Archive for September, 2012



I can honestly….and humbly say I’ve made mistakes during the buying process. I made mistakes early from a lack of knowledge and planning. Many of you are new to precious metals and I commend you for making one of the wisest monetary decisions you will ever make. We are living history as we watch central banks worldwide devalue their respected currencies to a place of worthlessness.  You can do little to change such foolish behavior, but you can take the proactive nature of owning silver and gold, here is how.

Trading currency for real money is not complicated. The process, if calculated, should take less than 10 minutes and with little or no anxiety. Making your first silver, or gold, purchase need not be complex, confusing or stressful. Today I will provide two little nuggets that will make even the most inexperienced metal buyer sound proficient the first time buying PM.

We must remember that each party – buyer and seller – has a goal. Your goal is to trade dollars (or whatever your currency is) for real money all while not being ripped off. The seller’s goal is to sell the most profitable metal that benefits their bottom line the most, very simple.

This next sentence or two is very important so please read them carefully. We are not coin collectors. We care nothing about a coin’s rarity, proof, history, shine, glow, etc. Our goal is to buy silver, or gold, cheaply as possible and as close to “spot price” as possible.

This is where most “newbies” fall off. The tendency is for new precious metal buyers to find themselves easily swayed especially when they say, to the PM seller, the worst words possible;  “I am new to silver and gold” or “what metal do you recommend”. Nothing, and I mean nothing, has the potential to sabotage your gallant effort like the sentence above.

Let’s backup here a second. Isn’t it your cash we are talking about spending? Isn’t this your future, your family’s financial stake and your hard-earned effort that brings you to this point? Why would we scatter your tokens, aka dollars, across a stranger’s counter all while hoping they honor your best interest? No way, we cannot entrust something so important to a commissioned salesperson, sorry.

I realize many good, and reputable, PM brokers work within our industry today but is it worth chancing? By the way, feel free to email TPS for a short list of PM sellers I’m 100% confident will look after your best interest.


Regardless if buying from a coin shop or over the phone, you must decide what you’re buying and how much BEFORE INITIATING CONTACT. I recommend new bullion coins, rounds or junk silver since they offer the lowest “premium” over current spot price. First, ask the person selling PM for the current spot price. Next, ask the sales representative which silver, or gold, they offer closest to “spot” and I’ll bet the answer will be one of the three aforementioned.

I want to encourage you to try this at your local coin shop, soon. Start small maybe with an ounce or two of silver, this will allow you to become comfortable with purchasing PMs while not spending a boatload of cash. Remember, inventories fluctuate each day and so does the precious metal market. You can save money buying in person especially with small orders (no shipping costs) but larger orders make online purchasing the most cost effective.

For the record, I buy PM both online and in person. I love the interaction and feel the necessity of supporting my local coin shops since they are more than willing to quickly trade metal back to cash if necessary.


QUESTION:  I want to first say “thanks” for what you do at the TPS. I’ve been buying silver bullion for over a year and from a online bullion broker you recommended (Miles Franklin), each order arrived on time and as promised. My question relates to the equity we have in our home and buying more PM. Even with the housing correction we still have over $100,000 equity and owe slightly over $100k. Your chapter on real estate (Why Silver & Gold Will Go Higher) makes me believe the remaining equity in our home will decline further. If so, do you recommend capturing remaining equity, via a refinance, then use the proceeds to buy more PM?  We don’t really want to sell our home but hate the idea of losing more wealth. Thanks in advance for your reply.

TPS Reply:  Thank you for reading my site, and book.  Your question is one each person holding wealth in real estate must ask since I’m convinced residential real estate will further decline. Your wisdom led you to buy silver and your prudence tells you to buy more. The question is should you borrow from your home’s equity (or sale) in order to add to your PM arsenal? No one can answer this question better than you but let me offer what I would do under such a scenario. I would only refi (in order to buy more PM) if my new fixed rate payment remained the same. Can you execute a “cash out” refi without raising your payment? Can you easily afford the new payment even if your household income declines (household incomes are declining and this trend is likely to continue).

I’m always hesitant to leverage something as volatile as silver but I completely agree that declining equity is exactly the same as wealth loss. Most folks fail to correlate the two and this is why 40% of the wealth in the US disappeared over the last few years. With that said, I recommend you… and all other readers, to do whatever is necessary to amass as much PM as possible, but wisely. It does no good to turn around and sell 20 ounces of silver bullion each month just to cover a mortgage payment.






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GOLD & SILVER, GOLD AND MONEY   No comments yet

Everywhere I turn folks are fighting for more dollars. Chicago teachers, Oakland police, city workers, retired workers, world leaders, even the private work force continues to believe a money misconception.  Never in our lifetime have we witnessed such local or global conflict over cash when the ironic part is more cash floats in circulation than ever before. Most of us truly believe the answer to our financial problems is to earn more money (currency), not true.

You and I cannot “out earn” what central bankers around the world can create in a monetary blink.

