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DISTRACTED INTO POVERTY

GOLD & SILVER, GOLD AND MONEY   No comments yet

Atop the cake sits five candles. Each flame represents a year since our lives should have drastically changed, but undeniably didn’t. This September, September 2013 that is, represents the fifth summer/fall season since, for all intensive purposes, our economy experienced a credit crash. This correction should have propelled most Americans closer to poverty but only postponed an imminent lifestyle change unimaginable by most in our middle class.  The next few paragraphs will outline exactly how we didn’t dodge a bullet and, more importantly, what role precious metal will play in an economic undoing. Thanks for joining TPS (The Prospector Site).

Our primary goal at TPS is to justify physical PMs (precious metals) and their role in creating a life of personal independence. The ability to own a worldwide universal currency is precious and, in all likelihood, a road map for freedom. Most folks making the effort to afford silver and gold are most likely not as distracted as the majority of fun loving neighbors.

The art of distraction is nothing new. It works on puppies and kids, it works on students and patients. Access to easy credit is what distracts most Americans into a state of complacency. This lifestyle almost came to a stretching halt in September of 2008.

Our lifestyle will not function “as is” without credit. You will no longer accept the effort of those in power nor will you be as distracted in a world of low to moderate credit. The true state of our economy will surface as markets 95% dependent on easy credit turn nearly dormant. From college debt to low-rate mortgages, to near-zero auto loans to plastic money; all champion the illusion of a healthy economy.

We only accept the recovery lie because of the ability to leverage ourselves deeper in debt, both as a country and as a society.

Today’s media appears to fall lockstep into this dependency trap but is actually nothing more than a mirror of our society. Social networking fills precious time with personal and professional drama all while distracting intelligent individuals with wasted time and effort. Even today’s world of entertainment is nothing more than a Miley Cyrus report or another example of intellectual compromise. From the latest smartphone to tablet — Americans will stop at nothing in order to be entertained.

The cost to distract us is getting expensive. No longer will American’s accept lower-than-historically-normal mortgage rates. If you want us to buy, or leverage, then near zero rates is what it will take. The same goes for new car buyers as they grow annoyed with anything but zero interest auto loan offerings.

We view credit as an ability to further strive for an American Dream not realizing the puppet master changed the rules sometime ago. You may view easy credit as an avenue to live beyond your means (whether you realize it or not) but Wall Street now depends on this ocean of debit as a primary source of investing. Think about it– your retirement future is now dependent on a derivative of never-ending debt creation.

Physical silver and gold can’t compete in today’s world of paper wealth.  Metal’s smash-mouth method of wealth preservation is not fulfilling, nor is it entertaining, nor is it a viable distraction in 2013. Why “invest” in PMs when we can drive a new car or buy a bigger home?

Too few view the last five years in proper context. Less take advantage of this temporary reprieve to re-channel savings or wealth into physical silver or gold. The great distraction worked because so few understand a power committed to borrow at all costs jeopardizes her currency to do so. The end result is investors worth millions, probably billions (dollars), but still living a life in poverty.

We can no longer deny worldwide tensions that grow with each passing day. Syria is yet another example of an economic symptom as countries around the globe look for a justifiable reason to print money and further distract citizens. Americans grow tired of nonstop war drumming but fail to realize war is the ultimate political distraction. After all, how unpatriotic are those who fail to support our freedom, right?

As you can see the one commonality is the need to borrow and create more currency. Sure taxation and capital controls will find a seat within the first few rows but the big nut is credit/currency creation. I have no doubt physical metal will rise from the ashes as the world awakens from our great distraction. I also have little faith wages and lifestyles can keep pace with this next leg of monetary debasement.

Historically speaking the value of physical PM will rise in times of economic uncertainty and currency debasement. Folks, you don’t need me to point out that we are at the very intersection of economic uncertainty and currency debasement. The need to hyper-print our currency will only improve the wealth status of those safely holding physical silver or gold.

Reality will eventually snap us from our state of distraction. A hungry stomach, eviction, repossession, and foreclosure are hard to ignore. You have time to make a change; I strongly encourage each person to take advantage of this closing window.

QUESTION:  With the threat of war growing can you offer some insight on how this could affect rising PM. You didn’t mention war in Why Silver & Gold Will Go Higher, any reason why? Loving TPS, thanks for your effort.

TPS Reply:  Thank you for your support and questions. You’re right, I didn’t mention war in my book. In fact, lots of other PM influences didn’t make the cut either. Today’s book editors realize the attention span of most readers is retreating. We live in an age of constant information so her advice was to keep it simple, and she did.

