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WHY PRECIOUS METAL HAS ME WORRIED

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

Our physical silver and gold market is in a precarious position…… and this worries me. The great paper PM (precious metal) sell-off of 2013 started in April and showing little signs of reprieve as June fades into July. The hard asset faithful patiently wait for a bottom all while questioning the wisdom of owning physical silver or gold. All this while today’s media wastes little time casting disparaging remarks for those practicing sound money practices and prudence. Even with all the aforementioned, this is not why precious metal has me worried.

Thank you so much for joining TPS (The Prospector Site). This post, like the hundreds before, is all about translating monetary fact from fiction, sound money from paper promises. I have no doubt our world of financial rhetoric confuses many, maybe most. Hopefully we can clear the air of confusion that clouds the judgments of so many.

Even though the US Mint will sell more Silver Eagles in 2013 than any year prior, our physical silver market is on the ropes. Demand for silver is great but nowhere near equal to today’s level of economic turbulence and fiat uncertainty.  The great alternative currency experiment is nearing an end.

The PM volatility we’re experiencing as you read this is beyond the expectation of this writer. Honestly, I expected to see paper silver, and gold, dip but did not expect physical PMs would follow in such waterfall fashion. It’s easy for me to say prices will stabilize, then rise, because I understand the equilibrium between inflation (consumer prices) and physical PM.

After all, it was only after abandoning the gold standard we realized a rapid rise in consumer prices. The many decades before realized little, or only slight, inflation because the ability to print fiat did not exist. From Egypt to Brazil, the conflicts we see today are all a derivative of fiat currencies out of control.

Why I’m concerned:

Let’s take a closer look at this from a businessman’s viewpoint. A business expands as demand generates profit. This includes leasing or buying more equipment and space, growing a workforce, and so on. The goal is to generate enough product or service to match the market’s pace and trend. Simple enough I’m sure you will agree?

Today’s companies in the PM exploration and mining industry are in great trouble. Mining stock is in far greater decline than paper or physical PMs, even with rising worldwide demand. Why you ask? Because an ounce of real metal sells for less than the tangible cost to extract PM from the ground.

A company in the mining business doesn’t view silver or gold as a safe haven. They view PM as an avenue of business growth and profitability. The problem is we have reached a price point to where the return is not worth the investment, not to mention risk.

Each person considering owning physical silver or gold should expect to see an interruption in precious metal availability sometime in the near future.

The mining industry has yet another problem, as well. Today’s environmental challenges are complex and litigation is extremely expensive. Each passing day brings the threat of yet another environmental related regulation that requires new or updated compliance. It is only worth fighting through such regulation if the trouble equals profitability.

This tandem threat, environmentally motivated regulation and lack of profitability, is far more concerning than a temporary waterfall drop in PM prices. A mining bust will not return to a boom overnight, regardless if PM prices rise in the meantime.

TORONTO, June 24 (Reuters) – Barrick Gold Corp will lay off about 30 percent of corporate staff at its headquarters in Toronto and in other offices in a downsizing plan triggered by problems at major mines and a drop in the price of gold. Read it here.

So what does this mean for those of us living outside the complex world of PM mining? It means a growing market of PM buyers will soon compete for smaller piece of the pie. If current PM physical demand weren’t as great I would say declining output is in nature order, but this is not the case.

The collapse within the paper silver and gold market has caused adverse effects far beyond what most comprehend. Please take a moment to read the Q & A segment if you’re contemplating adding more metal to your PM stack.

QUESTION: DC, are you buying now?

TPS Reply: Thanks for the tiny question. My answer is “no”. I’ve suspended my purchasing plan until prices stabilize because I refuse to buy new metal only to watch prices free-fall soon after. Remember, this is all about ounces….. not price. If I can buy more ounces tomorrow with the same amount of money then why buy now?

I’m not a financial adviser, this means I’m speaking for myself and each reader can take it for what’s worth. I do offer consultation for those who’ve made their mind up to buy metal but want to make sure they’re buying the best metal possible, at the lowest price, but from a reputable source.

