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Archive for March, 2013

GOLD RUN

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

On an otherwise uneventful February day in 2009, Criss Angel walked on water…kind of. Millions watched this event dumbfounded even though Criss explained it was all an illusion. My youngest son bribed me into viewing this televised miracle with hot buttered popcorn but I must admit this illusion looked as real as the nose on your face. But even walking on water fails to compare to the monetary illusions soon to shift untold wealth into precious metal. Today I’ll do everything in my power to expose the greatest wealth transference on earth. Thanks for joining TPS (The Prospector Site).

A run to gold or silver is NOT a natural occurrence. It is a reactionary result derived from a separation between you and your wealth. Nothing will cause monetary panic faster than a separation of wealth. Below is a must read paragraph that truly describes my point better than I can depict.

Some walk around in a financially comfortable delusion about our current system (banking) even though we all realize that we will never payback our $16 trillion in national debt.  You also have a banking system backing $7.4 trillion in insured deposits with $32 billion (that is, 0.43 percent).  Yet in our current system the Fed is digitally inflating away our currency and limiting available banking options.  Are we simply ignoring the too big to fail? Source: Budget 360.

Let me put the above information in proper light since this financial writer is spot on. If all depositors simultaneously demand physical proof of individual wealth the banking intuitions of America don’t have it. What banks do have is less than 1% of real tangible money deposits on hand. This means a $100,000 depositor is entitled to a whopping $430 withdrawal (thanks to today’s fractional reserve banking system).

We often describe an age of capital controls but few actually connect the dots back to themselves. The banking system in parts of Europe is under stifling capital controls. They cannot, and will not, allow depositors to withdrawal tangible currency because the money doesn’t exist. The banking world has replaced real currency with digits (now two degrees separated from gold for those still counting).

Now we both know that here in the U.S. Bernanke can print the 99.57% necessary to make up the difference between a bank’s cash on hand and digits; and is more than willing to do so. But this Criss Angel like magic comes with a price at least if you’re one of the millions storing wealth in today’s banking system.

Controlling the capital (wealth, cash, money, currency, asset, etc.) is an overgrown government’s dream. Capital control corrals the wealth of a society and then allows the money divvied out in only small portions according to the controlling party’s timing. At such a time, technically your wealth still exists; you just no longer have any control over it.

We only have to look at Cyprus as a perfect example of how the world’s depositors should expect to be treated in the very near future. Capital controls use captured wealth as a tool of taxation and sustainability. They don’t call it theft because the word theft sounds too much like stealing; hence the modern-day term haircut.

Picture your bank account as a car in a parking structure with the entrance and exit blocked by capital controls. Your car is still safely stored but you no longer have control over it. This means the controlling party can decide all red cars are needed to say physically block city hall; then removed no longer within owner’s control. All trucks are to be crushed and then used to stabilize nearby creek banks; then removed…..and then crushed, no longer within owner’s control.

Capitally controlling your wealth allows the powers to be to tumble and recycle your financial future through the taxation machine over and over again. It is now reported that Cyprus bank depositors will lose upwards of 40% from this haircut round. Who knows what the next recycling round will take from depositors as they irritatingly watch wealth dissipate without another option.

Physical silver or gold is the only world currency NOT SUBJECT TO TODAY’S RISK OF CAPITAL CONTROLS. I’ve mentioned before that we are beyond arguing the “should we or shouldn’t we” of physical precious metal. If you’re looking for a safe way to store wealth beyond the reach of capital controls I strongly advise each reader to look beyond the doubt; while this option still exists.

 QUESTION:  Today I read that Arizona is considering accepting silver and gold coins as legal tender. However the article stated that only coins minted by the government would qualify. Further, that since they would be considered legal tender, they couldn’t be taxed as property. So now I wonder about my silver rounds which I bought as a result of this site. Will I be able to sell them in the future and avoid taxes on any gain in their value? Also, is your book available yet in paper format? Thank you.

