Archive for December, 2012



Some of you noticed a correlation between rising physical metal demand and new gun sales. TPS believes this is by no means coincidence and this trend will continue. Today I want to focus on a issue on the minds of every person who practices independence and frowns upon a bigger overreaching government. We will address the odds of gun and gold confiscation and why I feel one asset has a greater possibility of confiscation than the other. Regardless, thanks for joining us today and feel free to share your take on such an important issue.

TPS readers own both gold/silver and guns. Most view firearm limitations as an intrusion of liberty and realize those who truly wish to harm others will find a way regardless the list of legal guns.  I don’t wish to turn today’s post into a gun debate, there are plenty of sites who will accommodate such debate with far more constitutional knowledge than this writer.

My goal today is to justify why the odds of gun confiscation grows with each passing day yet decreases for gold or silver. This may sound odd but the very government soon to confiscate guns across America really couldn’t care less that you own weapons.

This leads us to ask why then do I feel such a confiscation of guns as imminent? I’m glad you asked.

Many decades ago something changed in America. We went from a self sufficient society to one reliant on government. Our future handed over to programs like Social Security, our health to Medicare, and now our health care industry to politicians.

No longer do we have to rely on ourselves for food, shelter, water or clean air. We now have a government agency to “look after” our best interest in every aspect of our life. Hurricane hits, here comes FEMA. School shooting, here comes the FBI. But something unexpected came along with government protection; blame.

Americans now blame the government for today’s violent shootings taking place across the land. These same folks now demand government do something to end such horrible violence, almost as if it’s expected.

But government has no finesse. Government is a hammer used as a fly swat. This is why the bloodshed of first grade students will ultimately lead to such an outcry that government will quickly react if for no other reason than to squelch the outcry.

Some folks living in the USA are a generation or more removed from the power of our second amendment rights. They don’t own guns, they don’t understand guns, and worst yet they view guns as the problem. These same folks are in much need of a history lesson but few want to hear anything but an emotional solution to a complex problem.

The fact is as follows. The best hands to protect our children are the very hands in jeopardy of losing their gun rights.


What about silver & gold?

This same societal imbalance make silver and gold irrelevant today.  So-called safety net programs grow so large not all the gold privately held in America can make a monetary dent. Honestly, the giant we call government outgrew silver and gold long ago.

The odds of gold confiscation are extremely limited. Remember, we now have a reactionary minded government that only slams the hammer down when motivated by the emotions of the people. Right now, no one is crying out for the government to do something about the evil PM holders.

The power to print currency is the largest weapon in the world. This power is far more destructive than all weapons and yet more misunderstood than the human brain. Why spend time, lives, and effort to confiscate hunks of silver or gold when a central bank can digitally create a millions times its value in currency.

We live in a complex world in a trying time. Maybe this is why each person reading today should discretely own both the assets discussed today.

COMMENT: Hello, I have been following The Prospector Site and enjoyed your last post on true silver concerns.

I thought you may be interested in our recent piece “What Can 1 Ounce of Gold Buy“. This piece takes a visual dive on all of the things you could buy with an ounce of gold, ranging from Al Capone’s tax evasions, to the original island of Manhattan. Please feel free to contact me with any questions you might have.

TPS Reply: Very cool, I’ll pass it along.

QUESTION:  Why over the last two years are metal prices dropping at year’s end? Also, what’s your opinion on using a credit card to buy silver? Thanks.

TPS Reply:  Great question. The paper silver and gold market continues to provide buying opportunities for those that can look past temporary volatility. The paper PM markets have proven, once again, unregulated manipulation is what paper investors should expect. Soon physical metal will separate itself from paper and the difference will be in the form of rising premiums. My advice, do what I do and add you your PM stack while the discounting continues. Thanks.

Oh, the credit card part of the question. CCs are great for those looking for a temporary line of credit. Most PM brokers will pass CC fees to the buyer but the discount could be worth it. Try not to carry the balance any longer than necessary.


