Archive for July, 2012



Have you noticed that there really is nothing 100% “safe” from theft? From Wall Street to Main Street the threat of someone taking something from you is as real as I can remember. The longer I write about precious metals the more I realize theives come in many shapes and sizes and by no means stereotypical. Now I’m not just talking thievery like we see on TV where thugs with covered faces rob folks at gunpoint. The biggest threat to your wealth is the guy sticking campaign signs on your neighbor’s front yard, or his cronies (taxation). The second threat is inflation and the sad side of this threat is that most victims don’t realize how much wealth is right now lost from it.

This is why it’s so vital to not only own physical silver and gold but to also have a bullet proof plan to keep it safe. This is where I can help so thanks for joining us today.

Keeping your PM safe is not difficult but does require a well organized security plan with a continued effort from you and whoever shares your address. I’ve heard from readers who question the above statement by mentioning other family members living in the same home know nothing about the stash of silver or gold. This, my friends, is a recipe for disaster since those not knowing can’t be part of a plan to protect your metal, not good!!

I don’t believe in secret PM storage programs, here is why. My thinking is PM security is a family effort since the fact you are storing the metal in home means you are willing to put all those living there at risk. Risk you ask? Yep, owning PM and storing it at home carries risk and only someone naive will believe differently. Maybe it’s time we put the cards on the table showing exactly the growing risk each PM holder will face as our economy continues to unravel.

I knew when I wrote Storing Silver & Gold that some readers would find true examples of home invasion too much to take. I’m guessing my book editor right now is thinking the same thing. I warned readers before hand with each home invasion example because each of you must prepare for the risk that comes with something that every person on the earth will soon view as necessary. I hope I’m wrong but doubt it.

As precious metal holders, few look beyond future wealth and riches. We think of the nice things we can buy or opportunities to help others but rarely invest thought that a rise in gold’s value equals a decline in society as a whole. This exposes you as different – even lucky, or wealthy – putting a big old bull’s eye on your family’s back. Think about it.

The challenge to keep your metal safe will grow as the economy weakens, sorry.

This is why it’s so important to begin a plan now to store physical PM in multiple locations. I do recommend keeping at least 1/3 of all PM owned in hand or at least close at hand. I like storage diversification most because it adds an insurance value to all eggs in one basket. Another thing I like is insurance (yes, insurance exactly like the policies you have on life, home, car, etc) on every ounce of silver or gold you own.



Question: You wrote about insuring gold so I thought instead of emailing I would call, hope this is okay? My question is can I determine the value of a particular coin when buying insurance? Will the company offering this insurance ask for an appraisal?

TPS Answer: Thanks for calling and “yes” it is okay to call (I actually prefer email but realize some want to discuss by phone, this is okay too). No, my understanding is a person cannot simply request a rare coin worth $3000 insured for $6000. I don’t have rare coins insured (I’m mostly in bullion, rounds, and bars since they carry less of a premium) but can tell by the conversations I’ve had with those offering insurance that value must be proven. They could ask for a proof of purchase and this will help determine value at least at time of purchase.

Something else comes with each new policy all readers must be aware of. Each new policy comes with a signed fraud statement plainly explaining the charges for insurance fraud. My advice is to keep it straight and sleep well at night.

If other readers have questions on insurance for physical silver or gold please feel free to email me at theprospectorsite@gmail.com.

Question: What exactly does The Prospector Site do?

TPS Reply: We offer facts related to why, how, where to own physical precious metals all without readers worrying with a motive. Most PM information floating around the internet comes from companies selling PM (most have a buyer’s best interest in mind, some don’t). TPS doesn’t sell silver or gold, we only write and consult with individuals why it’s so necessary to own it and then offer proven ways to buy and protect it (precious metals). Thanks for the question.