TPS Reply:  Thank you for the comment and questions. I agree, it is exciting to see a handful of states pushing back by implementing a competing currency. Will Arizona follow Utah’s precious metal footsteps; it’s too soon to tell? Here is how I see this playing out for what’s worth.

A few readers have emailed with the same sort of legal tender questions so I would like to clear the air. Individual states could view silver and gold as legal tender and possibly exempt from state capital gains, but I have my doubts the IRS will view silver or gold with the same tax exempt status. I’m not a CPA but I would use due diligence, and the help of a good accountant, before assuming a tax avoidance.

Like I mentioned by direct email; I have no plans to sell my rounds in order to buy more government minted silver bullion.  But then again I have no plans to sell or spend silver regardless. Rumors spread quickly and this only proves the volatility of today’s monetary world. Thanks again for the questions and good job keeping your ear to the ground.

As for the book, I’m seriously considering combining two digital books into one paper formatted book. This will give readers twice the bang for their buck. I’ll keep you posted.

QUESTION:  It just seems unpatriotic to abandon the dollar for silver and gold. My family fought wars and spilled blood for this great country.  I would like to believe the US dollar is strong enough to lead us out of this recession and into a thriving economy. Maybe I’m just old fashion?

TPS Reply:  Thanks for the comment. Boy, where do I start. It is no coincidence most paper currencies appear patriotic, regardless the country issuing the fiat money. This purposely instills  pride, patriotism, and generational confidence while central banks spur inflation taxation among her people. Inflation is the one tax virtually unavoidable for most.

Your family did not spill blood for the US dollar; most likely they fought for freedom. A country who willingly debases her currency is not promoting freedom, not by a long shot. I truly admire your patriotic passion but please don’t misinterpret a fiat dollar as this country’s foundation of freedom.

I realize it can be frightening to let go of something we’ve worked hard to amass. Frankly, this anxiety is what keeps most from the protectiveness of PMs. They just can’t get past the dollar’s vulnerability in our fiat implosive age. Please look past this misconception while an alternate currency is still available. Thanks again for the comment.

BERNANKE WATCH:

FED chief Ben Bernanke is the most powerful man on earth. For this reason alone we must pay close attention to the FED’s actions as they relate to your financial independence. Below is an intriguing short video of Bernanke responding to the likelihood of bank runs here in the United States.

In other words, as long as you ignore today’s banking volatility and don’t “lose confidence” or allow fear to become “contagious” the most powerful man on earth will not have to implement capital controls. I find it interesting how Bernanke rolls out the FDIC as a source of protection for depositors. The FDIC’s primary goal in not to insure your bank deposits, its primary goal is to protect banks from Cyprus type bank runs.

 

DC Carlton is the founder of The Prospector Site and author of Why Silver and Gold Will Go Higher. If you’re looking for trustworthy PM assistance feel free to contact DC regarding his personalized consulting service. TPS doesn’t sell silver or gold; we represent you, the buyer, looking for affordable precious metal from honest trustworthy sources. 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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BEWARE OF PRECIOUS METAL SCAMS

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

A few events are forever etched in our minds, literally. John Medina, a developmental molecular biologist, claims the reason some memories “stick” and some don’t is simple. Even the brain finds a few events so worthy of record that the mind actually strikes a deeper line in the brain.

Mr. Medina is also quick to point out another fascinating mind nugget. If not for the ability to instantly forget most information….. we will die, within days in fact. Honestly, I can’t deny or verify what this professor of bioengineering claims as factual. What I can say without doubt; I will always and forever recall the moment I decided to buy gold over a decade ago.

Before we dive in today, the Q & A section is all about dealing with PM (precious metal) crooks, be sure to catch it.

Every once in a while someone emails or calls TPS (The Prospector Site) looking to argue precious metal. They usually hangup thinking, “Gosh, this guy doesn’t know much about physical silver/gold for a bestselling precious metal author?” So be it. My goal is not to argue the worthiness of PM for those not ready to own silver or gold.

