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Archive for May, 2013

ARE 100 oz. SILVER BARS IN YOUR FUTURE?

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

By nature most folks willing to trade dollars for physical silver or gold do so secretively.  No fan fair, no cocktail party announcements either. The monetarily prudent simply trade fiat for the hardest asset – all while discretely living the day to day routine of life. The choice to buy large silver bars, or not, is one worth considering especially as we near an imminent point of silver rationing and pending internet trade taxation. Both rationing and the inevitable taxation on all e-commerce will change the what, where, and why of physical silver.

Today’s physical silver world remains a great maze of mystic confusion for those new to precious metal. By far, most newbies entrust what they buy, silver speaking, to a complete stranger who just happens to be a person selling PM (precious metal) and next in line. The conversations vary but the result is always the same. The precious metal illiterate (no disrespect intended) buy whatever the PM sales representative recommends.

TPS doesn’t “tell” folks what to buy, nor do I offer pinpoint financial advice either. My goal is one of monetary education because someone educated rarely fall victim to manipulation or bias opinion. Honestly, I can tell this annoys some of my readers by proof of emails asking for more specific advice on what to buy and how much. My opinion is that no one person walking the earth today can accurately predict the how much and when of precious metal, especially considering the monetary intervention that clouds all assets.

For this reason alone I recommend we stick to the facts. The fact is silver’s value will rise (sorry, I don’t know when) as more individuals realize printing dollars only benefits the super wealthy and political psychopaths of the world. This inevitable awakening is one we often discuss here at TPS. Combine such an awakening to a truly limited supply of precious metal and it’s easy to see why metal values can do nothing but rise beyond the expectations of most who understand some, or nothing, about monetary truths.

A larger than typical hunk of silver is an interesting storage of wealth. It is much more than a bar of silver. Some view bars of silver as bulky and heavy when actually such a formation of money is nothing more than a huge stack of $100 bills repellant against the ills of a fiat age. Those willing to buy large bars of silver enjoy the fulfillment of buying physical silver within 5% of spot. For comparison’s sake, a legal tender one ounce bullion coin will cost its owner a premium 20 to 35% beyond silver’s spot value.

This savings is undeniable, but not reason enough to exclusively own large silver bars. Such a large hunk of silver has its benefits but still might not be the right silver for you.

It’s a natural tendency for humans to picture the future in now terms. By example, my son graduates from high school today and merely weeks away from leaving home for the first time. But in my mind I can’t grasp a future with him living anywhere but where he’s always lived. Some of us view silver similarly not realizing someday silver’s value could rise hundreds of dollars beyond today’s dollar assessment. The divisibility issue in such an age will complicate trading such a large hunk of real currency.

For this reason alone I offer this PM advice. Consider storing some silver in smaller denominations; like one ounce bars, rounds, or bullion, exactly as you would a $20, $50, or $100 bill. Then, view a larger bar of silver (like a 100 oz. bar) as you would a savings account or long-term storage of wealth. Silver is a true source of liquidity but not necessary a divisible source simultaneously.

Please consider bar size just another thing to keep in mind as folks consider adding physical silver as part of self-reliant lifestyle.

QUESTION:  An acquaintance used your consulting service and something you recommended for them to consider I find confusing. You recommended they purchase one ounce silver bullion even though they will pay far more than a larger bar premium. Why would you recommend something that will land them less silver by paying more money?

TPS Reply:  Great question so thanks for asking. There are many folks who receive the same recommendation, from me, to buy silver ounce offerings over larger bars. This recommendation is 100% based on an individual’s financial situation and long-term monetary plan far more than my personal preference.

I don’t like the idea of acquiring large silver or gold bars until after securing one-ounce legal tender coins or rounds. We live in an age of great monetary volatility and uncertainty…… even though few are willing to admit it. If September of 2008 proved anything it was just how quickly a life dependent on a fragile banking/Wall Street world can turn upside down. Your ability to store real wealth within arm’s reach is not only prudent but necessary. Small silver, in physical form, will always be a universal source of money.

The truth is the majority of folks new to silver will never afford anything but single ounce form of precious metal. As silver rises, some will find themselves limited to 1/2 silver offerings as they struggle just to make ends meet. There will always be a market for large silver bars but nothing close to the secondary demand for one ounce silver. With that said, the option to melt larger bars into smaller ones will always exist as a way to divide such a large store of wealth.

