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Safely Storing Precious Metal

SECURING GOLD & SILVER, STOCKS AND GOLD/SILVER   No comments yet

Coeur d’Alene is a majestic city nestled within Idaho’s panoramic Panhandle. Lakes, national forest, golfing – you name it and Coeur d’Alene has it. According to Wikipedia, this Idaho city has a population of nearly 50,000 with nearly 93% of them white and the remaining 7% a blend of African American, Asian, American Indian, and Hispanic descent. Not exactly your typical inner-city demographics, respectively.

But Coeur d’Alene has at least two residents, or at least visitors, they can do without as of August 5, 2013. Because this summer morning was the day over $250k worth of silver and gold coins were carted away right in front of a PM (precious metal) owner who assumed their stash was safe. Unfortunately, this type of crime only indorses today’s need to secure and diversify your storage plan.

 

COEUR D’ALENE, Idaho — Several hundred thousand dollars worth of rare silver and gold coins were stolen in a burglary early Sunday in Coeur d’Alene.

It happened around 12:55 a.m. when the 54-year-old homeowner returned home to find an unknown man standing in her doorway and a car parked in her driveway.  When she asked him what he was doing in her home, a second man emerged from the car, according to police.

The second man yelled at her before hopping in her car and driving away from the car at a high rate of speed.  The man who was in the home then jumped into the truck in the driveway and fled the scene.

The victim went into her home and found her disabled father was unharmed and in his bed.
Police said the thieves took two safes filled with rare coins valued at a total of $250,000.  The suspects also took prescription medication belonging to the victim’s father. KTVP.com

I don’t want to read anything into this article other than what’s reported, so let’s focus on the facts. The most relevant point I see after reading this article is that no one was hurt or killed defending something that is replaceable. The second most relevant point is how quickly something so valuable can disappear, even in a relatively small city in Idaho’s Panhandle.

The aforementioned article proves the importance of protecting your stash regardless your neighborhood’s zip code. I have no way of knowing if these victims lost all their PM stash; my bet is they did. I doubt storage diversification ever entered the mind of a family securing silver/gold coins at home and in a safe.

A theft like today’s dissection is rarely random. While researching for my book on storing PM it became painfully obvious that folks who own PM, yet fall victim to theft, unknowingly participate in the crime. They participate by not taking a proactive approach to PM storage. Well over 90% of all stolen PM is never returned to its rightful owner.

Before we unfold three protective suggestions I would like to share one other opinion. My opinion is that far over half of all PM theft is never reported. Most folks who store wealth in PM are far too discrete to share anything that will expose themselves as PM prudent. Now, with that, let’s dive in.

INSURANCE:

The most common question TPS (The Prospector Site) receives is in regard to PM insurance. Most readers are surprised to hear that PM stored at home is insurable but they’re most surprised to hear it’s reasonably affordable, as well. Insuring your PM in-home stash is not for everyone. I’ve witnessed several phone consultations where the folks shot down PM insurance before I could get the entire suggestion from my mouth.

You’re right, the steps to insure in-home PM will produce a paper trail AND expose you as a PM owner……. at least to the company writing the policy. There is no way around this other than using a trusted friend or family member (to store and insure), and I’m not sure I want to go on the record endorsing such a suggestion.Exposure is the price a person will pay to insure PM stored at home, sorry.

Expect to answer a number of questions before settling into the peace of mind that comes with being insurable.  Questions like proof of PM purchase, history of burglary, your home’s exterior, etc. should all be expected. Expect to pay somewhere in the neighborhood of a $500 premium per $100,000 insured. I’m sure the premium varies so email me for more information or for an insurance source.

LAYERS:

The best in-home storage plan has little to do with the size of a gun safe or how powerful the weaponry protecting your abode. It is far more beneficial to have a multilayered storage plan than the best safe in town.

The foundation of a good storage plan is discretion at time of purchase…… and every moment thereafter.

Discretion is a hard gift to wrap. Once word spreads that you own physical silver or gold it’s hard to reverse course and nearly always assumed the metal is kept inside your home. This is why so many PM thefts end with the family sitting side by side at gunpoint before someone finally divulges the hiding place. It should never come down to risking the well being of your family, never!

STORAGE:

Never store all your PM at home. In fact, never store all your metal in any one place. Although I do recommend storing at least 1/3 within arm’s reach, I don’t recommend taking such responsibility if you’re not comfortable defending an in-home stash. Also, for those who frequently travel, in-home PM storage should be carefully considered before formulating your PM plan. A vacant home carries far more risk than one inhabited.

This could sound strange but most PM theft originates from someone close to the family. It could be someone from the remodeling crew, or it could be the nephew battling addiction of some kind. The only antidote for this risk, other than discretion, is storage diversification.

There are more reputable places to vault today’s PM than I can list. Some are domestic and some are international. Nearly all are outside of today’s banking system and this benefit will grow as world governments look for creative ways to tax her citizens. This opportunity to stash wealth outside of a country of residency is a closing window.

The internet blazes with bank box horror stories, and I’m sure a few are true. But the truth is, as of November 2013, storing SOME metal in a locally owned bank is far safer than the storage plan implemented by most folks. Storing some metal in a bank box is far safer than leaving it at home while snow birding for the winter.

It really comes down to the most practical storage method in relationship to your situation. 

