Posts Tagged ‘buying gold’

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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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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Few indicators validate physical silver and gold like today’s topic. Not that I need more convincing but a little reassurance never hurts, especially in today’s world.  Gold and silver are defying the economic law of supply and demand. This isn’t really a law but guys with bad bow ties like the legalistic sound of economic “law of demand”, so be it. Nevertheless, this anomaly, or oddity, is well worth space on TPS (The Prospector Site) and proves silver/gold are cheap compared to days ahead. With that said, I’m so very glad you’re sharing your precious time with us….thanks.

Below is an interesting chart provided by Zero Hedge (click link to view full article). As of February 2013, demand for gold has soared all while declining in price.

As you can see below the same odd correlation is taking place with silver, too.


TPS readers already know that I pay little attention to short-term silver and gold fluctuation. I only mention it today for those sitting on the PM fence looking for a soft entry or add more metal to a growing stack. The charts above clearly speak for themselves, at least for those living within a realistic mind.

It’s fair to compare early 2013 PM demand to guns and ammo. The same level of demand that leaves gun shelves empty also increases the price of firearms and ammo. But guns and ammo have one huge advantage over silver or gold. Gun makers can hire more hands, lease more space and eventually increase output. The same goes for ammunition as well.

Physical silver or gold are different. No one wants to see increased metal output more than PM brokers or dealers. My conversations with folks in the PM field lead me to believe that most making a nice living selling metal act unworried…. but I have my doubts. Precious metal rationing and interruption should be expected; charts like the two above only validate my opinion.

Does this alone justify dropping everything life related to buy silver or gold? No, not by a long shot. Trading dollars for PM must be part of an overall life-changing decision of self reliance. The decision to buy PM must include how much, from whom, and where to store. The decision to buy is only the first step, regardless the price of today’s silver or gold.

QUESTION:  I own my home, cars, and owe no one a penny. A friend turned me on to your site and I have to say your precious metal information is intriguing – but still not convinced buying gold is as beneficial as some believe. Please explain how a holding of gold will help after an economic collapse.

TPS Reply: Thanks for the great question, and reading TPS. Your question is one more and more ask as the word “recovery” sounds less promising with each passing day. The truth is we are not in recovery, we are in economic denial. This denial is what separates so many from the protective nature of silver and gold. Take trillions of borrowed dollars from the equation and watch how fast economic volatility becomes the norm.

First, economic collapse is a misleading term. The collapse you speak of affects those unprepared far more than those living within means and holding wealth stored in safe havens (see video below). Don’t take this as uncaring but a “collapse” will only strengthen the wealth of most holding silver and gold. Honestly, I would enjoy nothing more than watching gold decline to $500 an ounce (this means our economy is recovering, truly recovering), but this will not happen anytime soon.

The word I use is correction. I feel the ill effects of a declining economy will only become obvious to most when it affects them personally. Think back to September/October 2008 as the DOW declined from 14,000 to just over 6000. Those today celebrating the recent DOW high have short memories, you agree? Think back to the housing correction just prior to the DOW correction, too.

People pay attention when wealth disappears and hungry.  Then, and only then, will PMs reveal themselves as a true safe haven in an age of great economic uncertainty.

It sounds like you’ve worked hard for what you own. I can tell by your comment that a life of prudence and independence is something you value. Assets like cars, houses, retirement plans, etc could rapidly decline in value as the masses liquidate traditional assets, and toys, to pay for life’s necessities. Wealth stored in silver or gold traditionally benefit in such times of monetary correction.

This is why it’s so important to incorporate PM into an overall plan of self reliance. Not the end of the world but certainly a reshuffle of worldwide wealth. Why not invest in the one asset capable of transporting personal wealth beyond this time of correction? Thanks again for the comment.

WORTH NOTING: Folks, we must keep eye on the overall economic picture here. Rising home values and a rising DOW have nothing to do with recovery. Remember, both significantly corrected soon after Mr. Bernanke and our Congress pronounced both markets safe & sound (2007/08). This illusion of recovery is nothing more than an economy supported by nonstop currency creation and unsustainable over long term. The dollar number next to physical metal is irrelevant. My advice is to step up your plan of protection, soon.




DC Carlton is the founder of The Prospector Site and author of Why Silver and Gold Will Go Higher. 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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Are you buying silver or gold this month? Precious metal investors will buy more gold this December than nearly all other months of 2012 combined. Unfortunately, 90% of those buying gold in December will pay far more than necessary or simply buy wrong gold. In fact, most December buyers aren’t buying gold for an investment but simply looking for the perfect gift for someone special. This buyer, the Holiday buyer that is, doesn’t realize the same amount of currency spent on retail jewelry could buy two, maybe three times the precious metal that we recommend here at TPS.

