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THE ART OF BUYING OR SELLING GOLD

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

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

FACT #1: Not all Gold is good

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

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

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

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

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

FACT #2: Not all PM advice is good

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

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

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

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

FACT #3: You will someday sell

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

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

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

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

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

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

Looking forward to your reply and thank you very much.

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

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

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

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

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

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

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

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

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

 

DC Carlton is founder of The Prospector Site and author of the Amazon Kindle #1 Bestsellers Why Silver and Gold Will Go Higher and Storing Silver & Gold. If you’re looking for trustworthy PM assistance feel free to contact DC regarding his personalized consulting service. TPS doesn’t sell silver or gold; we represent you, the buyer, looking for affordable precious metal from honest trustworthy sources. Feel free to register here for his free online newsletter that provides precious metal insight rarely mentioned from mainstream media sources.

 

 

 

 

 

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LOOMING RETURN TO GOLD

BUYING GOLD/SILVER, GOLD & REAL ESTATE, GOLD & SILVER, GOLD/SILVER COINS   No comments yet

Every four years something amazing takes place for the entire world to see. This event dates back to ancient Greece and by now you may have guessed it as the Olympic Games. On July 27, 2012 athletes will begin competition to find out who is first, second, and third best in their particular event. Once determined, the best will step onto a platform while their country’s flag backdrops into a period in time no athlete will forget. Now, I want you to imagine something weird at this point. Imagine not metals of gold, silver, or bronze. Imagine ribbon like awards made from the dollar, yuan, and euro.


Doesn’t it sound silly to imagine a proud Olympic champion sporting around a dollar ribbon as first prize? Can you imagine a champion’s homecoming as they parade by a cheering crowd so proud of their winner’s feat, all while wearing a reward made of fiat currency?

If this scenario sounds silly then I want to ask each reader one question. Is this as silly as a society saving, working, or investing for the same fiat reward?

The inevitable return to gold will happen by choice or natural monetary forces. We will look back at the last few decades of credit expansion (borrowed or created currency) and see all wealth derived from such a period as futile.

But like a 4-year-old being told the party must end, we too must accept a lifestyle and society built on easy credit must also come to a sobering end. This is not easy for some, in fact, this is unimaginable for most.

In a moment I will offer a dialogue from the world’s most significant power on this universe. Mr. Bernanke recently went on a movie premiere type campaign attempting to trump the dollar and down play gold. To me, this academic appears misinformed if he truly believes central banks have the power to control the inevitable return to gold.

NEW YORK TIMES: WASHINGTON March 20, 2012 The Federal Reserve’s chairman, Ben S. Bernanke, spent the better part of an hour Tuesday afternoon carefully explaining to a class of college students why the United States abandoned the gold standard in the 1930s.

Tying the supply of money to the supply of a precious metal limits a government’s ability to address economic problems, Mr. Bernanke explained.

The problem with such a standard, Mr. Bernanke explained, is that it limits the ability of government to address economic problems by adjusting the amount of money circulating in the economy. Proponents see this as an advantage, because they believe that policy makers will do more harm than good, in part by making decisions that prioritize short-term benefits over longer-term costs.

“It’s a once-in-a-lifetime opportunity to hear lectures from him,” said Noah Wiviott, 21, of New Jersey. “He clearly knows what he’s talking about.” Here.

PROSPECTOR: I, like many of you, have been in private business my adult life. I can honestly say central bankers crawl from Federal Reserve holes only when things are dire. The fact Bernanke spoke to 30 future academics validates his need to promote monetary control. He is not in control, not when more Americans than ever before live off federal food stamp programs and not in control as 12 million homeowners face some form of mortgage distress.

If you are part of the tiny few invested in physical silver or gold please think about this. You are now part of an individual gold standard. Even though you can’t control central bankers, even though you can’t control leaders still steadfast to “invest” more currency, you can take monetary control on an individual level.

Not one realistic minded person will believe an economy 70% based on consumerism is sustainable. This sustainability really takes a downward turn when we consider how credit expansion has tightened like a 1965 Cleveland Brown lineman.

Mr. Bernanke knows the return to gold has nothing to do with world gold inventories. Bernanke knows the return to gold not only proves his job as much less needed but less relevant. Academics always stumble when theory gets clubbed over the head with reality.

Trillions of borrowed dollars from now, all will see the inevitable return to gold.


COMMENTS & QUESTIONS:

Question: Forgive me since I am new to precious metals yet beginning to see the necessity of protecting myself from out of control spending. Two questions if I may. Which metal (silver or gold) has the most long-term potential? Secondly, do you see investment benefits in buying from one country over another?


PROSPECTOR REPLY: Thanks for the questions and welcome to the protective world of PM. Your first question is one we hear often from those testing PM waters. Picking the “best” metal isn’t the question as much as picking the best form of metal. Let me explain. I believe both silver and gold should be part of everyone’s wealth program.

Starting with silver allows “Newbies” to make a soft entry into the world of PM without spending too much currency. I encourage folks to work their way into gold as they become confident and comfortable moving into higher priced metal.

Regardless of metal, if your plan is to sustain wealth through PM then buy low premium silver and gold most typically found in bullion coins, bars, and rounds. One reader not long ago reminded me of bags of junk silver as a good low premium silver source.