Well, as you can see there can be plenty to consider before bringing home the next monster box full of silver. The first step is taking the mental effort to educate yourself before anything else. Protecting the metal that will someday protect your financial future is always worth the effort.

QUESTION:  What do you think of today’s PM market? (several similar questions & versions).

TPS Reply:  Thanks to all who’ve called and emailed with similar questions. To answer the question in one word, ugly. I’m not a good cheerleader and I’m guessing you don’t read this site for anything other than unbiased PM fact. Physical silver and gold have underperformed for sometime now. You don’t need me to spell out the obvious.

Several experts have attempted to guess when metals will rise, and all have ended up looking unprofessional. My guess is that most PM experts have underestimated the power of printing currency in order to appease the masses. Remember, the purchasing power of PM should be the focus far over the dollar value. The ability to print money has supported an economy that otherwise would be in major economic correction.

Today it takes nearly 12 physical gold ounces to equal one DOW (16,000 +-), or a 12-1 gold to DOW ratio. As you know, the DOW is made up of 30 major industrial corporations who benefit from a print-based economy. One market benefits from printing (DOW) while one market (precious metal) stumbles along sideways.

The fact physical silver or gold is not rising depresses most of my readers but the reality is we should appreciate this temporary state of economic calm while it lasts. The ability for world currencies to monetize themselves is a closing window. Once this window closes I have little doubt asset-to-asset comparisons will swing in silver/gold’s favor. Until then, more of the same should be expected.

The only indicator we have is history. History has not supported economies that overproduced currencies, not without major inflation, deflation, or even stagflation. Where we are now is somewhere in the economic digestive tract as currencies around the world continue to blur real money value (gold) with nonstop paperless printing.

For what it’s worth, my plan is to stay the PM course while simultaneously using this era of temporary stability to create additional income. Thanks again!

 

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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What Amnesty & Free Health-Care have to do with Gold Rising

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

Amnesty, by definition, has the same root as amnesia. Amnesia is the ability to forget and forgive all remembrance of an offense or occurrence. Today we will pinpoint exactly why today’s politicians are hellbent on expanding amnesty, free health-care, EBT participation (among other programs), and how this trend will ultimately influence precious metal higher. This has nothing to do with Republican or Democrat. This is 100% about the ability to gain political influence at all cost. Even if it means taking down the most powerful country ever to exist. Let’s dive in.

I write this as politicians sweep up celebratory party favors on Capital Hill. The war is won, at least for a few months, and the never-ending pattern of print and spend will continue. The answer is always “borrow more” regardless the challenge, regardless the program.

While the party favors still floated through the air, President Obama made what some feel was an unexpected statement by mentioning the importance of immediately getting back to work on the amnesty issue. His statement came while opponents still wiped away fresh blood from a vicious political battle they have little chance of winning; here is why.

Oh, by the way, this post is not motivated by personal political opinion but by fact. My opinion of all things political should not affect if you do or don’t protect yourself with silver or gold. Now, with that out of the way let’s continue.

It doesn’t take an accountant with Ernst & Young to declare that our country is monetarily broke. This means we as a country routinely spend more than what comes into our Treasury. So this leads some of us to attempt to explain why those in political control feel the need to expand programs or expand law that adds to such a deficit burden.

It is no secret that laws like Obama Care will add to our national deficit which leads to printing more money (the trendy term for “printing” is now “quantitative easing”, please get with the program if you’re still calling this necessity anything other than QE). Sure politicians claim crafty accounting measures, new taxation, and new regulation will pay for Obama Care but at day’s end we all know differently, as do they.

The same goes for the upcoming amnesty chess match. I once mistakenly believed that nationalizing healthcare was the Holy Grail of all things political but amnesty has proved me wrong. Declaring amnesty with a population of people mostly impoverished is ingenuous  for those thirsting for perpetual political power. Somehow those who benefit from amnesty confuse this opportunity to benefit from such social programs as a part of the American Dream. This misnomer is a terrible misbelief.

Things that are free to the public only work if those providing the service work for free. Free health-care clinics work when those passionate about taking care of others donate their expertise and time. There are no exceptions, I’m sorry.

Same goes for declaring the millions waiting for amnesty who primarily, or at least partially, depend on state and federal programs for housing, healthcare, and groceries. These, too, only work when such programs are mostly provided by donation of time, money, and effort. They certainly will not work…… long-term speaking, in a country already bulging from never-ending deficit.

Far too many in this great country like to blame the recipient when the blame belongs elsewhere. It’s human nature to take the easy path in life. Of course this country was built on hard work and risk, I certainly won’t argue this fact, but this doesn’t change the rule of human nature. I blame those thirsting for political control far over those working the system.

The future price of physical silver and gold is greatly influenced by the 600 words aforementioned. As our country becomes more dependent on the expansion of government programs this will greatly sway the political influences of the people. Those in power, both fiscally conservative or progressive, will have little choice but to vote according to the pressure of the masses.

If the masses depend on social services then how can we expect those in power to not legislate to appease. We are reaching a point when a politicians very life could be in danger if not.

It is important for those thirsting for political power to swell the nationalization of all things necessary in order to maintain control. What those in power ignore is the long-term effect of printing money to support such recklessness. We, as a nation, have reached the monetarily point of no longer turning back this perpetual necessity of printing currency to appease the masses.

