Posts Tagged ‘inflation’



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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PM FREEFALL: What should you do?


Are you losing faith in physical silver? The question I hear most is “why”. Why are precious metal prices dropping when all the fundamentals are in place for it to rise? International economic volatility, threat of regional wars turning worldly, a flood of paper currency; the list is long and growing. The answer, my friends, is obvious, yet concerning, and the topic of today’s post.

It is unfortunate that we invest so much time, effort, and space in order to justify the only tried and true worldwide currency.  I agree, it’s impossible to ignore such  volatile erosion as we’ve witnessed over the last few months. No doubt this decline is disheartening to those new to PM (precious metal). For this reason alone we’ll invest time and space in hopes of answering why silver is dropping, should you buy now, and when silver will rise again.

Anyone with $11,700 can buy 500 ounces of American Silver Eagle bullion and have it shipped to their door (or local USPS). Comparing today’s silver offering to March 2011 is astonishing, to say the least. I founded TPS (The Prospector Site) in 2011 when the same 500 bullion ounces sold for over $21,000…… crazy! Precious metal experts, who coincidentally also pedal bullion related assets, can spin it anyway they desire but the loss, at least at this point, is very real.

In Why Silver & Gold Will Go Higher I expose the mystery behind silver and gold’s true value. Each coin in existence has literally two sides, value speaking. The first side is intrinsic, or has inherit value. The intrinsic value includes the grand total of effort to mine, mint, and distribute each PM ounce. No different than the land, concrete, lumber, wire, roofing and labor value it takes to build a home or an apartment.

The second side of a metal coin offers value too, but this value is much more subjective than the intrinsic counter side. This side is all about demand, nothing more. If demand raises so does the coin’s value. If demand declines well, I guess, today’s PM market is the best proof as we all watch silver/gold retreat.

So how can prices fall if demand for physical metal is up? After all, today’s PM peddlers and experts talk little other than how worldwide demand for PM is through the roof, right? If true, then why has gold declined from just under $1800 to less than $1300 per volatile ounce? The answer to these questions goes far beyond the paper manipulation argument so commonly made by the PM faithful.

PM manipulation?

The words “manipulation” and “precious metal” play over and over again reminding us of a late-night HBO movie. You’ve undoubtedly read countless articles – written by PM aficionados – that repeatedly prove how PMs fall victim to Wall Street entities like JP Morgan and other “cartel”. I have no doubt Wall Street giants work the PM system but this doesn’t explain why physical precious metal is falling.

Physical silver and gold are in decline because PM can’t compete with today’s level of money printing. Never before are so many currencies simultaneously committed to printing fiat in order to appease a rising tide of concern. This printing offers a false sense of financial security, built on a foundation of debt, which only temporarily relieves the inevitable correction soon to fall upon each of us. Nevertheless, printing money to artificially support handpicked assets hasn’t bode well for gold holders.

Never underestimate the power to create currency (money).

It is only because of FED support that giant banking institutions (the same who manipulate silver and gold to their advantage) even exist. Remember, these giant Wall Street banking institutions should have disappeared September 2008, and would have if not for the biggest bailout in US history. Organic assets like precious metal cannot compete, not while we have an administration and financial structure hell-bent on picking winners, and therefor losers too.

What to do?

With a deep breath we must ask ourselves, as PM faithful, what to do. Obviously, we can’t fight the billion dollar status quo toe to toe. Nonstop bitching won’t help either. Far too many promote staying the PM course but with silver $19ish and gold $1200ish I for one no longer support, at least without question, staying a course that hasn’t worked for some time now.

I own both silver and gold and have for many years. But if I were new to PM, and didn’t own physical, I would buy some now, just in case something black swanish happened in the near future, but keep most powder dry until prices stabilize. But for those looking to add more physical I’m not so sure I’d be in a big hurry to stack more, not with such PM volatility. Here is why.

Folks have lost faith in PM. This hasn’t helped support prices in the least. Eventually low metal prices will discourage mining output and this disruption will dry metal inventories. I truly thought demand alone would vaporize such a limited inventory of PM but this isn’t the case. When miners can no longer profit they will decrease output. A decreased output of physical metal will do more to separate physical from paper than anything else I know. At such a time, physical metal premiums will rise regardless of Wall Street’s paper party.