DC Carlton is the founder of The Prospector Site and author of Why Silver and Gold Will Go Higher. Feel free to register here for his free online newsletter that provides precious metal insight rarely mentioned from mainstream media sources


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Are you one of the many concerned about silver’s future?  Just this week I heard a talking head mention the volatility in precious metal as 2012 closes its final chapter. She confidently mentioned why investors sell silver and gold to wisely buy equities now that politicians are on the verge of solving our fiscal cliff issue. Wall Street celebrates this great news with a year-end rally almost like they realize Washington has no other choice but to feed the giant that holds the wealth of Middle America. My concern, my truest concern, goes far beyond the fiscal cliff or the triviality of our mainstream media, I’ll explain.

I would like to take a moment and do something I rarely do. I want to make a prediction, a silver prediction that is, and I’m asking each reader to, well, read closely. By the way, this prediction has everything to do with my concern of the day.

While paper silver sells down…. physical silver disappears at near record pace. Because of this I’m concerned something “big” will cause a sleeping society to awaken to our fiscal reality. This reality has the potential to dry silver inventories nearly overnight.

For those new to physical silver I want to share a fact or three.  The majority of silver on the market today is newly minted silver in the form of bullion, rounds and bars. The number of mints making silver bullion, rounds and bars are few. Most of you that own silver bought it through a third party (online bullion broker) and not from the mint itself.

Your source, the bullion broker, in all probability isn’t sitting on a huge inventory of silver in hopes you call for more. The price of silver fluctuates too much for silver sellers (brokers) to risk anything other than placing a “buy” order only after you ask for more. This means those brokering silver sales are limited to what’s produced or allocated from the few minting silver.

We will soon see days of silver rationing meaning those wanting to buy silver will be limited to a few ounces, at best, or only the highest premium and less desirable forms of physical silver.

Now here is where my concern takes over. People prudent enough to own physical silver have no intention of selling anytime soon, why should they? This December’s drop in silver means nothing to those sitting on physical silver. There is no way a person wise enough to protect with physical silver will sell it, one call to any silver broker will prove this as true.

The new-age bubble investor will run to silver not driven by wisdom but emotion. This is why so many scurried to buy silver not long ago when it hit nearly $50 per physical ounce.  The combination of short inventories and the unwillingness of those holding silver to sell will create a shadow market in PM making the true value of physical silver hard to pinpoint. This value will be far beyond silver’s daily paper fluctuations we watch today.

This writer believes we have reached such a point but the monetary spread between physical and paper hides behind a splinter of availability (silver inventory), an inventory on the verge of disappearing.



My intention is to shout silver’s praises from the highest mountaintop so that as many folks as possible replace at least 10% of their net worth with precious metal. For those asking, 10% is a minimum and something closer to 20 – 25% is best (my opinion based on what I feel silver and gold’s actual physical values are today).  Remember, I gain nothing financially if you buy a boatload of silver since I sell neither metal.

But the problem, or concern, is that the physical silver window is closing just as those who trust a fiat currency need PM (precious metal) most. To put it simply, there is not enough AFFORDABLE silver or gold to go around. This is why both metals will go higher as more individuals realize we bought into a temporary currency system that still stands only because of the ability to print more.

Today’s silver buyers are a crafty bunch. They silently buy boxes of silver with little mention to anyone outside the few trusted, very wise. Is this why the silver cookie jar suddenly nears empty? Not exactly, physical silver has a bigger problem than its sneaky buyers.

Mining silver is challenging in today’s world. A global market may thirst for silver but politics and environmental issues dictate how fast silver leaves the ground. This conflict worsens as demand and prices grow, how could it not?

While preparing this post I typed “conflict in silver mining” and then watched nearly 3,000,000 results pop up on my screen. South America’s mining industry rages with conflict as inventories cry for more.

This only proves the option to own silver is not infinite.

I urge you to keep the above facts in mind each time a drop in paper silver prices rattle your PM faith. The fiscal issues our Congress address today are long-term problems that will take many attempts to fix. This makes protective assets, like silver, a long-term protective measure that each person who wishes to sustain wealth must own. Why not add a few hundred ounces to your stash while the opportunity to buy cheap silver still exists?