But this shouldn’t undermine the effect of war costs that always lead to deficit spending and currency debasement. The belief that war is an economic stimulator is not true. Sure war spending will temporarily stimulate the economy but the long-term effect compromises a country’s national security and stability.

My opinion is that America is looking for another war. Look how many families now depend on a large military for employment, benefits, and retirement. I look for regional wars to expand into major conflicts as inflation/debasement tensions arise from currencies trying to keep their economies competitive. This type of conflict offers a green light for currencies to ramp up the printing process.

War legislation always carries pork in some fashion. Politicians realize few constituents actually follow the pork and most voters digest their news in tiny sound bites just before watching their favorite program.

Over printing a currency always leads to higher silver and gold prices. Values may not change but prices do just to keep par with inflation. This is the beauty of physical PM. This is why it is so necessary to trade fiat for real money while the option still exists. Did I mention the discretionary benefits of storing wealth in physical silver or gold? Thanks for the questions.

QUESTION:  My local coin shop is making a good argument for pre-65 silver over the new bullion recommended on TPS. Any thoughts?

TPS Reply:  I’m all for low-premium pre-65/64……. better known as junk silver.  My question for you is what premium are they charging for junk? How does this premium compare to American Eagles, rounds or bars? I personally own both (junk and new bullion) but favor one-ounce legal tender coins most of all.

I realize you, like most readers, are focused on silver but please don’t forget gold. Gold is historically less volatile and definitely worthy of diversification. A 1/10 ounce gold bullion coin is not much more than five silver bullion ounces. Many TPS readers hold wealth in gold as a long-term method of storage and hold junk silver for when we reach a time of underground barter and trade.

I’m glad to hear you are trading at a local coin shop since it is important to support local trade. The ability to exchange some silver, or gold, for cash could become useful considering the age we live. Plus, most coin shop owners have short memories and little to say.

 

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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GOLD, SILVER & Facebook

GOLD & REAL ESTATE, GOLD & SILVER, GOLD AND MONEY, GOLD OR SILVER BUBBLE, GOLD/SILVER COINS, STOCKS AND GOLD/SILVER   No comments yet

Two weeks ago the buzz on Wall Street was Facebook’s IPO (initial public offering). As I write, Facebook stock is down nearly 23% from the original offering leaving many investors questioning such a sure thing. This leads me to ask how comfortable you are with your investment portfolio? From your emails, most are still on board with silver, gold too, but will we feel the same if gold drops below $1400? My bet is $1400 gold would make for nervous investors even though true metal owners know the best days for PM (precious metals) are still to come.


It is easy for me say the recent drop in gold is nothing to worry over since I bought most of my physical gold years ago, some of you cannot say the same. I won’t attempt to justify why gold is down lately since the answer is trivial compared to what motivates gold over long term.

Some of you are thinking of jumping from gold all while I’m timing when to add more. The only difference between “us” is perspective. You perceive gold as risky and I perceive gold as the only protection against fiat supported governments unwilling to go down without a fight. I perceive the crises of 2008 as a monetary siren and you perceive the economy as in recovery.

The type of investor willing to buy Facebook stock is the same one willing to accept forty years of a fiat based economy as sustainable, it is not. Facebook stock is declining because more folks around the world are beginning to dispute today’s fiat Ponzi scheme.

A few weeks ago, most investors perceived Facebook a wiser investment than physical gold/silver? We must realize the one thing Facebook and today’s gold/silver prices have in common is volatility. Putting a value on Facebook is nearly impossible just like putting a value on silver and gold is too (for two completely opposite reasons). With that said, here are the differences between PM and Facebook.

  • Facebook is socially popular, gold is not.
  • Facebook is a very young company, gold is the oldest form of money.
  • Facebook is moving toward global status, gold is a global currency.
  • Facebook’s future value is in question, gold’s future value is in demand.
  • Facebook unites the internet world, gold unites the wealth of the world.

It is no secret that I feel social sites, like Facebook & Twitter, will play a major role in PM prices extending beyond what most view as expectant or realistic. Nothing will transport the news of another bank holiday, Lehman collapse, or government bankruptcy like social networks can.

To be fair let’s talk about the long-term projections of a giant like Facebook. After all, Facebook stock should offer promise since this is a young company founded by some of the sharpest minds in our tech world, right? Maybe not. Will economic instability help influence Facebook stock upward? Will social unrest, the S & P in retreat, worldwide housing declines, or market volatility in general help elevate Facebook stock over long term?

No, aforementioned forces will not help Facebook’s stock value. Just because Facebook itself will find popularity around the world doesn’t necessarily justify it as a worthy investment, at least not as priced.

