Archive for October, 2012



One big price for today’s electronic currency is security, the upside is convenience. Never before is it as easy to buy silver and gold but a reader recently emailed TPS (The Prospector Site) asking how to safely buy precious metal while utilizing our e-commerce age. The process is simple, and safe, for those who take the necessary steps to protect themselves along the way. Today we tackle the necessary steps to land silver and gold safely into your discretionary spot for storage.

QUESTION:  Hello. I would like to invest in gold and/or silver, and am not sure how to (safely) do it. You mentioned a list of reputable sellers? Would you recommend bullion or another form? When you purchase online, how are the funds transferred (through a service like PayPal, or can they be done directly from a customer’s bank)? Thank you.

TPS Reply:  Ah, another one joins the PM flock, congrats. Thanks for the great questions and thanks for sharing such honesty. Sometimes the first step to buying the right gold, or silver, is admitting we don’t know what the heck we’re doing. My first experience was a train wreck and I’m humble enough to admit I bought the wrong gold when gold sold for less than $400 per ounce. I will also admit it was a paid education since this miscue sparked a desire to learn as much about real money as possible, my quest still continues to this day.

I recall a PM conversation not long ago with a New York Times bestselling author who writes about all things monetary and economic. How shocked was I when this author admitted “PM ignorance” when it came time to buy physical gold? This only proves few are comfortable with what to buy, where to buy and who to trust.

I push PM “Newbies” toward silver for one reason – CONFIDENCE. For some odd reason most newbies find buying PM uncomfortable or nerve-racking but have no problem investing a life savings in a intrinsically valueless currency supported by nothing more than a thin margin of faith. This PM insecurity causes too many to watch from the sidelines while PM prices rise with each passing year.

This is why I recommend buying silver bullion first, then gold bullion as you become comfortable with whomever you choose to trade with. Don at Colorado Gold works well with beginners, like you, so try them first. I also buy from Miles Franklin and Blanchard Co, too, not to mention my local coin shop. I’m sure there are many more reputable PM brokers but these are the ones I’m most familiar with.

Each online PM broker has their own rules to lock an order (“locking” an order is the moment a firm price is established). Some brokers (dealers) will lock nothing until a check clears or funds wire transfer from your bank to theirs. Some have dollar limits but will lock a price in temporarily while funds generate. Some PM brokers even allow purchasing by way of credit card but usually pass all credit card fees to you the buyer.

I have found bank wire transfers a safe and easy way to purchase PM.

WARNING:  Never buy PM face to face with someone unknown. I have stacks of horror stories from well meaning Craiglist traders who ended up robbed or with worthless gold clad bullion. Please stay with reputable PM dealers or brokers realizing their small fee is worth your piece of mind.

Some of you want to buy silver or gold without a paper trail of any kind, I understand. This is still possible but the window of unrecorded private asset ownership of any kind is quickly closing. The upside to owning metal without a paper trail is the reduced risk of governmental confiscation (see Silver Confiscation).  The downside to owning PM without proof comes in play for those who wish to insure silver or gold stored at home (you could be asked to show proof of ownership when filing a claim).

This is why some of our readers own metal with and without a paper trail. Nevertheless, start with low premium PM like bullion, rounds or junk silver. All three can be purchased in person or online depending on your perception or concern over a paper trail.

I want to leave you and all other readers with one last thought. You may find your first PM purchase unnerving but if you follow the instruction of someone trusted, like the PM brokers just listed, this process will become easier in no time.

COMMENT:   Just wanted to call and say how your book has prioritized our finances – thank you. It seems so obvious we cannot fix our economy by borrowing endless amounts of money and the chapter comparing other assets to gold was an eye opener. Within a week after finishing the book my husband and I each put one unnecessary asset for sale (boat and snowmobile) to begin the “wealth relocation” you write about. Trading a declining asset (toy) for something so protective as PM just makes sense. Thanks for the motivation we both needed to take control of our financial future. Cheers.

TPS Reply: Good for you guys and congrats for making what I think is a perfectly timed life-changing decision. Wealth relocation is nothing more than selling something with declining value and then replacing it with something of real value….. like silver or gold. You will find a feeling of liberation as your new wealth builds while others struggle to maintain a lifestyle that continues to rob the middle class. My recommendation, now, is to stay the course and continue to add PM when possible. Thank you for passing along such a nice compliment…and reading Why Silver & Gold Will Go Higher.


