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THE ART OF BUYING OR SELLING GOLD

BUYING GOLD/SILVER, GOLD AND MONEY, GOLD OR SILVER BUBBLE, SELLING GOLD/SILVER   No comments yet

Precious metal is a well kept secret. Folks who own physical gold, or silver, seldom advertise their wise discretion. Few blab across social networking and less openly discuss the nuts and bolts of buying PM (precious metal). In most cases this leaves you, the novice, searching for the right metal offered at a fair price. It’s hard for me to put an exact percentage on how many newbies pay far beyond necessary but I will estimate more than half do, or receive less, than the metal recommended here at TPS (The Prospector Site).

FACT #1: Not all Gold is good

It is a misnomer that gold is always a good investment (paper gold can be the worst choice for wealth storage in many cases). Anything other than physical PM carries far too much risk considering our age of fiat correction and financial insecurity. For this reason alone paper PM is not worthy of today’s discussion or space.

Retail gold, like jewelry, is a blend of artistic effort and precious metal. An established value is always subjective but, nevertheless, still a store of value better than most of today’s “typical” investments. In times of economic despair jewelry returns to a value measured in melt worth. This is why I recommend new bullion, rounds or bars over jewelry.

All physical PM buyers pay a fee over and above the intrinsic value of a gold bar, round, nugget, bullion, etc. This “premium” is what makes those selling PM wealthy but offers no real value to you as the buyer. The older (or rarer) the gold hunk the higher the premium, very simple. In return…….. new bullion, rounds, and bars offer the lowest premium.

Most folks buying gold in 2013 are not collectors or speculators. They, gold owners that is, view the echos of economic recovery as back-ground noise and realize we very well could be facing the end of a great fiat currency experiment. For this reason alone all should own physical silver or gold.

I recommend due diligence before buying your first gram of gold. Old coins are cool but best saved for the experienced PM buyer. Proof coins are flashy but also best saved for those solidly vested in raw precious metal beforehand. Think low-premium PM offerings that are easy to store, insure, and someday sell or trade.

FACT #2: Not all PM advice is good

This site doesn’t sell silver or gold but I would love to know how many precious-metal peddlers hear, “I understand gold is a good investment. What do you recommend?” At such time the art of buying or selling PM is in the hands of a stranger who could be more profit inclined than making sure you receive the best bang for your buck.

I hear so many nightmare stories of good gold intentions going bad. These tales always include trust, deceit, disillusion, distaste, and eventually embarrassment. At the end of the day far too many pay far more than necessary, for PM, because they fail to arm themselves with education.

There is no reason to fall prey to the PM distrustful, not in the internet age. Your education should not come by way of solicitation. Hard asset sellers are always well rehearsed with trigger words and phrases. These trigger phrases stir emotion and prompt protection but have no place for those implementing a controlled PM plan.

The best source for education and advice always comes from the unbiased.

FACT #3: You will someday sell

I have a close friend that has owned physical silver for years. He has no plans to ever sell regardless the value, regardless the offering. What he doesn’t realize is that someday he or someone sharing his last name will sell, or trade, his buckets of silver. It could be for profit, it could be for freedom, or it could be to feed the family, who knows…… but it will trade hands someday.

I personally will not buy silver or gold that I can’t easily track real-time value. Sure owning a coin that spent hundreds of years lost at sea is cool but how does the average Joe know its true value. After all, the only guarantee we have is a fluctuating melt value, right? For this reason I recommend asking two questions before committing to buy; how much are you asking and how much you will pay me to buy it back.

The difference between the two prices is very important. As of August 25th, 2013, a one-ounce gold bullion will run a buyer around $1475. The same bullion, less the premium, will sell around $1390-$1400ish. A second-hand market will bring a few more dollars. By the way, some PM buybacks require a dealer or broker to notify the IRS, some won’t. Do you know the difference?

But our faith in PM has less to do with dollars with each passing deficit day. Gold’s true value is its exchange value. For instance, I pay less attention to what gold trades in dollars compared to how many ounces of gold it takes to buy an average home in my neck of the woods or a sandy retreat countries away. This exchange value is the future gauge of your net worth. Dollar value is relevant now but this could change quickly.

QUESTION: Thanks for answering my questions, DC. Yes, it’ll be scary if the governments get creative and do something like Operation Rize. Can’t agree more about diversification. As for the insurance, I think I’ll ask a jewelry store nearby first.

And what do you think is likely to happen in the future? Will we have a repetition of what happened in 1980, where PM prices skyrocketed and retraced later? But considering the world’s current level of debt, can the central banks raise the interest rates like they did back then? Or will we have hyperinflation? But are the central banks so stupid to allow that to happen? Will we stick to PMs forever, or will we have to switch to other assets someday?