It’s easy for me to suspend my purchasing plan because I’m already PM protected. I own both physical gold and silver; my PM plan is on cruise control. Please don’t confuse my temporary action as a loss of PM faith, far from it.

If I were yet to own physical silver or gold I would buy immediately, regardless of today’s PM market volatility. Who knows when the economic shoe could drop leading to an overnight depletion of an already thin inventory of PM?

I will resume buying physical PM when prices stabilize, not before. Thanks for the question.

QUESTION: After reading Storing Silver & Gold I would like to add my two cents. I’m looking to purchase a standup style safe but a little conflicted over investing money for a block of iron when I could invest the same money into PMs. Right now a $1000 will buy a couple rolls of silver bullion!!! What about a compact safe instead? What is your opinion on PVC storage?(edited)

TPS Reply:  Thanks for the comment and question, as well as making the effort to properly store your PM. You’re correct, a thousand bucks will buy a substantial amount of bullion these days, but. Someday soon this silver will rise in value and your ability to safely store this stash is imperative in order to protect your family’s financial future (this is the goal, right?).

I’m not against using a compact style safe, depending on the situation, but prefer something weightier and less mobile. The important issue here is how it’s mounted more than size itself. Regardless, insure the safe’s contents just in case the unlikely worst-case scenario happens to you (the book’s last chapter provides private PM insurance information).

Also, you must consider that money spent on a good safe is also an investment; investing a $1000 bucks for peace of mind sounds very reasonable to me when we view such an expenditure as an asset, too. Since you read my book then you also realize safe manufactures, like Liberty Safe, can’t keep pace with consumer demand. I doubt this trend will do anything but compound – especially when we have an administration taunting gun control.

Now let’s discuss PVC storage. For those who are unfamiliar, storing PM inside a buried section of large diameter PVC pipe is extremely effective. This process includes capping each end to ensure all contents stay dry and airtight. The PVC section is usually buried vertically just long and deep enough to allow access as needed. My only concern with storing metal buried in the ground is who will know where to look if something were to happen to you? Be sure to let someone trusted know of your PVC storage plan.

Thanks for the comment and questions.

 

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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PM FREEFALL: What should you do?

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

Are you losing faith in physical silver? The question I hear most is “why”. Why are precious metal prices dropping when all the fundamentals are in place for it to rise? International economic volatility, threat of regional wars turning worldly, a flood of paper currency; the list is long and growing. The answer, my friends, is obvious, yet concerning, and the topic of today’s post.

It is unfortunate that we invest so much time, effort, and space in order to justify the only tried and true worldwide currency.  I agree, it’s impossible to ignore such  volatile erosion as we’ve witnessed over the last few months. No doubt this decline is disheartening to those new to PM (precious metal). For this reason alone we’ll invest time and space in hopes of answering why silver is dropping, should you buy now, and when silver will rise again.

Anyone with $11,700 can buy 500 ounces of American Silver Eagle bullion and have it shipped to their door (or local USPS). Comparing today’s silver offering to March 2011 is astonishing, to say the least. I founded TPS (The Prospector Site) in 2011 when the same 500 bullion ounces sold for over $21,000…… crazy! Precious metal experts, who coincidentally also pedal bullion related assets, can spin it anyway they desire but the loss, at least at this point, is very real.

In Why Silver & Gold Will Go Higher I expose the mystery behind silver and gold’s true value. Each coin in existence has literally two sides, value speaking. The first side is intrinsic, or has inherit value. The intrinsic value includes the grand total of effort to mine, mint, and distribute each PM ounce. No different than the land, concrete, lumber, wire, roofing and labor value it takes to build a home or an apartment.

The second side of a metal coin offers value too, but this value is much more subjective than the intrinsic counter side. This side is all about demand, nothing more. If demand raises so does the coin’s value. If demand declines well, I guess, today’s PM market is the best proof as we all watch silver/gold retreat.