QUESTION:  You mentioned storing PMs in two or three locations as part of a proactive storage plan. One you recommended to another reader involves international storage which requires funds wired from a banking account. To my knowledge, the only way to someday retrieve this wealth is to have the funds (from PM sold) sent back to the same bank account. Here is the problem as I see it. What if the bank is no longer in business? What if the IRS decides my bank account is in their control regardless if I’m delinquent or not? Not sure I like the method for retrieval with international metal storage. Your thoughts?

TPS Reply:  Awesome question so thanks for sending it over. “Yes”, I recommend that each person who owns physical PM to use an aggressive proactive plan for storage. This could include international storage but two words popped into my head as I read your email, DUE DILIGENCE. I commend your efforts to look at international storage through realistic eyes because the risks you describe are very real, but.

I won’t speak for companies like BullionVault or GoldMoney, but my understanding is most depositors can retrieve real metal as well as cash back into a registered bank account. This means they will send real PM back to those who request it (for a fee). Does this take 100% of the risk out of international PM storage, of course not? I know of no way to store PM that is completely risk free.

My advice is for each person considering international storage to take the time to ask “what ifs” before taking the plunge. I personally feel it is well worth the risk depending on where you live. Thanks for the questions.

QUESTION:  You mentioned something about insurance for those who store PM at home?

TPS Reply:  Yep, insuring PM stored in your home is a great option…. and one recommended. The last I checked the fee for storing $100,000 in bullion was around $500 per year, well worth the effort and cost in my opinion. I’ll send the info over.

QUESTION:  Found your site on the internet looking for silver and gold information. I have so many questions I don’t know where to start and can’t afford the one-on-one consulting service you offer. In a nutshell, can you explain the steps to protect with physical silver?

TPS Reply: Would love to….. and thanks for spending time with TPS.  You have taken the first step to financial freedom, so congrats. Research is the key to understanding the power of silver/gold and how they protect in times of huge currency creation. First, continue to educate yourself why silver and gold are so relevant today.  Next, buy PMs as close to spot (paper) price as possible. I own bullion, rounds and bars…for what’s worth. Next, formulate a comfortable plan for storage that includes several options just in case one option fails. Next, forget the metal exists and live your life in the confidence that only comes from an independent nature that leads you to own a real asset like silver or gold.


DC Carlton is the founder of The Prospector Site and author of Why Silver and Gold Will Go Higher. Feel free to register here for his free online newsletter that provides precious metal insight rarely mentioned from mainstream media sources


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Are you buying silver or gold this month? Precious metal investors will buy more gold this December than nearly all other months of 2012 combined. Unfortunately, 90% of those buying gold in December will pay far more than necessary or simply buy wrong gold. In fact, most December buyers aren’t buying gold for an investment but simply looking for the perfect gift for someone special. This buyer, the Holiday buyer that is, doesn’t realize the same amount of currency spent on retail jewelry could buy two, maybe three times the precious metal that we recommend here at TPS.

You might recall last month when I shared with readers my willingness to brave Black Friday. I have to admit, our retail industry has done well to create this frenzy of shopping excitement that only comes once a year. I found myself standing in front of a Kay Jewelry store…. watching, as a dozen or more willing buyers snatched up discounted gold all while failing to realize Kay’s “amazing” discount was still well beyond intrinsic value.

Now don’t get me wrong here. Buying silver or gold well over market value is a million times better than not buying at all. And, I seriously doubt someone you love wants to unwrap a bullion coin as a token of your admiration come Christmas Eve.

In fact, I recall an email received many months ago where a woman reader asked if silver and gold jewelry should be viewed as an investment.

“Yes”, of course jewelry made from silver or gold should be viewed as a worthy part of your PM (precious metal) stash, but.

My shopping day just after Thanksgiving exposed something else that the retail business has figured out but 99% of the folks walking your streets haven’t, the value of gold. Just past the popular jewelry store aforementioned rests another jewelry vendor but this vendor is looking to buy, buy your old jewelry for cash that is.

Why so many are willing to pay far over gold’s value (retail jewelry) only to someday “short sale” as scrap only proves most of us don’t understand the true value of silver and gold.