I have no crystal ball but if I had to guess here it is. My bet is large bars will be the last to go as demand erases silver inventory. The first to vanish will be recognizable single ounce bullion or rounds even though the additional premium when compared to larger bars. Why not buy one ounce form while the option still sits on the table? Thanks for the question.

COMMENT: Silver prices are taking a beating lately all while the stock market roars to new highs. This only proves most Americans will trust the US dollar over silver when times are tough.

TPS Reply:  Thanks for sharing your comment. The DOW is on fire, this is undeniable even to those religiously respectful of silver and gold’s future as real money. Short-term speaking, a rising DOW along with declining silver puts PM writers in the far corner of credibility. This writer loses not one minute’s sleep since the long-term outlook for PM is stronger than ever before. The crowd is not an indicator of prudent monetary action.

You’re also correct with your analysis of Americans running toward the USD when time are tough, but. Long investor lines are not reason alone to join the dollar bandwagon. Do you recall the long lines during the Dot.com bubble burst? What about the long line of suckers waiting to buy overpriced housing just before the bubble burst, too?

The one word in your comment that jumps out most to me is trust. Folks continue to trust the US dollar because it is the world’s most overproduced currency. The FED camouflages the dollar’s weakness by printing record levels of supporting currency. This illusion tricks those trusting the dollar to spend, borrow, and fail to recognize such a way of life has a temporary shelf life. I hate to imagine the chaos when dollar investors around the world realize its very existence is in the hands of a government trillions of dollars in debt.

I think I’ll keep stacking silver regardless how low it drops or how high it soars, thanks.

 

DC Carlton is founder of The Prospector Site and author of the Amazon Kindle #1 Bestsellers Why Silver and Gold Will Go Higher and Storing Silver & Gold. 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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WILL THE IRS TARGET PHYSICAL GOLD & SILVER?

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

So by their admission it appears the IRS has decided to pick who to pick on. Some, even the media, are outraged over such one-sided abuse but in my opinion most reporting the news have entirely missed the message. The back story here goes well beyond the IRS picking conservatively based groups to audit or postpone as a tax free worthy entity. The real message here is capital control and the price you will pay when you question the motive of an overreaching government who can no longer sustain itself within the constraints of our country’s constitution. Please add IRS overreach as yet one more reason to store your wealth in precious metal.


Storing wealth in physical precious metal is not 100% risk free. It is possible someone could steal what you’ve worked so hard to amass leaving you with no choice other than to start all over. But such a risk is very low and I say this only after countless hours researching the best methods to store silver and gold, both domestically and internationally. I cannot say the same for wealth stored within the reach of an overbearing IRS.

The ability to buy and physically own precious metal is one far too many fail to capitalize on considering the volatile age we live. Right now, a person in the United States can legally trade dollars for silver, or gold, without reporting this exchange to a governmental agency (a few exceptions exist so use due diligence). PM advocates often refer to this privilege as the last frontier of wealth storage. I know of no other asset with the same discretionary capability but this window of opportunity is closing as you read these words today.

To argue if metal prices will rise or fall, short-term speaking, is redundant in my opinion considering the discretionary benefits of physical PM.

While some view the latest PM price take down with frustration….. I view it differently. Paper silver at $22, and gold in the $1300ish, help preserve precious metal as an irrelevant asset even as the world disguises our silent depression with denial and printed currency. Think of this PM obscurity as a postponement with a short shelf life.

There is no chance the IRS will not target physical PM in days to come. In fact, no asset worthy of storing wealth has a snowball’s chance of not paying a “fair share” as determined by an ever-growing IRS. For the record, the fair share scale and the ability to print currency are the only reasons a government grows beyond the comfort of her people. The IRS is the monetary enforcer of such a time of governmental overreach.

As a precious metal advocate you have one huge advantage over the pinpoint overreach that fills our news today; your PM currency is not only irrelevant it’s also universally discrete.  But our digital age in a land of artificial currency will eventually pressure those trading physical silver or gold into a corner of regulation. At such time I see much less value in trading dollars for silver or gold.

So, where does this leave you as an individual willing to play by the rules as long as regulation and taxation stays within the parameter of reasonable? My advice is to not underestimate the power of the only governmental agency running a profit (how can the IRS not be profitable?). I’m also not an advocate of letting intimidation limit the one monetary step that will sustain not only a level of wealth but also a higher standard of personal independence. Keep discretely stacking physical silver and gold.