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Many of you are business people first and owners of gold second, I realize this. Since our readers are business minded I believe it’s time we look for new ways to prosper why the rest of the world waits for another round of stimulus.  Over the weekend one syndicated newspaper magazine had an article describing how cities on the verge of bankruptcy layoff police and fireman. It shouldn’t come as a surprise that the same cities letting lawmen go are the same cities seeing a spike in murders, theft, etc. The ironic part of the article is how private enterprises are protecting citizens with private security, at least for those willing to pay for this service. One private security business admitted to an 80% increase in business by providing trained, and armed, private security.

This article got me thinking and I’m going to roll this out while praying new readers don’t take it wrong, ready? Maybe now is the right time to focus more on making money than buying silver or gold.  Let me explain.

I don’t regret owning physical gold or silver, each new day validates my 10-year decision as prudent. What I do regret is allowing our modern-day depression to distract me from opportunities that only comes around once in a lifetime. My first point, I was so focused on preserving wealth I failed to account for new opportunities. Point #2, a well structured business is far more profitable than appreciating gold, at least right now.

I, like some of you, took a savings in dollars and traded it for coins of gold and silver several years ago when I finally realized more borrowing will not fix a debt problem. Of course each metal has risen respectively but neither metal offers passive income like a well planned business can.

Of course each person reading this should own a percentage of physical precious metal FIRST but isn’t it also true that a profitable venture could raise your stack of silver or gold? We mustn’t allow fear or confusion to cloud today’s opportunities.

I failed to consider the social impact of a silent depression like the one we see unfolding around the world today.

This “impact” has left huge holes of opportunity for private enterprises to fill gaps the public sector can no longer service. This is why the security business – in my example above – has expanded 80% while their local police force disappears. One door opens while another door closes, at least for those looking for ways to prosper.


Readers often ask for examples of business that will prosper over the next few years or decade. This is a difficult question to answer since each of us live under unique circumstances and what works in my home town might not work in yours.  Below are the three things to consider for those brave enough to tap into today’s wild world of business.

  1. Think Savings:  Remember the good (not gold but good) old bubbling asset days of yesterday? A spendy vacation, expensive dinners out, steak over hamburger, the sky was the limit as long as equity lines replenished themselves with a new rise in housing values. Folks, these days are long gone and the new trend is anything that can save a dollar or two.  Redbox is a perfect example of a business making tons of cash while reducing the cost of movie entertainment. TIP: Put technology on your side when developing a plan based on saving consumers money. No longer do sales people need expensive offices or receptionists since our technology age allows businesses to operate from home all while looking professional.
  2. Be a Problem Solver: Everyone from business owners to individuals can feel the walls of economic correction closing. Many businesses are too top heavy to survive the age of lean/mean and unfortunately many will fail over the next year or two. This new age of downsizing offers plenty of opportunity for those who dare to call themselves problem solvers. Think of ways to assist businesses and individuals to quickly downsize, did I say quickly? Simple, fast and effective methods of liquidation will be the trend of the future. Auctions, liquidation assistance, consultants who specialize in business simplification will prosper greatly as folks realize another month of overhead means less savings in the long run. This trend will soon lead to folks searching for ways to do themselves what was once hired out. Think of ways to teach others how to do what they should have been doing all along.
  3. Safety & Security: Try to name someone who doesn’t desire safety and security, I bet you can’t. Folks, turn on the news and then tell me we live in a safe world. I’m convinced average citizens will pay whatever is necessary to keep their families and homes safe. Home security, personal security, identity security, silver & gold security, private security, all things making us feel safer will prove profitable for professional and reliable companies offering such services.  Take time to see what your city or town needs and then let these markets develop around you. My guess is this trend is not going away anytime soon.



Question: Just finished reading Why Silver & Gold Will Go Higher and must admit you made a good case for expensive silver and gold. We started with one once silver rounds and our plans include gold fractionals as our budget allows us. You mentioned a new book on storing precious metals and I’m wondering when it will be available?  Thanks and I’ll look for a reply on the next post or two.

TPS Reply: Thanks for reading my book and commenting. Silver is a great entry to PMs and I believe you are wise to buy as much as you are comfortable with. Part of being comfortable is developing secure options to store the metal we have all worked so hard for. Silver is cheap right now which means you will quickly find yourself with pounds of metal to secure, this can be a challenge. Silver is much more difficult to secure than gold (a handful of gold is ten times more than the average American has in savings), but well worth the effort since many PM experts predict $500 to $1000 an ounce silver. Regardless of price, silver’s trend is to rise as countries around the world battle to devalue currencies and print them worthless.