You might recall last month when I shared with readers my willingness to brave Black Friday. I have to admit, our retail industry has done well to create this frenzy of shopping excitement that only comes once a year. I found myself standing in front of a Kay Jewelry store…. watching, as a dozen or more willing buyers snatched up discounted gold all while failing to realize Kay’s “amazing” discount was still well beyond intrinsic value.

Now don’t get me wrong here. Buying silver or gold well over market value is a million times better than not buying at all. And, I seriously doubt someone you love wants to unwrap a bullion coin as a token of your admiration come Christmas Eve.

In fact, I recall an email received many months ago where a woman reader asked if silver and gold jewelry should be viewed as an investment.

“Yes”, of course jewelry made from silver or gold should be viewed as a worthy part of your PM (precious metal) stash, but.

My shopping day just after Thanksgiving exposed something else that the retail business has figured out but 99% of the folks walking your streets haven’t, the value of gold. Just past the popular jewelry store aforementioned rests another jewelry vendor but this vendor is looking to buy, buy your old jewelry for cash that is.

Why so many are willing to pay far over gold’s value (retail jewelry) only to someday “short sale” as scrap only proves most of us don’t understand the true value of silver and gold.


The truth is gold and silver are valuable only because they are a real asset, rare (little inventory), and a worldwide currency. This means from London to Tokyo, New York to Mexico City, both metals will easily exchange for the currency of choice, and have for thousands of years. Sure they both shape and shine into works of art but their truest values lies within the metal itself. Everything else comes at a premium.

But for some reason Americans fail to understand silver and gold’s basic value. From an investment aspect, we view silver and gold as obsolete and irrelevant or as one reader put it, “Won’t pay a dividend”. Yet, we hold an intrinsically valueless paper money in the highest regard, even to the point we allow those elected to create endless amounts more just to sustain this fiat Ponzi scheme another day.

We just fail to understand the value of silver and gold. Worse yet, we fail to accept the declining value of a paper currency supported by nothing more than faith, optimism, and denial.

I want to leave you with two points today. One, if buying jewelry, please understand the offering price is a derivative of talent AND precious metal. This means you will pay extra for a subjective portion of what ever it is you’re buying. My second point, don’t sell scrap jewelry for a discount. Someday soon scrap buyers will have bidding wars over everything and anything silver or gold related. Do everything possible to refrain from selling grandma’s broken pendant or other scrap metal resting in your sock drawer.

COMMENT: Thank you for your post today about conquering the “fear factor.”  You are absolutely correct in that most of what I read regarding gold and silver tends to stir up fear as a motivation for buying.  I have found fear to be a terrible motivator as many times the things we waste time fearing never come to pass and all that stress doesn’t change anything.  It was good to be reminded though, as I have to catch myself at times slipping into a fear mentality.

I actually have found the best remedy for a fearful attitude about finances is to give.  It always amazes me that when I give from the abundance that I have been blessed with, my grip on the material things seems to loosen and the fear looses its grip on me as well.

I really enjoy your blog.  Thanks for taking the time to write!

TPS Reply: Thank you for sharing such wisdom. You’re 100% correct; the best remedy for a fearful attitude is to give, so well said. I’m not sure why so many selling PM or “experts” motivate buyers by fear other than it must work. My goal is the opposite. I want you to understand silver and gold, inside and out, and only then decide what is best for your family. Sure fear lights the fire but ultimately such a prudent decision must be made from an educated rational view over fear based.

Most of you realize that The Prospector Site doesn’t sell silver or gold, this is for good reason. We want each of you to understand our objective is to provide an educational source OUTSIDE of the precious metal trade. Regardless, thanks for the nice comment and reading TPS, you made my day.


COMMENT:  Please let your readers know that I just made a substantial purchase of silver from ColoradoGold and everything was as promised!  Price, quality of the silver, and the delivery were all outstanding!  I will be doing more business with them.

TPS Reply: Fantastic, thanks for sharing your experience with Colorado Gold. So many email asking for reliable PM vendors and I have yet to hear anything less positive from those using CG, as you just mentioned. This is because brokers like Don are honest, reliable, and worthy of your business.

Also, congrats to you for making such a wise choice to physically own silver. Each day we hear of more borrowing, bigger government, and this bodes well for those owning silver and gold. Thanks for reminding all of us that good PM brokers are easily available for those willing to do a little research.

By the way, I also buy from my local coin shop, Miles Franklin, and Blanchard Co,too.


QUESTION: Why don’t you write more often? I miss reading TPS daily!

