook stock is down nearly 23% from the original offering leaving many investors questioning such a sure thing. This leads me to ask how comfortable you are with your investment portfolio? From your emails, most are still on board with silver, gold too, but will we feel the same if gold drops below $1400? My bet is $1400 gold would make for nervous investors even though true metal owners know the best days for PM (precious metals) are still to come.


It is easy for me say the recent drop in gold is nothing to worry over since I bought most of my physical gold years ago, some of you cannot say the same. I won’t attempt to justify why gold is down lately since the answer is trivial compared to what motivates gold over long term.

Some of you are thinking of jumping from gold all while I’m timing when to add more. The only difference between “us” is perspective. You perceive gold as risky and I perceive gold as the only protection against fiat supported governments unwilling to go down without a fight. I perceive the crises of 2008 as a monetary siren and you perceive the economy as in recovery.

The type of investor willing to buy Facebook stock is the same one willing to accept forty years of a fiat based economy as sustainable, it is not. Facebook stock is declining because more folks around the world are beginning to dispute today’s fiat Ponzi scheme.

A few weeks ago, most investors perceived Facebook a wiser investment than physical gold/silver? We must realize the one thing Facebook and today’s gold/silver prices have in common is volatility. Putting a value on Facebook is nearly impossible just like putting a value on silver and gold is too (for two completely opposite reasons). With that said, here are the differences between PM and Facebook.

  • Facebook is socially popular, gold is not.
  • Facebook is a very young company, gold is the oldest form of money.
  • Facebook is moving toward global status, gold is a global currency.
  • Facebook’s future value is in question, gold’s future value is in demand.
  • Facebook unites the internet world, gold unites the wealth of the world.

It is no secret that I feel social sites, like Facebook & Twitter, will play a major role in PM prices extending beyond what most view as expectant or realistic. Nothing will transport the news of another bank holiday, Lehman collapse, or government bankruptcy like social networks can.

To be fair let’s talk about the long-term projections of a giant like Facebook. After all, Facebook stock should offer promise since this is a young company founded by some of the sharpest minds in our tech world, right? Maybe not. Will economic instability help influence Facebook stock upward? Will social unrest, the S & P in retreat, worldwide housing declines, or market volatility in general help elevate Facebook stock over long term?

No, aforementioned forces will not help Facebook’s stock value. Just because Facebook itself will find popularity around the world doesn’t necessarily justify it as a worthy investment, at least not as priced.

To find comfort in silver and gold requires a realization more than anything else. This realization must include the need for nontraditional monetary decisions during nontraditional times.

This “realization” must include a basic understanding how not one fiat currency has experienced long-term success, not one! On the other hand, gold has never experienced monetary failure. Now, with that said, who wants to buy some Facebook?

News Worthy:

REUTERS:  Biggest Greek Bank Warns of Dire Euro Exit Fallout

If Greece left the euro, living standards would plummet, incomes would be slashed by more than half, and inflation and unemployment would skyrocket, the National Bank of Greece warned on Tuesday.

The bank said per capita income would collapse by at least 55 percent, the new national currency would depreciate by 65 percent against the euro and a recession, now in its fifth year, would deepen by 22 percent. Read more here. TPS (The Prospector Site) adds, what is not reported is how US political forces are now pressuring European countries to PRINT stability into Europe’s economy.  This should be painfully obvious that those elected are willing to destroy currencies before facing political defeat.

News Worthy:

Congressman Ron Paul: Capital Controls Have No Place in a Free Society

The characteristic mark of a tyrannical regime is that it eventually finds it necessary to erect walls to keep people from leaving.  This is why we should be troubled by the “Ex-PATRIOT Act,” an egregiously offensive bill recently introduced in the Senate.  Following a long line of recent legislation and regulations attempting to expropriate more and more wealth from hard-working Americans, this new bill spits in the face of overburdened taxpayers and tramples on the Constitution.

If they wish to escape the Federal Reserve’s inflation by emigrating to lower-cost countries so their dollars will go farther, as many Baby Boomers are starting to do, the federal government will penalize them, and continue to penalize them for the rest of their lives as long as they hold any money in the United States.

No wonder increasing numbers of Americans feel this government is engaged in outright warfare against its own citizens. Every day the noose grows tighter, yet anyone who sees the writing on the wall and seeks to leave must pay exorbitant taxes just for the privilege of leaving, and increasingly the possibility looms of never fully breaking away from the government’s tentacles no matter where they go. Read more here. TPS adds, several international sites are now committed to provide accurate information to those interested in international dual citizenship or relocation. I’ll be the first to admit that this is not for everyone, but. Remember, life can change on a dime so don’t rule anything completely out. Check out International Man for more information.

News Worthy:

Financial Sense:  So You Think You Own Gold?

One of the most common reasons investors cite for buying gold or silver bullion is that they are losing confidence in fiat (paper) money systems and the over-indebted governments behind them. Many investors prefer to own “physical” gold rather than “paper gold”, meaning they want to own the real thing as opposed to a paper promise – a contractual commitment to deliver gold at a later date, or in other cases a contractual commitment to pay the equivalent of a future gold price to the investor.

But there is an alarming deficit of understanding among investors relative to how the precious metals markets actually function. In fact, I would go so far as to opine that most investors who believe they own gold really don’t! Read more here. TPS adds, Mike Maloney says it best, “If you can’t hold it then you don’t own it!!”

QUESTIONS & COMMENTS:

Question: This whole precious metal thing is confusing considering each so-called expert has a different opinion than the last. How do I know what is safe haven silver or gold? Two, who is trustworthy within the PM community? I don’t want to buy only to lose money like many others have over the last few months.  Please help since I’m not having much luck !

TPS Reply: Wow, you are loaded for bear but thanks for the questions. Let me start by taking some pressure off, ready? Don’t buy silver or gold, at least not yet, since first comes education (PM understanding) long before the steps in question.Don’t worry about prices going up since the risk of buying “wrong metal” far outweighs the risk of prices zooming.

Part of becoming comfortable with gold involves a basic knowledge of a fiat based economy now driven from consumerism. This understanding provides a solid foundation built from confidence that sustains a physical metal holder during times like today (this is why I pay no attention to media misinformation, dips or bubble talk).

Next, realize you’re not a coin collector and have no interest in rare coins. The goal is to trade currency for real money AS CHEAPLY AS POSSIBLE!! This is why we encourage readers to buy bullion coins, rounds, bars, or junk.

Now, as far as the who to trust question. TPS often interviews small family operated bullion dealers who have strong long-lasting reputations. Dig into our achieves to find one you are most comfortable with or visit a local coin shop asking to see their lowest premium silver or gold. Leave if they attempt to redirect you toward rare metal.

You mentioned a fear of losing money but this is far from the case. We can’t compare PM with typical investments of the past, i.e., real estate, stocks, etc. Precious metals are money. A wealth transport of sorts happens the minute you convert currency (what you called money is actually a currency) into PM.

Like all transportation the path to protection and prosperity is not a straight-line destination. Hills, valleys, dips, rises, are all part of this journey. No educated PM owner will sell physical silver or gold during a paper dip like the one we see today.  Thanks for reading The Prospector Site.

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MEMORIAL DAY 2012

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

In America, today is a special day to reflect and appreciate those who gave all for freedom (US markets are closed in remembrance). Unfortunately, the world continues onward in a complex monetary fashion attempting to correct decades of mistakes. Today we will feature several current events affecting the precious metal most of you own. Currencies across the globe are now in search of the next safe haven but few are yet to realize one currency is no better than the next. This will eventually lead boatloads of wealth into the ultimate safe haven of silver & gold.


News Worthy:

NY Times– Giant Lender in Spain asks for Billions to Fend Off Collapse

MADRID — Spain’s banking crisis worsened Friday as the board of Bankia, the country’s biggest mortgage lender, warned that it would need an additional 19 billion euros ($23.88 billion), far beyond what the government estimated when it seized the bank and its portfolio of delinquent real estate loans earlier this month. When Spain seized Bankia May 9, Luís de Guindos, the Spanish economy minister, said it would need at least $11 billion.