Now to your second question, I don’t view silver or gold as an investment. I view silver and gold as a savings in real money by using PM as a hedge against the recklessness you alluded to. Most investors judge wealth by growth in currency, I don’t. I judge value by comparing an asset to gold. Traditional assets like housing, stocks, etc have greatly declined when compared to gold (even though some have grown in currency value).

We hear from readers all across the world and all have the same concerns as you. Gold and silver are just that regardless where you live or invest. This is why we refer to PM as the one universal currency. Soon the entire world will view PM as necessary; this will test the resolve of a very limited supply of real money, regardless where you call home.

FEEL FREE TO CONTACT ME HERE IF YOU HAVE A QUESTION OR COMMENT. THANKS FOR READING TODAY.


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SILVER PONZI WARNING

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

The website for Atlantic Bullion & Coin Inc is professional, educational, and appears trustworthy.  The site’s opening page offers many comforts but none more comforting as the A+ rating from the BBB.  I visited Atlantic Bullion’s site just prior to this post even going as far to click on the BBB symbol.  Upon further review, the Better Business Bureau’s rating flashes red looking more like a warning for all suspected buyers to run for the hills, before buying silver or gold.  To me, this looks like the beginning of a long nightmare for trusting precious metal holders hoping to retrieve metal that may not exist.  Here is the story as I know it.


There is a lesson here, for all of us.  Silver and gold are only as reliable as the sources selling each metal.  It appears; at least in this case, at least one bullion dealer must explain more to the US Secret Service.  Details are sketchy, but at least a handful of victims are speaking out claiming Atlantic Bullion appears to be running a $70 million Ponzi scheme with investors in South Carolina, among dozens of other states. If you are doing business with Atlantic Bullion, my advice is to contact South Carolina Attorney General Alan Wilson as soon as possible.

If allegations are true, Atlantic Bullion offered investment seminars advising attendees how to protect with silver and gold bars.  It’s beginning to sound like investors trusted Atlantic Bullion to somehow store or vault newly purchased silver/gold that did not exist.  Regardless, it appears some have lost nearly everything without much hope of recovery.  Most victims, in cases like this, usually retrieve pennies on the dollar.  To say a story like this is heartbreaking is understated; many will lose more than gold or silver.  All will lose trust in one of the few assets able to protect wealth.

Here is how Atlantic Bullion describes themselves even today (“About Us” from their website).

Welcome to Atlantic Bullion and Coin. Our team can show you how to benefit from the current upward trend in the precious metals market.  As a leader in this industry for the past twenty-five years, we have the expertise to put you on the right track toward financial freedom.

Let Atlantic Bullion and Coin show you how to guard against these tumultuous times by purchasing hard assets such as gold and silver.  Explore our wide selection of gold, silver, and platinum bullion and check out our popular Confederate Silver Dollar commemorative coin.

When Alan Greenspan testified before Congress, he was asked, “Why does the Federal Government own so much gold?  His answer was, “Because it is a form of payment which requires no one’s endorsement.”

There has never been a better time to enter the precious metals market.   Do you own any gold and silver?  Atlantic Bullion and Coin would like to help get you started or increase your precious metals holdings.

I have to admit, their self description sounds trusting, experienced, and deliveries the “right track to financial freedom”. Again, if these allegations are true, cases like this send cold shivers down the spine of silver newbies, and for good reason.  My goal today is to expose importance of trusting intuition over well-crafted verbiage and false promises .   For the record, passive ownership describes those owning physical metal by trusting storage to other sources.  There is nothing wrong with passive purchasing or storage if due diligence is part of your master plan.  So, how do we know the good guys from the bad? First, by slowly building rapport especially when familiarizing you with physical silver or gold?  Buy small, take possession, all while building trust along the way. Most scam artists will promise below market discounts, need to expedite or hurry, and maybe bait-n-switch techniques. The best defense you have is knowledge first, then confidence.  

Let me also say this. Please consider storing at least 1/3 of owned metal with someone you know or trust, if not you.  This protects against a complete breakdown within the passive storage method of your choice.  Nothing is certain these days, certainly not something as unregulated as precious metal ownership.  This lack of regulation has more positives than negatives but the downside can be disastrous, as you can tell from today’s post.  I recommend diversifying all physical metal over at least two, preferably three, storage options especially if uncomfortable with self storage; again, this all about diversifying risk and nothing more.

Each of us should expect more scams as PM (precious metals) slowly move more mainstream.  Due diligence must be part of your long-term PM plan, including storage.  My recommendation is to secure a level of silver or gold first and then use passive storage second. I also recommend reputable trustworthy sources regardless who or how your metal stores.  Please email me if in doubt. I don’t sell or offer PM storage so my objective is only to assist those looking for accurate PM information.  You can reach me here.

WHAT DO YOU THINK?  IS PASSIVE STORAGE WISE CONSIDERING BULLION DEALERS EXIST LIKE DESCRIBED TODAY?  REACH ME HERE.

QUESTIONS AND COMMENTS:

Sorry, no comments or questions today since my last two days spent in airports. Please look for this Friday’s post to catch up on comments. Thanks for reading The Prospector Site.

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