Some of you are still asking what the heck is going on with the price of physical PMs (precious metals) over the last year or two. Your viewpoint is shortsighted, respectively, when we consider the long-term recourse of debasing the US dollar in a nervous globalized world. Precious metal will rise up until the world finds monetary balance….. not a moment sooner.

This isn’t to say we won’t see valleys before then. Nothing of value is unaffected in this monetary ocean of ominous uncertainty and intervention. Precious metal will rise unexpectedly and it will nervously decline too. At day’s end – I know of nothing as protective as storing part of your wealth in physical silver and/or gold.

QUESTION:  Hi there. Last week a friend who works at the Royal Australian Mint (RAM) gave my daughter a 1oz silver proof like coin (lunar series, 2013 year of the snake). My baby girl is 2 months old.

This was good timing as I’ve been researching investment options for her (looking at shares mainly). after receiving this beautiful coin I started researching into gold and silver investments. This is how I came across your site. Very informative site btw. Thank you for sharing your unbiased views.

I’m now considering silver as an option. We don’t have huge amounts of cash but want to start her off and add to it each year for birthdays and Christmas. I was wondering if you could clarify a few things for me as I’m a bit confused. I’m a complete beginner but am a fast learner.

1) What is the difference between proof and proof like coins? Is it good enough to buy proof like quality coins. E.g. A 5oz silver proof Luna snake from Perth mint is $480 where as proof like for the same thing at the RAM is $357.

2) What’s the difference  silver bullion coins and silver proof coins or proof like coins? 1oz silver bullion I can buy from Perth mint for $33 where as the proof like is $80 and the proof is $99.

I do like the pretty shiny finishes of the proof and proof like coins. I have about $1K to start her off with. I saw in one of your blogs that you said you prefer to invest in 1oz silver coins. Is that silver bullion or proof or proof like coins?

Hope you can help me.

TPS Reply:  Congrats……. I’m so glad to hear you’re taking such wise measures for your daughter’s sake (I’ve done the same for my two children). She is fortunate to have been born into such a caring family so focused on her future. Your questions are good and you are wise to question what is the best long-term investment for your hard-earned money.

I agree, the silver proof coins are exceptional. Although all coins made from silver or gold will provide protection the question is which ones will provide the most protection. I recommend waiting to purchase the proof coins until after you have a stack of low-premium silver bullion or rounds (I usually recommend legal tender silver bullion).

BTW, a proof grade coin is one of only the very best of the newly minted coins.

Amassing physical silver, or gold, is the goal. Any price paid in addition to the physical value of a coin is speculative. This is why I usually advise newbies to amass as much silver as possible in exchange for the least amount of currency as possible. Proofs, as you pointed out, cost more therefor they are rarely recommended…… at least when new to PM. This is only my opinion so I encourage, and admire, your diligence.

The same advise goes for rare or numismatic coins. This coin or bar choice almost always comes with an added premium subjective to opinion. This added premium can be volatile, in fact, volatility should be expected especially with rare coins. Paper PM is not recommended either.

Good luck and please stay in touch as your plan progresses. Thanks for the questions and comments.

 

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

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GOLD RUN

BUYING GOLD/SILVER, GOLD & SILVER, GOLD AND MONEY, SELLING GOLD/SILVER   No comments yet

On an otherwise uneventful February day in 2009, Criss Angel walked on water…kind of. Millions watched this event dumbfounded even though Criss explained it was all an illusion. My youngest son bribed me into viewing this televised miracle with hot buttered popcorn but I must admit this illusion looked as real as the nose on your face. But even walking on water fails to compare to the monetary illusions soon to shift untold wealth into precious metal. Today I’ll do everything in my power to expose the greatest wealth transference on earth. Thanks for joining TPS (The Prospector Site).

A run to gold or silver is NOT a natural occurrence. It is a reactionary result derived from a separation between you and your wealth. Nothing will cause monetary panic faster than a separation of wealth. Below is a must read paragraph that truly describes my point better than I can depict.

Some walk around in a financially comfortable delusion about our current system (banking) even though we all realize that we will never payback our $16 trillion in national debt.  You also have a banking system backing $7.4 trillion in insured deposits with $32 billion (that is, 0.43 percent).  Yet in our current system the Fed is digitally inflating away our currency and limiting available banking options.  Are we simply ignoring the too big to fail? Source: Budget 360.

Let me put the above information in proper light since this financial writer is spot on. If all depositors simultaneously demand physical proof of individual wealth the banking intuitions of America don’t have it. What banks do have is less than 1% of real tangible money deposits on hand. This means a $100,000 depositor is entitled to a whopping $430 withdrawal (thanks to today’s fractional reserve banking system).

We often describe an age of capital controls but few actually connect the dots back to themselves. The banking system in parts of Europe is under stifling capital controls. They cannot, and will not, allow depositors to withdrawal tangible currency because the money doesn’t exist. The banking world has replaced real currency with digits (now two degrees separated from gold for those still counting).

Now we both know that here in the U.S. Bernanke can print the 99.57% necessary to make up the difference between a bank’s cash on hand and digits; and is more than willing to do so. But this Criss Angel like magic comes with a price at least if you’re one of the millions storing wealth in today’s banking system.