The government is trying to head off a collapse of the bank, which could threaten the Spanish banking industry and reverberate through the financial centers of Europe and beyond. The fear is that it will not have the money to save its banks, and their $1.25 trillion in deposits, and will need a rescue by the rest of Europe — even as political and financial leaders struggle to resolve Greece’s debt debacle.

The rising fear now is that the recent steady outflow of deposits from Spain’s banks, which are suffering from the bursting of Spain’s real estate bubble, to institutions outside the country could eventually turn into the sort of bank run that almost brought the financial world to its knees after the collapse of Lehman Brothers in 2008. Read it here.

News Worthy:

FXSTREET.com– Central Bankers Bought More Gold While European Leaders Kept Talking

Central banks gold purchase data in April cheered gold market on Thursday, however. Mexico, Kazakhstan and Ukraine added about 204,000 ounces in April. The Philippines added a whopping 1.033 million ounces in March with gold now at 13.6% of its total reserves. UBS highlighted the Philippines’ gold purchase is significant as this is the second largest monthly Central Bank’s purchase after Mexico’s purchase of 2.5 million ounces in March 2011.

World Gold Council (WGC) reported that central bank purchases were 80.8 tonnes in Q1 2012 or around 7% of global gold demand. What is more interesting is that WGC is now confident that central banks will continue to buy gold and has added official sector purchases as a new element of gold demand while eliminating official sector sales as a negative supply factor. Read it here.

News Worthy:

MONEY MORNING–Good News for Gold Prices: Commodities are Wounded, But Far From Dead:

Greece is frozen in a political stalemate. Youth unemployment is running at over 50%. And there has been a $1 billion run on Greek banks.  From near and afar, there appears to be no easy way out, especially now that the Eurozone is heading back into a recession.

It’s times like these when investors pour into the U.S. dollar for its “perceived safety.”

With commodities priced in U.S. dollars, this spike in the greenback has sent commodities-including gold prices-into a tailspin since early March. That has many doubters asking: “Has the commodities super-cycle ended?”

It’s a reasonable question considering the Continuous Commodity Index (CCI) is back down to levels it last saw in September 2010.  What’s more, gold prices have backed off to near $1,500/oz., and oil prices have fallen from $110 to $90/barrel.

But as you’ll see, the commodities coin does have another side.

And debt in the West (U.S., Europe, England, and Japan) has doubled in a little over three years to almost $8 trillion in a veritable monetary flood that’s bullish for gold.  Read it here.

News Worthy:

SILVERSEEK.com– Illegalities

The Commodity Futures Trading Commission (CFTC) has been negligent in failing to terminate the obvious manipulation ongoing in silver. Furthermore, the agency may be complicit in this manipulation. Worse, it has lied to the public and elected officials. This all goes back to the time when Bear Stearns was taken over by JPMorgan in March of 2008.

It is well known that Bear Stearns went under as a result of a sudden loss of liquidity amidst a run by creditors and customers. What is not well known is that those problems were greatly exacerbated by a $2 billion margin call on silver and gold short positions from the end of December 2007 to March 2008. I believe the silver and gold margin calls were at the heart of Bear Stearns’ failure. Read it here, thanks to a reader named Jeff.


Comments & Questions:

Hello,

I have been a reader of your website since early this year and reading your book re-emphasized what you have written at TPS. I just finished reading Why Silver & Gold Will Go Higher and enjoyed it.

You raise a lot of good questions, and its clear that sooner or later US monetary system are forced to increase interest rates and when that happens we can see gold skyrocketing as banks will be unable to pay back on its obligations demanding more bailouts and devaluing the dollar further. Maybe that will be the start of the biggest bubble of all? Time will tell.

I had big aha when you said that the world is moving into a scaled down version of itself, like when home equity owners scale down to protect remaining equity value in PM.  I guess we are all on the same ship, and like you said, this ship seems more like a titanic ship, were there just isn’t enough lifesaving boats for all!  Lets hope not.
Cheers for all!

Prospector Reply: Thanks for reading and commenting. You mention “obligations” and it’s important to realize another word is soon to find worldwide popularity, default. This happens while we watch a giant currency shuffle from euros into USDs. The problem, the USD is no more worthy to take on liquidity than the euro is.

The ability to print over monetary mistakes causes a false belief that will someday leave masses very disappointed. Good for you, and other readers too, for not falling for this “lifesaving boat” to nowhere.

QUESTION:  (edited for space) Hi, I am just a small investor in Physical Silver Bullion. I have currently about 720 oz’s of all types, & sizes of silver bars, rounds, and coins. All .999 Fine Silver, some Canadian Silver that is .9999 Fine. My goal is 1000 oz’s before I can’t afford to buy silver anymore. 90 % of the silver I own I bought when spot price was still under $20 an oz spot price, so I am already way ahead financially.

What I need to know is when it is time to get out, what do I invest in, or sell My silver for when it has reached the top of the Bull? Not US dollars, because that would be defeating the purpose of owning Physical Silver Bullion.

Prospector Reply: Thanks for the question and nice job on the silver stack. I’m guessing many readers are wondering when to jump from PM (precious metals) but the truth is we are nowhere near the end of this bull run, at least in my opinion. Think of it like this if you will. Everything sending PM higher is soon to enter warp speed. Deficit spending, unilateral fear or concern, equity market volatility, loss of real estate faith, etc are all feeling the ill effects of fiscal irresponsibility.

The “top” you ask about could look more like a last man standing scenario if central banks refuse to back off.  Be sure to keep at least 1/3 (or more) of your physical silver close at hand. Don’t be afraid to store some silver internationally, but outside the banking system, just in case some bureaucrat decides to target PM. Keep up the good work.


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WHY WE ACCEPT FISCAL INSANITY

GOLD & SILVER, GOLD AND MONEY   No comments yet

If I gave you a new car would it sway you to support my opinion? What if I made it possible to park your new car on a driveway that leads to your new 3000 sq. ft. home? Let’s take it a step further. What if the only thing I ask in return is a personal obligation to borrow at near zero interest along with a promise to pay it back. What if we overlook the promise to pay it back and convince the bank it’s their fault you borrowed so much and then ask them to forgive part of the loan’s principle? If I offered all this would you overlook my failures as an elected official?


Citizens of the world are on the verge of angry but not for the right reasons. Are we angry over fiscal mismanagement? Are we angry because those elected promise to represent fiscal restraint but never do? Are we angry because hope and change ended as nothing more than a catchy campaign slogan? The answer to all, “Not really.”

The world is on the verge of bubbling anger because our lifestyle consisting of “more” and “new” is ending. Most of us aren’t angry over fiscal insanity, must are angry because we want to extend “normal” and mad as hell that we can’t.

Will heads roll? You bet they will, but only after a great awakening? Let me thoroughly explain before we introduce gold into our equation of the day.  Big Banks are soon to become public enemy number one, as they should. Politicians will deflect blame toward banks even though a few banking institutions control a politician’s future.

This redirect could keep some in power another term or two, at best. This blame leads the masses to ask why big banks can grow more profitable while the average person feels the ill effects of economic correction. But we weren’t angry the day the same bank handed us our new mortgage for the home we can no longer afford, right?

The same banks we are most angry with control around 60% of all U.S. wealth. I want you to connect the dots to really see why we accept fiscal insanity. Your retirement investment, at least most of it, depends on the big banks you have developed a hatred toward. The question is how could this have happened, I’m glad you asked?

Wall Street swims in decades of profit derived from bundled debt, YOUR DEBT. No one made us take on too much debt, we did it because we convinced ourselves we deserved it.  Think of it like a distribution system. The distributor (banking institutions on Wall Street) needed more product to sell and you are the grower of this product (the product is debt).