If I have to convince someone to buy they’ll like me less the first time silver or gold turns south. Before a person is ready to own PM they must first reach a point of realization. Maybe realization is the wrong word, maybe acceptance is better. Regardless, the old way of saving, investing and entrusting your wealth to someone else is over, period.

Until then silver and gold appear just as “risky” as a credit default swap or a Bernanke promise.

Politicians, corporate executives, and media pundits can drum recovery and economic stability but only the most hopeful continue to believe what PM faithful have know for some time. Each new day is another one closer to the demise of a fiat reserve currency. Your decision to own physical metal is a de facto admission of the dollar’s eminent demise; welcome aboard.

This liberation goes beyond silver and gold. My acceptance of monetary truth changed my perception in more ways than space. I found satisfaction beyond things driven by debt or greed. I found myself questioning everything, even to the point of questioning my faith. After all, it’s only after questioning what others blindly accept we learn, and then grow wiser.

Trading dollars for PM goes far beyond investing in the typical sense. Trading dollars for sound money offers savers the ability to grow wealth beyond the risk of confiscation that fills today’s evening news. Pension funds, retirement accounts, bonds, stocks, and real estate can’t offer the same peace of mind. Not that the aforementioned are bad investments, just not protected in this cannibalistic age of taxation and confiscation.

My Prospector Site email blew up Sunday as rumors of Cyprus bank runs filled my smartphone. Someday all bank accounts will face similar capital control challenges from central banks and/or government.  At such a time, you too will remember when and why you decided to buy physical silver/ gold.

 

QUESTION:  For your information, XWZ Corp (edited) is a con artist willing to sell old folks like me overpriced gold coins. Its been over two years and the coins are worth half of what we paid. A local coin dealer appraised the coins so I know what they’re worth……HALF, OR LESS. Something must stop the con artists in the bullion business!!!!!! (EDITED, A LOT)

TPS Reply:  First let me say how sorry I am.  You’re right, it sounds like you paid far over market for the nine rare coins we discussed during our phone consultation.  This deceptive practice is unconscionable – but I hear stories like yours far too often.  If I were in your position, I’d safely store the coins away knowing someday soon the PM market will, in all likelihood, surpass this over-market premium you paid. I realize this doesn’t help much but it’s not a loss unless you decide to sell short.

NOTE:  I spent at least an hour with this client and, honestly, the situation is not fixable; but due diligence could have saved a lot of hardship.  People are afraid like never in my lifetime. They hear about bank holidays (Cyprus), they see inflation stealing more from a fixed income, and then they hear some advertiser promoting gold as the answer to everything economically wrong. This, my friends, is when the trouble begins.

Now, let’s focus on how this never happens to you or anyone you know. Since I don’t sell PM let me first say the metal this author recommends exposes a PM crook in less than 30 seconds. Precious metal sellers can only take advantage of those lacking PM knowledge, this excludes you.  The majority of PM victims do not know what they’re buying; they just know it’s made from silver/gold. Buying any silver or gold is not good enough; we must put the “right” metal in your safekeeping….soon.

If you truly feel the need to trade dollars for PM but are not 100% confident in the process, then call or email me. I represent you the buyer, never the PM dealer, broker or seller. I don’t charge a percentage; regardless if you buy all the gold stored in Fort Knox or one silver ounce, it makes no monetary difference to me. I charge according to how much time it takes me to find and secure the right metal FOR YOU, I receive zero compensation from the seller.

Locating the right metal for a customer sometimes takes less than an hour, in many cases, or it could take a little longer. Regardless, you’re only charged for the time it takes according to your situation, no surprises. It is not unusual for my fee to total a $100 – $200 (is $100 too much for the peace of mind knowing you’re PM protected with the right metal AND at the best price possible?). It’s time we bring integrity back into the PM market and this is exactly what I intend to do. Contact me here for more information.