TPS Reply: Thanks for missing me. To answer, it all comes down to time and mine is divided between family, business, and The Prospector Site writings. Also, the majority of my writing time is invested in several precious metal related books. Why Silver & Gold Will Go Higher is out; Storing Silver & Gold is in final edit and Rising Silver (How Obama’s re-election will propel silver) is in the works as you read this.

My dream for TPS is to devote a portion of each post to your stories and why readers like you are buying silver and gold. Feel free to share your story, anytime; knowing discretion is always top priority.  Thanks.


DC Carlton is the founder of The Prospector Site and author of Why Silver and Gold Will Go Higher. 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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Listening to Congress argue over increasing your taxes reminds me of trick I used to play on my boys many years ago. As they crawled into bed I would lean into their room all while hiding the light switch closest to their door. With my free hand I would raise it high in the air asking my boys if dad had the magic to cut the lights with nothing more than a snap of the finger. What they didn’t realize was my other hand, blocked by my body, could flip the switch off simultaneously. The trick worked many times before my oldest let reason supersede the magic of his father. Today, our elected officials play the same cute little trick on the masses as we fall for the same taxation dog and pony show over again.

I love the exposure power of precious metals. Regardless the deceit, regardless the monetary games, silver and gold continue to expose the obvious for those willing to accept that ones in power refuse to admit a failed fiat system will only continue to erode what you and I have worked hard to amass.

Some of you reading today are new to precious metal which means you’re new to TPS (The Prospector Site). First, thanks for joining us today but especially thanks for joining the minority that refuse to accept the word “recovery” at face value.

There is zero chance that record debt creation will create a long-term healthy economy and the only way to protect you and your family is to make a proactive approach by insulating your wealth from taxation and inflation.

The trick we must discuss today now plagues not only the USA but most countries worldwide. All of us living in the US must burden the lion’s share of responsibility since we are the only voters capable of stemming the trickery I wish to discuss today. We are the only nation capable of creating more of the world’s reserve currency (US Dollars); therefore, each citizen of this country is responsible in some capacity or another.

Think back, if you will, of my silly trickery shared with my little boys and the hidden switch. My left hand represented today’s argument for taxation by drawing our attention. The news over my shoulder, as I write this post, cackles with left and right leaning personalities arguing who should pay more taxes in order to resolve this “fiscal cliff” rhetoric that fills our news.

This is the same argument we heard last year, and the year before. What if I told you this argument is nothing more than an illusion, or distraction, while central banks around the world create more currency backed by nothing more than your continuation to accept paper as money!

The argument of taxation creates the smokescreen necessary to push the problem one more day down the road and only because we continue to watch a political version of my hand slowly rising to an attention grabbing position. Some of you might ask what the big deal is since we’ve had deficits as long as most reading lived. I’m glad you asked.

Those elected need not raise taxes as long as you accept printing more money. You see, the easiest taxation ever created is the power of inflation since inflation doesn’t appear on a W-2 or year-end tax returns. Those requesting your vote realize the danger of taxing you directly but relish in the ability to tax you by way of inflation.

Please don’t take this wrong but such political power derives from our monetary ignorance, sorry.

If you ask how high silver or gold will rise I have a simplified way to answer your question. Real money (metal) will rise as high as necessary to counterbalance real money with inflation. Will gold rise to $5000 an ounce, maybe silver to $500? Can you imagine what happens to PM prices when we dump fear, uncertainty, and a very limited supply of silver /gold into our bowl of inflation?

The evidence is all around us. It’s at your grocery store, gas station, local utility, everywhere. It’s most evident at your local coin shop who now charges around $24,000 for $1000 of face value legal tender coins made from silver. Folks, these coins…… not long ago I might add, traded dead even with dollars. Now it takes 24 times more dollars to buy the same amount of silver. Welcome to inflation 101.

Our silver example exposes inflation when we consider 95% of our dollar’s buying power disappeared over one generation. Folks, we borrowed more money as a country over the last 5 years than over the previous 200 years. How can anyone argue recovery over inflation?

This type of inflation is tolerable when a debt based / consumer based economy supported growing wages but these days no longer exist….at least not for most of us. Can your income keep par with the level of inflation I’m describing today? If not, my advice is to relocate some of your wealth to precious metal, SOON.

The trick that steals your money is this simple. One way or another we all pay for the monetary mismanagement described today, we pay more in taxes or we pay more thanks to inflation.

LAST WORD…..at least until we try to answer some of your questions. Since the presidential election TPS has received an extraordinarily number of comments and questions. Thank you. This tells me folks are very concerned and looking for real answers in a time of uncertainty but fortunately many of you are considering silver and gold. I encourage each reader to continue their quest to find monetary truths and congratulate each of you for your effort.