In return, you get a new Harley, car, house, vacation, Vegas weekend, college degree, useless business expansion, etc. In return, politicians receive one more term to live a life of celebrity. What you might not know is the bank wins twofold since the cash you borrowed cost them almost nothing to lend. Then, Wall Street bundles this debt and sells it back to investors as a worthy investment based on nothing real or tangible. The bummer is your future hinges on one more sucker willing to buy this bundle of defaulting debt!

Why, why does the most prosperous country in the history of the world allow this? Because every dollar you don’t borrow is one the Federal Reserve has to create just to keep this illusion of an economy standing!

I need you to do something before I introduce silver and gold today. Please email this to everyone you remotely care about. We must encourage others to no longer accept fiscal insanity.

Nope, in all honesty, every one short of the choir is only angry because the carousel built from debt is now in monetary failure (correction).  The next wave of anger is nothing close to the last wave of anger.

WHY GOLD & SILVER:

I wish I could say the scenario presented today is only true in the U.S. but this is not the case.  Debt based economies are now systemic, if not epidemic, and we can look no further than Europe, or California, as the next leg up.

The word “recovery” is one we hear often but the true definition of recovery, at least this recovery, is progressiveness to believe something we ultimately realize as unsustainable is obtainable. Fiat currencies will no longer allow what life long academics refuse to recognize. Eventually, something real must be created, sold, and then profit saved to sustain a healthy growing economy.

I’m sorry, by now some readers want to find a deep hole, crawl in and then drag a flat rock over the opening. I have a better idea. You can’t singularly control the sins we’ve mentioned today, you realize this. What you can do is isolate your wealth, regardless of size or quantity, therefor removing it from the spoils of bad economic behavior.

This will surprise some but I too view precious metals as a silly investment.

Folks, this is more about timing than investing. Silver and gold will expose themselves as a life raft in white-capped waters. Silver and gold will shake this fiat system out over time.

I have no idea how long it will take and honestly not one honest person does either. I do feel transferring wealth into something historically proven as “real” is our best hope to not only weather this storm but prosper too. As for me, I’ll pick monetary history over academia. Real physical silver and gold.

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News Worthy:

EXAMINER –Peter Schiff: Next President Will Preside Over the Economic Collapse

On May 21st, Coast to Coast AM aired a special Financial Crisis show, with several different financial and economic analysts appearing during the four hour broadcast.  During the second hour, investment advisor Peter Schiff appeared as a guest and laid out the inevitable path of America’s financial future.

Focusing primarily on our country’s debt, and the sustainability of the dollar to hold back inflation, Shiff predicted that no matter who wins the Presidency in November, that individual will be presiding over an economic crash that will make 2008 pale in comparison.

Later in the program, Peter Schiff was asked by the host if our politicians had the stomach to do what was necessary to bring our economic ship back on course. The proposed solutions to accomplish this entailed 20 years of dedicated austerity for the American people, and a paying off of the nearly $16 trillion in debt obligations by the government.  His answer was a resounding no, as both politicians and the public are too bound by easy money, and the bureaucratic welfare state.  A prime example of this was made when the subject turned to jobs in America, and how a record number of unemployed men were now applying for disability benefits since they were unable to find work in the economy. Read more here.

News Worthy:

The Gold Standard Now:  The Coming of the Gold Standard

America and the world need monetary reform.  Indeed, they need a twenty-first century, international gold standard.  The gold standard — i.e. national currency convertibility to gold — is the simple, proven, global monetary standard by which to transmit reliable price information worldwide.  Unlike manipulated, floating, paper currencies, the true gold standard — a dollar defined in law as a specific weight of gold — exhibits the optimum, impartial, networking effects characteristic of the electronic age of reasonably transparent, global standards.

In an imperfect world, peopled by imperfect human beings, there can be no perfect monetary system.  Nor is the case for gold the case for investment in gold.  Based on a prudent consideration of monetary history, it is an argument from principle by which to establish the optimum monetary standard for a stable, growing economic and social order.

By the test of centuries, the true gold standard, without reserve currencies, is the least imperfect monetary system of history. Read it here.

News Worthy

Swiss America:  Bread Lines or Buffet Line?

World economics are upstaging politics in 2012. Governments worldwide are seeking to make citizens feel “safe” by expanding entitlement programs, which require an ever-expanding, taxable population to pay for these programs. That math does not work in Europe and it won’t work in the U.S. Our political leaders are making promises they cannot keep.

It boils down to this question: Will you rely on government promises or become more self reliant? When the next crisis hits, your choice now may determine whether you stand in a bread line or a buffet line. Worth reading.


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HOW MUCH GOLD IS ENOUGH?

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

The money game around the globe is in overtime play, let me explain. The meltdown of 2008 should have devastated a poorly structured banking system built on a foundation of risk and fractional reserve lending, but it didn’t. I watched it, heck we all watched it, as the DOW dropped from an amazing high over 14,000 to around 6500. We watched big banks survive only after classified as TBTF (too big to fail). Next, we witnessed nothing short of a historical measure of corporate and private interest merge with government just to keep the house of cards vertical. I was personally rooted in gold by this time.


The trillions printed since 2008 have created an extension (overtime) to an end game that is inevitable. Some of you took advantage of this extended play to restructure wealth away from paper-backed assets and into real money like PM (precious metals). But most around the world look for a return of “normal” instead of heeding the monetary warning bugle heard around the world. Unfortunately, few ran to the one metal biblically proven as a steady store of wealth in troubled times.

Some of you are wondering how much metal a family should own considering the challenges of the day. Is it 50 ounces, maybe 100 ounces of gold? The next question you’re asking is how does all this end or, as I feel, correct. You must understand the game may be in overtime but it is still in play. This extension, if you will, provides more time to amass what most misunderstand or comprehend as necessary…gold & silver.

How much gold to own is relative to your situation. We must first ask what level of metal ownership is necessary to protect a savings, pension, retirement and support other long-term plans. Some of you live check to check. If so, a reasonable amount of gold requires a more aggressive action compared to a baby boomer looking for a preservation into golden years.

We must now view gold as equilibrium of sorts. Since you’re reading my site today you must agree that traditional soft assets are in danger of major correction derived from USD devaluation. This overtime play we are living offers time to transport wealth from traditional assets into a source of wealth preservation better suited for fiscal instability.

Many are asking if Europe’s monetary and banking troubles will upend other parts of the world. I’m thinking they will but currencies outside the eurozone have options that each country inside the eurozone don’t. Yep, you guessed it if you said the power to print cash.

The only thing holding our monetary world up is the Federal Reserve’s willingness to print and distribute dollars.

A continuation to print requires all who own gold/silver to continue to buy more, if possible. Why you ask? Because the destructive nature of perpetual printing deepens the correction therefor worsens the level of personal wealth destruction over long term (other wealth in assets like homes, stocks, etc are more affected). A proactive plan should include adding to your stash when possible.

I have a PM confession to make. I never dreamed a person could buy physical gold for under $1700 per ounce in 2012. I just felt volatility would have by now driven too many in search of the most reliable source of wealth protection. I was wrong and this is good for all of us. If you are asking how much enough is I’m guessing you need more.

AFFORDABLE GOLD:

If you’re in the market for fractional gold bullion please read closely. Colorado Gold has 1/2 and 1/4 oz Maple Leafs priced to sell 1.5% over spot. This is a bargain that will not last. Find them here if interested.

NEWS WORTHY:

The Miami Herald: Prospectors Ready to Tap Buried Gold

Its capital is blighted with earthquake rubble. Its countryside is shorn of trees, chopped down for fuel. And yet, Haiti’s land may hold the key to relieving centuries of poverty, disaster and disease: There is gold hidden in its hills — and silver and copper, too.

A flurry of exploratory drilling in the past year has found precious metals worth potentially $20 billion deep below the tropical ridges in the country’s northeastern mountains. Now, a mining company is drilling around the clock to determine how to get those metals out.

Haiti’s annual budget is $1 billion, more than half provided by foreign assistance. The largest single source of foreign investment, $2 billion, came from Haitians working abroad last year. A windfall of locally produced wealth could pay for roads, schools, clean water and sewage systems for the nation’s 10 million people, most of whom live on as little as $1.25 a day.