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Do you own physical silver? We track your comments and without doubt I will say most of you are buying or looking to buy silver. This is wise, in my opinion, for a number of reasons but it is nearly impossible to investigate silver and not read endless information regarding silver’s price manipulation. I won’t attempt to argue that silver’s price is not “managed” or manipulated. Please name one market in this day and age not manipulated, it’s just not possible. But, my point goes beyond managed silver since the fact is managed, or not, the value of silver is and will grow. Thanks for joining us today.

Below is an interesting chart showing silver with an annual gain of 29%. I’m not a big chart guy but this one certainly puts growth in perspective. Of course, this is only a projection.

Ted Butler knows as much about the silver market as any person on earth. His take is that our current suppression of silver began over 15 years ago. He also believes all things with monetary relevance begin and end with the value of silver. This article today is not to argue who or why someone so desires to retard silver’s value that they will risk years behind bars to do so. Why you ask?

Because suppressed, or not, silver continues to outpace gold, DOW and oil.

You already know that silver’s fluctuations will drive some folks insane. This is why TPS does everything possible to justify metal first all while hoping rationally minded individuals make monetary decisions with their minds…. not hearts. This doesn’t insinuate your stack of silver will not decline over the short term. Let me explain it like this. I have several young silver buyers on pace to prosper 30% from recent silver buys. I also have some readers who paid $48 per ounce and still far from even. Both buyers – if they stay the course – will greatly appreciate such prudence.

Silver and gold, too, are the few assets that benefit in times of turmoil, fear and greed. Can you think of anytime over the last few years with as much of the aforementioned? All currencies and countries have one thing in common as you read this, the race to devalue currency in order to stay more competitive in a time of economic duress. This is no different than more fighting over fewer pie pieces.

The downside to such effort is the declining value and purchasing power of those trusting such currency. The only benefactor, true benefactor, are the few assets folks view as safe or immune for such a destructive fiscal nature.

The “safe haven” list has declined to only a select few. Silver and gold rise as turmoil, fear and greed grow prevalent in an ever increasing age of economic uncertainty, JUSTIFIED OR NOT!!

Some who own physical silver are yet to understand the difference between physical and paper silver. Paper silver misleads some physical silver holders and this greatly concerns me. There is no possibility paper and physical metal will share the same stage in the future. The amazing race to all things “real” progresses as you read this. If you’re holding physical silver, or gold, then you are miles ahead, congrats.

Paper silver is a promise easily traded to someone who still believes in a word like “recovery”.  I recall one reader’s email asking the difference between paper and physical silver (“why the price difference” was the actual question, if I recall). The difference is possession, you hold physical silver. You don’t hold paper silver. This is why one costs more at time of purchase. Is possession worth paying an additional 10% over the paper silver market? You bet it is, especially for those new to precious metals.

Silver’s future is one of promise for those holding physical metal and one of great concern for those holding paper promises. Remember, all things real is the trend of tomorrow. To learn more about silver’s future be sure to check out Why Silver & Gold Will Go Higher released in 2012.

QUESTION: Okay, I’m a nervous first-time buyer so let’s get that out of the way. I made my first silver purchase from a bullion dealer you recommended and now waiting to take delivery. What is the best way for someone who doesn’t own a safe to store silver? I have no room or plans for a big safe since the safe would cost more than my silver. Any ideas?

TPS Reply: Good for you and congrats on the wise choice to trade cash for real money. I understand your situation since many readers also have no desire to buy a gun safe, either. You have a couple of options and I’m glad you’re addressing storage now rather than after the silver arrive.

Depending on size (amount of silver), a local bank box could suffice. Some in the PM industry discourage bank boxes but my opinion is that they have a place depending on a person’s situation. This is not to say things could change, quickly to boot, and justify removing your silver from the bank.

Regarding future silver or gold purchases, you might consider setting up an account with BullionVault or GoldMoney. This allows folks like you to own physical metal without the hassles of self storage. I still recommend storing at least 1/3 of your metal within reach…just in case. Thanks for the question.






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Each week TPS receives many great comments and question from readers around the globe (I wish I could include them all). What astonishes me is the similarity of concern regardless the region.  What astonishes me most is the growing realization that borrowing more money, or expanding Gov’t, will not fix our global economic problem. Congrats to all of you who have taken a leap of faith by trading currency for real wealth, silver and gold.

Today I want to share two comments from this week and then respond accordingly, hopefully making a good argument for precious metals. Nevertheless, the concerns are real and those showing PM (precious metal) protectiveness will prosper and protect most…..this I have no doubt.

The last question is one many of you are asking, “How much is enough?”  I’ll do my best to answer this question last.