To find comfort in silver and gold requires a realization more than anything else. This realization must include the need for nontraditional monetary decisions during nontraditional times.

This “realization” must include a basic understanding how not one fiat currency has experienced long-term success, not one! On the other hand, gold has never experienced monetary failure. Now, with that said, who wants to buy some Facebook?

News Worthy:

REUTERS:  Biggest Greek Bank Warns of Dire Euro Exit Fallout

If Greece left the euro, living standards would plummet, incomes would be slashed by more than half, and inflation and unemployment would skyrocket, the National Bank of Greece warned on Tuesday.

The bank said per capita income would collapse by at least 55 percent, the new national currency would depreciate by 65 percent against the euro and a recession, now in its fifth year, would deepen by 22 percent. Read more here. TPS (The Prospector Site) adds, what is not reported is how US political forces are now pressuring European countries to PRINT stability into Europe’s economy.  This should be painfully obvious that those elected are willing to destroy currencies before facing political defeat.

News Worthy:

Congressman Ron Paul: Capital Controls Have No Place in a Free Society

The characteristic mark of a tyrannical regime is that it eventually finds it necessary to erect walls to keep people from leaving.  This is why we should be troubled by the “Ex-PATRIOT Act,” an egregiously offensive bill recently introduced in the Senate.  Following a long line of recent legislation and regulations attempting to expropriate more and more wealth from hard-working Americans, this new bill spits in the face of overburdened taxpayers and tramples on the Constitution.

If they wish to escape the Federal Reserve’s inflation by emigrating to lower-cost countries so their dollars will go farther, as many Baby Boomers are starting to do, the federal government will penalize them, and continue to penalize them for the rest of their lives as long as they hold any money in the United States.

No wonder increasing numbers of Americans feel this government is engaged in outright warfare against its own citizens. Every day the noose grows tighter, yet anyone who sees the writing on the wall and seeks to leave must pay exorbitant taxes just for the privilege of leaving, and increasingly the possibility looms of never fully breaking away from the government’s tentacles no matter where they go. Read more here. TPS adds, several international sites are now committed to provide accurate information to those interested in international dual citizenship or relocation. I’ll be the first to admit that this is not for everyone, but. Remember, life can change on a dime so don’t rule anything completely out. Check out International Man for more information.

News Worthy:

Financial Sense:  So You Think You Own Gold?

One of the most common reasons investors cite for buying gold or silver bullion is that they are losing confidence in fiat (paper) money systems and the over-indebted governments behind them. Many investors prefer to own “physical” gold rather than “paper gold”, meaning they want to own the real thing as opposed to a paper promise – a contractual commitment to deliver gold at a later date, or in other cases a contractual commitment to pay the equivalent of a future gold price to the investor.

But there is an alarming deficit of understanding among investors relative to how the precious metals markets actually function. In fact, I would go so far as to opine that most investors who believe they own gold really don’t! Read more here. TPS adds, Mike Maloney says it best, “If you can’t hold it then you don’t own it!!”

QUESTIONS & COMMENTS:

Question: This whole precious metal thing is confusing considering each so-called expert has a different opinion than the last. How do I know what is safe haven silver or gold? Two, who is trustworthy within the PM community? I don’t want to buy only to lose money like many others have over the last few months.  Please help since I’m not having much luck !

TPS Reply: Wow, you are loaded for bear but thanks for the questions. Let me start by taking some pressure off, ready? Don’t buy silver or gold, at least not yet, since first comes education (PM understanding) long before the steps in question.Don’t worry about prices going up since the risk of buying “wrong metal” far outweighs the risk of prices zooming.

Part of becoming comfortable with gold involves a basic knowledge of a fiat based economy now driven from consumerism. This understanding provides a solid foundation built from confidence that sustains a physical metal holder during times like today (this is why I pay no attention to media misinformation, dips or bubble talk).

Next, realize you’re not a coin collector and have no interest in rare coins. The goal is to trade currency for real money AS CHEAPLY AS POSSIBLE!! This is why we encourage readers to buy bullion coins, rounds, bars, or junk.

Now, as far as the who to trust question. TPS often interviews small family operated bullion dealers who have strong long-lasting reputations. Dig into our achieves to find one you are most comfortable with or visit a local coin shop asking to see their lowest premium silver or gold. Leave if they attempt to redirect you toward rare metal.

You mentioned a fear of losing money but this is far from the case. We can’t compare PM with typical investments of the past, i.e., real estate, stocks, etc. Precious metals are money. A wealth transport of sorts happens the minute you convert currency (what you called money is actually a currency) into PM.