QUESTION: I just don’t understand, gold doesn’t pay a dividend or interest, correct? It rests in a vault, in a secret location, all while protected by the best security possible. Wouldn’t you agree that the only thing physical PMs can offer is the chance of appreciation?

TPS Reply: Thanks for the comment and questions. You are correct in regard to gold’s inability to pay interest, it typically does not. Respectfully, I 100% disagree that the only thing physical PM can offer is the chance of appreciation. Gold and silver equal money, everything else we typically call money is currency. Please stop thinking like an investor, think like an innovator (innovators are willing to change).

It’s time the PM skeptical face a few facts. Investors (savers) are long for the slaughter and Cyprus is proof. Eventually the entitled of the world will far outnumber the savers (depositors, pension holders; all investors with exposed wealth). At such a time, the entitled (impoverished) will not only condone new taxation and wealth confiscation – THEY WILL DEMAND IT.

The world’s stockholders fail to compare their risk to a Cyprus depositor (by the way, depositors in Cyprus are under capital controls by way of a bank holiday). A typically safe storage of wealth can no longer keep pace with inflation (certificates of deposit, money markets, savings accounts), they no longer pay a reasonable rate of return.

Even ultra-conservative investors now turn to stocks in order to preserve wealth; this is why the DJIA is at a new high. Someday soon the entitled of the world (impoverished) will far outnumber those holding wealth in stocks. At such a time, ones depending on entitlement will not only support new taxation – they will demand it. Remember, giants rarely die suddenly; they starve slowly but only after total consumption.

How can you or any other stock investor honestly believe your wealth glowing on Wall Street will not fall under confiscation, capital controls or painful levels of new taxation?

This is what happens when currencies die and governments lose power; this is what divides nations, states, communities, churches, and families, too. Thinking like an investor in an age of wealth confiscation is nothing short of dangerous. My advice is to transfer some wealth, if not most, into something less vulnerable to taxation and confiscation. Physical silver and gold are part of the few safe havens outside the banking/ investment system.

We’re past the point of arguing if silver or gold are worthy investments. The only questions left: how quickly can you turn dollars to PM, what to buy, from whom, and at least three safeguards for PM storage. Time will validate the aforementioned.

 QUESTION:  Just paid slightly over $33 per coin from an online PM broker. I’m seriously considering buying more silver but questioning if the price is fair? Thank you.

TPS Reply: Congrats to you for practicing such prudence; I just paid close to the same per ounce price. Now, I have a question or two for you. Do your coins contain one ounce of silver, many do not? Do you know the difference? Please contact me immediately if you don’t.

My suggestion is to view silver like a typical bank savings account. Most Americans no longer save; they spend every dime that comes in – plus some.

Using PM as a savings offers two huge benefits. One, it’s far more difficult to impulsively spend a savings in PM. Two, a savings in PM will rise beyond the imagination of even the most optimistic PM holder (my opinion, use due diligence). We’re living what history will someday describe as the largest monetary shakeup of mankind. The fiat currency experiment has reached the boiling point. Thanks for the question.

BERNANKE WATCH:

The most powerful man in the world is not a politician, not significantly wealthy….. yet rather mysterious to most folks obliviously wondering through life. His name is Ben Bernanke and it is certainly in your best interest to understand how his influence will directly affect your future. He is the most powerful man on earth and starting today we will feature a “Bernanke Watch” in each TPS post.

There is no doubt FED Chief Bernanke is a very smart man. His words are purposely patterned to instill monetary confidence and, unfortunately, monetary confusion. The trouble within our global economy is not Mr. Bernanke’s fault. Bernanke is nothing more than a very significant snapshot in time now controlling the most powerful, yet most secretive, monetary entity on earth.