Geologists extrapolating from depth and strike reports estimate at least 1 million ounces of gold at two sites. In April, prospectors found the first significant silver ever reported in Haiti: between 20 million and 30 million ounces. And in the end, it may be copper that is the most lucrative: geologists suspect that more than a million tons lay in just one of many areas under exploration.

Gold was last gathered in Haiti in the 1500s, after Christopher Columbus ran the Santa Maria onto a Haitian reef. Spaniards enslaved the Arawak Indians to dig for gold, killing them off with harsh conditions and infectious diseases. When the Spaniards learned of even more lucrative deposits in Mexico, they moved on. This is worth the reading time.

News Worthy:

Zero Hedge: Fear & Panic are the Banking Cartel’s Weapon V. the Gold & Silver Bull

Currently, there is massive negativity surrounding gold and silver and in particular, gold and silver mining stocks. At times like this, when gold and silver have taken a fairly brutal hit in a condensed period of time thanks to low daily trading volumes both in PM futures and PM stock markets that make it very easy for the banking cartel to manipulate them, it can be difficult not to sell out of everything and run for the hills if one allows emotions to dictate one’s decisions (always a bad move).

If the price of gold and silver were actually set in free markets, we would be staring at gold and silver prices today that would both respectively be at a minimum, 100% higher than their current prices right now. Read it all right here.

News Worthy:

Mirror News: The Curse of the Brinks-Mat Gold Bullion Robbery

When veterans of London’s criminal underworld meet, they grimly refer to the Brink’s-Mat millions as Fool’s Gold.

More than 20 people whose lives were touched by the bullion have met an untimely – often gruesome – end since the record-breaking raid, an investigation has revealed.

Just after dawn on November 26, 1983, six armed men burst into the Brink’s-Mat warehouse at Heathrow expecting to find £3million in cash.

Instead they stumbled across nearly seven thousand gold ingots, worth nearly £28million.

The heist turned them into some of Britain’s richest men and filled the pockets of countless other crooks as the gold was melted down and the money laundered to fund shady activities such as drug smuggling.

Just three out of 15 men involved in planning and executing the robbery were ever convicted – robbers “Mad” Mickey McAvoy and Brian “The Colonel” Robinson and security guard insider Tony Black, Robinson’s brother in law.

The vast majority of the gold – worth over £500million at today’s prices – has never been recovered.

But nearly 30 years on, most of those involved have come to regret the day they ever came into contact with the Brink’s-Mat bullion.

More than 20 people connected to the heist are dead. Fascinating gold related story and you can read it here.

News Worthy:

MSN. Money:  Gold’s Fortunes Will Turn Around Soon

First of all, I don’t really think that the decline in gold prices or the miners’ stocks reflects those markets “discounting” any particular event or outcome. That is, I don’t think the decline is telling us that those markets are expecting some negative development in the future. Rather, there has been an overall lack of interest (demand), and the decline has fed on itself.

In addition — I don’t know this to be a fact — but it does appear that there are a lot of people who are short metals because they think the U.S. economy is doing well. (It wouldn’t surprise me if these are the same folks who didn’t see the housing bubble.)

Nonetheless, at some point the stage will be set (if it isn’t already) for an unbelievably explosive rally to the upside in metals. I think, given how stretched everything has become, that day is close, but that could mean a matter of weeks or it could be a few days. We can’t know, nor do we need to. The point isn’t to predict when, it is to recognize the moment when it occurs and have a plan about what to do. Read more here.

Comments & Questions:

Comment: DC, Had a chance to look at your ebook… good stuff. How do you see us going forward?


Prospector Reply: Thanks for reading. I have concerns that we will shake some off in the short term but very optimistic for those owning physical silver and gold over longer term. The same economic concerns that drove us to PM have worsened and this year of no recovery is becoming obvious with each passing day.

As you already know, I pay little attention to short-term PM fluctuations since I understand what drives PM values higher. The power to print cash allows our masses to live a life that should not exist. The power to print $ also offers an extended opportunity for more to recognize how necessary PMs are in such time of volatility. My goal is to enlighten as many readers as possible along the way.

By DC Carlton

DC Carlton is founder of The Prospector Site and author of Why Silver and Gold Will Go Higher.

 

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“FEAR FACTOR” SILVER & GOLD

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

Have you stopped to ask yourself why you own PM (precious metals)? When asked twice last week my motivation behind founding TPS (The Prospector Site) and personally owning gold, I found the timing odd.  The first came from an interview request outside the U.S. where the host asked if I was a “prepper” or “survivalist”.  I understand the question, and it’s fair, but find it interesting with all the questions reasonable to ask the first one is about surviving. My goal is to not only survive but thrive. For the record, here is my view of prepping straight out of my recently released book introduction.

The information you are about to receive does not come from a fringe “doomsday” point of view. I own gold and silver because I understand them as the most reliable transport of wealth in an age of printed money. I’m not thumping away on some keyboard in a cave with a long extension cord. I don’t live off the grid (but understand why some folks now do). From “Why Silver & Gold Will Go Higher”.

Our society is so far removed from a realistic perspective it’s almost scary. They still view silver and gold as risky but accept raising our debt ceiling as responsible to pay past obligations. The masses view those “preparing” as alarmist while justifying $2 to $3 billion lost by one of the largest banks on the planet.

Is it easier to discredit individuals seeking an independent lifestyle than admit four decades of fiat spending is proving unsustainable? Maybe this is why my second “fear” encounter of last week accused me of capitalizing from fear. This leads me to set the record straight, for all of us. I don’t own silver and gold because I’m afraid, I own PM because I’m preparing for a future full of unknowns caused by decades of greed and monetary mismanagement.

I realize many of my readers are what the mainstream classifies as “preppers” and often victims of ridicule without reason. But how is preparing for a time of uncertainty ridiculous? Is food storage, alternative power sources, a proactive plan of defense, home first-aid, and self-reliance anything but prudent regardless of good times or bad?

Physical silver and gold serve two purposes. One, preserves wealth in times of economic calamity while offering wealth building opportunity. Two, provides another layer of independence (along with the list above) in a time of overreaching government, fiat correction, class warfare and Wall Street manipulation. Fear might kick-start this motor but long-term motivation comes from a realistic revelation of what’s true compared to what is unsustainable.

Folks, gold will go “mainstream” but probably not for the same reasons you own it. The same ones casting ridicule today will pay multiple times the price of your silver/gold.

News Worthy:

GOLD NEWS:  World Gold Council: Q1 2012 Demand Up 16% year-on-year.

The World Gold Council are out with their first quarter 2012 report. They report that whilst the tonnage amount of gold sold dipped 5% from Q1 2011 the US$ value of the gold sold was up some 16% from a year before.

The report highlights how investment demand is becoming more important than jewellery demand. Jewellery demand was down 6% from Q1 2011 at 519.8 tonnes. However investment demand was up 13% to 389.3 tonnes over the same time period. This is definitely worth the short read.

News Worthy:

US GLOBAL INVESTORS – GOLD: The World’s Friend for 5000 Years

Gold—A Reality Check
Investors have “defriended” gold recently in favor of the dollar, as Greek and French voters rejected austerity measures. Greeks have been responding to their escalating debt issues for a while by steadily pulling money from overnight deposits. I often say, money goes where it is best treated, and these deposits will need to find a safe haven.

In the end, I believe governments in Europe lack the courage to be fiscally disciplined. Earlier this week, I told Aaron Task and Henry Blodget on The Daily Ticker that when push comes to shove, Europe will likely continue to print money. This should be positive for gold. Read the rest right here.

News Worthy

CNN- Grow Up, Congress: Make a Deal on Debt

Confronted with record-low approval ratings, Congress seems determined to drive them down even further by planning another game of chicken with the debt ceiling this fall.