So how can prices fall if demand for physical metal is up? After all, today’s PM peddlers and experts talk little other than how worldwide demand for PM is through the roof, right? If true, then why has gold declined from just under $1800 to less than $1300 per volatile ounce? The answer to these questions goes far beyond the paper manipulation argument so commonly made by the PM faithful.

PM manipulation?

The words “manipulation” and “precious metal” play over and over again reminding us of a late-night HBO movie. You’ve undoubtedly read countless articles – written by PM aficionados – that repeatedly prove how PMs fall victim to Wall Street entities like JP Morgan and other “cartel”. I have no doubt Wall Street giants work the PM system but this doesn’t explain why physical precious metal is falling.

Physical silver and gold are in decline because PM can’t compete with today’s level of money printing. Never before are so many currencies simultaneously committed to printing fiat in order to appease a rising tide of concern. This printing offers a false sense of financial security, built on a foundation of debt, which only temporarily relieves the inevitable correction soon to fall upon each of us. Nevertheless, printing money to artificially support handpicked assets hasn’t bode well for gold holders.

Never underestimate the power to create currency (money).

It is only because of FED support that giant banking institutions (the same who manipulate silver and gold to their advantage) even exist. Remember, these giant Wall Street banking institutions should have disappeared September 2008, and would have if not for the biggest bailout in US history. Organic assets like precious metal cannot compete, not while we have an administration and financial structure hell-bent on picking winners, and therefor losers too.

What to do?

With a deep breath we must ask ourselves, as PM faithful, what to do. Obviously, we can’t fight the billion dollar status quo toe to toe. Nonstop bitching won’t help either. Far too many promote staying the PM course but with silver $19ish and gold $1200ish I for one no longer support, at least without question, staying a course that hasn’t worked for some time now.

I own both silver and gold and have for many years. But if I were new to PM, and didn’t own physical, I would buy some now, just in case something black swanish happened in the near future, but keep most powder dry until prices stabilize. But for those looking to add more physical I’m not so sure I’d be in a big hurry to stack more, not with such PM volatility. Here is why.

Folks have lost faith in PM. This hasn’t helped support prices in the least. Eventually low metal prices will discourage mining output and this disruption will dry metal inventories. I truly thought demand alone would vaporize such a limited inventory of PM but this isn’t the case. When miners can no longer profit they will decrease output. A decreased output of physical metal will do more to separate physical from paper than anything else I know. At such a time, physical metal premiums will rise regardless of Wall Street’s paper party.

We must put the age we’re living in context. From the $50k car we drive to the $500k homes we live, they all hold value only because of manipulation thanks to the power to print. This debt won’t and can’t last forever. Eventually something will sever the ability to print and at such time physical PMs will find equilibrium of true value and worth. I base this on history far over my opinion. Not one person walking this earth knows when the fiat printing will cease or no longer work thanks to inflation.

QUESTION: DC. I enjoy and value comments and reply of TPS. I recently overheard a conversation in our local coin shop – ” nobody has any silver” – ” there is a serious shortage of silver” – “silver is constricted” – ” the mints can’t get the raw material” – surely some “PAC MAN” monster didn’t consume all the silver that was out there not TOO long ago.

With spot being 20ish it seems more likely there is a lot of holding and hoarding going on, also I have recently purchased a few MONSTER boxes, so those ASE’s are available with considerable discount from months past. What’s keeping silver at 20ish? Is intervention and manipulation that controlling? I don’t question that silver is suppressed, my question IS WHY and by WHOM. Based on your experience and expertise, how constricted do you think DEALER or secondhand supply will be when silver is $100ish? Also, would you care to guesstimate when $100ish silver will be probable rather than possible?

TPS Reply:  Ah, the questions of when and how much. First, thanks for the great questions. I realize you’ve made a substantial PM investment and certainly have earned the right to ask “why”. For what’s worth……. my long-term PM opinion finds deeper validation with each passing day. In the meantime, PM is as volatile as I’ve seen them.