Looking forward to your reply and thank you very much.

TPS Reply: You’re welcome, thanks for asking great questions. What happened to PMs in 1979-80 was amazing but only a small sample of our future. So many things have changed on a global level that will affect us all on some capacity. Some will prosper but most will fall victim to an existence that only existed because of a debt-based lifestyle.  I have great concern for those not PM protected.

TPS often hears from readers who boast over their debt-free lifestyle. This is great, and recommended, but the truth is all will fill the pain of worldwide default as it becomes painfully obvious trillion $ obligations can never be repaid. This mess is what happens when we live in a society consumed by the here and now. Our commerce world has consumed the minds and energy of far too many.

You’re right; central banks will send all major currencies into a level of inflation unimaginable. I’m not sure if hyperinflation is the correct term but, nevertheless, it will not be kind to those attempting to live on a fixed pension or income. Most victims will view these days of economic correction (disaster) as “depressed” not realizing such a time is nothing more than another example of what happens when a fiat currency is overproduced. Silver and gold will account accordingly.

A dangerous trio has hijacked America’s future. The FED (central bank), Wall Street and politicians now control our economy. Washington DC proper now boasts an economic boom while the rest of America suffers from a myriad of challenges including, but not limited to, low-paying jobs, rising cost of living, financial tension, etc.

The world’s central banks circle the wagons in order to save our fragile banking system but not willing admit this effort is futile, destructive, and unfair. Anyone relying on a currency, not real money or hard assets, will, too, soon realize wealth stored in paper is growing worthless. Such an era will bode well for those holding physical silver/gold and my prediction is this run will not end anytime soon.

Although, we will reach a point when other assets will become so affordable, in terms of gold/silver, that the temptation to barter will flush wealth out of PMs and back to traditional assets (like real estate, stocks, etc). I don’t see a PM bubble anytime soon, nor do I see anyone holding PM in a hurry to trade. Thanks for the great questions and comment.

QUESTION:  Have you noticed the national debt clock? This is only possible because of our digital non-existent currency age.

TPS Reply:  Yep, it keeps rising, right? This is what happens when a government grows beyond its tax base. My recommendation is to keep stacking silver and gold until it stops.

Our transition to a digital currency is right on time. How else can a currency realize such creation on a global level? We are in the fourth quarter of a fiat currency meltdown created, and now propelled, by nothing more than greed and a political failure to transmit honesty, integrity, and strength. Other than that — this administration and other political leaders are doing a fine job by systematically dismantling our country piece by piece.

 

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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What a DOW decline means for GOLD

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

At times you can feel “change” in the air. After years of war, it was likely a young Senator from Illinois was a frontrunner for a 2008 presidential election months before a November opportunity. Why, because change was in the air even if this change was nothing more than a flashy campaign slogan? Flashing forward, another “change” swirls but this change is less opportunistic for most but profitable for those holding wealth in physical silver or gold.  My only advice is to brace yourself for this monetary change.

I can think of nothing as financially devastating, to most Americans at least, as the 2008 DJIA disastrous decline. Within months the DOW promised 15,000 only to tumble, and then tumbled even more, until a 6000ish DOW left nervous investors asking just how low can a modern-day DOW decline. The wealth and future of America was nothing short of in peril.

The winds of change today, late summer-early fall, are reminiscent of 2008. Far too many hold faith in a DJIA supported only by trust and the ability to overpopulate a currency. Also, far too many forget how quickly asset bubbles burst and investment dreams vanish.

Today we’ll compare rising gold/silver to a vanishing DOW. I’m certain both will happen, in tandem, but have no idea when. I suspect soon.

In my opinion, the most likely short-term scenario to double silver and gold’s worth is a DOW collapse. For this reason I would like to compare a DOW decline similar to 2008s to today. In return, let’s compare the effects of such a DOW decline to silver and gold accordingly.

The 2008 DOW lost over 55% of its value in the fall of 2008. This wave of uncertainty challenged gold and it, too, fell around 20%. But gold rebounded nearly 90% over the next few months leaving physical gold holders not only confident but monetarily rewarded for their good stewardship.

GOLD:

Percentages can be a little blurring so let’s put dollar numbers in their place. If today’s DOW dropped 55%, like in 2008, this would nestle our favorite blue chip stock average somewhere in the neighborhood of 6930. If gold, too, followed 2008′s pattern this would put gold around $1064 per ounce.

But as mentioned gold didn’t drop long, or far, until nervous investors found the one historically proven hard asset worthy of investing, and investing they did. This time will be no different, in fact, this time nervous investors will “double-down” as they realize adverse monetary effects are the new common.