Controlling the capital (wealth, cash, money, currency, asset, etc.) is an overgrown government’s dream. Capital control corrals the wealth of a society and then allows the money divvied out in only small portions according to the controlling party’s timing. At such a time, technically your wealth still exists; you just no longer have any control over it.

We only have to look at Cyprus as a perfect example of how the world’s depositors should expect to be treated in the very near future. Capital controls use captured wealth as a tool of taxation and sustainability. They don’t call it theft because the word theft sounds too much like stealing; hence the modern-day term haircut.

Picture your bank account as a car in a parking structure with the entrance and exit blocked by capital controls. Your car is still safely stored but you no longer have control over it. This means the controlling party can decide all red cars are needed to say physically block city hall; then removed no longer within owner’s control. All trucks are to be crushed and then used to stabilize nearby creek banks; then removed…..and then crushed, no longer within owner’s control.

Capitally controlling your wealth allows the powers to be to tumble and recycle your financial future through the taxation machine over and over again. It is now reported that Cyprus bank depositors will lose upwards of 40% from this haircut round. Who knows what the next recycling round will take from depositors as they irritatingly watch wealth dissipate without another option.

Physical silver or gold is the only world currency NOT SUBJECT TO TODAY’S RISK OF CAPITAL CONTROLS. I’ve mentioned before that we are beyond arguing the “should we or shouldn’t we” of physical precious metal. If you’re looking for a safe way to store wealth beyond the reach of capital controls I strongly advise each reader to look beyond the doubt; while this option still exists.

 QUESTION:  Today I read that Arizona is considering accepting silver and gold coins as legal tender. However the article stated that only coins minted by the government would qualify. Further, that since they would be considered legal tender, they couldn’t be taxed as property. So now I wonder about my silver rounds which I bought as a result of this site. Will I be able to sell them in the future and avoid taxes on any gain in their value? Also, is your book available yet in paper format? Thank you.

TPS Reply:  Thank you for the comment and questions. I agree, it is exciting to see a handful of states pushing back by implementing a competing currency. Will Arizona follow Utah’s precious metal footsteps; it’s too soon to tell? Here is how I see this playing out for what’s worth.

A few readers have emailed with the same sort of legal tender questions so I would like to clear the air. Individual states could view silver and gold as legal tender and possibly exempt from state capital gains, but I have my doubts the IRS will view silver or gold with the same tax exempt status. I’m not a CPA but I would use due diligence, and the help of a good accountant, before assuming a tax avoidance.

Like I mentioned by direct email; I have no plans to sell my rounds in order to buy more government minted silver bullion.  But then again I have no plans to sell or spend silver regardless. Rumors spread quickly and this only proves the volatility of today’s monetary world. Thanks again for the questions and good job keeping your ear to the ground.

As for the book, I’m seriously considering combining two digital books into one paper formatted book. This will give readers twice the bang for their buck. I’ll keep you posted.

QUESTION:  It just seems unpatriotic to abandon the dollar for silver and gold. My family fought wars and spilled blood for this great country.  I would like to believe the US dollar is strong enough to lead us out of this recession and into a thriving economy. Maybe I’m just old fashion?

TPS Reply:  Thanks for the comment. Boy, where do I start. It is no coincidence most paper currencies appear patriotic, regardless the country issuing the fiat money. This purposely instills  pride, patriotism, and generational confidence while central banks spur inflation taxation among her people. Inflation is the one tax virtually unavoidable for most.

Your family did not spill blood for the US dollar; most likely they fought for freedom. A country who willingly debases her currency is not promoting freedom, not by a long shot. I truly admire your patriotic passion but please don’t misinterpret a fiat dollar as this country’s foundation of freedom.

I realize it can be frightening to let go of something we’ve worked hard to amass. Frankly, this anxiety is what keeps most from the protectiveness of PMs. They just can’t get past the dollar’s vulnerability in our fiat implosive age. Please look past this misconception while an alternate currency is still available. Thanks again for the comment.

BERNANKE WATCH:

FED chief Ben Bernanke is the most powerful man on earth. For this reason alone we must pay close attention to the FED’s actions as they relate to your financial independence. Below is an intriguing short video of Bernanke responding to the likelihood of bank runs here in the United States.

In other words, as long as you ignore today’s banking volatility and don’t “lose confidence” or allow fear to become “contagious” the most powerful man on earth will not have to implement capital controls. I find it interesting how Bernanke rolls out the FDIC as a source of protection for depositors. The FDIC’s primary goal in not to insure your bank deposits, its primary goal is to protect banks from Cyprus type bank runs.

 

DC Carlton is the founder of The Prospector Site and author of Why Silver and Gold Will Go Higher. 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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WHEN TODAY’S EMPIRES FALL

BUYING GOLD/SILVER, GOLD & SILVER, GOLD AND MONEY   No comments yet

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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PROOF MEDIA DOESN’T UNDERSTAND GOLD

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

The big story last week, “French Champagne Maker Finds $1 million in US Gold Coins”.  I agree, this is big news but the big story is not the find, not the number of coins either.  The big story is why the media doesn’t question how $10,000 in face value gold coins (497 coins x $20) are now worth nearly $900k in melt value gold.  If you own silver or gold, or thinking of buying PM, you must take a moment to wrap your mind around this story or better yet, lack of story.  The value of future gold is written between each line but only obvious to those willing to accept gold as money.  This type of news only proves my decision to trade dollars for PM back in 2002 was as wise now as ever before.