My next book on storing silver and gold is finished and now in editing. It will provide several ways to safely own/store silver and gold while providing the peace of mind all PM owners’ desire. I suspect it will be available over the next couple of months. Thanks for the question.





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The Walmart in Jacksonville, Florida knows all about Flash Mobs. If you have yet to watch this short YouTube video I encourage you to do so just to get the full effect of such a mob scene. Flash Mobs hit the scene as a fun way to draw attention to themselves, or cause, by quickly converging somewhere simultaneously. Up until recently the event, if you will, was innocent and entertaining but the Flash Mobs of today are different. Flash Mobs – like in the video below – have now evolved into a chaotic swarm of locust like villains leaving businesses scrambling for a solution.  My gut tells me this is only the tip of the Flash Mob iceberg.

Some readers are thinking this is no big deal and riot like situations have been around since the Bible days. This is true, but one thing separates today’s mob scene from yesterday’s rioters, social networking.

Social networking will be a primary contributor to this historical silver and gold Bull Run we are soon to witness. Like a Flash Mob, buyers will converge on already thin inventories as individuals, investors, and industry all fight for a limited amount of PM (precious metal).

Each person holding PM or considering owning must realize how quickly a limited supply of both silver and gold will disappear in the days to come. This “Flash Mob” to PM is actually nothing new. I waited over a month in 2008 for a stack of gold American Eagles wondering if the metal would ever reach my local post office.

The combination of fear, panic, and social connection will provide the platform gold is destined to grace.

Stagnate PM prices have made us lethargic and assuming – I can read it in your emails, comments and questions. Sure it’s possible to buy silver a few bucks cheaper in the next month or two but isn’t it also possible something could trigger a flash to PM leaving many outside looking in? Of course, this is why it’s important to realize how delicately close we are to a day when those holding real money will not sell regardless the offering.

Somebody please add Flash Mob like metal runs to the long list of motivators soon to push PM prices higher!



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Sometimes one “REALITY” so grabs our attention it awakens us from a state of denial. My wake-up call came during the aftermath of Katrina while watching desperate citizens of New Orleans cope with the unthinkable. Katrina exposed two things I want to share with you today and both should keep everyone dependent on entitlement up at night (yes it has everything to do with owning silver & gold). I’m not sure what surprised me most, watching helpless folks stranded on rooftops plea for help while streets turned into rivers or multiple layers of bureaucracy so large, so inept it couldn’t simply react to an emergency without first establishing blame and protocol.

The incident I’m discussing today is a prime example of what happens when an ideology transforms a society to a point of inability.

The fact is our overall economic condition is much worse than perceived; this is why food stamp participation has doubled over the last three years. This means many once in the middle class are now part of the dependent poor. They are, if you will, future roof top dwellers holding signs for help.

Katrina was my wake up call because it proved to me we really have few safety nets in life. We can expand social programs but in the end they only create a lethargic economy, new taxation, and unsustainable deficits. What happens when a tax base can no longer support under funded food centers, housing subsidies, school lunch programs, farm subsidies, and the million other programs that can no longer fill the gap of a real economy?

I have great concerns for inner city America. I see plenty of anger and blame when someday soon entitlement programs admit they can no longer fulfill obligations. This massive and publicized outcry will not go unnoticed and this will lead to more money (currency) printing as governments desperately try to literally feed the giant they created. The alternative is to watch cities burn.

Most folks receiving government aid don’t consider themselves among the poor. They fail to recognize a lifestyle or condition without the help of programs.

I doubt most gold/silver holders truly recognize the layer of protection they’ve provided for their families. The benefits of owning PM continue to grow each time we allow central bankers and governments to print currency in order to fill budget shortfalls. It is very important you recognize the two primary benefits of physical silver and gold well before buying it. The first benefit, real money provides sustainability and keeps its participants from sliding from middle class to dependent poor.