After a brief decline (gold declined around 20% September 2008), gold found footing and I suspect this time will be no different. Accordingly, this would leave paper gold at $1436 (six months), at $1862 (12 months), and $2128 (18 months). I would think the physical market (premium) for gold could easily add another $200 +, per ounce, to the aforementioned dollar values. Now, this leaves silver.

SILVER:

The 2008 DOW meltdown pushed silver’s paper value down 50% (from $18 to $9 per ounce). But this discounting didn’t last long, nor did physical metal supplies, as new silver investors found great reward for their monetary prudence. Now, let’s plug today’s silver price into such a 2008 scenario.

If silver dropped 50% today it would leave paper silver selling at $10.75 per ounce. Within six months silver would reach $16.12 (50%), and then $20.42 (12 months), and then $21.50 (18 months)…….. according to our 2008 comparison.

But these values fail to account for rising premiums, like in 2008-09. By example, October (2008) 100-ounce silver bars carried an additional 50% +premium on the secondary market, silver Eagles even more. This pushes our $20.42 paper silver to just under $31 for physical silver ounces, at least.

Remember, the secondary PM market doesn’t care about long-term customer creation, satisfaction, or service.

The secondary market is the future of how physical gold and silver exchanges – but don’t expect bargains from those willing to sell. Typically, secondary markets grab as much as possible by taking advantage of those late to the investment party (this information, although thought provoking, is nothing more than proof how one asset correction will temporarily influence precious metals. The one long-term monetary constant is value stored in sound money via hard assets).

QUESTION: DC, I’d like to ask about safe deposit box (storage). How safe is it, actually? What will happen to stuff inside the boxes if the bank shuts down? Love your blog, anyway. It helps me to focus on long-term protection instead of short-term volatility. Thank you.

TPS Reply: I’ve waited for this question….. so thanks for asking. Make no mistake; we are nearing a point in which wealth stored in banks is at risk. This includes assets stored within bank security boxes, as well. The question is which method of storage carries more risk. Many of my readers choose bank storage because they’re not comfortable defending metal stored at home or business, this I understand.

If we must pick between the lesser of two evils I have a suggestion. Why not diversify and insure your physical metal? Insurance is available for both home and bank vault stored PM. This insurance also covers the risk of transporting the metal to and from. I’m not sure if Indonesians are eligible for this insurance so contact me if you’d like my assistance.

So far this year 18 banks have closed here in the US. All reopened, to my knowledge, under a new flag and all box contents transferred along with bank ownership. This change didn’t affect those renting deposit boxes. But we live in an age of great volatility and greater uncertainty. This means all exposed wealth will eventually be challenged by creative governments looking to find a fresh means for new taxation and wealth accumulation.

I’ve personally only used bank box storage while away on extended travel, like internationally. I weigh the risk at the time and pick between the lesser of two evils. The bottom line, I know of no 100% secure or full-proof means to store physical precious metal. This is why I recommend diversification and insurance. Thanks for the great questions and comment.

By the way, your long-term comment is spot on…… good way of approaching PMs.

COMMENT:  Metals are rising!!!!!!

TPS Reply: They are, and this is a good confidence boost for those new to PM. I can’t tell you how many emails TPS has received from new readers who bought discounted PM only because of this last PM correction. I know many readers are frustrated but the opportunity to buy discounted metal truly allowed more to join the PM table.

Gold and silver rising is great but pale when compared to the advantages of discretely storing wealth out of sight. All exposed wealth is now under threat of taxation, confiscation, and blame. Why not take advantage of this temporary opportunity to trade dollars for unregistered wealth (physical silver or gold)? Not to mention the opportunity to store this wealth in many different countries, and outside the banking system.

 

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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BANKING RISK

BUYING GOLD/SILVER, GOLD AND MONEY   No comments yet

By definition, the word captive describes the action of something, or somebody, held prisoner by a person or group until specific demands are met or money is handed over. Today I’ll explain how this affects you and why wealth stored in banks, all banks, will soon fall hostage to a condition I can only describe as a banking prison. Please add this risk as yet one more reason to store some wealth in physical cash, silver or gold.

Just the mere mention of “prison” and we picture worse offenders serving time in places like Alcatraz or Port Arthur penitentiaries. Few picture our local bank as such a site of incarceration or captivity. After all, banks prism beauty, security, strength, structure, and trust. Depositors rarely question the risk of an imminent hijacking of wealth, not from their bank at least.

The articles below prove how powerful a grip our banking industry has on the political orientation of tomorrow. Remember folks, this money is yours. Congress is nothing more than the entity elected to disperse our money in a responsible fashion.