 November 9, 2012: “The Fed’s paper money system is the major source of economic suffering today. It is the reason that Congress can’t control its spending. It’s why it can fund wars and the police state. The paper money monopoly distorts economic signals and causes booms and busts. It robs the American people with the insidious tax called inflation. We must never forget that the Fed has the massive power it does only because of paper money. If it were restrained by a gold standard or monetary competition, the Fed would be a menace, but not a mortal threat. As it is, the Fed, and, by extension, the government itself, holds our entire economic future hostage.”  Dr. Ron Paul

For those who believe taxing the rich is the answer I want to share the Youtube clip below. It is sobering to say the least.


QUESTION: Why does the price for gold have such a close relationship with the price of oil? It’s easy for me to understand the price of gold [PM] following the value of the fiat dollar, but how is that related to the price of oil?
I might note that I have dealt with Don Stott, coloradogold.com on six different purchases, and could not give a stronger recommendation. Everything goes exactly as they say, and you have nothing to worry about. Thanks for the help.

TPS Reply:  Great question so thanks for asking. Oil, since the early 1970s, is priced in USDs and this is why we often hear the term “petrodollars“. It makes sense that oil and gold appear in lockstep when we consider both expose today’s declining power of fiat dollars.

Something else parlays oil and gold together and it can be summed up in one word, volatility. The conflict building in the Middle East has the potential to send both commodities beyond the affordability of over 90% of the world. Think how our economy now depends on oil to make the economic circle complete. Many folks in the US rely on goods transported over 1000 miles yet never consider how $200 a barrel oil affects the household budget. We have a choice to buy silver or gold, or not, but all things oil dependent are a much different story.

Today’s ratio (gold to oil) shows oil under priced so don’t be surprised to see oil rebound over the short term. The average ratio since 1970 is 14 – 15 oil barrels per gold ounce but today’s gold buys closer to 20 barrels. My bet is oil will rebound well before gold prices decline but who knows in such a volatile age of monetary manipulation.

Good call on the oil to gold relationship and thanks for validating Colorado Gold as a reliable source for physical silver and gold.


COMMENT:  Just found TPS.  After reading Aftershock (Wiedemers’ version) and Doug Eberhardt’s “Buying Gold and Silver Safely“, reading what I have here and seeing the same logic being applied to the world’s bubble economy and the realities of money printing, it is good to continue to find sources that agree with the Wiedemer’s and Doug in how to protect ourselves.

TPS Reply:  Yep, I agree and thanks for pointing out solid economic and PM information. Aftershock book is one often mentioned on this site since I’ve had long conversations with one of the three authors. It is impossible to not recognize economic bubbles after spending a couple hundred pages reading example after example why assets spike and then quickly lose value.

One event that helped me to truly understand PM comes from the 1980 gold era when metal spiked to just over $850 an ounce only to tumble in the months soon after. The gold bubble of 1979 to 1980 proves how the herd rushes into an asset late but just in time for the slaughter. Wise metal owners sold gold from the backdoor while the masses pushed and shoved trying to find the front door as coin shops struggled to meet demand.

I encourage each person new to PM to research how 2012 /2013 are different than the bubble days of 1980. Gold is off the radar of most investors /individuals considering it is estimated less than 2% own physical PM. Will gold’s relatively unknown status change someday? You bet it will and we’ll be right here to break down how current events affect today’s PM market.

Thanks for finding TPS!!


QUESTION:  Hi, I’ve recently become interested in buying gold and silver.  However, I am not thrilled about owning physical metals.  I would much prefer to own something like the SPDR Gold Trust.  I just wanted to get your opinion on owning gold via this method rather than the physical option and also if there is an equivalent silver trust that you like.  Thanks for the help.

TPS Reply:  Thanks for your questions. SPDR Gold Trust is one of many ETFs (exchange traded funds) that allow an investor to invest in metal without actually physically owning it. An investor sends cash to Wall Street and then hopes financial institutions promote your wealth in a favorable fashion. You are wise to show interest in silver and gold but I have reservations about anything owned but not held (allocated).

Owning silver and gold is part of a overall plan to shelter a family from uncontrollable economic conditions stemming from a fiat currency explosion.  The reason more and more search out assets like physical PM is to create an individual monetary system outside the financial establishment. PMs are the foundation to financial independence and have been for thousands of years, this will not change anytime soon.

The monies we hold in our bank accounts and wallets are no longer money, they are promissory. Too many have abused this fiat system we still call money and this is why TPS readers prefer real assets like silver and gold. I’m far more comfortable with you owning real physical metal first and then speculating on PM ETFs down the road.