QUESTION:  I still don’t see it, sorry. Why buy silver or gold when precious metal prices are vulnerable to volatility far beyond a rising DOW, real estate, etc? Is this a fear thing that drives physical demand when real metal prices have dropped like a rock? I just don’t get it.

TPS Reply:  Thanks for expressing your view. You’re correct, the DJIA is up, year to date, somewhere around 16% while paper silver and gold are significantly down over the same time period. If we’re to judge asset worthiness using one spot in time then the DOW appears the winner. I, personally, refuse to place my wealth motivated by such shortsightedness; here is why.

The reason to trade dollars for precious metal has little to do with silver or gold. The disease is debt and the carrier of the disease is the US dollar, all while other currencies feverishly print themselves worthless, too. Hard assets, like PM, are nothing more than monetary lifeboats willing to transport the few who truly understand the significance of our age. Too many, maybe you, are focused on PM justification without recognizing the monetary epidemic at hand. Growing global debt combined with worldwide currency debasement will consume a large part of the world’s wealth.

I won’t argue with your fear observation. Folks are scared, and they’re growing reasons to be concerned. But I don’t recommend making monetary decisions based on fear, not during such important times like today. Fear can spark the flame but education and prudence is the reason demand for physical metal (not paper) has grown beyond silver and gold output. Thanks for the comment and questions.

QUESTION:  Want to read your books but I don’t have a Kindle reader. When will they be available in paper book form?

TPS Reply:  Thanks for asking. The plan is to combine both digital books into one paper version ASAP. The wheels turn slowly in the publishing world so I apologize for the delay, but will do whatever I can to speed things up. Until then, please remember some tablets will recognize digital books since the e-book industry is the most affordable way to read newly released books. Thanks to all readers for making both books included on Amazon’s #1 bestseller list.

QUESTION:  Will you agree that the secondary PM market carries far more risk than buying directly from a metal dealer? Why pay more for the risk, in my opinion? (TPS – several readers asked a similar question so I took the liberty to edit)

TPS Reply: Absolutely I agree. As long as an individual can buy from a reputable dealer then do so. But the problem is that such availability is very limited and worldwide PM demand is rapidly expanding (all while Americans enjoy the illusion of economic recovery yet question affordable silver and gold). Maybe I should take some space to better illustrate how limited today’s supply of physical silver and gold.

Silver and gold dealers (sources) are growing in numbers all across the world. Never in modern history have this many folks had the opportunity to own precious metal, this is good. But even as sources to buy PM grow output doesn’t. Mints can only process the metal after it’s clawed from the earth and this output is nowhere close to meeting our world’s growing demand for the one true universal worldwide currency. A million PM sources all buy from a handful of PM wholesalers.

Resurrecting scrap metal helps fill this growing supply-to-demand gap but it’s unrealistic to believe this will have a long-lasting impact. Combine India’s thirst for gold jewelry (they view gold as displayable wealth), and it’s easy to see why the world’s demand for PM goes far beyond bullion, bars, rounds, scrap, or junk metal – not to forget industrial usage too.

Back to your comment/question. The secondary market from here forward will become a dirty way to trade precious metal. To better illustrate, compare a reputable PM dealer to Costco and a growing secondary PM market to an outdoor flea market in Mexico City. Continue to buy from a local reputable coin shop or bullion dealer/broker as long as possible. Thanks for the great question.

BERNANKE WATCH:

The most powerful man on the earth’s surface is worried over inflation, but not from the same viewpoint you’re imagining. It appears inflation is too low for the FED and this is causing great concern (1.3%). But John Williams (ShadowStats) has inflation teetering around 8.7% leaving the other 99.99% of us asking who the heck is telling the truth.

No person buying their own groceries or filling the gas tank honestly believes the threat of “lower than expected inflationary numbers”. It appears that items of necessity are rising, rapidly I might add, while things not so necessary are stagnate or declining. This is a perfectly natural occurrence as households harness unnecessary spending by way of belt tightening.

Free thinkers really don’t need ShadowStats, the CPI, or Bernanke to tell us when costs are rising. The proof we need is as close as our most recent bank statement.