Like all transportation the path to protection and prosperity is not a straight-line destination. Hills, valleys, dips, rises, are all part of this journey. No educated PM owner will sell physical silver or gold during a paper dip like the one we see today.  Thanks for reading The Prospector Site.

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HOW SAFE IS YOUR SILVER & GOLD?

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

Okay, after months of thinking, reading, and watching you have decided to buy the one asset no government can print into worthlessness. It’s nerve racking, I know, and this is why you’ve put off trading dollars for silver or gold until now. Part of you is angry. Angry you didn’t buy two years ago with gold at $1100 per ounce or silver at $16.90 (oz). Angry each time another too big to fail finds billions of dollars in favor while you work double time to make ends meet. It is a big decision but a necessary one, this is why you’re reading this site and this post. Now, I have one last question before you head off to your local coin shop or make a call to an online bullion dealer. How safe is your silver & gold?


Congratulations on committing to an asset few others understand or find worthy. You are now part of the 1% protected from fiscal insanity and on the path to monetary self-reliance. I know what you’re thinking because I hear it nearly everyday; you are thinking how little metal comes from such a huge dollar price. I thought the same thing 10 years ago as I bought my first coins of gold. Want to hear something kind of funny?  The guy down your street will pay three times what you paid all while thinking the same thing.  Silver and gold values will rise, they have to. The only way this trend reverses is if economic growth surpasses spending or those in monetary control reverse spending. What is your bet?

Buying physical silver or gold is similar to bringing a baby home for the first time. Nothing can prepare us for the challenges, insecurities, or confusion that comes with either. Like a child, others have faced the same PM (precious metals) obstacles for thousands of years, and survived.  Develop a plan for storage as soon as possible, silver or gold cannot protect you if you don’t protect it. Bullion coins, bars, or rounds can be nearly impossible to locate once they walk away. My goal, to make sure you establish a comfortable method to store this new bundle of metal.

My recommendation is to personally store at least 1/3 of all silver or gold held. This means you or someone trusted finds a safe but non-passive means for PM storage. This should be no different from the plan you established, and then implemented, when buying physical silver or gold.  Developing a storage plan to safeguard silver and gold need not be clumsy or nerve racking. Like buying, you first educated yourself, developed a plan, and then implemented the plan according to your budget and taste.

It is often said that 90% of all physical metal stores within the owner’s home.

This is very possible but my bet is less than half storing at home are adequately protecting something as valuable as silver and gold. I just don’t feel securing PM is at the level of gold’s popularity or demand, this is concerning.  It is no longer adequate to toss twenty ounces of gold into a wall safe or gun safe. This type of singular protection worked with prices 50% of today’s value but rising prices must include multilayered protection. The alternative could be devastating for those less prepared.  So what does a multilayered plan include? Multilayered PM protection includes more than a free-standing safe. Multilayered security includes everything from outdoor lighting to wireless alarms. Multilayered security includes tapping into professional security advice if in doubt. Multilayered security includes a proactive mindset and then a proactive plan of implementation.

FIVE LAYERS OF PROTECTION:

  1. Discretion before, during, and after the purchase.
  2. Diversifying storage options including passive and personal storage.
  3. State of the art in-home security system consistently armed.
  4. Decoy safe with decoy metal along with well hidden, well attached, PM safe.
  5. Perpetual storage plan adapting to changing times.

TIPS:

  1. Never allow (use) social networking to promote travel plans or vacations away from home.
  2. Inform all family members of strict discretion.
  3. Never buy from Craigslist type sellers.
  4. Buy from reputable shops or bullion dealers.
  5. Use caution when trading at local coin shows.
  6. Use caution when entering & exiting home or apartment.

Below is a website I recommend all readers not 100% comfortable with this home security issue. If you take one thing from today’s post it must include a proactive security plan. Implementing such a plan greatly reduces your odds of silver or gold theft, there are just too many easier victims. The website I recommend is www.GlobalSecurityExperts.com. This site offers free tips on securing a home but also provides a personal home evaluation/recommendation for those willing to invest a few hundred dollars in such peace of mind.

TELL US YOUR TAKE ON HOME STORAGE. REACH ME RIGHT HERE.

COMMENTS & QUESTIONS:

Question: Can I ask which online bullion brokers you recommend?

PROSPECTOR REPLY:  Thanks for the short question. Yep, it can be a little confusing but many good bullion dealers are available to provide reliable silver and gold options. As you know, I don’t sell silver or gold on The Prospector Site. I buy from three online bullion dealers and have found all great and reliable, I can’t speak for the others. Visit our friends at www.GoldShark.com for the most competitive bullion pricing (posted prices include shipping too). I buy from Blanchard Inc, Gainesville Coins, and Miles Franklin. I also trade at a local coin shop, hope this helps. Oh, one last thing. Make a plan including what you’re buying, how much, and where to store BEFORE calling. Stick to the plan regardless (email me if something doesn’t sound right). Good luck and congrats.