The second benefit is both protective and highly profitable for the few willing to trust silver and gold.  This benefit allows those holding physical PM to expand wealth while the rest of the world realizes fiat currencies can no longer print themselves out of fiscal mistakes or promises. This is why an ounce of silver or gold will soon be worth ten times its value today.

Right now each of us has choices. We can accept dependency – like most of us eventually will – or we can begin to provide for our families a layer of INDEPENDENCE one ounce at a time. Yes, it really is this simple.


COMMENT: Here is how I see it so please tell me if you disagree. I too believe ones who still hold wealth will frustratingly turn to physical PM when the “realization” you often discuss becomes reality. But who’s to say the same folks buying silver at say $100 an ounce, or gold at $3500 an ounce, won’t eventually have to sell the one wealth-holding investment just to feed a family or put a roof over their heads.  To me, it seems most who buy silver or gold now will end up having to resell when things get tight.

TPS Reply: Great comment and thanks for sharing it with us today. Yes, you’re probably correct, many who buy silver and gold today will have to sell, barter or trade it down the road as our economy continues to correct, I won’t argue this probability. Precious metals are the ultimate savings account – the reason we save is so we have options when the unexpected enters our lives. To not save is to rely on a failing ideology, the same ideology that left Katrina folks on roof tops, for our family’s well being.

You make valid points but miss the true benefits of owning physical PM. I have great concerns over the short term and bigger concerns over the longer term. I feel budget strapped cities and states will reduce the same social programs many now depend on to survive. This will cause a backlash so disturbing – burning cars and looted buildings – eventually leading to more entitlement only supported by digital currency creation and taxation (remember, our country is broke – just like many other countries around the world).

Okay, stay with me here. When we print too much money the buying power of our currency declines, this is why a box of cereal is twice the price it was not so long ago. This is why a box of cereal and other necessaries someday soon will cost far too much for the average family budget to afford. At such a point, the only option is to forgo a healthy diet or rely on government assistance that is only available by borrowing (printing) more currency.

Now let’s tie this all together. Let’s say a family sells the camper trailer today and then buys physical silver at $30 an ounce (300 ounces of physical silver). You mention $100 silver in your comment above so let’s use this number since I feel $100 silver is not only possible but a fraction of tomorrow’s offerings.

By trading a declining asset (camper trailer) for a growing asset we leveraged the power of wealth relocation. Wealth relocation is something I wrote about extensively in Why Silver & Gold Will Go Higher, probably the most powerful weapon for wealth expansion and independence. Now that we own physical silver, or gold, we have the luxury of watching all things priced in dollars rise but stay relative in terms of PM. By example, an ounce of silver buys around 8 boxes of my favorite cereal today. When cereal prices rise so will silver making it possible to buy the same number of boxes regardless of price.

The power of PM is beyond questioning since history shows all fiat currencies eventually print themselves worthless (we are witnessing this right now) proving only one true source of money – gold & silver.



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The word “draconian” is often used to describe our economic situation as cities and countries across the world struggle to fix the inevitable bankruptcy that will soon push both silver and gold to the forefront of mankind. Since new readers join us each day I want to make myself perfectly clear by mentioning TPS does not sensationalize news. I feel precious metals can speak for themselves and do not need me to exaggerate their worthiness.  It is time we put draconian cuts into proper perspective and then tie silver and gold into the monetary equation. Stories like this one also validate optimism for those protected with precious metals.

San Bernardino is the third California city to declare bankruptcy in less than a month leaving city officials warning of “dire cash flow problems”.  This means fire, police and all other employees of the city are soon to find them questioning their financial future. This also means most vendors and businesses under contract with the city will only receive pennies on the dollar as the city constricts to a size supportable by a local tax base.

Most of my readers don’t live in San Bernardino or the other two California cities asking for bankruptcy protection. To you maybe, this story seems personally irrelevant when in actuality news like I’m describing today should sound like a warning beacon for your tomorrow. We must understand the domino affect that is soon to sweep across America from our coastlines inward. Your city and state will deal with the exact problems as San Bernardino in one capacity or another.