 

DC Carlton is founder of The Prospector Site and author of the Amazon Kindle #1 Bestseller Why Silver and Gold Will Go Higher and Storing Silver & Gold. 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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WILL OUR ECONOMY “COLLAPSE”?

BUYING GOLD/SILVER, GOLD/SILVER COINS   No comments yet

Not a day passes without a prognosticator preaching economic and financial ruin. Such a dire prediction stirs fear in the hearts of some yet supports a state of denial for others. Personally, I don’t believe in the school of economic collapse, at least not in the typical sense we so often read of. I believe the economy is and will continue a course of correction. Now, let me be perfectly clear. This correction could potentially feel like collapse since far too many are socially, spiritually, individually, and economically prepared for anything other than a stereotypical state of normal.

I blame a government that refuses to instill individual responsibility, promotes institutionalization, and….. in some cases – a cradle to grave dependency for such widespread inaction. Unfortunately, physical silver or gold isn’t even on the radar of our ill prepared.

The correction each must recognize affects us individually, and in many ways. Far too many have made the prudent step to buy physical PM (precious metal) but are at risk of becoming a short-term PM seller stemming from a lack of overall preparedness. In other words, they will sell their metal, to continue living a life of normalcy, just when they most need PM. This could come from desperation or it could come from monetary ignorance; it’s just too soon to tell .

The collapse (as most put it) is happening as you read this….. all in slow motion. Ask the man on the street and they will quickly point out a lack of good paying jobs. Ask a banker and they will say the problem is a lack of credit. Ask a politician and they will lay blame on the opposing party or a previous administration. The fact is all the above are 100% correct, but this does nothing to help our situation.

Nothing will stop today’s course of correction because too few are willing to acknowledge the destructive nature of overpopulating a currency. This neglect is building into a monetary civil war within the United States. The type of person willing to trade dollars for PM suffers great anxiety by living in a country that is no longer willing to address our economic challenges with rationality. This is why we’re reading about states proposing legislation in hopes of creating an alternative currency (Utah, Arizona, etc).

Our country has far more to lose from conflict than economic collapse. A divided nation is vulnerable from within, vulnerable from afar, and everything between. Why else is it so many folks like you view PM as the get-out-of-Dodge-card? Wealth stored within physical silver or gold provides an option, or luxury, most will never realize. In my opinion we are well beyond asking “if” our economy will collapse.

What now?

Without fail there is one common question asked when I consult with folks about buying and storing precious metal. They all ask if there is anything else they should be buying or doing other than whatever it is they are actively “doing”. These folks fail to recognize that they’re miles ahead of 99% of all other Americans, politicians, financial planners, economic advisers, accountants, etc. This is what a call the “what now” syndrome.

I’m convinced that a person willing to make the effort to buy physical PM has what it takes to answer the what now on an individual basis. Since you’re reading this post I congratulate you and your ability to actively pursue a personal stake of individuality in a day of complacency. Your next what now could be a career change or it could be relocating where your family calls home. Your next what now could be the start of a plan that includes internationalizing your wealth or it could lead to internationalizing where you live.

Four years ago, my what now led me to relocate my family from a high taxation state to a less populated  and more independently minded fly-over state. Over ten years ago my what now led me to trade dollars for physical gold. The what now inside you could lead to gardening, reloading, campaigning, prospecting, serving, fasting, start-up business, downsized business, who knows? Whatever your what now is please remember this. Owning precious metal should be the monetary foundation of a life commitment to self reliance so that compromise is never a word atop of your to do list.

Let everyone else worry about economic collapse while you focus on reality.

QUESTION:  DC, last week we found out some silver American Eagles circulating around the US and Canada is actually counterfeit reproductions made in China. What steps can a small silver investor like me do to safeguard against fake bullion? Thanks for your work at TPS.

TPS Reply:  Thanks for the worthwhile question. The silver counterfeiting you mention has me greatly concerned for many reasons. Far too many folks view silver with skepticism, this news will only compound the level of silver confusion. It’s easy to say the odds of buying fake silver are low but very real for the few who actually find themselves as the unlucky few.

As silver inventories shrink the benefits of counterfeiting will rise. If crooks are willing to counterfeit legal tender this leads me to believe counterfeit (silver) bars and rounds is a bigger problem than anyone would like to believe. I view this as even more reason to buy from reputable sources who will stand behind every single ounce sold.