I hope you, too, believe PMs will rise over this decade and have made a commitment to own silver & gold. The reasons both metals will rise are numerous but the situation I write about today must be added to the growing list. I described many reasons why PMs will rise in my book Why Silver & Gold Will Go Higher and I appreciate those of you who made this September our best sales month yet, thank you.

The battle to earn more money is one most participants will lose. The fact is even the winners lose too. The average person doesn’t understand “making” more cash will not solve the financial hardships that now fall upon the world’s middle class. Today’s victims fail to understand too much cash creation only provides temporary help but long term pain. This realization will someday arrive and when it does folks worldwide will realize anger first, then a panicked search for wealth preservation.

Sooner or later we must ask why the need exists to earn more money this year over last. Why do the things we all need for survival cost more? Why is education, health care, groceries and fuel more costly today than not so long ago? If these costs double, again, is the answer higher wages? No way, won’t work – and not one economists will disagree.

But this realization comes slow for most, and a day is soon to arrive when even those oblivious will realize printing more cash decreases the buying power of yesterday’s money. This realization will drive remaining wealth to silver and gold. Why, because silver and gold have the power of floating value?

Loyal readers already know that I like to compare wealth to a more accurate benchmark than dollars, dollars are just too unpredictable. This is why a millionaire in the 1970s was worth multiple times more than a millionaire in 2012. Nevertheless, let’s compare the average wage earner from the 1992 era, in silver, to today’s declining wage earner.

Folks this must be a real eye opener. The average American worker twenty years ago earned around $23k per year. This equaled exactly 5750 silver ounces since silver’s value in 1992 averaged around $4 per ounce. Today, in 2012, the average American worker makes much more considering a yearly average around $50k. At first, this sounds like a reasonable salary increase and more than enough to offset the inflating costs of life’s necessities, right?

Well, not so quick because the average American worker in 2012 is no longer earning 5750 silver ounces per year. Nor do they earn 4000 ounces, or 3000 ounces, or 2000 ounces. The average American worker in 2012 earns around 1470 ounces of silver. Folks, this is why the world is fighting for a pay raise.

Now, let’s say bosses around the country decide an increase in pay is justified. How much of a raise would it take for the wage earner in 2012 to keep par with wages back in 1992, at least in silver terms? Well, you might want to sit down because your new raise must equal $146,000 ADDITIONAL DOLLARS making your total annual income around $196k, not bad.

Let’s all take a deep breath and think about this rationally before you and a group of coworkers dog pile your boss. Your boss can’t increase your wages, at least not in silver terms. The reason they cannot is because the entity you work for suffers from the same currency disease which affects profits, overhead, labor and overall costs of doing business. All compliments of your friendly central banker and politician.

It is only because of a false faith in the USD that folks continue to work for less and less each year. Is this why moms across America had to enter the work force just to make ends meet? Is this why so many couples these days fight over money? My guess is yes, and yes.

I’m sure as you read this post that the masses haven’t connected why they need to earn more. Maybe you haven’t completely wrapped your mind around it either. Mr. Gresham’s law of money (currency) is all we really need to know, especially in odd economic times like today.

Gresham’s Law The tendency of the inferior of two forms of currency to circulate more freely than, or to the exclusion of, the superior, because of the hoarding of the latter. Source – Dictionary.com.

So what is Mr. Gresham trying to tell us about precious metals? His law of value means folks will save (or hoard) the currency of true value, eventually, when given the choice. This is why folks are soon to flock to silver and gold – simultaneously giving up on a pay raise – as they realize income is only beneficial if the money is real.

My fear is most will not come to such an understanding until all individual wealth is lost. Please make sure your name is not on the loser list.





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Many years from now very smart academics will attempt to pinpoint the spark that ignited the greatest currency correction known to man. They will dig through layers of information but only the ones willing to accept a hard truth will diagnose this epicenter correctly. When defining history it’s sometimes easier to clip its corners than to admit a failed monetary system trickled wealth away from under the noses of so many. It is painful for this writer to watch history unfold one news headline at a time. All the hoping, and blogging, changes little when compared to the magnitude of economic ignorance that allows central bankers around the world to dish out cash to a chosen few while the rest watch their currency turn to dust.

I personally watch this global economic correction with mixed emotions as a person faithfully storing my children’s wealth in gold & silver.

We often hear gold, and silver, described as a benefactor of life’s volatility – like war and economic uncertainty – but I don’t necessarily agree. Sure nothing pushes PM (precious metal) prices faster than fear but this has little to do with anything other than the sheltering affect within PM.

Smart money runs to PMs in times of uncertainty because smart folks understand hard assets are historically protective.  This has nothing to do with “investing” or “speculating”. This is all about weathering a global currency meltdown happening right now.

Some of you are contemplating adding more metal or maybe buying for the first time. Is silver the best buy, maybe gold? These are great questions but the facts have proven both metals are as protective as the other; my answer is “yes” and “yes”.


Some patriotic will mistaken today’s post as a bashing when I declare the epicenter of today’s monetary crisis originates somewhere within the United States. I know this as true because only one country can print the USD (dollars) and only one currency is the world’s reserve currency.