By the way, if storing metal is not for you why not check out BullionVault or GoldMoney since both allow investors to buy real metal, close to spot (paper) price to boot, without the hassles of personal storage. Regardless, thanks for the questions and thanks for reading TPS.


DC Carlton is the founder of The Prospector Site and author of Why Silver and Gold Will Go Higher. 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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History tells of no other time or place as promising as the Roman Empire. We often refer to the fall of Rome but actually the fall was more like a long decline ending in a very poor dwindled down version of itself deeply divided into two parts. I can’t help but watch the United States (actually the entire world) follow the same mistakes that buried Ancient Rome and like the Roman Empire history will divide the blame according to wealth and social status. My goal is not to argue why Rome fell but simply compare its fall with ours today. Some readers continue to question gold’s worthiness but fail to connect historical dots proving why real money sustains monetary mistakes, like Ancient Rome and like America 2012.

Nero and other emperors debased the currency in order to supply a demand for more coins. By debasing the currency is meant that instead of a coin having its own intrinsic value+, it was now only representative of the silver or gold it had once contained. By the time of Claudius II Gothicus (268-270 A.D.) the amount of silver in a supposedly (100%) silver denarius was only .02%. ABOUT.COM

To prove why your silver and gold are soon to skyrocket in value we must first systematically compare our currency debasement to Romes. Unlike today, Rome used coins of silver as currency but soon realized the Empire’s wealth couldn’t sustain, or appease, a overgrown government providing too many entitlements.  As you can see by reading the paragraph above the answer to fulfilling entitlement was decreasing the amount of silver (denarius) from 100% to .02%.

Money debasement in days of Ancient Rome is no different than our version of printed or digitized currency. The reasons to print, or in Rome’s case the reason to decrease the amount of silver in each coin, are the same too. The world is flush in currency only because folks refuse to give up such a comfortable way of life and refuse to hold central banks or elected officials accountable.

Roman emperors gave the people what they cried for and our world’s leaders today do the same. For you to fully grasp why an ounce of silver or gold will rise in value you must first understand this monetary repetitiveness of misfortune. I guess if truth be known misfortune is limited to those NOT holding real money (precious metals) since real money always rises to the surface in the times like we’re describing.

Your silver and gold coins safely stored away are minted with a number representing a currency worth, like the coins of Ancient Rome. Some of my gold coins represent $50 but no one in right mind will trade an ounce of gold for fifty bucks. Today this $50 gold coin is worth around $1675 even though the coins say otherwise.

The world no longer uses gold or silver coins as common currency but if we did I can guarantee you my $50 gold coin would be worth around $50, not $1675 like it is today. Please hang with me here because it is very important each of us understand how our wealth dwindles away by debasement.

The process of taking your wealth and then giving it to others (banks, politicians, entitled, etc) happens by printing more currency. Rome couldn’t sustain itself so it raised taxes and minted more coins each time lessening the amount of silver in each coin. This was and is no different than the massive currency printing happening as you read this. You can’t control central banks handing out worthless cash (to only the select few) but you can buy silver and gold, at least for the time being.

Our world today has chosen to follow Ancient Rome’s footsteps even though the outcome is clearly defined. Bailouts and fascism are now the norm and fiscal restraint is viewed as hurtful and irresponsible. The best you can do is grasping the protectiveness of PM and then stand clear of flying debris as this thing unravels.

I receive email after email with readers asking if I’m sure PM (precious metal) will rise like I write about in Why Silver & Gold Will Go Higher. Each reader holds a level of skepticism but only because they have yet to grasp our economic plight. We are Rome; if we stay the course our outcome will simulate the decline of the Roman Empire.

History also paints a disturbing picture of Romans waiting for a return to normal much like we see today. Nothing is normal about all currencies of the world in full print and borrow mode. To patiently wait for a return in housing values or a strengthening stock market is no different from expecting a return of the Roman Empire of 2000 years ago.

If you are still skeptical I have a suggestion to prove precious metal’s worthiness. Watch and see how often restraint supersedes printing more currency, or new taxation, to appease those crying in the streets. At the same time, keep in mind each dollar printed, and backed by nothing but a promise, reduces your wealth stored in savings and soft assets.

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The question of “how much” becomes more relevant with each passing week of economic turmoil. If you too are considering going “all in” I have a few suggestions before making such a brave move. I compare this decision to wearing a life vest around on a cruise ship while other voyageurs ignore an ominous skyline (most folks continue to underestimate today’s economic challenges). Owning gold is wise, it’s always wise in my opinion, but owning PM (precious metal) is different from owning ONLY precious metals. A 100% position in gold or silver may not be necessary but could be prudent at least for those with a little insight. As always, the decision is yours and yours only.