The last time they tried this game, the United States lost its Triple-A credit rating as Standard & Poor’s opined that “the political brinksmanship of recent months highlights what we see as America’s governance and policy making becoming less stable, less effective and less predictable.”

Talk about a zero percent learning curve. As you know, the definition of insanity is doing the same thing over and over again and expecting a different result. Well, this asylum is being run by the inmates.

House Speaker John Boehner told CNN’s Erin Burnett at the Peterson Foundation Fiscal Summit that “allowing the debt ceiling to go up without addressing our fiscal challenge would be the most irresponsible thing I could do.” In other words, there’s a showdown waiting on the other side of this election.

That’s not just the debt ceiling he’s talking about. That’s the full faith and credit of our country. That’s our economy. That’s your bottom line. If you can stand it, read more here.

COMMENTS & QUESTIONS:

COMMENT: I was happy to read your Ebook for you.  I found it easy to understand.  Your presentation of the PM market was very clear for someone who has no previous experience in this area.  I still learn something new about PM every day.

You might also point out any balanced portfolio should have PM in it.  PM people normally refer to this as ‘insurance’.  The recommended percentage is usually around 5% of the total portfolio amount.

Also, most people have no idea (I didn’t until recently) that one can own physical PM.  As you mentioned in your comments, the topic can be easily overwhelming, so I think your book gives a good jumping off point for the novice without being too detailed or boring.

As I watch the news from Greece, one can see how a ‘run on the bank’ works.  With PM, there is no need to panic as you have your wealth where you can physically put your hands on it.  No Federal Reserve Notes to worry about.  I guess this is one reason why bankers poo poo the idea of you having physical PM!
If the Central Bankers in China, India, Russia and Japan buy Gold for their reserves, I think it is a very good idea for me to follow along……


PROSPECTOR REPLY: Thanks for reading/commenting. It’s funny you mention not knowing a person can own physical gold since this is more true than folks can imagine. Paper ownership is looking less wise with each passing day since I’m convinced paper manipulation is hampering physical values. Yes, Central Bankers are buying record amounts of physical and this should be a sign for all of us. Thanks again.

QUESTION: Love TPS and read each new post, which brings me to ask my question. If PM prices are currently unstable then when why buy physical silver now? Would I be better off waiting for prices to decline more?

PROSPECTOR REPLY: Thanks for reading, and the great question (s). Yes, you can wait if this is what you’re comfortable doing. But I remind you and others too, that timing a bottom is nearly impossible but at the same time buying a good dip allows us to own the most metal for our cash. My advice is to keep your $ liquid and ready to strike at a moment’s notice. I will pass along good offers as bullion dealers pass them to me.

For what it’s worth, some folks find it easiest to buy, store, and then move along with life without constantly watching day-to-day metal fluctuations. Again, it’s your choice, your money too, so watch the silver market closely and then pull the trigger at will. Thanks for the question.

SEND OVER YOUR COMMENTS, QUESTIONS, AND BOOK REVIEWS RIGHT HERE. THANKS FOR VISIT US TODAY.

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NEWS PUSHING GOLD & SILVER HIGHER

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

You read it everyday but few connect the dots to a lift in precious metals. I see them, hopefully you do too, the problem is the masses do not. Today I want to include not only what I view as news worthy events but events soon to project silver and gold out of reach for most in the middle class. Once again, I don’t believe one particular event will send metal beyond what most view as unimaginable. Accumulation of multiple events will ultimately push, or influence, your PM (precious metal) higher.


The attraction to precious metal is NOT universal, let me explain. Indians buy gold stemming from tradition realizing gold jewelry is not only attractive but a great store of wealth. China buys gold to empower themselves into the next reserve currency. Americans buy gold either to hedge against uncertainty or grow rich. Canadians buy gold for the same reasons as Americans.

But Europeans buy gold for an entirely different reason, the same reason most will eventually own PM. Europe is trading currency, or other assets, for gold to preserve wealth lost otherwise. This reason, their reasoning, is a snapshot of our world’s future.

By the way, be sure to read the six plus reasons Why Silver & Gold Will Go Higher available right here.

NEWS WORTHY:

THE DAILY CALLER: “The US has 2-5 years before financial meltdown….it is dishonorable to lie to the American people….based on the debt we have now, it takes $650 billion annually just to pay its interest. I want people to see what’s coming, this is why I wrote The Debt Bomb.” U.S. SENATOR TOM COBURN.  You can watch a short video right here.

NEWS WORTHY

ZERO HEDGE: As US weak hands keep piling out of gold whether to make space for the Facebook IPO tomorrow, or just to load up on paper currencies in advance of central banks printing much more, two things have happened: China is now on its way to becoming the biggest source of gold demand, surpassing India, but more importantly as of hours ago, in a truly historic move, “Okayama Metal & Machinery has become the first Japanese pension fund to make public purchases of gold, in a sign of dwindling faith in paper currencies.” Not our words: the FT‘s. This is worth the time to read.

NEWS WORTHY

THE GOLD STANDARD: The Rising Price of the Falling Dollar by Charles Kadlec – Forbes:

The debauch of the dollar also erodes our prosperity and our security. Since the final link between the dollar and gold was severed in 1971, the paper-dollar system has produced slower growth, higher average unemployment, deeper recessions and more frequent financial crises.

• Chinese yuan, the price of oil today would be $78 and a gallon of regular gas would cost about $2.95;

• euro, the price of oil today would be $74 and regular gas about $2.80;

• Japanese yen, the price of oil today would be $67 and regular gas about $2.60;

• Swiss franc, the price of oil today would be $60 and regular gas about $2.40.

Very interesting read for those questioning the value of a gold standard, it’s right here.

NEWS WORTHY:

FOX BUSINESS:  Gold Fields Says Prices Need to Rise to Avoid Industry Cuts

JOHANNESBURG – Gold prices need to rise or mining companies may be forced to start cutting output and project financing, Gold Fields Ltd. (GFI) chief executive said Thursday.

In recent weeks the price of gold has fallen, with the metal trading around a four-and-a-half-month low in Europe this week.

“We need higher prices over the long term or we will see curtailment of projects,” Nick Holland said. “(The industry) could see output cut if we see gold go down to some of the forecasts.”

The promising production target comes despite mining companies in South Africa experiencing bigger-than-normal drops in output due to more frequent labor disruptions and Department of Mineral Resources-mandated safety stoppages. Read more right here.

NEWS WORTHY:

L.A. TIMES:  “Grexit”: Are Greece’s Euro Fears Causing a $1-Billion Bank Run?

Greek officials were busy today cobbling together an emergency plan after talks to form a coalition government disintegrated Tuesday. In the meantime, Greeks have withdrawn $900 million from local banks.

So said President Karolos Papoulias, according to minutes of a government meeting procured by Reuters. Papoulias, in turn, was quoting George Provopoulos, governor of the Greek Central Bank, who said depositors took out 700 million euros earlier this week and will likely withdraw at least 100 million more.

 

Greeks have withdrawn 72 billion euros since January 2010, leaving bank deposits with 165 billion euros in March, according to the central bank. Social media users were buzzing Wednesday about rumors that Greek banks had set a withdrawal limit of 50 euros on accounts. Read it here.

PROSPECTOR: It is hard for me to say which article above concerns me most. I wrote about all the above in Why Silver & Gold Will Go Higher so I’m certainly not surprised. Senator Coburn’s book The Debt Bomb intrigues me and sounds like my weekend read, you might consider it too.

Gold Field’s honesty as it relates to mining challenges is something I see as a sign of times to come. The likelihood of environmental concerns complicating an already complex mining industry is something all metal owners should expect, and plan for. Gold and silver are already in short supply at least compared to demand. How can this not affect metal prices of both silver and gold?

Japanese pension funds investing in physical gold could be the purest example of today’s flight to all things real. Folks, this is only the tip and you and I both know it. All the reasons above are why I’m not concerned when gold metal drops $50 or $350 over short term!