In the above video Bernanke defends the FEDS actions with six powerful words. He said, “…..never lost a penny doing it. It is imperative to understand that it’s impossible for the FED to lose dollars. They are the only entity in the world that can create unlimited amounts of dollars from thin air. Today’s era of no restraint allows the FED to create dollars, secretly, and obviously accountable to no one (according to the above video).

Don’t miss our next Bernanke Watch when we discuss exactly how the FED not only influences the DJIA but controls it too.

 

DC Carlton is the founder of The Prospector Site and author of Why Silver and Gold Will Go Higher. If you’re looking for trustworthy PM assistance feel free to contact DC regarding his personalized consulting service. TPS doesn’t sell silver or gold; we represent you, the buyer, looking for affordable precious metal from honest trustworthy sources. 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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SECOND HAND SILVER

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

Buying physical silver or gold is easy these days. Unfortunately, finding more PM (precious metal) in the future will become increasingly difficult, but possible. I don’t have a crystal ball, what I do have is an ability to understand what motivates folks to seek monetary protection….. and what doesn’t. Silver, especially silver, is the metal to watch as more folks realize a rising DJIA and housing market is nothing more than a temporary spike spurred from piles of fiat currency. Use ounces of gold to determine true value and it’s obvious neither the DOW nor real estate should be viewed with optimism. 

The coming age of second hand silver, or gold for big spenders, is smoke on the horizon. Record setting silver sales over the last couple months prove our world thirsts for tangibility in an age of digital promises. Please prepare to say goodbye to “on demand” physical silver or gold.

Today, the price for an ounce of physical silver adds a 10 -12% premiums (minimum) over spot or paper metal. A hunk of real tangible silver, aka money, sells for $32.50 an ounce as I click away this beautiful March 2013 morning. Even though greatly discounted compared to previous offerings, a silver buyer today can find a boatload of options . Buying second hand silver is not necessary, not yet.

Caliber 223 ammunition may offer a not so distant glimpse into silver’s future; just months ago, rounds of 223 ammo filled shelves all while reasonably priced – not cheap, but reasonable. Today sporting shelves collect dust where 223 rounds once rested. Oh, don’t get me wrong; 223 ammo is available but predominantly sells on the secondary market. Did I mention 223 ammo costs have tripled in 2013 alone?

This run on ammo is not by duress. I know of no city street’s burning, no riots, and no other out of the ordinary civil unrest here in the United States. The run on 223 ammo is on red alert because our liberties are under full assault. Caliber 223 ammo is nothing more than a 17th century pitchfork revolution.

This article’s primary focus is second hand silver, I don’t want to lose focus here. We can safely compare silver’s future demand on a monetary loss of liberty….that’s fair. But the point I truly want to make is how such an era of increasing silver demand will influence who and how we buy physical PM.

Some of today’s precious metal experts are misled, respectively. Silver sales will not cease when demand greatly outpaces output; there will always be someone holding silver who’s afraid it has peaked and therefor willing to take profit. Simultaneously, there will be buyers who believe silver will continue to climb…..no matter how many hundreds or thousands of dollars per ounce. The only difference in tomorrow’s silver world compared to todays is a SECOND HAND premium…..just like 223 ammo in a Obama second-term world.

Ammo prices in popular calibers have steadied. This means demand, price, and availability have found an equilibrium. But this lull provides a far greater indicator. It means ammo is to the point unaffordable for many, maybe most. Future physical silver wannabes will face the same fiscal fate.

We are reaching a point when everyone will “want” hard assets and sound money. But just like the 1000 rounds of 223 ammo for sale on gunbroker.com, only a few can justify or afford the second hand market.

QUESTION: Can you compare a currency like Bitcoins to silver or gold? Are they as good investment as precious metals?

TPS Reply:  Thanks for sending over a couple of great questions. BTC is a virtual currency completely independent from a banking system or government. I’ve watched Bitcoins since March of 2011 with great interest. It amazes me how BTCs have appreciated when you consider this currency is nonexistent and attached to no commodity.