This first comment is from one of our European readers:

READER COMMENT: I know all those myths about silver having more potential for growth than gold, because the white metal is undervalued and industrial demand is high…  But: the prices of bullion products in case of silver as so dreadfully high, much higher above spot price. Gold is sold for a little above its own spot price. So I still stick with gold.

I own some numismatic coins and would love to invest in silver, but where I live they put an extra 10 % tax over silver sales, which makes prices even higher! While in the US anyone can buy Silver Eagles for around 40 $ a piece, in Europe we’ll end up paying around 57-60 $ a piece – including all fees, taxes… to it’s roughly 1.5 times above spot price. Too bad!

TPS Reply:  What a great comment, thanks for sharing it. I can’t imagine paying 1.5 times spot for physical silver but it sounds like this is exactly what some European silver owners must do. The taxation you mention is nothing short of a sign of the times. Taxing, or fees, as you mention, accomplish two things and neither will solve our economic problems of the day. One, fees (taxes) discourage private PM ownership since few can or are willing to pay such a premium beyond silver’s value. Two, adding fees (taxes) allow a swollen gov’t one more day of control while the people struggle to stay within a middle class status.

My advice is exactly what you’re doing so stay with trading cash for gold. There is no chance I would pick silver over gold considering your situation. By the way, is it any wonder the world’s PM black market continues to grow at a stifling pace?

Thanks for the comment.


Let me thank you for your dedication for this website and for helping others get a grasp of what the economic problems are today and how in the future the only source of real wealth are gold and silver. I don’t know how much time will be until everybody steps in.

But my message is only but a personal gratitude towards internet and specially you and your website. I hope you still have plenty to offer to new and all visitors. But i want to share my experience. Early this year i created a BullionVault account to buy gold and silver. During the first 3 months i was loosing about 1.5k and was getting a bit disappointed. You wisely told me that i would only loose if i sold and i didn’t. Today, that 1.5k was covered and i have a “surplus” of 3k.

Well worth it.
I believe me and my family are now in the peace train
Thanks and best Regards

TPS REPLY:  Your comment is day maker, thanks. Thanks for the nice comment but you ultimately made the best choice and are now reaping the reward of perseverance. I founded TPS for reasons like you just described. I, too, had the same concerns, insecurity, whatever you want to call it, and found PM “straight talk” hard to find or bias. As you probably already know… I don’t sell silver or gold. My goal is to spread accuracy to as many folks without the confusion or question some could have of my bias.

Silver is one asset that will continue to test the resolve of everyone willing to stack it. This is why it is so important to understand silver as “protective” especially in times of great volatility. Will silver someday soon test your confidence, you bet? We must stay the course, good or bad, understanding silver’s run is miles from over. Good luck and thanks for the comment.

QUESTION:  How much silver, or gold, should I buy? How will I know when I own enough?

TPS Reply: This is by far the most common question I hear when consulting PM “newbies”. Both questions are moving targets since fiscal sins continue to grow and the result is metal priced beyond the affordability of most. This has to mean the amount of PM protection needed (amount of silver or gold in possession) is directly related to the economic mess that continues to GROW IN YOUR NECK OF THE WOODS.

Each one of you are motivated to protect wealth for many reasons. I hear from so many who still falsely believe pensions will take care of their needs of the future. Pensions and salaries have not and will not keep par with inflation. This is why it is so necessary to break away from the “system” by taking control of your own destiny. This must include an equal amount of silver/gold holdings.

Are you counting on rising equity to sustain retirement? We know that 40% of the earth’s wealth vanished over the last four years. Will this trend continue? Will this chip away at your home’s equity? My gut tells me what we are living today is wealth transferring to only a few and wealth vanishing for most. If this trend continues, precious metals will only rise as panic and fear grip a world looking for monetary stability.

The amount of metal necessary depends on your situation, dreams, goals and faith.

If honest, my motivation changes as I age. When I first bought gold, at 36 years of age, my motivation was to build wealth outside of the establishment. I knew little about our American monetary system but knew enough to realize rising deficits could only bring down the value of assets I was working hard to amass. Now, just over 10 years later, my motivation to own PM has changed.

No longer do I dream of $10k gold, or the nice things it could buy, because I realize $10k (per ounce) gold means financial devastation for most. I also realize desperate folks do desperate things in such a time. This is why I view each ounce of silver or gold as an ever increasing source of stability.

This leads me to believe each person’s perspective will change over the next few years (this new perspective should dictate the number of PM ounces needed). This new perspective will view things as necessary or unnecessary, wants or needs. My point, it takes far less silver to own a pre-owned dependable vehicle compared to one sitting on the showroom floor.

Hope this helps and thanks for the questions.




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