COMMENT:

Something you mentioned in Silver Ponzi Warning stopped me dead in my tracks. It is so true that “Silver and gold are only as reliable as the sources selling each metal”. My fear is many will find this out first hand considering the number willing to say or sell anything to make a buck. Just this week I read about tungsten filled gold bars (not the big ones either). Keep up the good work and don’t be afraid to call-out the bad ones.

PROSPECTOR REPLY: Thanks for the comment, and reading our site. I too have the same concerns and truly believe stories like this one will only increase as gold/silver do. The best defense consumers have is education and the internet. The article you mentioned about tungsten is very concerning and we wrote about it several months ago. I feel tungsten risk is limited and excludes gold bullion coins and smaller bars, keep that in mind next time you add to your gold stash. Thanks again for the comment.

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THE TRUE “INTRINSIC” VALUE OF GOLD!!

BUYING GOLD/SILVER, GOLD & SILVER   No comments yet

Intrinsic value of gold is becoming a hot topic these days but just because it’s a topic doesn’t mean information is correct.  The Prospector Site understands precious metal advertisers use catchy words like intrinsic to lure in both new and old buyers.  We feel many misuse the term intrinsic to sell more gold & silver. For this reason we want to define, in our opinion, what intrinsic value of gold and silver is.


By definition, intrinsic value is nothing more than the true worth of an asset or product. But this is misleading and I want to further define intrinsic as it relates to gold and silver.  Here we go.  Let’s say I decide to take a break from writing by stepping outside my home taking a walk around the ranch.  What if while stumbling around I kick up a baseball size rock that turns out to be gold (pretty cool, right?).  The first question to come to mind is, of course, how much is this baseball size rock of gold worth?  I doubt I would ask myself what the intrinsic value of it is?  If I did ask myself I would have bad news for me.  The intrinsic value, in my opinion, is near zero and here is why.

Gold and silver are expensive to pull out of the ground. Environmental implications and regulations, labor cost, equipment, restoration, and payoffs, all add to the price of extracting yellow and white metal from God’s earth.  If you add up all these costs, add transportation, add taxes, add minting cost, add broker fees, you have the intrinsic value of gold and silver.  Now let’s talk more about my recent imaginary find (baseball size gold rock).  It cost me exactly zero dollars to find my gold.  My wife and I own the property so I don’t owe anyone or surface right fees.  I didn’t have to have a bulldozer help excavate the earth so I don’t owe a dozer fee.  The gold rock cost me nothing, up till this point at least, to find and posses therefor its real intrinsic value (in my opinion) is zero.  No, I won’t sell you my imaginary rock of gold.

Now we all know a baseball size gold mass is worth plenty more than zero. Buyers will certainly pay me thousands maybe millions for a find like such.  But that someone will pay me a bundle doesn’t mean this mass of gold is truly worth it.  Eventually we must realize demand, speculation, and intrinsic value all add up to a whole lot of bucks.  If you want to know what the base value (intrinsic value) of your bullion, bar, or round, here is a way to find it.  Research what your gold/silver bar, bullion, or round cost is to mine, transport, mint, and sell; this is the actual intrinsic value of your metal. If I decide to mint my massive gold rock into bullion coins then it too will develop an intrinsic value the same as any American bullion. I realize some are jumping up and down in disagreement but, in my opinion, all other costs to own gold/silver are over true intrinsic value.

Does this mean you paid too much for your gold? Probably not and here is why.  Free market is the best indicator of current value.  Five minutes on EBay will show anyone free market value.  What is important to realize is any value over intrinsic can and will fluctuate according to demand, speculation, manipulation, greed, and fear.  This is why we feel somewhere way down the road gold will bubble and then burst.

As I write, as you read, folks are buying Christmas trees preparing for the Christmas season of 2011. Do you think the value of a Christmas tree will be the same on December 26th as 24th?  Even live Christmas trees will see big declines after the season, after demand diminishes.  A live Christmas tree will return to a closer version of intrinsic after Christmas than before, simple concept.  Someday gold will explode in price making realistic minded investors ask why buy gold, at crazy prices, when other assets are all on sale (real estate, stocks, bonds, etc).  At this time, money will flow away from gold and silver back into undervalued assets like mentioned above.  Gold will return to intrinsic value, maybe under it for a while, because of this natural occurrence.

Sorry it took 737 words to define intrinsic value of gold/silver.  I think I’ll stop writing and take a walk around the ranch.

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