The creation of a currency….. like BTC, is only possible because of technology. The advancement of a currency like BTC is only possible when citizens revolt against the merger of government and banking to create a means of wealth preservation. No government can control a virtual currency, bitcoins have no physical corporate location.

What governments can do is tax profit and income. This is when and where competing currencies, like BTC, will conflict with an overreaching gov’t hellbent on more taxation. It is very possible a currency like BTC could be the precious metal of the virtual world, time will tell.

Now, to your questions; are BTCs a good investment? Below is a chart that goes beyond the need for explanation. Will such BTC appreciation continue? I have no idea but I do recommend using due diligence; no appreciating asset is reason alone to invest. If I were to buy BTC, here are the questions I’d ask beforehand.

1.  What or who controls BTC output (creation)?

2.  Is my BTC investment protected by way of discretion?

 

Below is a chart comparing Bitcoins to gold, not dollars – thanks to our friends over at www.pricedingold.

 

COMMENTS: TPS (The Prospector Site) received several comments regarding our last post, The MONEY CURE. First, thank you for commenting. Secondly, thanks for forwarding TPS over to friends, enemies, and everyone in between. Keep sending over your comments and questions since many are not only finding their way to this site but also mentioned in an upcoming book (never a name attached to a comment or question).

 

DC Carlton is the founder of The Prospector Site and author of Why Silver and Gold Will Go Higher. If you’re looking for trustworthy PM assistance feel free to contact DC regarding his personalized consulting service. TPS doesn’t sell silver or gold; we represent you, the buyer, looking for affordable precious metal from honest trustworthy sources. 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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The MONEY CURE

GOLD & SILVER, GOLD AND MONEY   No comments yet

It’s unlikely you’ve heard of John Snow or the millions of lives he continues to save long after his death. Before I introduce Dr. Snow I would like to paint a picture. The year is 1848, London, and we’re living in the midst of one of the worst epidemics in human history. The only emotion left is fear as thousands lay dead, or dying, from an outbreak we now call cholera disease. Both wealthy and poor wait to die while the only hope remaining racks his brain by candlelight deep in the darkness of night. His approach to a deadly problem literally redirects the fate of every human living on earth thereafter. Finally, hope.

A death by cholera is horrid. The body literally dies from dehydration by not allowing the digestion of water. Without water our only solution is death. Today we can only imagine the anguish, of both patient and caregiver, as someone loved loses life’s battle to such a horrible disease.

I apologize for today’s morbidity but the correlation between 1848 London and today is one we cannot take lightly. Like the cholera outbreak, today’s approach to solving our monetary disease only worsens the problem.  The course taken spreads both fear and poverty because the problem solvers refuse to approach today’s monetary outbreak with John Snow insight.

Dr. Snow didn’t solve the world’s cholera problem. What this amazing doctor accomplished was the ability to disconnect a human life from the tiny bacteria carrying this infectious disease. His abstract approach, certainly abstract to the medical world of 1848, proves why knowledge is a better cure than more medicine.

Today’s monetary leaders try to fix our economic disease with more medicine, and it’s not working, In fact, like the cholera treatment circa 1848, it’s compounding the devastation. Dr. Snow realized the water source was the problem. The cholera disease found its way into humans through tainted water sources. Caregivers unknowingly worsened the dehydration problem by administering more tainted water into a cholera stricken person.

Up until Dr. Snow’s discover, the medicine was literally killing the patient.

Dr. Snow’s sewer tainted water discovery harnessed a killer, but only after a willingness to accept the medicine and disease as the same. It’s no secret today’s fiat money system spreads impoverishment across the globe. The wealthy, and elected, are the only ones truly benefiting from such fiscal insanity. All others are living in denial.

If not for Dr. Snow’s brilliance this disease would have turned London into a morgue (hundreds of thousands died as is).  Like Dr. Snow, we must immediately change our mindset, and then approach, to what most call money. No amount of dollar printing will stabilize monetary imbalance, just like no amount of tainted water could cure cholera devastation.