Let’s dive into your questions. Those selling PM are no different from anyone else selling anything else. Demand is an emotion. If a seller can convince a potential buyer that demand is high, and inventories low, then this potential buyer is more likely to buy. I have no doubt inventories are low but physical silver is still readily available, without a long wait time I should add.

Far too often we hear about a Chinese thirst for PM. Recently a photo of an alleged crowd of 10,000 aligned buyers has circulated the internet all hoping to buy physical gold or silver. I’m not buying it. I’ve done business in China and can tell you for a fact that the Chinese play their cards close to the vest. Sure, the Chinese are buying PM but the truth is this public option has only existed for a few years. Up until recently a Chinese citizen could be imprisoned for buying or possessing physical PM.

The Chinese have but one motive. Their plan is to hoard enough metal to reestablish a gold-backed currency, and this is exactly what they will do. Can you imagine the offering for physical metal when the yuan unseats the USD as a world reserve currency? The one Chinese question still unanswered is will the Chinese have to sell their gold if and when their economy corrects and how will this affect their reserve currency plan? My guess is the Chinese government will confiscate private gold/silver holdings sometime over this decade, just my opinion.

You asked about who is manipulating metal and why. This manipulation is about Wall Street profit more than anything PM personal. For Wall Street, it’s all about making money and few care who is hurt along the way. Our financial system is run by distrustful thugs with little integrity or concern over the hardworking fabric of America.  Central banks benefit, monetarily, and enjoy nothing more than watching a competing currency, like silver and gold, decline. Again, never underestimate the power to print money or those willing to manipulate such power for personal gain.

The true injustice, or risk, of falling metal prices is not a loss of wealth. It is a loss of ounces that concerns me most. When a PM buyer pays more than necessary, because prices drop soon after, this inhibits the ability to buy more ounces for the same dollar exchange. In the long run all PM owners will appreciate such monetary prudence, but this doesn’t help over the short term.

When will we see $100ish silver is like asking when hot water will boil. Silver rising will happen only after the US dollar index declines. The world still invests in the USD and will right up till the point they won’t. Only after the dollar loses trust will silver see $100, then $200, then? I would hate to be shopping for my first physical silver at such an age. Look for the secondary PM market to swallow today’s dealer/broker trade as soon as metal prices rebound.

I was once asked who should buy (own) physical silver or gold. My answer, the best person is the one who buys metal, stores it away, and then lives life like PM never existed. It’s hard to do, for some, but over-analyzing PM will drive a person to drink; we’re living in interesting times no doubt. Thanks for email.

 

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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MONEY YOU CAN BANK ON

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

Banks in California’s Central Valley are on high alert, and they should be. There is a young man, around 20-years old I’m guessing from his picture, who has robbed at least six banks over the last few months. He doesn’t use a gun, doesn’t wear a mask, or does he make threats to the bank tellers. Most customers or bank employees never know the bank was robbed even though the man committing these crimes flaunts his face in front of high-tech surveillance cameras time and time again. The young robber simply walks into a bank, hands over a note, and then walks out with stacks of other people’s cash. Local banks are warning employees and urging people to be aware.

My motive for sharing this story of brazenness is less about warning than observation.  Today’s banking industry shows concern over such theft but the truth is they’re more concerned with endangering employees than losing dollars. The mother-ship bank, better known as the Federal Reserve Bank, can….. and will, replace stolen fiat with a keyboard stroke, no worries.

After all, 99.4% of the perceived money safely stored in your local bank doesn’t exist. It’s nothing more than a digit assigned to an account number.

Oddly enough, the same 99% percent of folks staggering your neighborhood streets, and still believing their dollars are stored in a bank somewhere, fail to understand the difference between money and fiat currency. This monetary ignorance separates these folks from sound money like physical silver or gold, respectively.