Would you read such an article if the headlines said, “$10k In US Dollars Found in Champagne Maker’s Attic”, why not? After all, a $20 Liberty coin or $20 Gauden both had a face value and dollar value of twenty bucks up until a tragic day in 1933.  Twenty bucks, the same gold coins that recently rained down on a French construction crew worth $1,000,000.00.  I searched the internet looking for one article willing to explain why or how $10k in gold coins turned into $1 million over eighty years, nothing.  Not one reporter, or editor, rolled the dice on such a delicious backstory as the one you’re reading today. It is important to understand that the person stashing 497 $20 gold coins was not hiding a million USDs; they were hiding $10,000 at the time (it’s believed gold coins were stashed in the 1930s).

So many questions run through my head with a find like this one.  Why did someone hide US gold coins in a French warehouse many years ago? Was it because of US gold confiscation? Was it to pay a foreign debt?  We’ll never know the answers to these question but the one I most want to ask is not to the construction crew, not the Champagne profiteer either, the question I want to ask is to non other than Mr. Bernanke (Federal Chief) himself.  The question, “Mr. Bernanke, why is it after eighty years the same 10,000 (in US dollars) is worth around $1500 today but the same $10,000 in gold is worth nearly $1,000,000 now?” Then just one other follow-up question, “How can you repeatedly say gold is not money when this find proves a true value of 100 times face value?”

It is imperative to comprehend how willingly citizens and media accept dollars as money when a find like this proves exactly otherwise. Mr. Bernanke can’t admit his monetary beliefs are jeopardizing a worldwide economy because this is validating decades of monetary mistakes.  We must also realize, just as our dollars continue to decline, the fault will lie with someone else well before admitting a fiat currency exists to empower government, not its people. I’m not sure why most refuse to connect obvious dots but keep buying metal until they do.  So now we must ask what a media awakening will do for metal prices and when will this revelation take place?

Today’s media age is much more about sensationalized news than reporting. We live an age of confetti and balloons which is unfortunate for things real like precious metals.  Our media will eventually find the story of gold but my guess is not approach it as worthy but popular.  The disadvantage of such a presentation is misleading and will drive uneducated buyers (gold ignorant) into a metal they know little about, this will push PM prices far above intrinsic value. The age of social networking will spread news of the next gold rush like 60 mph winds spread fire but, unfortunately, the masses won’t understand coming in too late is worse than not buying at all.  I see today’s prices as nothing more than fraction of future values but who truly knows for sure?

Timing of such an event is impossible and in all probability will take place over many phases before turning straight vertically, like 1979, 80. A conflict in Iran or a disruption in oil that leads to a spike are all reasonable explanations how something can trigger gold’s run.  A slow continuation of dollar devaluation, with inflation, could easily turn the pack toward PM.  The timing is far less important than an exit plan. Those who truly understand how masses fighting over a limited supply will drive any asset well beyond true value will profit most.  We know this to be true when we recall dot.com and housing bubbles of not so long ago.

THIS IS MY TAKE SO TELL ME YOURS.  DOES A FIND LIKE THE ONE WE DISCUSSED TODAY PROVE GOLD OVERVALUED?  WHY CAN’T MORE SEE GOLD’S DOMINANCE OVER PAPER CURRENCY? CONTACT ME RIGHT HERE WITH YOUR COMMENTS OR QUESTIONS.


COMMENTS & QUESTIONS:

Thanks for such a Great Website,

I check for updates everyday.You are right on with your message about Gold & Silver. I started with buying Junk Silver, then added Silver Eagles and then some smaller size Gold Eagles.  I will continue to buy some of each of the Gold & Silver Eagles as I’m able. My reasoning on owning Gold & Silver is it’s all part of a well rounded survival plan.  Having some sort of short and long term food stored. Having some protection in the form or guns and ammunition. Paying off debt, keeping some cash were you can get at it. And having a variety of PMs just makes sense.  Thanks Again for all the great information

PROSPECTOR REPLY:  Thanks for the comment.  You are wise to own both gold and silver as part of a bigger protection plan.  My understanding is Gold and Silver Eagles (that you now own) are the most popular bullion coins available since both have a guarantee of authenticity from the US Mint. You mentioned “Junk Silver” and I”m glad you did since we often overlook the value of bags of old silver coins.  If others are looking to find an easy entry into silver then I urge you to look into junk silver as one of today’s most affordable options.  Many online bullion dealers also sell bags of junk silver in several different sizes, many times at low premium over spot.  If any of our readers have more info on this type of physical silver (junk silver) please pass it along.  Thanks again for the comment.

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YOUR GOLD & SILVER QUESTIONS

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

We can tell by the flow of questions many seem confused about where and how to own physical gold/silver.  Our hope is to make the buying process as simple yet profitable as possible.  If you’re one of the many still trying to answer questions like what to buy, how  much, and from whom, maybe the next few paragraphs will help.  If one reader is asking then our guess is several more are too so here we go.


QUESTION:

No stores in my area sell the type of gold you recommend for new buyers.  I feel more comfortable buying gold in person than on the internet so do you have a suggestion?  Thank you.