An Obama administration program is under fire, with federal investigators finding that community banks used the government’s funds to pay back recession-era bailouts – instead of lending the money to small businesses as originally intended. source -CNN Money (April 2013)

or

The Treasury Department does not require banks who have received the money (TARP) to show how they are using it, claiming that it is not possible to demonstrate on a bank-by-bank basis. source – CNN Money (August 2009)

or

And here comes Goldman Sachs (GS), the royalty of Wall Street, racking up a huge $3.4 billion quarterly profit and making plans to pay bonuses that could average well over half a million dollars per employee.

Goldman, of course, is accomplishing this with the help of a $10 billion TARP loan from the government. source –Seeking Alpha

Since September of 2008 the protocol is nothing more than saving banks regardless the cost, regardless the irresponsible risk that crippled a once strong banking system. The marriage between Congress and a private Federal Reserve Bank (Bernanke) appears innocent enough but has created a one-sided monetary structure with little accountability. This is by purposeful design.

Each week I present facts as to why physical PM (precious metal) will rise in value over the balance of your lifetime. But the issues we’re facing today go far beyond profiting from PM investments. Our situation has transpired into financial survival in order to maintain some sense of personal independence. Silver or gold, regardless the price, is one of only a handful of positions to store wealth outside a corrupt banking world.

For those willing to take notice….. big bank officials now bounce back and forth between political positions of advisory and private banking. Nearly all those who advise this administration have a vested interest in supporting this status quo. This collusion bleeds beyond a conflict of interest. Their only interest is greed, power, and controlling your money.

Someday monetizing debt and printing currency will no longer support this thirst or greed. At such a time something will give and panic will influence those in political control to accept more of the same misguided advice from bankers.

Bankers will warn, eventually, that the entire financial network is under threat of collapse and politicians will react accordingly. Like today’s Cyprus, our banks too will ration and tax your wealth by limiting transfers or withdrawal of your money. This monetary progression is exactly what happens when banks dictate political influence and capital control.

If this threat I’m describing today sounds real then buy physical silver or gold. If not, stay the course. But remember that the merger between banks and politics never bodes well for those entrusting wealth in either.

QUESTION:  All of our savings are in 401k roll-over accounts.  These funds are not easily gotten to without tax consequences so we are hindered in our ability to accumulate physical gold/silver.  So, we have allocated about 30% of our savings in Gold/Silver ETFs.  We have been able to accumulate some physical silver a little at a time but is there a better way to protect our lifetime savings?

TPS Reply: Your question arrived just in time to work into this post, thanks. As I’m sure you’re aware, I’m not a big fan of wealth disconnect of any kind, but. The 401k accounts you’re describing do offer tax deferment and the opportunity to store wealth within PMs. The question of the day is does the fund actually have access to an equal amount of physical PM as you have invested? I personally doubt most funds do.

The next question is do you stay the course or suffer the tax consequences from rolling the 401k into physical silver or gold? We can address the ETFs but my biggest concern is when you mentioned “we have been able to accumulate some physical silver”. This, to me, implies that you’re not comfortable with your level of physical holdings, right?

My opinion is that physical holdings should supersede paper PM holdings. We will soon reach a point where all investments are in question of “real” or “paper”. This could lead to panic as wealth attempts to find solid footing.

I’m not a financial advisor so I can only offer what I would do if in your shoes. I would do whatever it takes to accumulate a balance of physical allocations, regardless. I would then store at least 1/3 within arm’s reach or with someone very trusted. By the way — this transfer of wealth could include liquidating, or trading, any personal asset into physical PM, not just a 401k.

Now, as far as your ETF,  Sprott Asset Management offers a gold-backed ETF and claims to hold all investment assets in physical gold bullion.  Eric Sprott has a respected name within the PM community and is definitely worth checking out. As always, due diligence is recommended so invest time before money. Thanks for the great question, and reading TPS.

 

QUESTION:  How long is the typical wait time for online PM purchases? I’m new to PM (just found TPS) but don’t like the idea of wiring $ in faith hoping the silver arrives as promised.

TPS Reply: I hear you loud and clear…… and 100% agree. The PM industry has little regulations; this is both good news and bad. This is why it is imperative to find a trusted PM trader with a respectable reputation BEFORE BUYING ONE OUNCE. The wait time is unlike anything else shipped since demand and inventory affect how long it takes to physically receive a PM order.

Your online PM dealer doesn’t usually have the PM in hand when you place an order. Most dealers are brokers which mean they work as a middleman between you, the consumer, and the wholesaler. Any delay in shipment usually stems from a whole seller not able to keep par with demand.

Have you considered buying a few silver ounces from a local coin shop? This face-to-face exchange will allow you to build a local relationship, instill confidence, and provide a cash-and-carry exchange. When consulting with PM newbies I usually recommend starting with silver or gold bullion paying as close to “spot” metal price as possible.

Save the large purchases for online and only after your PM confidence grows. Email me for a list of reputable PM dealers, I’m glad to help. Oh, and welcome aboard.

 

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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