Question: Do you think it would be a risk to be all in with physical PM’s? Certainly is a huge risk to be with stocks which most are and think nothing of it. if you truly believe in wealth preservation it shouldn’t be. They say you shouldn’t have all of your eggs in one basket, but if you have your self sustainability and no debt covered what else is there? I’m pretty sure I know the answer but would like your input. thanks!

TPS Reply: Thanks for the questions and I like how you phrase the first question around “risk” over reward. It really does come down to “risk” over reward at least in my opinion. Each day new readers find this site which leads me to believe new folks are just now finding relevance in precious metals. You, on the other hand, ask if enough evidence supports a PM “all in” position.

Most of you know by now that all investing, or saving, carries risk and PMs are no exception. The question that must be answered; where is your savings less at risk considering today’s economic turmoil?

Is the goal to get rich or not grow poor?

Most buying silver and gold do so as a hedge in case traditional investments fail. As more traditional investments fail more run to the safety of silver and gold. Will this drive prices higher? Of course, how can it not?

The result, or answer, you are in search of comes down to one thing but this one thing must be viewed from a proper perspective. The question is not about gold’s risk (if you feel it is then you’re missing the point). The question is what happens when every currency on the planet continues to borrow in order to cover a lifestyle that should have never existed? Will creating new debt (more debt) fix decades of borrowing problems? Each of must understand that those in control of your currency are all in too. But their all in doesn’t have your best interest in mind and we know this as true by who receives another taxpayer bailout over and over again.

Someday soon the world’s wealth will connect the dots how printing currency only weakens the wealth of those invested in currency based assets. This realization comes sooner for some but later for most. We are soon to enter a monetary renaissance and this awakening will drive trillions in wealth in search of something real and unprintable. The few all in with silver and gold will reap the most reward, at least in my opinion.

Here is what I suggest for the average reader trying to find a handle on today’s PM situation. Watch, be aware, and invest accordingly. We know that gold values rise along with debt creation. Creating debt is only obtainable by creating more currency (Greece’s third bailout is a perfect example). Gold will continue to rise as long as central banks continue to print more cash. This is why the gold I bought in 2008 is now worth double in dollars and more in true value. This is also why the gold we buy tomorrow will double yet again (my opinion). My suggestion, keep buying gold and silver until this madness stops.


USA WATCHDOG: “Financial crisis detonates before election….”

Forget about the outcome of the Greek elections.  The only thing that matters, according to Karl Denninger of Market-ticker.org, is math.   Denninger thinks, “The powers that be are lying about the solvency of institutions and this is doomed to fail.”

He still thinks the financial crisis “detonates before the election,” and “layoff numbers start going back up.” If the U.S. isn’t careful, we could be looking at a sudden 50% to 75% cut in the federal budget.  Greg Hunter goes one on one with Karl Denninger.

Watch it right here.


MSN MONEY: We’re Defaulting-But Don’t You Dare

Thomas Marano, chief executive officer of Residential Capital, wrote me a letter.

“Dear Homeowner,” it begins. (That’s me, homeowner.)

As you may have read or heard, Residential Capital LLC recently announced that it and its subsidiaries, including GMAC Mortgage, are restructuring under Chapter 11 . . . The restructuring . . . does not change your obligations as a mortgage borrower . . . You must continue to make your scheduled mortgage payments on time and in full.

I can only guess why he sent me this letter. Maybe he’s afraid I’m going to do what he’s doing.

Of course, as Marano wrote to me, I’d have to write to my tenant, so that he didn’t get the wrong idea:

Dear Renter: I am restructuring my GMAC mortgage. My unusual financial shell game does not change your obligations as a tenant. You must continue to make your rent payments on time and in full. Yes, I know. GMAC is not making its payments. And I am not making my payments. So you must be asking why you should be making your payments? Well, to borrow a line from an Ally commercial, “It’s just the right thing to do.”

Hey, even kids know a bad example when they see one. Why don’t banks?

Read it all right here.

TPS adds, this article is yet another example of how banking defaults will eventually lead to a record number of tenants and mortgage holders refusing to pay monthly obligations (as the bestselling book Aftershock warned). What will such a time do to already depressed housing values? This is why we recommend to carefully consider moving some home equity into PMs while this door is still open.


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GOLD, SILVER & Facebook


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!!”


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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I usually begin each morning catching up on a couple of trusted PM blogs before turning on the early morning news.  My time invested in morning news is mostly wasted because political positioning is the flavor of the month and will be until November, nothing anyone can do about this.  I say wasted because historical events are shaping our world and nearly all have to do with you, your wealth, and our silver/gold.  During a commercial break I noticed an advertisement warning viewers to watch a doomsday video about a dollar collapse among other not so cheery but dire predictionsNow I have no clue what is in the video and to be honest don’t really care to.  Why?  Because I don’t need to be shocked into buying gold or silver.