ANSWER:

We do recommend buying in person when possible but realize this is easier for some than others. The idea is for you to become comfortable with gold regardless how you end up buying it.  As you know, the first step is to become familiar with low premium physical gold choices (it sounds like you have done this so well done).  The next is to decide your metal of choice, gold or silver, bullion or rounds.  The third step is how much to buy and fair market value.  The last step is determining where to store your physical gold or silver.  If you are still shaking your head “yes” then let’s move on by answering the question.

Since your town doesn’t have a coin shop we need to get creative. Plan a day trip to the nearest city within your area understanding the cost of travel will add another cost to the metal of choice.  It is best to spend a little time online researching location,  store hours, and inventory.  You don’t want to waste a trip just to find out a particular shop doesn’t stock what you’re looking for.  Seeing you live out of town, a personal check might not be an option so ask about payment options prior. If this store has your metal, and priced appropriately, then follow through with your plan just like you would in your hometown.  Do use discretion when leaving the shop and traveling home (it’s always best to have someone go with you).

For what it is worth I personally know of several long time gold holders that only buy from out of town sources. They understand miles and distance only improve discretion.  Who knows, maybe you will feel the same way.  Good luck and let us know how it turns out.

QUESTION:

I have a question about storing gold. My home safe bolts to our concrete foundation but several family members have the combination (we have a home business that requires us to often lock documents away).  I doubt anyone else would notice a few gold coins but wondered if you have a suggestion how to secure the coins within the safe?

ANSWER:

If I understand the question (thanks for asking it by the way), you are looking for a way to lock up your gold in something then lock this something inside your home safe. I’ll be honest in saying I don’t feel comfortable with this.  Gold is like any other form of money and once it’s gone, well, it’s gone.  I see no reason to tempt those otherwise honest so my recommendation is to buy a separate safe (unused by anyone but you and your spouse) or rent a bank box.

Intent of owning gold is to develop piece of mind and independence. Worrying about someone, even a relative, borrowing your stash of gold coins will not help in developing piece of mind.

QUESTION:

A buddy of mine forwarded The Prospector Site to me last month.  Nothing personal but I don’t see the benefit of paying a couple grand for an ounce of gold.  This doesn’t make sense at least in my world.  I’m more apt to buy silver because it is much cheaper and I can get so much more for my money.  An observation from someone who will admit they know nothing about either metal.

ANSWER:

Thanks for reading and asking a kind of question. You are correct when you say gold doesn’t make sense so let me clear up a few points.  Gold is real money and has been for over 5000 years.  The only reason gold was chose so long ago is because it’s rare, durable, and divisible.  Somewhere down the line we went away from gold as money by developing paper currency.  This paper currency is now printed on a whim to fill budget shortfalls and bailouts. Politicians have learned, like children I’ll add, that the best way to silence screaming citizens is to toss a couple billion (dollars) at the problem.

I like your point about silver since it is the meat and potatoes metal. Start off buying a couple of ounces of silver just to get a feel for precious metal.  You obviously have an interest or you wouldn’t follow our site or ask questions.  You are wise to consider gold/silver as insurance in case we’re correct.  Thanks again for reading.

Send over your questions too.  Who knows maybe we’ll answer them right here (we understand discretion too so no names posted).  Send over questions or comments here.

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WHAT ABOUT SHIPWRECK GOLD?

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

Does the thought of owning Spanish gold that once sailed across blue oceans appeal to you?  Galleons fighting off pirates defending wealth that continues to grow even today.  Gold coins resting on ocean floors only to be resurrected hundreds of years later.  Well before we get carried away let me give two reasons to use caution before sending in your hard-earned cash.  Today we look at shipwreck gold.


Before we dive into shipwreck gold I want you to ask yourself something first. Do you think in a hundred years treasure hunters will spend millions looking for lost treasure of US Dollars? Isn’t it a true testament of value and real money when hundreds of years later people are willing to invest millions finding lost gold buried in the ocean.  Just as amazing in that gold is worth many times more than the fateful day the earth’s largest graveyard claimed its treasure.  Sorry I’m getting sidetracked so let me point out two thoughts before we bring shipwreck gold home.

Point #1: Expense

Hunting for gold thousands of feet below the water’s surface is not cheap.  Equipment capable of finding and then surfacing gold treasure is not cheap either.  For every shipwreck found at least a hundred aren’t and each coin you see for sale covers a tiny part of this risk, effort, and reward. Not long ago we posted how today’s gold buyer is less interested in rarity and all about pure simple gold and silver.  Hobby investors are in decline and preservation investors are at record levels.  It most cases this only decreases coins of rarity but lost treasure is a different story.  I would love to see a value graph of lost treasure over the last 8 years or so and if anyone has one please send it over.

My concern is not only speculation but overall cost to own shipwreck gold.  Most of us have a finite number of dollars to trade for precious metal and I’m not sure I want to go all in on shipwreck treasure.  It would be very cool to own some.

Point #2:  Authenticity

It’s said over 50% of sports memorabilia is replicated but I have no idea what percentage of shipwreck gold and silver are fake.  My bet is we will see several new discoveries as the price of both rockets to new highs.  My hope is these discoveries come from the ocean and not inner city. Just like everything else that holds its value in authenticity my recommendation is to buy the source as much as the coin.  Reputation is a great source for accountability and I wouldn’t assume anything is real until someone convinces me.  Reputable treasure hunters film and document everything for this reason so do your homework if shipwreck gold is in your investment plan.  As always, thanks for taking the time to read The Prospector Site.