We can argue why cities across the world are facing bankruptcy but at the end effort spent in conflict will surface as futile. The “why” is less important than the “fix” and cities who postpone cuts will face the deepest pain. Some cities will resort to massive cutbacks but some will fold under unionized pressure only compounding the fiscal pain with years of ridiculous litigation. In the end, all cities will find themselves only a skeleton of what they are now.

The Average Joe doesn’t grasp how a great reduction of city services affects him personally, not yet at least.  At first, most will view the services soon to disappear as an inconvenience and I believe it is safe to say some cities are to this point as you read this. Sure some will voice anger, some will cry unfair, but in the end blood doesn’t come from a turnip and revenue will not come from businesses and individuals not producing income.

Yep, the only difference between San Bernarndino and your city is a cash reserve that dwindles lower each month.

Folks this is far more than who will fix my street’s potholes or pickup my garbage. This is a retooling of America, and the rest of the world, as we choose between fixing decades of fiscal and monetary mistakes or continue to print money for cities destined to downsize. Taking more out of your paycheck will not fix such gigantic fiscal issues either, nor will raising your property taxes.

This means we face accepting the inconvenience of a reduction in government services or face printing (borrowing) our currency worthless. Yes, these are the only choices outside of taxing your wealth 100% away and I doubt few will find comfort in more taxation.  I’m guessing politicians will pick printing more digital currency and this is why I store my wealth in physical silver and gold.

This really has nothing to do with being a gold bug or precious metal minded. This is 100% part of a protective action I’ve chosen to defend my family’s wealth and future. Owning physical PM allows me to independently support my way of life while others argue who will pay city services, entitlements, retirement and healthcare for billions that should be more focused on providing for their own.

I encourage you to jump ahead of this draconian curve by taking a hard look at the many benefits of owning real money like silver and gold, soon.


L.A. TIMES — Rising Costs Push California Cities to Fiscal Brink: “There are likely to be more in the future, but it’s hard to know, since a lot of struggling cities may manage to work things out,” said Michael Coleman, a fiscal policy advisor for the California League of Cities. “Some cities may not go into a bankruptcy, but they may dissolve. They may cease to exist.”

Once rare, turning to bankruptcy has become a painful but enticing option for cities whose labor costs and municipal debt far outpace anemic tax revenues. The Bay Area city of Vallejo began the current trend in May 2008, filing for Chapter 9 bankruptcy protection because, city leaders said, salaries and benefits for its public safety workers were eating up too much of the general fund.

San Bernardino couldn’t close a $45.8-million budget shortfall and would be unable make its payroll this summer. Days before Tuesday’s City Council vote, the city of 211,000 people had just $150,000 in the bank. The city barely scraped together enough money to cover its June payroll.



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Writing for The Prospector Site is a continued commitment in hopes of convincing as many folks as possible why silver and gold are so necessary. Unfortunately, the odds are not in your favor of finding accurate information and this is why so many will lose a majority of their wealth over the next few years. Does this last sentence sound like an overreaction? Before you answer think about this, it is estimated 40% of all US wealth disappeared over the last three years.  Yet most folks go out to dinner, take vacations, even invest just like they did when 40% more wealthy. We live life as “normal” for one reason; we live life as normal because we foolish lie to ourselves about recovery!


TPS doesn’t sell silver or gold, most readers know why. My goal is to provide an accurate analysis of today’s economy and then beat the silver and gold drum as loud as possible.  I’ll be honest; few heed PM’s warning because few question the illusion of recovery. To accept PM as worthy one must simultaneously deny the false flag of economic recovery. Please don’t confuse my revelation as doom & gloom or apocalyptic since neither accurately describe my view point.

Denial is a rampant plague that will soon devour our way of life. Denial is what allows intelligent minded people to accept trillion dollar debt ceilings. Denial is why we believe economic stimulus somehow will improve our personal situation all while big banks grow bigger, not to mention more profitable. Denial is a belief in a reserve currency (USD) on the verge of worthlessness and historical defeat. Denial is the only reason we still hold wealth in dollars while we watch central banks print unconscionable amounts of worthless dollars knowing this debt can never be repaid.