INDIVIDUALLY:

Each person is accountable and responsible for their own financial situation. This requires each of us to become educated, and then empowered, to redirect our monetary position in today’s money world. It is no longer enough to entrust your family’s future in traditional investment streams DOLLAR DEPENDENT.

We have entered an age of instantaneous change. Technology has forever connected the influences of the world and without the ability to adapt we are left behind. The ability to see things from tomorrow’s perspective are far more important than today’s vista. Everyone from financial planners to stock brokers have failed to change perspective, they still view “wealth stability” through yesterday’s eyes.

The good news is this leaves you. There is a money cure but like Dr. Snow’s cholera approach it is not monetarily acceptable, not yet at least. Up to this point the words silver or gold are purposely not mentioned in this article. Precious metals cannot fix the currency outbreak that engulfs us. But like Dr. Snow’s discovery….precious metals can separate our wealth from this infectious monetary disease.

 

DC Carlton is the founder of The Prospector Site and author of Why Silver and Gold Will Go Higher. If you’re looking for trustworthy PM assistance feel free to contact DC regarding his personalized consulting service. TPS doesn’t sell silver or gold, we represent you, the buyer, looking for affordable precious metal from honest trustworthy sources. 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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WHEN WILL GOLD GO HIGHER?

BUYING GOLD/SILVER, GOLD & SILVER, GOLD AND MONEY, SECURING GOLD & SILVER   No comments yet

Agitation; this is the only word I can think of that accurately describes how the gold faithful feel today. I, honestly, have no precious metal worry. My lack of reservation…… while others try to find faith in falling gold prices, comes from a confidence that gold and silver will go higher, multiple times higher. It all has to do with a chosen course of action or, better put, CONFIDENCE. Not as much a confidence in gold but a lack of confidence in dollars. Please let me take the next few hundred words to thoroughly explain.

Thanks for joining TPS (The Prospector Site) today. I really appreciate your willingness to at least test nontraditional waters thus providing a true opportunity to preserve wealth in an age of economic uncertainty. If this is your first visit let me say I am not a pessimist by any stretch. My goal is to provide a sound money education for the few willing to no longer accept monetary misunderstanding.

It is also worth mentioning I’m not a gold bug. I own silver and gold (and have for over ten years) for one reason. They are the only source of money unprintable in a fiat currency age. Let me try that one another way. Gold and silver are money and everything else folks mistakenly call money are currency. Currency is a promise, a promise based on something without true intrinsic value.

Intrinsic value confuses some folks when its meaning is quite simple. The intrinsic value of a car is the grand total of all the components & effort to build/sell the vehicle. The intrinsic value of your home is the total of concrete, land, metal, wood and skill it takes to rebuild it (Yes, I realize this value can drop below intrinsic level but such an occurrence is very rare).

The dollars in your pocket have no intrinsic value (maybe $.06 worth of paper, ink, and effort). Gold and silver have true intrinsic value, their value is the cost and effort to extract, mint, and hopefully end up in your hands.

WHY?

Why do we trust something of no real intrinsic value with a potential of infinite creation? Gold will not rise to my point of prediction until the world truly understands the value of US dollars. To better illustrated this PM (precious metal) to dollar comparison think of an antique scale with brass trays on each end; now picture dollars on one side and PMs on the other. Gold will not rise until the dollar’s mass (confidence) declines.

If this is the only thing holding gold from $5000 or $10,000 or $75,000 an ounce we must ask what, why, and when. But to answer such questions we must first answer why so many still trust the dollar – and why so few don’t. By the way, at anytime feel free to substitute the word “silver” for gold; both are real money.

If you happen to be reading this at your local coffee hangout I want you to look around. You are the 1% if you’re a real money believer. The others comfortably sipping through their day have no clue of the messy divorce that occurred when dollars vs. gold split the sheets so many years ago. Honestly, most sharing your space don’t care as long as life resembles “normalcy”.