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WHY MANY WILL PAY $2500 PLUS FOR GOLD!!

GOLD & SILVER, SURVIVAL & GOLD/SILVER   No comments yet

I vividly remember buying gold just under $300 per ounce thinking this was a lot of money for a working guy.  Like you I watched it move up to $600 and then $800 thinking boy when will this stop.  What I didn’t completely understand is  gold, in and of itself, doesn’t increase it only keeps up with the value of a recognized currency, better known as  US Dollar.  As of post time, one ounce physical gold is sitting just below $1600 and trending toward $2000 likely.  Today we discuss why some will pay $2500 plus for physical gold and most will be darn proud to pay it.

You might ask why anyone would pay $2500 for gold when they could buy it now for nearly a grand less. The reasons boil down to two yet both reasons seem obvious to us but far from clear to most.  Think Cabbage Patch dolls for a second.  Remember the Cabbage Patch Christmas craze years ago?  Folks lined up deep willing to pay far over fair market and willing to scrap it up with other shoppers.  Remember the Walmart security person trampled to death on Black Friday as angry shoppers grew impatient behind locked early morning doors? Picture this mania times ten since gold may soon be part of financial survival.  Two reasons why folks will treat gold like, well, gold.

REASON #1 DENIAL:

In Ben Sherwood’s book Survivors Club he proved the difference in surviving a disaster, regardless if financial or physical, is the awareness of what to do before anything adverse happens.  This could be as simple as looking for exits before a movie starts or as complex as what to eat if stranded.  Most Americans agree that economic conditions are really not improving but down deep few actually believe a true lifestyle change is needed, at least not at this point.  Fewer understand the power of gold or silver ownership as a hedge, or insurance, against a complete dollar devaluation or economic gridlock.  Denial will cause most to pay far more than necessary but create untold wealth for early gold and silver holders.  My question for you is what side of gold will you be on?

REASON #2 PANIC AND GREED:

I’m not sure which is most dangerous but I have little doubt both will play a major role causing many to pay $2500 plus for gold.  The set off of panic could be caused by several forces but the most likely will be the” realization” of major inflation as it affects retirement accounts and savings.  A silent run removing cash from markets and savings could easily put uncontrolled demand on precious metals as Middle America looks for safety and preservation.  The competition between the panicked and greedy could form a perfect storm for gold inflation.  Think about this is you will.  While one family tries to protect what little savings they have left, millionaires see opportunity to “cash in” on the biggest bull run in history.  Nothing but craziness.

I often wonder what the average reader of The Prospector Site pictures as a safe amount of gold or silver to protect against a broken economy.  My personal opinion is large holdings is not necessary if simple survival or protection is the goal.  If gold or silver is part of your retirement plan by moving from one asset class to another than this is a different story.  Regardless, please consider protecting your family with physical gold or silver while prices are still somewhat reasonable and inventories are available.

NEWS WORTHY:

MARKETWATCH:  “Private Mortgage Issuer Urges Fannie Wind-Down” is a fascinating request for private banks  to jump back into the real estate pig pen.  I have breaking news by saying most real estate regions are thousands of homes away from a stable market.  Read it here.

THE DAILY CHILLI:  “Workers Dig Up Gold Coins” is a prime example proving fortunes in buried gold still exist today.  I love articles like this and if you do as well read it here.

FAIR PRICES IN GOLD & SILVER (9:30 am MDT)

  • ONE OUNCE SILVER BULLION:                   $39.92

  • ONE OUNCE SILVER ROUND:                       $37.58

  • ONE OUNCE GOLD BULLION:                       $1591

  • ONE OUNCE GOLD BAR:                                 $1552


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WHY SOME COINS ARE DECLINING

BUYING GOLD/SILVER, GOLD & SILVER   No comments yet

The sad fact is many gold buyers will make one of the most common mistakes in precious metal ownership.  Buying the wrong coins not only costs money by lost profit it also takes money out of play that could profit.  Thanks for visiting The Prospector Site and thanks for continuing to read for the loyal ones.  Taking the time to understand how gold and silver benefits the self-reliant will become so clear by the end of this post.  Lets look into gold coins you may want to pass on.

I bought several gold coins late 2008 when it seemed to me gold was looking more attractive in a day of uncertainty a lot like today.  Most of the gold, American Gold Eagles, have done well as a store of wealth and I’m quite pleased with my dollar trade.  But two of my coins have not.  This leads me to ask you the question of how it is gold has gone up around 50% since 08 but my two rare coins now sell for less than when purchased?  The answer is one every gold investor must consider before buying another gram of gold.

NOT SO FAST: I have said we are in uncharted economic waters and this includes everyone.  Precious metal brokers, or representatives, will often recommend customers with well-meaning tips but is it always the best way to spend your money?  I certainly learned it the hard way but fortunately for me the two rare coins made up only a small part of gold bought in 2008.  I’m not casting blame because my job, and your job, is to not rely on advice but educate our selves to the point of able to form our own opinion.  Since your reading this post it is clear you are well into becoming self-reliant.