Denial is why we steal from our children’s future unwilling to alter our lifestyle 100% dependent on debt.

We believe in recovery, real or not, because this allows us to ignore the need for change. Most folks today are uncomfortable with real money like silver/gold yet willing to risk it all for a promise or currency creatable by the push of a button. I used to view our generation as economic ignorant but I’m slowly changing my mind to believe ignorance has little to do with denial.

I believe most of us don’t want to know the truth. We don’t want to face the fact our houses, cars, boats, travel trailers, pensions, retirement accounts, etc all depend on new debt for value. If you believe then you continue to borrow cash to buy such overpriced assets as above. When you question the so called truth then you don’t buy as many and the results expose the Ponzi debt scheme now plaguing our very existence.

We lie about recovery to live one more month of a lifestyle that will soon make everyone on earth ask, “What was I thinking.”

Folks, this has nothing to do with if silver and gold will go up, only a fool questions long-term value of precious metals. Both metals in physical form will climb as long as denial fuels a belief that yesterday’s normal is tomorrow’s future.


Question: I just finished reading the book Aftershock (Next Global Meltdown) and it’s slightly disturbing. I recall you mentioned working with one of the book’s authors so thought maybe you can help with a real estate to gold question. The book warns of lost real estate wealth and recommends trading RE for precious metals. This seems drastic so I guess my question is what do you think?

Answer: I want to first say thanks for the question and reading TPS. Aftershock is a real eye opener and I’m guessing this NY Times bestseller has reached close to a million copies sold by now. Cindy Spitzer and I discussed her take on real estate liquidation before I finished Why Silver & Gold Will Go Higher.  Cindy said all three of the book’s authors still own their homes (none have sold), she also insinuated all three authors hold plenty of gold too.

I can’t speak for Cindy, or the other authors, but feel we are in the same camp regarding real estate and gold.  I feel real estate equity will continue to decline as credit tightens and this is truly unfortunate for those using their home as a savings account. This loss has less impact for us who also owning silver, gold, or other hard assets.

So to answer your question, if you have wealth safely stored outside your home then selling your home to buy precious metal is less necessary.  If your home is underwater then selling your home doesn’t help either. I guess it boils down to each reader’s personal situation and how realistically they view this life changing economic correction.

Oh, one other thing. Cindy (Aftershock author) did recommend selling all vacation and second home property not turning income. Don’t worry, vacation homes will find themselves greatly discounted in the near future if you decide to someday trade a few ounces of gold back to RE. Thanks again for the question.

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I’m sorry to say we are having trouble on the maintenance side of The Prospector Site but should have everything restored shortly.  Some of you have emailed and I’m sorry for the inconvenience and interruptions of late.

Bargain basement silver is the topic. The idea for today’s post hit me when my youngest son noticed how low silver prices are now compared to when he bought physical silver last year. Actually, I think his words went something like, “Boy dad, I’m really taking a beating on the silver you had me buy last year” and then walked away leaving a pile of guilt at my office door. My rebuttal explaining the difference between paper and physical collided with a blank stare so I decided not to waste his time or mine justifying silver’s true value, or suppression.

If the truth be known, some of you are second guessing silver’s worthiness. One of my readers went so far as to email asking for the best way to sell silver bullion purchased last year. Now I’m not trying to be critical here but isn’t this like selling the ship’s life vests under cloudy skies? This leads me to explain why silver is so necessary, and cheap.

Nothing, not even gold, has the track record of physical silver. Silver is the truest source of money throughout history and more have labored in exchange of silver than any other means of monetary reward. Most of the world longs for silver but even today’s prices are far beyond the reach of our world’s poor. The best they can hope for is shelter, food and clean water; silver is far off the radar.

But you have choices, this makes you different. You have the ability to buy silver but few take advantage of the second most used commodity that is also money. You see silver as an asset in decline but fail to see silver’s long-term value in an age of currency correction and decimation.