Affordable Gold:

Miles Franklin sent over an offer (5-17-12) selling 1/4 ounce fractional gold bullion at a very good price. Supplies limited and will not last considering the offering at 5.5 % over spot. You can find them here if interested.

FEEL FREE TO SEND OVER ALL COMMENTS OR QUESTIONS RIGHT HERE. THANKS FOR READING TPS TODAY!

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THE ART OF BUILDING WEALTH

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

I don’t know the best time for you to buy silver or gold. I do know that not owning PM (precious metal) is far more risky than owning. The internet is buzzing with gold and silver’s recent decline and to be honest all I can think is why, why are we nervous about silver or gold?  I’ve spent my adult life against the flow of mainstream investing. Times like today, times like right now, prove PM is not exempt from market volatility (not one person can accurately predict short-term PM). Today’s post is not a recommendation to run out and buy PM, this is 100% your call and timing. Today’s post is about the art of building wealth.


If you are nervous about silver or gold I urge you to take a deep breath and relax. When asked over the weekend if I was nervous (about PM) it was all I could do not to chuckle. I’ll worry when folks someday view PM as a no-brainer while climbing over each other to buy more, this is not the case today. And, if I might add, the dollars the world cherishes, especially in times like today, are on the fast track to worthlessville.

Do you know why so many are now nervous over silver and gold? They are nervous because prices have dropped in dollars. But wait, shouldn’t those holding large quantities of PM be nervous when (if) the forces driving metal correct. Have driving forces like debt, massive currency printing, debasement, economic uncertainty, fear, and greed fixed themselves?  After all, why would a person doubt PM just because the price drops when the forces pushing metal, over long term, have worsened? This tells me few understand how to build wealth.

Few understand silver or gold and less are confident in PM. This nervousness means many are buying PM for the wrong reasons. I don’t own physical silver and gold because I believe they will go up in dollars. No one with a simple understanding of economics will disagree gold will increase in dollars if for no other reason than to stay equal in value, at LEAST IN THE LONG RUN. I own silver and gold because they are one of only a few safe sources to store wealth during times of storm. Our readers in the South call this a storm shelter. Silver and gold are monetary storm shelters. How can you build wealth without understanding how to keep it?

The last four decades have turned us into poor investors or stewards of our money. This monetary misunderstanding causes us to chase assets we perceive as valuable just because everyone else does. You probably understand but if you don’t I want to further explain.

We chase assets only as they expand into a bubble without questioning why they are growing. Dotcom, real estate, stocks, you name it. We can’t find comfort in silver and gold because we lie in wait expecting them to follow previous bubbling assets not comprehending what motivates PM. Maybe it’s time we pull on our big boy pants and understand PMs as real money and not ballooning assets, good times or bad.

By example, right now our world leans toward viewing residential housing as risky. A few years ago the same folks perceived housing as safe, profitable, and wise. But investing 101 has proven the best way to build wealth is to buy low and sell high, right? Is it possible some view silver and gold as 2007 real estate about to rapidly decline?

Is it safe to say real estate peaked soon after easy credit dried up, of course? Assets bubble only when buyers are no longer willing to pay inflated market price. But did gold climb over the last decade or more because of easy credit? Of course not. The same forces that pushed gold still do. Yes, of course gold could dip for weeks even months but long-lasting economic problems will push long-term gold/silver much higher (folks, we’re in uncharted waters and few short-term predictions are reliable).  Let’s check off our list just to confirm this as true.

  • Gold demand at record levels.
  • Silver and gold mining output far below demand.
  • Expanding world market hungry for physical metal.
  • Record debt on a global scale.
  • Record debt on a personal scale.
  • Record debt on a state scale.
  • Record debt on a municipal scale.
  • Less available credit.
  • Most of all…a growing uneasiness in the USD on a global scale!

The art of building wealth is more about realization than luck. All must stop to ask where the money flows from? What is causing an asset to rise? Is this rise sustainable? What happens when sources heavily in debt are no longer able to backstop or support the asset or investment? The get rich quick bubble days are over. Please view your wealth building plan as a slow steady incline realizing valleys are part of the journey.

Right now, you probably view gold/silver as any other investment, right? What will happen, over the longer term, when the world views gold as necessary, necessary to preserve their remaining wealth? Please don’t underestimate our plight, or long-term PM.

NEWS WORTHY:

TRENDS JOURNAL: The Prospector Site recently commented how ridiculous it is that our administration focuses on gay marriage while Europe burns and markets tumble. Gerald Celente sent out a trend alert exposing such distraction at the cost of our middle class.  Have we entered an age where trickery and deflection are necessary to keep those in power in power? It appears so. Read Mr. Celente’s trend alert here.

COMMENTS & QUESTIONS:

COMMENT to When Your $ Disappears:

The “price” of silver and gold has always been constant. It is the value of the paper fiat money that keeps changing making it appear that gold and silver go up and down.

Paper money is actually debt. That’s why it says Federal Reserve Note. As in promissory note which is actually a debt.

PROSPECTOR REPLY: Correct, the USD became debt, or fiat, when it finally unhinged from gold in 1971. Few understand significance of such a defining time in our American history. It truly is the day the dollar died and only because of life support is it used today. It mystifies me how many, even internationally, flounder to dollars not realizing the heart of world monetary troubles started as a Federal Reserve Note.

Thanks for the comment.

COMMENT: Hi Dc

Thanks for allowing me to read the book (Why Silver & Gold Will Go Higher). I enjoyed it, and even being from Canada, I can see plenty of the same problems and challenges facing us here too. I’d like to see something of your perspective on what would happen if the DOW fell to 5,000, etc., and how that would impact PM – I agree that as long as the Fed keeps printing money, that PM will go up, but what happens when the stock market REALLY tanks… I guess I would expect people to start turning to PM then, but many would have already had their fortunes wiped out.


PROSPECTOR REPLY:  Great, thanks for reading (and helping with the edit too). The DOW is “concerning” since most American wealth, excluding real estate, sits on the banks of Wall Street. You ask a good question, definitely one worth visiting. Look for a post on the DOW as soon as leaks become apparent.

PS.  Most fortunes never existed in the first place, only on paper. It saddens me to say we are on the cusp of what most can only imagine. All while the few wisely owning physical silver and gold question their wisdom!



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WHEN YOUR $ DISAPPEARS

BUYING GOLD/SILVER, GOLD & SILVER   No comments yet

Several years ago my 8-year-old son misplaced his wallet and was visibly upset. We went through the gamut of where did you leave it, when is the last time you saw it, you know. Days turned into weeks until one day he came into my home office to explain his lost wallet held all the money he owned, $27.50.  I felt the little guy’s pain and was thankful one day when he found it in the mess resting under his bed.  Unfortunately, the wealth disappearing today is not “findable” like my son’s small fortune.


I hold not one penny in Wall Street investments. The story featured today will explain why I own physical silver and gold no longer willing to trust “traditional” sources of investing. It makes me sick to see so many still entrusting what history will soon describe as “crooks” but, unknowingly, trusting types will have to learn by example.

The Wall Street Journal recently ran an article describing how J.P.Morgan lost a few investor dollars, actually the number is around $2.3 billion but no need to split hairs.  J.P.Morgan’s mouthpiece describes the incident as controlled or calculated but I see it entirely differently. Let’s skim the highlights of the article for when you find yourself doubting physical silver or gold.

THE WALL STREET JOURNAL: A massive trading bet boomeranged on J.P. Morgan Chase JPM -9.54% & Co., leaving the bank with at least $2 billion in trading losses and its chief executive, James Dimon, with a rare black eye following a long run as what some called the “King of Wall Street.”

Jamie Dimon has been one of the U.S.’s most successful and outspoken bank executives since the financial crisis. On Thursday, he took the blame for a $2 billion trading blunder. David Reilly has details on The News Hub. Photo: Getty Images.

The losses stemmed from wagers gone wrong in the bank’s Chief Investment Office, which manages risk for the New York company. The Wall Street Journal reported early last month that large positions taken in that office by a trader nicknamed “the London whale” had roiled a sector of the debt markets.