The Wells Fargo bank building in my local community is hands down the nicest and most expensive building on Main Street. I’m not a commercial appraiser but guessing this building has a value worth several million dollars, I’m willing to bet your community is no different. Just down the street, but on the same side, sits my humble-looking local coin shop (I would estimate this building’s value around $250k, but no more).

One building, the Wells Fargo one, reflects a perception of wealth and security even though it houses no intrinsic source of sound money. The other building, our local coin shop, needs some updating but houses many times the building’s worth in physical silver and gold, or, real money. Unfortunately, less than 1% of the folks passing by recognize the difference.

Folks living in the US are at a real crossroads. Monetary confusion influences them to store wealth in dollars, by way of banks, even though most folks realize something is not right within our banking system in a overpopulated fiat currency age. These same individuals view silver and gold as valuable but fail to recognize how significant PM (precious metal) is in such an age. The fact both metals have declined recently only adds to this confusion; my fear is this confusion will cost the unknowing dearly.

It’s obvious since you’re reading this you understand the difference between sound money and a fiat currency, congrats. Our banking system not only drums a fiat melody of wise investment but relies on this trickery for its very survival.  The fact remains physical silver or gold is the only money you can bank on.

1984 is now:

Our world is buzzing over yet another Orwellian fruition. It is obvious to all that nothing written or said is secret now that we’re living in a technological age combined with governmental overreach. The great salesmen peddle such intrusion as necessary to protect us but the truth is such intrusion is a choice between freedom and security. This writer will take his chances, if the choice still exists.

George Orwell called such propagandists “crypto-communists”. What amazes me is Mr. Orwell made such timely prediction in 1948-49 just one year prior to his death. He also refereed to individualism, or independent thinking, as thoughtcrimes. Time has now turned Mr. Orwell into Orwellian.

I’ll climb the highest mountain, if necessary, to once again explain the availability to store wealth in undocumented physical metal is a closing window. It is still 100% legal to trade dollars for real money, like silver or gold. We can argue when PMs will rise and by how much but only after safely securing the right metal for you. Please take a close look at physical silver and/or gold soon.

QUESTION:  If we’re talking silver, are we investing or jumping into a safe haven?  I’ve read plenty of your writings but still slightly confused on the financial goal. Thank you for taking the time to take my call (edited).

TPS Reply: You’re welcome, and thanks for asking. My opinion is that physical silver offers both the benefit of investing and safe haven storage. The primary goal is preservation but the byproduct of such prudence is wealth building, aka investing. My belief is silver, at around $27 physical, will soon double, double again, and then continue to surprise even the most PM optimistic.

Silver, and gold, have always maintained true value compared to effort, other assets and tangibles. This is why a $1 legal tender silver coin is worth just under $30 as of June, 2013. This is why a $50 legal tender gold coin is worth over $1400 dollars, too. It is only because of our USD’s devaluation that silver and gold rise in dollar value.

We have reached a very unique time both historically and monetarily. Never before have so many had an option to own physical PM while simultaneously living under a fiat currency age. This means all currencies have the option to print as much fiat as necessary to appease her people. This printing will not fix an economy but will offer temporary stability. The long-term effects are not historically good. In fact, the long-term effects of overpopulating a fiat currency impoverishes most who fail to understand how safe-haven investing works.

Over producing a fiat currency weakens the currency’s buying power; this is why milk, fuel, and your favorite soda continue to rise in cost. Most working for a salary, or living on a fixed income, believe the answer is to earn more but fail to understand we will soon reach a point where it’s nearly impossible to out earn inflation. But for now, printing currency has somewhat stabilized our economy but this stability will not last forever without real jobs paying a fair wage.

Hope this helps clear the confusion. Thanks again.

QUESTION: Experts are predicting $19 silver by late summer or early fall (2013). I don’t own silver but I’m taking a hard look at trading some savings for physical silver in the near future. My reasoning has to do with an administration that refuses to practice fiscal restraint. My question, is it wise to wait for silver to fall in price? I obviously don’t want to be like the ones who paid 50% more than necessary – not that long ago.