The fake silver problem will worsen as the secondary silver market grows because the secondary market is much less regulated, not to mention limitless. As of May 2013, I see no reason to buy fake bullion since the majority of silver sold transfers directly from the mint to the end user (you). I will admit such an opportunity is growing short as demand for silver bullion outpaces output.

I encourage each silver buyer to educate themselves on the sounds and feel of real metal. Real silver bullion is impossible to replicate if a buyer takes the time to look beyond appearance. Feel free to contact TPS for a list of reliable silver sources if you have any doubt.

QUESTION:  Are you buying silver rounds too?

TPS Reply:  Thanks for the tiny question. No, I’m not buying rounds at this time but I will as soon as legal tender bullion supplies dwindle to the point of what I feel are reasonably priced. Silver rounds usually cost less than legal tender coins; this is because anyone can legally mint a silver round. Some private mints will accept your larger silver bars and then melt (mint) the large bars into one ounce bullion, very cool. The fee for this service is minimal compared to attempting to sell a huge hunk of silver.

I like to buy recognizable silver when possible. Also, legal tender bullion will not trigger an IRS notification when a buyer sells bullion back to a PM dealer (please use due diligence since tax laws change quickly).

This doesn’t mean I wouldn’t but silver rounds, just not at this time. Thanks again for the question.

 

DC Carlton is founder of The Prospector Site and author of the Amazon Kindle #1 Bestseller Why Silver and Gold Will Go Higher and Storing Silver & Gold. 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 SILVER PRICE MYSTERY

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

Most folks completely misunderstand today’s silver market. Even more are unaware of the disconnect between physical metal and the highly leveraged paper promises, most commonly traded, thanks to large investment banks and bullion dealers. Oh sure, they believe silver’s spot offering (price) is relatively close to the physical silver market…… but they are mistaken (today we will prove just how unfortunate this is playing out to be). The PM crash in April of 2013 disrupted, maybe added is a better description, an alternative buying option, but this new option does come with a hefty price. If you’re one of the many silver hopefuls, and looking for immediate silver possession, please read today’s post closely. With that, welcome to the mysterious world of secondhand silver.

Lake Tahoe is one of the most unique lakes in North America. With 72 miles of shoreline and a depth of over 1600 feet, Lake Tahoe also has one other very unique characteristic. Although invisible to the eye, a state boundary runs through the middle of Lake Tahoe. Both California and Nevada lay claim to the pride of the Sierra Nevada mountain range.

Today’s silver market reminds this writer of Lake Tahoe because it too has an invisible barrier. The line between online physical silver for sale compared to cash-n-carry physical silver is now obvious. Let me explain it like this. A silver order placed today could take a month or longer to reach a nervous silver buyer; but an in-person silver transaction is immediate. The latter option is one our industry often calls the secondhand PM (precious metal) market.

Over 90% of the world’s investors view the price of silver in a paper dimension, as aforementioned. They see silver’s recent decline and say, “Thank goodness I didn’t invest in silver”, but not realizing paper silver is running a distant third in the great PM race of 2013. To expand this racing analogy, online physical silver (silver available to purchase but weeks or months until deliverable) is running a respectable second position.

Our silver runner in first place is our focus today. This, of course, includes all physical silver available in real time AND held by some entity willing to sell. The list shown below illustrates the mysterious three silver options of ownership priced in one ounce bullion.

1.  Paper silver. $24.00
2.  Online physical silver (back-ordered). $30.00
3.  On-demand secondhand physical silver. $34 – $37

No one knows when but it’s almost a sure bet that someday very soon silver buyers will have no other option than secondhand silver (most costly of all silver offerings) or speculate within the paper PM market. Sure some buyers will win the silver lottery with a limited opportunity to buy rationed online silver (Blanchard, Miles Franklin, Colorado Gold, etc) but this certainly will not be the norm. What will be normal is the realization of paying what the few willing to sell will accept.

It’s impossible to accurately estimate the additional premium for future secondhand silver. If I must, I would guess the secondhand silver market will soon escalate to a 100% premium over spot (or paper value) and then eventually reach a constant somewhere around 500% to 1000%, over silver’s spot offering, just as our economy reaches the epicenter of economic correction. I only base this estimation on the similarity between 2008s silver market to today’s – realizing the world’s fiat currencies then are nowhere close to today’s level of printing.

