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.
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.