TPS Reply:  Great question and comment. You’re wise to consider trading dollars for physical silver, in my opinion. No offense, but I know of no PM experts anymore, only informed prognosticates. Because of this no one truly knows what silver prices will do over the short term. This is why I rarely mention short-term fluctuations especially during such an age of economic volatility.

Now long-term speaking, physical silver has to rise if for no other reason than the one you mention. By the way, both political sides have leveraged debt for political gain, power and control. You’re correct, this administration has added the most but mark my words the next administration will also fail to practice fiscal restraint. Wall Street, and our banking system, have too much control and will always put profit over prudence.

Going back to your question, I don’t offer pinpoint financial advice. If in your shoes, I would consider a 50% entry into physical silver, soon, and then spread my silver budget over the next few months. It is always possible silver prices could drop, like you mentioned, but a long-term fiscal plan should be the focus far beyond the possibility of a short-term dip. Thanks for the question.

By the way, I too bought silver only to watch it drop from its recent high. I lose no sleep over price drops because it’s all about ounces owned, properly stored, and an overall foundation of self-reliance built on a foundation of sound money. Dips and rises have no effect on my overall plan.

 

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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BIBLICAL REASONS TO OWN GOLD & SILVER

BUYING GOLD/SILVER, GOLD AND MONEY   No comments yet

 

On my summer/fall read list is a book called Killing Jesus written by Bill O’Reilly. There are two things I can assure you about this book, even before I read it. One, it will spend months atop the bestseller’s list, and two, it will be extremely controversial as well – nothing stirs emotions like religion. Regardless your faith, regardless your view, the Bible is full of fascinating factual mentions of money. For the record, there is no mention, to my knowledge, of paper currency…… just silver and gold. With that, let’s dive into one of the most intriguing mentions of “real wealth” in human history.

I recently had an interesting consultation with a pastor of a small church. One comment this pastor made stands out as much, or more, than anything I’d heard before as a PM consultant. As our hour began to wrap, he said, “Well, if silver/gold are good enough for God – then they’re good enough for me. I need no other proof than this.”

Now folks, I’ve heard every reason under the sun to own gold, but this was a faithful first. This man’s faith leads me to ask if it’s possible we’re over thinking personal investing and monetary rule. Is it possible our world is so economic chaotic because of our failure to follow biblical recommendations of sound money? As with all things written here at TPS, the final decision is yours and yours alone.

Godly Gold:

The word gold is mentioned 417 times in the King James Bible. Silver, respectively, is mentioned 320 times and the world for money is mentioned an additional 140 times, as well. Both Hebrew and Greek words for silver/gold/money are mentioned throughout the bible and always regarded as noble, rare, durable, and malleable. It is estimated that Solomon’s Temple was made of over 3000 tonnes of gold (measured in talent, a talent is equal to 75 pounds).

To this day, each time we describe an athlete or entertainer as talented – we’re comparing these individuals to silver or gold according to biblical terminology. The bible often mentions Kings and Queens paid in gold/silver as part of God’s commandment. Not only does the bible compare PM to wealth but both Old and New Testaments compare the metal to knowledge, wisdom and faith.

Gold and silver are often compared to spiritual wealth within the bible. Some confuse 1 Timothy 6:10 with money as the root of all evil, but the scripture is often misunderstood. The correct reference is “for the love of money is the root of all kinds of evil”.

While researching today’s post I found myself intrigued. Few in today’s society stop to consider what the most popular book written has to say about silver, gold, or all things monetarily significant. By the way and for those interested, the bible makes the first mention of gold within the first few hundred words of Genesis (first book of the Old Testament). Genesis[2:12] “and the gold of that land is good; bdellium and onyx stone are there.”

The word of God & gold in 2013:

Few will argue the monetary role of sound money in biblical terms. It is obvious gold’s primary purpose was, and still is, storage of wealth and value while silver’s purpose was, and still should be, used for daily trade.  I personally believe that God created gold to be the foundation of an economic system that would be solid, stable and not subject to manipulation.