Our technology age thirsts for silver like never before even to a point that nothing can replace silver’s conductive abilities. Silver’s uses are more relevant today than ever before but somehow we overlook how the technology we depend on depends on silver.

These facts are especially concerning when we combine them with silver’s extremely short supply. Mining experts warn users that output will not keep up with silver’s industrial demand, not to mention monetary demand, as new technology depends more on silver with each new innovation.

Considering all the facts above, silver prices are less today than this time last year. Does it seem realistic that a commodity more relevant, more in demand, and less available is also retreating in price? No, of course not, the only reason you can still buy such affordable physical silver is because paper and physical silver are valued nearly the same.

Suppression and manipulation allows those prudent to own cheap silver in the summer of 2012.

The world fails to see paper silver as a promise in an age soon to question all wealth. This awakening will draw more to real assets certainly to include physical silver. What happens next is nothing short of amazing for the few holding physical silver as we prepare to see growing premiums divide paper from physical.

As you read this today physical silver adds a premium of around 10% and readily available. This means physical metal will cost a buyer 10% more than a paper silver promise.  As previously mentioned, the great monetary awakening will create more physical buyers, fewer trusting in paper, causing this “premium” or spread to grow as silver surfaces as a trustworthy source of money.

I realize new readers question such statements as the one above but for some reason refuse to question worldwide economies 100% dependent on debt. This misunderstanding exists only because of a false belief in never-ending debt stemming from a fiat based global economy. Name one city, state,or country not dependent on debt just to sustain an unsustainable lifestyle.


In Why Silver & Gold Will Go Higher, we spent a chapter explaining the importance of wealth relocation. Don’t tell other readers but I wanted to name the chapter “Cutting Losses” since this best describes our future fire sale economy. A world at loss sells debt based assets cheap in order to raise capital to own real assets like silver and gold.

It is human nature to only bag sand when the water rises around us, never before. The rising tide of debt now teases toes and few realize the damaging affects when credit washes away. A reversal of credit is the straw to break the camel’s back and when it does assets like silver are exposed as necessary and real. Folks will sell what ever they can for what ever they can to buy silver, regardless the premium or price.


Question: Thanks for the great information about investing in precious metals. Silver is the only metal we can afford at this point and my question is what is the best silver for someone new? My plan is to buy $300 worth of silver each month to replace a car payment my wife and I recently unloaded.

ANSWER: Ah, another one sees the light, congratulations. Before I answer let me offer some free words of advice. Regardless the silver you decide to buy, find a safe place to store and then forget about it. Too many new PM (precious metal) buyers fret over a price decline not realizing the long-term potential of both silver and gold.

I love the fact you unloaded a car payment in order to buy a monthly allotment of silver, very wise. One asset is depreciating and the new asset is the truest source of real money. My advice is to buy the lowest premium silver when first starting. I like bags of “junk” silver which is nothing more than 90% pure pre 1965 coins in multiple denominations.

Not only is junk silver wise to own but could work great for a future barter economy too. Stick with your plan and feel free to contact me down the road with further questions. Thanks for reading TPS.

 Question:  I have a question about storing PM at home. I have a good safe and it’s bolted to my home’s foundation in a discrete location that no one outside my family knows about. My home also has a wireless security system but my concern is no one showing up when needed. I hear story after story of 911 calls unanswered and this leads me to believe maybe storing some PM at my bank could be best but want to get your opinion first? Thank you.

Answer: Thanks for the great question, it sound like your home storage method is text book to me. Other readers also describe 911′s failure to respond (or answer) and this greatly concerns me as well. Home safes are meant to buy time and not 100% safe from penetration, all safe manufactures will agree. This means your metal is as safe as your surroundings and this includes the response time of your local police department.

Should you diversify some PM to a bank box? Maybe, but please keep this in mind before doing so. Bank boxes are on bank property which means all things stored are subject to some kind of seizure under certain situations. Storing PM at your local bank could be safe today but not so safe tomorrow. Have you considered insuring the PM stored at home and in a locked safe? Premiums are reasonable so email me if you’re interested in companies who specialize in insuring private stashes of silver and gold. Thanks for the question.