If you take one thing from today’s post I want it to be this.  What good is it to break the grips of debt and monetary debasement only to shackle yourself with fear?  I refuse to succumb to a scared straight version of precious metal ownership and my hope is you feel the same way.  Owning PM is prudent and each day provides yet another layer of evidence of such wisdom but too many are willing to capitalize on growing fear. Today is the first part of a two-part series  (part II this Friday called Bait-n-Switch Silver & Gold) exposing those more than willing to profit first from fear and secondly from haste.  Part 2 will expose a few popular B & S techniques often used by those more concerned with a higher commission than you owning the right PM, don’t miss it.

Are bad things happening more today than ever before?  Should we prepare for a time of economic correction? The answer is yes but most issues like conflict, government overreach, and civil unrest stem from the symptoms of too much debt; this has little to do with fear.  Fear is the reaction folks experience who are unprepared for such a time.  I’m guessing since you’re taking the time to read this post this doesn’t include you. Trading currency for silver or gold must be a calculated process based less on human emotion and more on a long-term plan.  This is not the norm and unfortunately bullion dealers and media know this too well.

I have no way to prove this as fact but believe it to be as true as the nose on my face, 90% of the today’s crises news/information is primarily focused on profiting from your fear and uncertainty.  This is no different from using attractive women to sell beer or handsome men to move cologne, this form of advertising does work.  Several million people looked up JOHN 3:16 after Tim Tebow pasted the scripture on his face.  Levi pants became popular after James Dean wore them while acting like the cool guy he was.  Gold and silver sells when buyers swell with fear while looking for a monetary life preserver.  Think about this if you will, did you know gun sales grow lockstep with physical precious metal sales?

Don’t let the market dictate when or what you buy (silver and gold speaking).  My efforts on The Prospector Site are about providing useful facts based on current events and trends thus allowing you to develop a precious metal plan.  I don’t sell silver or gold, I don’t profit if you buy 1000 ounces nor do I lose if you don’t.  Take the time to research the best and most affordable methods BEFORE contacting a seller or bullion broker.  See you this Friday when we expose Bait-n-Switch pitfalls.

FLASHBACK, if you are new to silver and gold please take a minute to read First Steps to Buying Gold & Silver.



COMMENT:  While reading Real Estate in Collapse as Gold Stands Strong I noticed you stopped just short of saying a home is not an asset, I disagree.  I do agree owning gold and silver is important but far more have wealth in our homes than PM.  Real estate has, historically speaking, always been a great store of wealth and will be again someday. Still enjoy reading the site but have an issue on some real estate opinions. Thanks.

PROSPECTOR REPLY:  Wow, I published the post you mentioned in June of 2011 so you must have dug it out of the archives.  Thanks for the comment and sharing your opinion.  You are correct by mentioning the lion’s share of private wealth is in real estate, the bummer is this wealth is vanishing whether we want to admit it or not.  Not since the Great Depression have we realized such declining R.E. wealth, not my opinion but fact.  Maybe sharing a conversation with a friend will help us decide if a home is an asset.

This friend bought a new home forty years ago this June paying around $25k then.  Several houses in the neighborhood recently sold and simple math values this same home around $125k in today’s dollars. If my math is right, my family friend’s home increased 400% over 40 years.  Now I want to compare this same $25k to silver and gold but also want to disclose a family can live without PM but not a roof over their heads. My point is nothing other than comparing assets to assets in hopes of proving, or disproving a home as an asset.  The same $25k in gold is now worth around $675,000. The same $25k in silver is now worth around $603,000.

Please read carefully because my motive is not to sell you gold or silver, I don’t sell either.  My motive is to provide accurate as possible information so each of us can make the best monetary decision possible.  The concerning aspect is one asset is in major decline while the other is ascending, to make things interesting let’s extend today’s trend out five short years.  In five years it is likely my friend’s home may be worth $87,000 while an equal savings in silver/gold worth around $1,500,000.00, if our current trend continues (FYI, this puts silver around $94 per oz. and gold @ $3900, respectively).  My opinion is these trends WILL NOT continue; I honestly feel housing worth less than our trend example, in five years, and PM worth more because of worldwide ownership opportunities.  If today’s trend continues few will view a home as an asset, not at least compared to inflation resistant PM. THESE ARE ONLY TREND SUPPORTED OPINIONS, NOT PREDICTIONS!