Flashing forward to 2013 we find physical silver and gold somewhat irrelevant in today’s economic system. Not one currency on earth still uses a gold standard to restrain government fiscal irresponsibility or monetary stability. This means it’s up to each of us individually to find and follow a monetary plan founded on sound money and fiscal prudence.

Not a day passes without someone reminding me that both silver and gold are worth much less than not long ago. I can’t argue this fact but the truth is today’s PM price has little to do with a monetary law of sound money principles. It is only from manipulation and intervention that we question, or even doubt, the benefit of storing wealth in precious metal.

Over the last few weeks we are reminded what happens when governments expand without restraint or fiscal prudence. The losses of American liberties are now too long to list but few associate how today’s fiat system allows leadership to expand without constraint. This trend, in my opinion, will worsen as fiat economies continue to rob the wealth of those not protected with sound money (silver or gold).

No different today than the words written thousands of years ago, “and the gold of the land is good”.

QUESTION I read where you still buy silver each month. Do you buy online or in person?

TPS Reply:  This is true; I still buy physical silver each month and have no plans to stop. Purchasing silver online or in person each has benefits over the other. Online precious metal brokers and dealers can sell physical PM, usually, for less than brick-and-mortar outlets. The key, regardless the method, is to find someone reputable that is willing to play a vital role in your long-term PM plan. To answer your question I use both methods to add to my stack.

The thought of purchasing physical metal stirs anxiety within most new to silver or gold. Even the author of a NY Times bestseller on investing once admitted, to me, her fear while making a first online gold purchase. The goal here at TPS is to offer peace of mind for those willing to trade fiat dollars for sound money. The key is to know what you what to buy, and willing to pay, before contacting a PM seller.

The benefit of buying silver in person is obvious. You hand the seller cash and they in return hand you physical silver. No waiting, no prolonged anxiety either. Another benefit of buying in person is developing a local PM relationship just in case you need to liquidate a few ounces in haste. Regardless the method, my advice is to ask plenty of questions all while practicing due diligence along the way. Thanks for the question.

 

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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IS SILVER WORTH IT?

BUYING GOLD/SILVER, GOLD & REAL ESTATE, GOLD & SILVER, SECURING GOLD & SILVER, STOCKS AND GOLD/SILVER   No comments yet

The truth is only the precious metal faithful are still buying silver or gold……. at least here in the US. Those who aren’t continue to irresponsibly invest, directionally speaking, thanks to the greatest wealth intervention in history. Far too many weigh PM (precious metal) up against other investments without considering the monetary difference, challenge, and purpose. Today’s DOW explosion is the purest example of such intervention. If we are to compare the two assets, DOW vs. PM, intervention gives the DOW a half track head start over precious metal all while spectators ask, “what’s up with precious metal and why is it pacing so far back?”

I see just two types of investors these days. The first type chooses to remain clueless as long as “experts” drum a rising DJIA and housing market. This type cares not to question “why” and too busy living life to question manipulation, intervention, record borrowing, or anything else for that matter. The second type is as concerning because these folks perfectly understand why the DOW and housing are rising but don’t care as long as they’re getting theirs.

The tiny sliver (sliver not silver) nestled between the two types aforementioned is you, the PM holder. You discretely stack discounted metal realizing the law of economics will soon and suddenly forever change this generation’s view of investing. I congratulate you for your tenacity.

It’s hard to get up each morning and then tell ourselves to stick to the plan. Metal experts sound like a broken record each time they predict a PM breakout that never seems to happen. Are these experts wrong? Is it possible the days of rising silver or gold are over? We both know the answer is “no way”.

Once wealthy countries like the US can no longer afford our current fiscal path. Our job market will no longer support the costs of everything from education to mortgages, pensions to property taxes. This tension causes a fiscal conflict that adversely affects nearly all aspects of our lives. This tension is also the reason politicians and governments have stepped beyond our constitutional rights of privacy and capital control.  Neither form of overreach will change anytime soon.