Please take one more glance at the three options listed above because 99% of the folks contemplating silver, but yet to own any, STILL BELIEVE THEY CAN PURCHASE AN UNLIMITED AMOUNT OF PHYSICAL SILVER FOR $24 PER OUNCE. This miscalculation will become more costly from here forward.

Precious metals are an unsolvable mystery. Today’s economic and political actions affect tomorrow’s silver availability. Then, a limited availability affects, or drives up, the price of physical silver. What affects the price of physical silver the least is paper silver. If you’re relatively new to silver please pay particularly close attention to the next sentence or two. The price of secondhand silver is worth it ESPECIALLY if new to physical silver. After some accumulation it is perfectly okay to purchase online physical metal (back ordered as I write this) while patiently waiting for its arrival.

QUESTION:  A large standup style safe will not work under my PM storage situation. Do you recommend using a bank box or passive method of storage in such a case? Thanks.

TPS Reply:  Not exactly but thanks for the question. My view of a secure PM storage plan includes using up to three storage options. I believe in taking a proactive approach to PM storage by thinking like a thief who is willing to part you from your metal. Most individuals storing silver and gold think in one dimension and this greatly concerns me. The right PM storage plan really does come down to each individual’s situation.

I recommend storing at least 1/3 of your PM within arm’s reach. This 1/3 can be stored many ways and a standup safe is one of but several options I recommend in Storing Silver & Gold. For less than $200 a security minded individual can purchase, and install, a compact safe perfect for securing what you’ve worked hard to amass (please check out Costco.com).

Bank boxes serve a limited purpose and I only recommend this storage option during extended travel or for the elderly uncomfortable with personally securing something like PMs within the home. BTW, don’t forget to insure all of your PM regardless how or where it’s stored. Thanks for the question and reading TPS.

COMMENT: Continuing to read and enjoy the straightforward approach at TPS.  I’m recommending TPS to anyone waking up to reality and wondering what is going on economically and how to protect themselves.

TPS Reply: Great, thanks for the recommendation. You mentioned something that caught my eye regarding protection. This really is about protection in an age when preservation is so important. So many complain about today’s fiscal insanity and all the economic and social volatility that accompanies such an age but few actually make a personal attempt to insulate themselves when possible.

I see the option to protect by way of PM as a closing window; even silver will soon become either too expensive for most or flat out unavailable. This is why I’m beating the PM drum ever so loudly while we still have choices to transfer our personal wealth beyond traditional avenues exposed to heavy taxation and capital controls.

Looking back……. I made a few PM mistakes by not knowing the best metal to buy and from whom. But each miscue led me to a new monetary understanding that now allows me to think for myself. My hope is each reader spending precious time with TPS develops this same understanding as well. Thanks for the comment.

BERNANKE WATCH:

The world’s most powerful man continues to tease our media with hints of slowing the printing pace, but those trusting PM know this is only lip service.  Unfortunately, our press repeats such nonsense without verification (see the quote below). Central bankers now realize economies worldwide depend on currency counterfeiting just to sustain today’s level of a failed economy AND support the millions who depend on some form of government assistance to live. There is zero chance quantitative easing will end anytime soon.

“A bigger-than-expected rise in tax receipts to Washington has improved the U.S. fiscal outlook, and the Treasury and private analysts have been taken by surprise by how quickly the deficit is shrinking. Belt tightening in the wake of the series of mandatory budget cuts worth $85 billion – known as the “sequester” – could further reduce federal borrowing needs if it doesn’t inflict lasting damage to the economy”.  Reuters May 2, 2013.

A bigger-than-expected rise in tax receipts is only beneficial under fiscal restraint. The latest housing boom, and then bust, provided both record levels of tax receipts and a continuance of record deficit borrowing. This means in good times or bad, the size of government grows regardless. Does anyone really believe a reduction in government spending will happen voluntarily or redirect government to live within their means?

Everything from funding pensions to printing food stamps now depends on the next level of debt creation to sustain itself. The thought of reducing debt, or a reduction in currency printing, is no longer an option. This fact alone will continue to create adverse economic conditions and cause PM prices to rise beyond what even the PM faithful can imagine.

 

DC Carlton is founder of The Prospector Site and author of the Amazon Kindle #1 Bestseller Why Silver and Gold Will Go Higher and Storing Silver & Gold. 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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