The trading loss “plays right into the hands of a whole bunch of pundits out there,” Mr. Dimon said. “We will have to deal with that—that’s life.”

Asked about the Volcker rule, he said, “This doesn’t violate the Volcker rule, but it violates the Dimon principle.”

On Thursday he admitted the bank acted “defensively” when news reports surfaced. “With hindsight we should have been paying more attention to it,” he said. “This not how we want to run a business.”

“This is yet another example of the need for the more than $700 trillion derivatives market to be brought into the light of financial regulation,” said Dennis Kelleher, president of Better Markets, a liberal nonprofit focused on financial reform. More here.

PROSPECTOR: Some of you doubt silver, maybe doubting gold too. I want to be perfectly clear today when I describe one of the many major factors soon to push PM (precious metal) prices forward. Wall Street is no longer trust worthy. Articles like the one above prove either incompetence or as untrustworthy, you can decide which one.

Is it possible one of the world’s largest banks took such risk because they know a bailout awaits if their Vegas like actions backfire?  Of course, and the sad part is debt derived derivatives will implode and not one rationally minded individual can argue counter.

But today’s post is not to argue if $700 trillion in derivatives is sustainable. Today’s post is to ask what will happen to real assets like silver and gold after $700 trillion of your wealth disappears?

Wall Street banks may be suspect but they aren’t stupid by any means. My prediction is Wall Street will soon recognize the house of derivative cards for what it is and this will eventually leave wealth looking for a safer landing. Who could possibly doubt a large percentage of this wealth will land on silver and gold (this includes both paper and physical metal)?

Andy Hoffman was correct last Friday when he mentioned 99% of all Americans don’t have precious metals on the radar. If true, this means they still believe in banks that lose $2.3 billion dollars by betting on risk and debt. This story is eerily similar to MF Global’s multibillion dollar disappearance which leaves me to ask how much longer will the pack accept excuses from guys still receiving multimillion dollar bonuses, win or lose?

So many of us are quick to judge silver or gold right now. We all know both metals have done well over the last decade but we aren’t sure how they will fair in the future. I understand this and personally feel it is wise to question what is real from not.

We are soon to enter a period when all assets are suspect, especially ones who lose billions overnight. I have little doubt stories like the one today will eventually drive remaining wealth into history’s safest long-term asset, gold.

IF YOU HAVE SOMETHING TO SHARE PLEASE SEND OVER COMMENTS AND QUESTIONS HERE.

Comments & Questions:

Question: I still don’t understand how gold will keep up with inflation? Even if it does (keep up with inflation) how will this benefit those holding gold, will they trade it back into currency vulnerable to inflation? Just confusing to me!

Prospector Reply: Thanks for the questions. Maybe a simple explanation will help since I admit things like inflation and debasement can be confusing. Let’s start with the facts. Fact one, inflation is a hidden loss of buying power and wealth. I said hidden because the numbers printed on our currency stay the same even though they buy less. Fact two, inflation is now to the point of being perpetual since currencies worldwide are printed then injected into economies replacing $ you no longer have to spend.

Okay, let’s recap this. Inflation is a hidden loss of buying power. Two, baseless currencies are now flooding markets worldwide trying to prop up economies.

Now, here is the kicker. If you save, or store, your wealth in currency (dollars, euros, yuan, yen, etc) then you are vulnerable to ride the inflation train to wherever those printing the currency decide to take you. The only way to depart from this inflation is to trade from currency and into something that benefit from inflation, like silver and gold.

So how does this help you ask? Because the same amount of silver or gold usually buys the same amount or more of a product, service, or asset regardless of dollar cost.  By example, a few ounces of silver could fill a car’s tank two decades ago and still fills up a car today (FYI, gas was $.95 per gallon two decades ago). Precious metals seem to “go up” when they actually maintain the power to buy or trade at a constant. Can you imagine your local gas station today selling gas for $.95 per gallon?

Let’s tackle your second question since this confuses plenty. When to trade metal back to cash is always the question but this is only because we let currency (dollars) dictate what we perceive as money, cash is not money. If our current trend continues, and I certainly believe it will, less will trust cash and more will prefer real money, like silver and gold.

This is nothing new and I’ll go so far to say this is history repeating itself. The problem with what to do with future silver or gold is one that deserves little worries or concern. Silver and gold have and always are real money. At any time in the future your stash of PM is exchangeable for all currencies worldwide (if you chose to do so), or most assets. Thanks for the questions and thanks for reading TPS.

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A FEW MINUTES WITH “RANTING ANDY”

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

Thanks for joining us today.  Before we dive into my recent Q & A with Andy Hoffman with Miles Franklin I want to take a moment to discuss this week’s leading headline.  Let me be perfectly clear at this point, it’s not like Europe is burning down. It’s not like record numbers of Americans are on food stamps or record numbers underemployed or out of work either. With so many pressing issues facing us today can you guess what leads our mainstream media? Yep, the most important issue of all is Obama’s stand on gay marriage, absolutely unbelievable.


Folks, this nonsense is nothing more than a distraction. I’m so glad you, my readers, are in tune with reality and willing to accept the challenges that lie ahead, good for you. I’m most glad you understand how necessary owning PM is in such times.

RANTING ANDY HOFFMAN:

If you have yet to read or listen to Miles Franklin front man Andy Hoffman then you are truly missing out. Andy is somewhere between the late Randy Savage (WWF) and Einstein, but with slightly less hair. Agree or not, Andy’s commentary always leaves readers in deep thought and little doubt how Andy truly feels about PM manipulation, Wall Street, and the Feds. I’m very thankful Andy agreed to share a few minutes with TPS.

Prospector Question: Joining Miles Franklin is obviously a good fit for Ranting Andy. Does writing such an in-depth PM newsletter help filter today’s attacks on silver and gold, personally speaking?

Ranting Andy: My blog has enabled me – in serial fashion – coordinate years of observations into a daily newsletter.  The creative process utilizes the analytical skills I learned as a sell-side analyst, the communication skills learned in investor relations, and my PASSION for helping PROTECT people by educating them about Precious Metals.

Prospector Question: It is now clear China’s plans for gold include backstopping the yuan into a reserve currency. Andy, Bernanke and the gang might be academics but they’re not stupid by any means, do they understand how destructive this type of monetary switch will be on the USD?

Ranting Andy: I believe Bernanke is stupid, contrary to popular opinion that he “must be to occupy such an office.”  As a lifetime academic – like Obama – he is particularly dangerous, with no understanding of the real world.  Irrespective, the point is moot, as he MUST continue with “QE to INFINITY” to prevent an all-out collapse TODAY.

Prospector Question: The perception today is that plenty of new bullion (both gold & silver) is available but we both know this is far from true. Does the average PM fence sitter truly realize how little PM actually exists?

Ranting Andy: I don’t feel such a perception exists, as nearly no one – particularly in the States – is even aware of Precious Metals, let alone to have an opinion on supply.  In other words, the “average PM fence sitter” probably describes less than 1% of the U.S. population, and less than 10% of the world population.

Prospector Question: Why is it so few understand the power of physical PM as real money? Have our centers of higher learning let us down?

Ranting Andy: Our “centers of learning” are part of the problem, prescribing curriculum that meet their goals of teaching undisputed U.S. – economic, financial, and military – hegemony.  Plus, the Mainstream Media is bought for by Washington/Wall Street, which HATE PMs.  Otherwise, very few people even have the MONEY to protect themselves in this world of dying middle class, so why bother trying to understand.

Prospector: Thanks. Andy only agreed to our Q & A if we kept it short and to the point. Andy writes 30 – 40 hours per week as part of his position as marketing director with Miles Franklin Ltd. You can reach Andy at www.milesfranklin.com.