The word selfish surfaces in my mind this morning as I try to explain today’s complexity while living in a 21st century world. Investors succumb to selfishness as they watch a debt derived DOW add inflationary dollars to a bottom line. Politicians practice selfishness as they print dollars in order to maintain another round of power therefor appeasing a growing class of dependency.

Someone recently asked, “Where does it all end?” This is a good question but one far beyond my pay scale, sorry. My guess, it ends right where it all started some time ago. Was it that long ago when folks relied on each other and not a gov’t program? Was it that long ago families, churches, and other private organizations took care of those in temporary need? Was it that long ago we traded effort (cash) for healthcare, cars, houses, meals, etc. - not debt?

Could the end actually be a beginning? Is it possible the end is nothing more than a recurrence built from sound money and limited government? Can monetary intervention last forever without true growth within the economy? Maybe I’ll keep stacking silver and gold just in the off chance I’m right!!

I heard several great questions this week but two in particular really caught my ear and eye. I’m guessing if someone is willing to ask then others are quietly doing the same. As always, thanks for sharing your time with TPS.

QUESTION:  I’m new to precious metal and have a simple question, thanks. What will keep silver from someday dropping to a point of no value? It appears headed in that direction now.

TPS Reply:  Boy, no kidding. What a great question so thanks for sharing. Although highly unlikely, silver could decline to a point well below today’s offering. Such a scenario is, in my opinion, a short-term possibility when we consider today’s economic climate of accumulative fiat debasement and devaluation. The fiat currency experiment is building toward a climatic end that won’t bode well for most investors.

The majority of those considering silver, maybe you too, are judging the worthiness of physical metal on past performance. In other words, we buy or don’t according to today’s price far over the overall economic picture. Falling silver prices must mean silver is no longer a worthy investment, right?

Here is my recommendation to you and all those considering physical silver. Ask yourself if you truly internally believe economic recovery is real. Is the DOW rising because corporations are profitable or is the DOW rising because everyone is blindly jumping in? Is US housing in recovery or too-cheap-to-be-true mortgages spurring the next real estate bubble?

And the most important question to ask; what would the economic picture look like if not for the trillions of FED/US Treasury created dollars supporting everything from food stamps, healthcare, housing, military, banks, DJIA, pensions, Social Security, foreign banking, foreign government, etc? Because if you believe an economy 100% dependent on printed money is sustainable, please don’t buy physical silver.

Regardless, thanks for the question and following TPS.

QUESTION:  Although your book (Storing Silver & Gold) is interesting – I have a better plan. I’ve owned, and personally store, gold jewelry and bullion at home without a floor, wall, or standup style safe. It makes more sense to keep something of value in places a thief would never consider. To me, a safe communicates storage of wealth but something hidden says the opposite. Am I off base with my storage plan?

TPS Reply: No, not necessarily. A storage plan is extremely personal for obvious reasons. I wrote Storing Silver & Gold to make one huge significant point for those practicing the independent voyage into PM. Each person storing wealth within PMs must spread the risk among two to three storage options and methods. Simultaneously, it is recommend to keep at least 1/3 of your physical metal within arm’s reach or with someone trusted and close by.

TPS has other readers who also store bullion and jewelry in fake drawers, cabinets, tubes, walls, rooms, toilets, fireplaces, firewalls, etc. My opinion is if hiding PM outside a safe is what makes you most comfortable – then so be it, but. I encourage all readers to consider the possibility of fire damage along with the risk of theft. Gold will melt, as most know, and such a risk is as real as the odds of your home or office burning down (by the way, the PM insurance often mentioned at TPS will not cover PM improperly stored outside a safe, to my knowledge).

For what it’s worth, here is what my book research proved. The right safe, as part of a complete storage plan, sends a signal to a would-be thief that this family is prepared and protected from such an intrusion. Maybe the best plan for you is a combination of my recommendations and your existing plan? Thanks for the comment, reading my book, and question too.

 

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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