This is why several years ago I sold a larger than needed home, downsizing, (reducing risk in a declining asset) and supported my PM holdings shortly after (supporting risk in an appreciating asset).  One last thing you pointed out, I too agree that today’s trends will someday change finding favor in R.E. values.  The question is when? I hope you agree long-term PM wealth over R.E. is something worth investing more time and research into, soon. Thanks for bringing it up, and your view.


Just as I ready to publish both metals are down around 3% which could mean a buying dip for those still on sidelines.  Worth watching if in the market to buy gold or silver.

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Do you wish we could roll back prices to 1970 when gold was $35 an ounce and silver $2.00? The good old days when gold was money and our currency backed by gold.  Remember when a new home sold for $23k or a new car was under $5k?  Can you imagine what folks from this era would think about our USD worth 1/1748th an ounce of gold (2/1/2012) or the lunacy of a  $15 trillion national debt and no end in sight?  Earlier this week I wondered across an old article dated April 25, 2006.  The author warned that $600 an ounce gold means there is a public concern about the dollar.  Wow, wonder what the author would say about $1748 an ounce gold?

The author continues to say,“A soaring gold price is a vote of “no confidence” in the central bank and the dollar. This certainly was the case in 1979 and 1980. Today, gold prices reflect a growing restlessness with the increasing money supply, our budgetary and trade deficits, our unfunded liabilities, and the inability of Congress and the administration to reign in runaway spending.”

Wonder what the author would think about a time when our money supply numbers are no longer public record? What would he say about our unfunded liabilities of 2012, and yet still the inability of Congress and the administration to reign in runaway spending?  Do you see a pattern here?  Regardless if this administration’s reckless spending continues, regardless who’s in charge, the same remedy is more borrowing.  What will it take to break this pattern of fiscal irresponsibility?  It seems odd to say this but when I started buying gold over ten years ago the same spending irresponsibility existed then.  I don’t see anything changing anytime soon.

The author continues, “The Fed tries to keep the consumer spending spree going, not through hard work and savings, but by creating artificial wealth in stock market bubbles and housing bubbles.  When these distortions run their course and are discovered, the corrections will be quite painful.”

Remember he wrote this prior to the real estate collapse, prior to the 2008 crash, and when gold sold for $600 per ounce! Imagine what this author would think of a 40% national housing correction and millions of distressed homes waiting for banks to decide how many and when to sell?  What does an article like this make obvious? The warning signs have existed for some time…we just failed to heed the warning.  This may sound odd to hear but someday some young buck will stumble across today’s article while explaining how cheap $1700 gold was.

If you take one thing from today’s post please let it be this.  If $1700 gold sounds ridiculously expensive think how ridiculous $1700 dollar gold sounded in 2006 ($600 an ounce gold).  The point; the same problems exist and the same reckless mentality continues to compound the problem.  How high will gold need to soar to offset this continuance of printing worthless dollars, $10,000, maybe $30,000 an ounce? Gold will increase as long as elected officials show the inability to reign in runaway spending. Well said Dr. Ron Paul.


A few readers have commented how the stock market continues to climb along with gold prices. We want to warn readers to approach these markets with caution because a Dow increase can be deceiving.  Remember, billions of dollars created by the Fed and dumped into the laps of only a select few.  This money will continue to show as Dow growth but, in reality, the Dow is not holding value.  We know this by gauging value in gold not dollars. Comparing asset value is simple and something you should understand well before investing.  The Dow to gold ratio has dropped since early 2000s and will continue to decline compared to gold for some time.

Let’s stay with the year 2006 since this seems to be the theme today. The Dow to gold ratio for 2006 was 20.5 ounces of gold to equal the Dow.  Today the Dow to gold ratio is 7.25 ounces of gold to equal the Dow.  As you can see the value of the Dow is in decline regardless what dollars show.  Remember there is now twice the amount of currency floating around compared to just a few short years ago, this dollar flooding can be misleading as declaration of value.


Some have recently asked about silver so I want to take a second to bundle multiple questions into one answer. Silver is up something like 20% already this year (gold is up around 11% year to date).  The US Mint released January’s (2012) ounces sold and silver outsold gold 43.5 to 1.  Gold still outsells silver gross sales speaking but ounces to ounces there is no comparison.  So what does this mean for those interested in silver?

It appears silver was undersold by 2011 year’s end and this shouldn’t come as a surprise to anyone following the silver market. Silver continues to find demand not only from a monetary view but also as the second leading commodity (second only to oil).  We still believe short-term silver will experience corrections but long-term silver will follow gold’s upward draft.  We also recommend paying close attention to silver discounts (dips) realizing the long-term trend is the name of the game.  Yes I’m still buying both metals and have no plans to stop anytime soon!

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