Comments & Questions:

Comment: I’ll tell ya I hate to see what it’s going to be like when my two boys are my age!! (They are 13 and 15) I’m new to your site,,,and I think it’s great.. I’ve invested in silver about 2 months ago FROM Colorado Gold and I think we will see historic highs on the horizon.. I was reading one of Don’s columns and he led me to your site…

Prospector Reply: I’m very glad you found us and thanks for commenting. Look, I’m guessing this is the first time I’ve heard from you since it sounds like you’re new to PM. My point, you are spot on and I also have two boys very close to your children’s age.  Their future is not as bright at some would like to believe. The monetary games played today don’t have our children’s best interest at heart, not by along shot. Andy (Q & A above) said it perfectly when he mentioned, “As a lifetime academic – like Obama – he is particularly dangerous, with no understanding of the real world”.

Does this mean a life of limited opportunity for our children? No, not at all.  It means young minds must understand opportunities do, and will continue to, exist but only for those willing to create opportunity (after all, this is what built our great country in the first place).  The wealth from their hard work must store in real assets that include gold and silver.

Question: Okay, one big question if you’re up to answering. Where does all this end (endless printing, never-ending recession, etc)?

Reply: You are not the only one asking this question so let’s see if we can shed some light.  We cannot stop printing currency, not just here in the US but worldwide. Your next question is why do we purposely expand debt when the outcome is predictable and dangerous over long term?

We have entered an era of debt addiction like a junkie’s drug dependency. Where this all ends depends on if we continue our destructive nature to borrow currency while pretending this supports a stable economy, it does not. I believe the borrowing will continue and this is why I own silver & gold. In Why Silver & Gold Will Go Higher, I describe how the rich have a grace period that the middle class doesn’t.

The “end” you ask about resembles an extended version of poverty more than anything else. Only then will the masses understand how necessary fiscal restraint is (both home and in government) to maintain a constant monetary balance. The end is more like a correction in my view since opportunities still exist, even during bleak times, at least for those willing to accept life’s challenges.

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THE ART OF MONEY (three lessons to teach your children)

GOLD & REAL ESTATE, GOLD & SILVER, GOLD AND MONEY   No comments yet

Do you want the best for your children? Of course you do, this is why you work hard and worry about their well-being. Today I want to share three necessary steps that will empower your children for their lifetime. The art of money need not be complex or confusing. The understanding of silver and gold need not be complex or confusing. Our world is at a critical stage from a lack of money knowledge and the derived compromise this causes. Your family, your children need not be part of either.


Regardless if you like it or not your children are part of a debt based system (economy). They are told, at a young age, to borrow money for education, a home, a car, even a tropical vacation. If not told then led, maybe by your example, to perceive debt as a necessary part of a complete life.

Just for fun make a mental list of organizations in your life depended on debt.

  • Your community (most likely since only four states are debt free).
  • Your employer.
  • Your country.
  • Your school system.
  • Your state.
  • Your church.
  • Your neighbors.
  • You.

The fact is our children will face something our generation of adults can’t imagine. They, likely, will watch the middle-income dwindle toward an expanded level of poverty. The few who understand simple economics and real money will find themselves prepared for such an age. The rest will find them blaming everyone from the wealthy to the elected. It is our responsibility as parents to prepare our children for such a time!

Three facts your children must understand about money!

#1: A GOOD EDUCATION DOES NOT NECESSARILY GUARANTEE A GOOD JOB OR SUCCESS:

Today is May 9th and graduation time is upon us. Ask any H.S. senior the plan and over half will gleam as they describe plans for college. We have embedded the key to their success is a good education regardless of cost.

Now, here is the problem. College tuition and fees have risen far beyond health care costs, inflation, and wealth. The price to educate your son or daughter is what business folks refer to as cost prohibitive.  This means, at least in most cases, the return on your investment will not compensate for the outlay.

Why? Because too many are paying too much to learn about dying industries or useless skills.

It is only because of debt that the cost to attend college has risen so out of reach. Nevertheless, the facts are what they are so let’s focus on a remedy.  Parents and children must rethink post high school plans by thinking like an entrepreneur. Education must from here forward  be viewed as a structured integral plan with a financial return.

This must include tossing out what an individual wants to be compared to what will provide steady income in the years to come. This should not be interpreted as squashing a child’s dream. Dreams are part of innovation but must be prioritized to fulfill success. The following questions must be answered.

  • What career field offers the best opportunity of providing income during a time of economic correction?
  • How can I complete my education without debt?
  • Which source of higher learning is most practical regardless of what others are doing?
  • Can I educate myself outside traditional higher learning sources?

Remember, this is about choosing a career to provide income far over picking a college!

#2:  CASH IS NOT KING!

One of the best lessons you can teach your children is the difference between money and currency. Cash is no longer king, at least not long-term king. Cash (currency) is a derivative of gold and silver. Your children must understand what real money is and how cash is drifting toward worthlessness.

The masses perceive themselves as cash poor and truly believe if only they can earn more cash things will get better. This is 100% false since you cannot out earn today’s electronic world which lacks fiscal restraint.

This real money understanding will empower children for a lifetime. The US Dollar, the world’s reserve currency, is no longer earned but printed, printed at an alarming rate of $3 million per minute! This means your child has to earn $85k annually over 35 years just to equal one minute of monetary printing.

It is unlikely a college graduate can keep pace with this printing trend. Why? Because the trend calls for today’s $3 million per minute to jump to $4.5 million per minute and then to $9 million per minute. Debt is a dangerous thing but the only thing more dangerous is the power to print cash!

So what can little Johnny do? Children must understand importance of separating themselves from cash when possible.  This means using cash as trade only and then investing the rest of wealth in hard assets. This removes their savings from debase able assets dependent on dollars. Yes silver and gold are hard assets!

#3 DEBT IS NOT NECESSARY TO SUCCEED!

This segment refers to personal debt not debt businesses use to capitalize expansion. Personal debt allows us to own things we can’t afford, no place to store, or no longer need. America’s want list grew because  too many supported a non-sustainable lifestyle with debt.

I honestly feel the only cure for such deep-rooted debt is default. I honestly feel default is a word our children will know too well. This is why it is so important to separate your children from a lifestyle dependent on debt or greatly affected by default.

The good news is that other assets (outside the precious metal world) are growing less expensive. This means those wise enough to save in gold will buy other assets paying discounted prices. Actually, this discount for gold holders has been in effect for some time. In 1971, such as, it took 714 ounces of gold to buy a medium priced home in the US. Today, it takes around 100 ounces of gold to buy the same medium priced home.

This makes little sense to those who don’t understand PM (precious metal) or simple laws of economics. This is why so many are content to pay for  a medium home 2 to 3 times over with 30 year mortgages. Savers today are greatly rewarded but only if they save in hard money assets like precious metals. Your children must understand this as fact if they want to live a life of fulfillment and opportunity.

COMMENTS & QUESTIONS:

COMMENT:

I have been a frequent visitor on your site since this year started and I am new to PM. My experience so far with the PM has been negative ( I am actually losing money since I started buying in late February but still believing in PM in the long run) but i will gladly review/comment your ebook as an appreciation to you and TPS.

Best Regards,

REPLY: Thanks for the comment and welcome to the world of PM.  No, you are not losing money. Your perception is one of loss but this is because our mindset is to value our PM wealth over one period in time. The only way you lose now is if you panic and sell the metal you diligently worked to amass (thoroughly explained in  Why Silver & Gold Will Go Higher). By the way, I’ll send you over a free copy for commenting and appreciate your willingness to review.

You already know owning PM is not the same as traditional investing. You must find a comfortable understanding of PM or dips will drive silver and gold owners nutty. In all honesty, I pay little attention to dips or spikes since I realize what motivates both metals to rise regardless what happens over the short term. Keep reading this site and others, soon you’ll develop the same confidence. Thanks for commenting.

PS…. The world still views paper metal and physical metal as one in the same. This will change as our economy continues to correct and this will lead everyone, and I mean everyone, to question what is real and what is paper. The future of paper is not looking as good as it you used to.

DO YOU HAVE A COMMENT OR QUESTION? I WOULD LOVE TO HEAR IT SO SEND IT OVER HERE.

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