Folks, gold and silver’s relevance hinges here, please read closely. The US Dollar and gold were once the same. At any time a dollar holder could equally exchange paper for real intrinsic gold OF EQUAL VALUE (please take another look at the picture above. Notice what’s written clearly at the bottom of the bill, “In Gold Coin Payable to the Bearer On Demand”). At such a time, our dollars were money. Today’s dollars no longer mention payable in gold because they’re not worth anything of value.

Why so many still trust dollars is simple. Those trusting do so because they continue to view dollars as money, a secure source of wealth storage, and the best means to exchange effort (work) for money. The facts prove otherwise.

This gold and dollar disconnect, or divorce, is why economies around the world are under great economic duress. This is why folks in Europe have taken to the streets under protest, this is why currencies are fighting to devalue themselves, and this is why gold and silver will rise beyond the realm of what most view as possible.

Something detrimental happened before gold and dollars divorced in the year of 1971. Most major currencies connected (pegged) to the US dollar in hopes of stabilizing the world’s economy (Bretton Woods System). The dollar made for a perfect choice since it and gold were one and the same. This is why you commonly hear the dollar referenced as the world’s reserve currency, simple enough.

Now, here is the problem. The Gold vs. Dollar divorce set the dollar adrift no longer hinged to anything of real value. This is why the dollar went from an equal value of $35 per gold ounce to now just under $1600 per gold ounce. Most individuals out earning a living today fail to see the correlation of rising gold and decline dollars. They don’t think much of it.

This misunderstanding between gold and dollars is near breaking point, not just at home but across the globe. The world’s oil trades in dollars and has since the 1970′s (petrodollars), but only one country has the power to print more dollars as they see fit, no longer limited to gold or any other monetary standard . Is it any wonder other nations without this ability to print the world’s reserve currency (dollars) are conflicted?

Our society’s ignorance, or monetary misunderstanding, hides behind a printing press and a Federal Reserve unafraid to use it.

The power of printing dollars coordinately disguises real money (gold & silver) from fake pieces of paper. Education will eventually expose such monetary trickery. Today’s gold fluctuations mean absolutely nothing in the overall picture; this is why I pay no attention to short-term PM rises or declines.

The rising costs of food and fuel will be the breaking point here in the United States. The debasement of the dollar will be the breaking point for the rest of the world. At such time, silver & gold will go higher.

QUESTION:  Thanks DC for The Prospector Site. What is my first step?

TPS Reply:  Congrats, you’ve taken your first step. Education is the key to understanding PM’s relevance in today’s monetary age. Without education silver and gold are just another one of thousands of investment options. I don’t view silver and gold as investments. I view them as a store of wealth in a worldwide currency soon to experience a demand far exceeding potential output.

Your second step is actually the question….. so let’s start there. Your local bank doesn’t sell gold or silver (not the metal I recommend), this means you will have to do a little digging to find someone trustworthy AND willing to sell physical silver or gold. As of the last 9 -12 months this is the most common question I receive here at TPS.

The art to buying physical metal should be shrouded in discretion. The less who know you own PMs the easier it is to safely store. My advice is to make a trip to your local coin shop and ask to hold an American Eagle or Canadian Maple ounce of silver. Notice how it’s heavy, tangible, and expensive compared to the dollar number written on it. This is what real wealth feels like. It may feel odd in a day of fiat paper currency but trust me, this is real wealth.

Ask your local coin shop representative the spot silver price. Then ask how much more the price for real silver… like the one in your hand. The difference is the price between paper silver and physical silver AT A MOMENT IN TIME. This price could decline before driving away, or it could appreciate too. Neither scenario has anything to do with silver’s long-term justification. Now, the next steps I recommend is to find someplace safe to store and then continue this buying pattern each month, regardless the price.

Thanks for the great question.

 

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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