The truth is gold and silver are valuable only because they are a real asset, rare (little inventory), and a worldwide currency. This means from London to Tokyo, New York to Mexico City, both metals will easily exchange for the currency of choice, and have for thousands of years. Sure they both shape and shine into works of art but their truest values lies within the metal itself. Everything else comes at a premium.

But for some reason Americans fail to understand silver and gold’s basic value. From an investment aspect, we view silver and gold as obsolete and irrelevant or as one reader put it, “Won’t pay a dividend”. Yet, we hold an intrinsically valueless paper money in the highest regard, even to the point we allow those elected to create endless amounts more just to sustain this fiat Ponzi scheme another day.

We just fail to understand the value of silver and gold. Worse yet, we fail to accept the declining value of a paper currency supported by nothing more than faith, optimism, and denial.

I want to leave you with two points today. One, if buying jewelry, please understand the offering price is a derivative of talent AND precious metal. This means you will pay extra for a subjective portion of what ever it is you’re buying. My second point, don’t sell scrap jewelry for a discount. Someday soon scrap buyers will have bidding wars over everything and anything silver or gold related. Do everything possible to refrain from selling grandma’s broken pendant or other scrap metal resting in your sock drawer.

COMMENT: Thank you for your post today about conquering the “fear factor.”  You are absolutely correct in that most of what I read regarding gold and silver tends to stir up fear as a motivation for buying.  I have found fear to be a terrible motivator as many times the things we waste time fearing never come to pass and all that stress doesn’t change anything.  It was good to be reminded though, as I have to catch myself at times slipping into a fear mentality.

I actually have found the best remedy for a fearful attitude about finances is to give.  It always amazes me that when I give from the abundance that I have been blessed with, my grip on the material things seems to loosen and the fear looses its grip on me as well.

I really enjoy your blog.  Thanks for taking the time to write!

TPS Reply: Thank you for sharing such wisdom. You’re 100% correct; the best remedy for a fearful attitude is to give, so well said. I’m not sure why so many selling PM or “experts” motivate buyers by fear other than it must work. My goal is the opposite. I want you to understand silver and gold, inside and out, and only then decide what is best for your family. Sure fear lights the fire but ultimately such a prudent decision must be made from an educated rational view over fear based.

Most of you realize that The Prospector Site doesn’t sell silver or gold, this is for good reason. We want each of you to understand our objective is to provide an educational source OUTSIDE of the precious metal trade. Regardless, thanks for the nice comment and reading TPS, you made my day.


COMMENT:  Please let your readers know that I just made a substantial purchase of silver from ColoradoGold and everything was as promised!  Price, quality of the silver, and the delivery were all outstanding!  I will be doing more business with them.

TPS Reply: Fantastic, thanks for sharing your experience with Colorado Gold. So many email asking for reliable PM vendors and I have yet to hear anything less positive from those using CG, as you just mentioned. This is because brokers like Don are honest, reliable, and worthy of your business.

Also, congrats to you for making such a wise choice to physically own silver. Each day we hear of more borrowing, bigger government, and this bodes well for those owning silver and gold. Thanks for reminding all of us that good PM brokers are easily available for those willing to do a little research.

By the way, I also buy from my local coin shop, Miles Franklin, and Blanchard Co,too.


QUESTION: Why don’t you write more often? I miss reading TPS daily!

TPS Reply: Thanks for missing me. To answer, it all comes down to time and mine is divided between family, business, and The Prospector Site writings. Also, the majority of my writing time is invested in several precious metal related books. Why Silver & Gold Will Go Higher is out; Storing Silver & Gold is in final edit and Rising Silver (How Obama’s re-election will propel silver) is in the works as you read this.

My dream for TPS is to devote a portion of each post to your stories and why readers like you are buying silver and gold. Feel free to share your story, anytime; knowing discretion is always top priority.  Thanks.


DC Carlton is the founder of The Prospector Site and author of Why Silver and Gold Will Go Higher. Feel free to register here for his free online newsletter that provides precious metal insight rarely mentioned from mainstream media sources.







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