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History tells of no other time or place as promising as the Roman Empire. We often refer to the fall of Rome but actually the fall was more like a long decline ending in a very poor dwindled down version of itself deeply divided into two parts. I can’t help but watch the United States (actually the entire world) follow the same mistakes that buried Ancient Rome and like the Roman Empire history will divide the blame according to wealth and social status. My goal is not to argue why Rome fell but simply compare its fall with ours today. Some readers continue to question gold’s worthiness but fail to connect historical dots proving why real money sustains monetary mistakes, like Ancient Rome and like America 2012.

Nero and other emperors debased the currency in order to supply a demand for more coins. By debasing the currency is meant that instead of a coin having its own intrinsic value+, it was now only representative of the silver or gold it had once contained. By the time of Claudius II Gothicus (268-270 A.D.) the amount of silver in a supposedly (100%) silver denarius was only .02%. ABOUT.COM

To prove why your silver and gold are soon to skyrocket in value we must first systematically compare our currency debasement to Romes. Unlike today, Rome used coins of silver as currency but soon realized the Empire’s wealth couldn’t sustain, or appease, a overgrown government providing too many entitlements.  As you can see by reading the paragraph above the answer to fulfilling entitlement was decreasing the amount of silver (denarius) from 100% to .02%.

Money debasement in days of Ancient Rome is no different than our version of printed or digitized currency. The reasons to print, or in Rome’s case the reason to decrease the amount of silver in each coin, are the same too. The world is flush in currency only because folks refuse to give up such a comfortable way of life and refuse to hold central banks or elected officials accountable.

Roman emperors gave the people what they cried for and our world’s leaders today do the same. For you to fully grasp why an ounce of silver or gold will rise in value you must first understand this monetary repetitiveness of misfortune. I guess if truth be known misfortune is limited to those NOT holding real money (precious metals) since real money always rises to the surface in the times like we’re describing.

Your silver and gold coins safely stored away are minted with a number representing a currency worth, like the coins of Ancient Rome. Some of my gold coins represent $50 but no one in right mind will trade an ounce of gold for fifty bucks. Today this $50 gold coin is worth around $1675 even though the coins say otherwise.

The world no longer uses gold or silver coins as common currency but if we did I can guarantee you my $50 gold coin would be worth around $50, not $1675 like it is today. Please hang with me here because it is very important each of us understand how our wealth dwindles away by debasement.

The process of taking your wealth and then giving it to others (banks, politicians, entitled, etc) happens by printing more currency. Rome couldn’t sustain itself so it raised taxes and minted more coins each time lessening the amount of silver in each coin. This was and is no different than the massive currency printing happening as you read this. You can’t control central banks handing out worthless cash (to only the select few) but you can buy silver and gold, at least for the time being.

Our world today has chosen to follow Ancient Rome’s footsteps even though the outcome is clearly defined. Bailouts and fascism are now the norm and fiscal restraint is viewed as hurtful and irresponsible. The best you can do is grasping the protectiveness of PM and then stand clear of flying debris as this thing unravels.

I receive email after email with readers asking if I’m sure PM (precious metal) will rise like I write about in Why Silver & Gold Will Go Higher. Each reader holds a level of skepticism but only because they have yet to grasp our economic plight. We are Rome; if we stay the course our outcome will simulate the decline of the Roman Empire.

History also paints a disturbing picture of Romans waiting for a return to normal much like we see today. Nothing is normal about all currencies of the world in full print and borrow mode. To patiently wait for a return in housing values or a strengthening stock market is no different from expecting a return of the Roman Empire of 2000 years ago.

If you are still skeptical I have a suggestion to prove precious metal’s worthiness. Watch and see how often restraint supersedes printing more currency, or new taxation, to appease those crying in the streets. At the same time, keep in mind each dollar printed, and backed by nothing but a promise, reduces your wealth stored in savings and soft assets.

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