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What will it take for Precious Metal to Rise?

GOLD & SILVER, GOLD AND MONEY   No comments yet

When David Logan (name changed in respect for family) drove himself to the ER on a spring day of 2012, he complained of shortness of breath and discomfort spreading to his back, jaw, and throat. Although these symptoms are often related to a heart attack, the ER doctor found it unlikely a healthy-looking male in his early thirties fit such a diagnosis.  The medical staff admitted Mr. Logan and soon after the doctor on duty put a plan in place that included looking deeper into why a young fit person was in such agonizing pain.  No one would have guessed that this afternoon would be Mr. Logan’s last.

Pain and discomfort is the #1 reason people visit their primary care provider. Their motivation to invest effort, time, and cash stems from an uncomfortable state that reaches a point of “doing something” in hope of relief. The same type of pain is what it will take for PMs (precious metals) to rise far beyond what most of you can imagine.

As most know I live in the United States. I also live in a flyover state that has seen more winter than any sane person should see in a lifetime. But other than a few winter annoyances life here in the US is pretty darn good. In fact, it’s so good that most individuals never consider the monetary “pain” that will eventually grip even the most wealthy of all countries.

The fact you’re making the effort to explore physical silver or gold amazes me. I have no idea what motivated you to make such a decision but I commend your insight, congratulations.  You are, medically speaking, the person who practices routine checkups to eliminate a painful problem before it develops.

But most folks living life are too busy to live like you. They assume all is economically well because everyone else does. They see a steady paycheck paying monthly bills and they still have enough left over for pizza and adult beverages at week’s end. These same individuals also assume a rising DOW, and housing market, are signs of a stable economy. Buying physical gold or silver is at the list bottom for the aforementioned.

The folks too busy to invest in PMs fail to understand why things appear normal in 2014. Honestly, this may sound harsh but most folks don’t care what it takes to maintain normalcy. They suffer from a term call normalcy bias which enables them from accepting the fact that someday a situation nearly unimaginable will happen if we continue to defy economic law.

The monetary reckoning we’re describing should not be interpreted as “dooms-dayish”. It should be viewed more as imminent than unusual. so let me explain.  It would be unusual that a society, or economy, continue along as normal while simultaneously compiling mountains of debt and deficit in order to do so. Your neighbors on each side accept this normalcy because this form of “mortgaging the future for a better life today” has lasted their entire lifetime.

Why can’t perpetual borrowing lead to never-ending economic normalcy?

Most of you reading this are not happy with today’s governmental  leadership. You often ask why it is that the majority continue to elect leadership that allows the government to expand, not to mention infringe, into the very freedoms this country is founded. The answer is describable with one easy word, APPEASEMENT.

The same reason your hunk of gold or silver hasn’t risen is the same reason failed leadership is reelected. Politicians have figured out that a simulated state of economic normalcy will appease the people just to the point of complacency. This is why our national debt rises to historic highs and the same reason why we as a people allow a congress to borrow $.43 of every dollar allocated and spent.

The world is aligning into a new age, and this tension is growing obvious. A global economy based on a USD (US Dollar) reserve currency has never been in question as it is as you read this. The tension stems from countries heavily invested in our currency, thanks to decades of buying revolving debt, yet angry that only one country can print USD. The tension increases when we consider the economic instability of the same debt-holding countries that rely on a strong US economy.

Today’s tension will eventually lead to economic pain. Again, it would be unusual if it didn’t. As countries around this spinning globe retract from a USD acceptance, so will a US life of normalcy. Ordinary folks will question failed leadership and monetary over indulgence and this will not bode well for the political status quo. The pain will cause nearly all to question “why” on every level of what not long ago was normal, both politically and economically speaking.

This awakening is imminent but timing such an era is impossible. Until this day the value of silver or gold will elude most and rising prices shouldn’t be expected. The true reward for your prudence will come only after the world awakens from normalcy bias, and they will!

QUESTION: DC, are you okay? Haven’t heard much from TPS in awhile!!!

TPS Reply: I’m fine…… but thanks for asking. Like most of you, I’m, too, very busy with raising a family and running business. I one day looked at TPS and realized precious metal was on hiatus and honestly this site now has the unbiased information someone needs to make an informed decision when it’s time to buy physical metal.

I have plans to update TPS more often but until PMs break from hiatus neither will I. Thanks for asking, and the concern of many readers.

QUESTION: I am very appreciative of TPS and the information you provide, thank you. My husband and I often discuss how things have changed in our lifetime (both good and not so good) wondering how life for our grandchildren will be influenced by today’s misgivings? We both vividly recall our parents describing the pains of the Great Depression and worry that society has forgotten how quickly wealth can disappear. We own physical PM and have for years. We don’t own PM to get rich but in hopes of providing economic stability for our family long after we’re gone. Just wanted to share this with you and your readers.

TPS Reply: Thank you for sharing, and you’re welcome. I love to hear from our readers, like you, who share great concern for this great country. You mentioned something that made me really think with how quickly wealth can disappear and how today’s society has forgotten the pain, both monetarily and socially. It’s sobering how quickly paper wealth can vanish and it’s unfortunate how few understand the benefit of owning, or storing, some wealth in physical PM.

I also agree with your motivation to preserve family wealth over riches. It is important that each of us educate our youth on the difference between real money and fiat currency. As you know, what most call money today is intrinsically valueless and only holds value thanks to other people’s faith. As the faith diminishes so will a currency’s value and worth. At such time physical metal will shine as a safe store of value and this will lead to a PM scramble.

By the way, I hope you and all readers are following the recent news event of found gold treasure. It appears some lucky soul in Northern California unearthed several million dollars in gold bullion and rare coins. The value is speculative, but my research shows a melt value over $2 million and a collector value nearly $10 million. Now, here is what interests me. The backstory has gone completely missed by today’s overzealous media.

At the time this stack of gold was buried our monetary system was on a gold standard. This meant a twenty-dollar bill, or any bill, was exchangeable for the same dollar value in physical gold (twenty-dollar bill for a $20 gold piece). These days are long gone and we all know that a twenty-dollar gold coin is worth many times more than face value. But here is where it gets interesting. What if the party who hid this treasure would have put dollars into the cans, not gold coins? It is estimated that the value of the gold at time of burial was around $27,000. If in dollars, the unearthed value today of $27,000 is only a fraction of the long-term value of gold. Think of it, $2,000,000 in gold compared to $27,000 in USD?

One day your family will be very appreciative of your insightful thoughtfulness. Thanks for sharing.

 

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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