The wheels are falling off economies across the world and many of the stranded are wondering what is next.  Some are realizing precious metals are beneficial assets to sustain wealth but rush into gold without proper research.  The assumption of all gold investments being equal is just as false.  Gold buyers today are not looking for a collection of coins nor do they care how many rare coins are in circulation.  The goal is to trade declining dollars for an inflation hedge like gold.  Simply put, the new gold investor is looking for the cheapest gold by paying the lowest premium and cares little about the rarity within the coin.

The proof of truth is within simple research available for all who are willing to see.  I recently received several emails from gold brokers showing how many rare coins are selling historically low compared to gold advances.    The point of the email was to expose a once in a life time buying possibility of rare coin ownership.  I don’t believe this for a second because how is it possible veteran gold buyers would miss a golden opportunity with so many eyes on gold?  What is more likely the case is the premium on rare coins is dropping because of less demand for rarity but increased demand for basic gold. I could be wrong because like I said the seas we are sailing are uncharted.

QUESTION:  Is it wise to sell rare coins and then reinvest in new gold bullion?

ANSWER:  I have asked myself the same question.  The Prospector Site doesn’t give specific advice because that is not our goal.  Our goal is to offer facts on gold/silver investing to aid you.  Try researching the trend of your rare metal to see its value direction.  It is entirely possible new gold/silver inventories will dry up and new buyers may swarm into what ever is available paying what ever it takes.  Uncharted waters! (more…)

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THE NEW FACES OF GOLD BUYERS

BUYING GOLD/SILVER, GOLD & SILVER   No comments yet

Traditionally we think of gold bugs as crazy old men spending weekends in well lite basements.  You know, gold owners, bomb shelter types, UFO believers, the list could go on.  But what if I told you your neighbor, brother-in-law, hair dresser, banker, kid’s teacher, and church janitor are all investing in metal while you are investing in the past.  It’s true, if you have a hard time believing this just pick up the phone and call any gold broker.  I recently asked my rep who is buying gold and she said one call will be from a new investor and the next a $5,000,000 client.  Is it time you take a hard look at gold?

DISCRETE IS THE WORD: The reason you have no idea of who’s behind the new faces in gold is because they wear no sign of metal ownership.  This is unlike the flash of yesterday when “the Jones” wanted only to impress through depreciating assets.  These days are over and frugality coupled with safe investing is as “in” as home cooked meals.  Gold coins fit nicely into the pockets of self-reliance and this is exactly what new faces are seeking.  With so much talk of entitlement numbers increasing, the big story is the increasing numbers of lone wolves looking for nothing but independence.

I wouldn’t say the new faces mistrust government, well maybe a little, they just don’t agree with increasing debt to solve debt problems.  Most new gold owners realize something has to give and this realization has led to life of self-sufficiency.  Owning physical gold is only one part of this lifestyle of many layers.  Many new owners are still at working age so wealth preservation is more important than income.   Many of these same types are now realizing huge creations of golden wealth but Mum is the word.

WHAT IS THE PLAN? The long-term plan for most is contingent on the dollar’s future.  Many modern gold bugs don’t trust devaluing dollars and will hold onto gold until the smoke clears.  Some fear the herd will run to gold but realize this demand will create a false value derived from speculation and greed.  Most modern-day gold holders will be long gone before this spike bursts the gold balloon.  Money profited, or preserved, will go into new emerging assets yet to be determined but surely profitable to those that understand cycles.  Some will trade gold for income producers ,like real estate, and enjoy a life of depending on no one.

Please don’t underestimate the power of gold and silver or its independence.  Coming in late to a cycle is far worse than not coming in at all as many can attest from the recent real estate bust.   My opinion is gold has plenty of life left for those willing to research and then trade dollars for gold.  The new face of gold doesn’t run to the gold market by fear but by reputable unbiased information.  Thanks for reading The Prospector Site and congrats for taking the first step to taking back control of your future.

LAST WORD: Today’s news is very relevant to all gold/silver owners.  Political leaders are in search of compromise on a 2011 federal budget in April of the same year.  This is not about politics but a conflict between fiscal responsibility and irresponsibility.  If borrowing (debt) is an option for politicians it will almost always be the choice in the last hour.  My opinion is gold & silver prices will continue to rise along with debt.

QUESTION:  Why not buy paper gold since it is less than physical gold?

ANSWER:  You are correct in the fact of paper gold being less ( by around $75 per ounce) than physical gold but remember independence is what we are buying.  I like the idea of owning physical for fresh investors and then research if paper metal is a for you down the road.  The gold buying process is education, research, and then buying metal regardless of paper or physical.

TIP OF THE DAY:  Be cautious of new advertising selling gold coins that look like US Minted but are actually only gold-plated.  Buying anything but true gold or silver is speculation only.

Each business day we post fair prices of physical gold and silver.  These prices change by the minute so stay current with metal pricing.  If your metal source is over these prices please question or find a new metal source.

FAIR PRICES OF GOLD AND SILVER (9:15 am MST)

  • ONE OUNCE SILVER BULLION:                  $43.63

  • ONE OUNCE SILVER ROUNDS:                    $41.29

  • ONE OUNCE GOLD BULLION:                      $1523

  • ONE OUNCE GOLD BARS:                              $1486


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