Currency overpopulation trickles inflation offshore and to anyone willing to own the USD but few truly understand how this spreads today’s currency disease. Inaccurate academics, like Mr. Bernanke, unleash this toxin to support a banking industry that his very paycheck depends on. You, on the other hand, also play a roll in this merry go round of currency creation but your participation is not so happy ended. Your cash dwindles in purchasing power with each new digitally created dollar.

Few too many understand economic epicenters or the power of silver and gold, this is unfortunate. Less understand the very dollar that motivates us to work each day as the reason most currencies around the world are teetering on collapse. Over printing the USD leaves few choices for other currencies today, they simply must print to keep par with the devaluation of the USD.

A lack of fiscal management – fiscal mismanagement if you will – will eventually correct fiat currencies adding their names to the long list of failed monies. This will leave gold & silver, again, as the one true money.

This realization will come only after trillions of dollars in wealth has vanished.

QUESTION: My wife and I just finished reading Why Silver & Gold Will Go Higher and now ready to buy PM. We have around $20k to invest and wondering which metal we should start with. I’ve looked into buying silver bullion (American Eagles) but not against buying fractional gold bullion either. Any suggestions?

TPS Reply: Awesome, thanks for reading my book and congrats on taking a life changing plunge into PM. I like the idea of buying American Silver Eagles especially when just getting started. Right now $20k of silver is a boatload of PM and this mass of real wealth is great for those new to PM since 500 + in silver bullion is very tangible. Pick  a day and pull the trigger realizing you are soon to own real money that is creating true wealth.

Oh, by the way, don’t forget to put together a storage plan BEFORE bringing your new bundle of silver home. Several options exist and I recommend storing your new silver in a few separate locations, keeping at least 1/3 within arm’s reach. Thanks for the great question.


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The world is watching as those who dare call themselves “electable” make monetary promises no rational person can keep. As a precious metal holder nothing warms my heart like monetary ignorance that pushes my net worth higher, but as a father and business leader nothing concerns me more. It is painful to watch those trained to read a teleprompter articulate our middleclass into poverty, and worse for our poor. Sure 48 million eating off government platters sounds compassionate until we consider the only reason it’s necessary to feed 48 million mouths is because of monetary deceit and greed.

If you are reading this and new to precious metals I would like to communicate directly to you. The economic state of the world is only confusing to those who still believe swollen governments can print themselves into prosperity, they can not! I realized this over ten years ago and why I traded dollars for real money – silver and gold.

I recently heard a proponent of PM (precious metal) mention that something big is about to happen to gold. I agree, too, but the fact is something big has happened over the last ten years for those prudent enough to call B.S. on a system awash in deceit. The problem arises when we factor how few have found the protection the lies within physical silver & gold.

The proponent aforementioned is correct, something very big is in store for gold & silver. The only question left is how high can both metals rise before monetary decision makers “tap out” of a failed fiat system and accept defeat. Remember, defeat is more than admitting a multi-decade mistake, defeat is accepting a way of life that supports a government, and people, living within their means, and according to free market principles.

Borrowing money (deficit spending) and then disbursing it to chosen industries has proven itself futile for our overall economy but great for the few holding real money (silver & gold). This precious metal benefaction proves how simple, or reactionary, silver and gold have become. This is why I so enjoy holding my wealth in precious metals; nothing complex, just simple x’s and o’s of economics.

We are living in an era of self protection, at least financially, and this is why you’re reading TPS today.

Most of you realize the same old borrow and spend is not building a healthy economy and it’s just a matter of time before the masses come to the same realization. This “realization” will send all walks of life, all societies too, in search of the only simple source of real money ever to grace God’s green earth. My advice is to take a hard look at hard money soon.

QUESTION:  Thanks for the great website, I never miss a post. I have a question relating to storing silver rounds and gold bars at home. Costco sales a big safe for under $800 that looks perfect for storing guns, gold, & silver, do you know anything about the big gun style safe Costco sales? My intentions are to mount the safe in my garage.

TPS Reply: Thanks for reading TPS and thanks for the question. Several have commented on Costco’s gun safe but I’m not familiar with it (my guess, if Costco is selling it then it’s worth owning). We must consider that a standing safe is only one part of a plan for home storage, regardless the safe. Below are four items that should accompany a good safe.

  1. Safe should be placed out of site. This means positioning the safe (if in your garage) out of site from street traffic that might spot the safe if garage doors are left open. I like the idea of building a simple garage cabinet that hides the safe from anyone who happens to glance into your garage.
  2. Most garages have 4 inch thick concrete slabs that make bolting the safe down very simple. Never store PM in a safe unbolted, or fastened, to the subflooring or slab. This process is simple and most tools can be rented from your local construction supply store.
  3. Alarm your safe or the structure that the safe rests in. A properly fastened safe is all about buying time until people with guns arrive. Never assume PM stored in a gun safe is good enough. I have a stack of stories of lost metal all stored in what the owner felt was a good gun safe.
  4. Buy insurance that is precious metal specific. This insurance is not expensive and will protect properly secured metal in the event of theft. Email me for additional information regarding PM insurance.


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