We must put the age we’re living in context. From the $50k car we drive to the $500k homes we live, they all hold value only because of manipulation thanks to the power to print. This debt won’t and can’t last forever. Eventually something will sever the ability to print and at such time physical PMs will find equilibrium of true value and worth. I base this on history far over my opinion. Not one person walking this earth knows when the fiat printing will cease or no longer work thanks to inflation.

QUESTION: DC. I enjoy and value comments and reply of TPS. I recently overheard a conversation in our local coin shop – ” nobody has any silver” – ” there is a serious shortage of silver” – “silver is constricted” – ” the mints can’t get the raw material” – surely some “PAC MAN” monster didn’t consume all the silver that was out there not TOO long ago.

With spot being 20ish it seems more likely there is a lot of holding and hoarding going on, also I have recently purchased a few MONSTER boxes, so those ASE’s are available with considerable discount from months past. What’s keeping silver at 20ish? Is intervention and manipulation that controlling? I don’t question that silver is suppressed, my question IS WHY and by WHOM. Based on your experience and expertise, how constricted do you think DEALER or secondhand supply will be when silver is $100ish? Also, would you care to guesstimate when $100ish silver will be probable rather than possible?

TPS Reply:  Ah, the questions of when and how much. First, thanks for the great questions. I realize you’ve made a substantial PM investment and certainly have earned the right to ask “why”. For what’s worth……. my long-term PM opinion finds deeper validation with each passing day. In the meantime, PM is as volatile as I’ve seen them.

Let’s dive into your questions. Those selling PM are no different from anyone else selling anything else. Demand is an emotion. If a seller can convince a potential buyer that demand is high, and inventories low, then this potential buyer is more likely to buy. I have no doubt inventories are low but physical silver is still readily available, without a long wait time I should add.

Far too often we hear about a Chinese thirst for PM. Recently a photo of an alleged crowd of 10,000 aligned buyers has circulated the internet all hoping to buy physical gold or silver. I’m not buying it. I’ve done business in China and can tell you for a fact that the Chinese play their cards close to the vest. Sure, the Chinese are buying PM but the truth is this public option has only existed for a few years. Up until recently a Chinese citizen could be imprisoned for buying or possessing physical PM.

The Chinese have but one motive. Their plan is to hoard enough metal to reestablish a gold-backed currency, and this is exactly what they will do. Can you imagine the offering for physical metal when the yuan unseats the USD as a world reserve currency? The one Chinese question still unanswered is will the Chinese have to sell their gold if and when their economy corrects and how will this affect their reserve currency plan? My guess is the Chinese government will confiscate private gold/silver holdings sometime over this decade, just my opinion.

You asked about who is manipulating metal and why. This manipulation is about Wall Street profit more than anything PM personal. For Wall Street, it’s all about making money and few care who is hurt along the way. Our financial system is run by distrustful thugs with little integrity or concern over the hardworking fabric of America.  Central banks benefit, monetarily, and enjoy nothing more than watching a competing currency, like silver and gold, decline. Again, never underestimate the power to print money or those willing to manipulate such power for personal gain.

The true injustice, or risk, of falling metal prices is not a loss of wealth. It is a loss of ounces that concerns me most. When a PM buyer pays more than necessary, because prices drop soon after, this inhibits the ability to buy more ounces for the same dollar exchange. In the long run all PM owners will appreciate such monetary prudence, but this doesn’t help over the short term.

When will we see $100ish silver is like asking when hot water will boil. Silver rising will happen only after the US dollar index declines. The world still invests in the USD and will right up till the point they won’t. Only after the dollar loses trust will silver see $100, then $200, then? I would hate to be shopping for my first physical silver at such an age. Look for the secondary PM market to swallow today’s dealer/broker trade as soon as metal prices rebound.

I was once asked who should buy (own) physical silver or gold. My answer, the best person is the one who buys metal, stores it away, and then lives life like PM never existed. It’s hard to do, for some, but over-analyzing PM will drive a person to drink; we’re living in interesting times no doubt. Thanks for email.


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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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.


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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It’s hard to explain the value of physical silver and gold to someone clueless. I often hear people ask, “Why is it so important to buy PM (precious metal)” or “why do you buy silver?” The very fact a person asks such a question tells me they’re not ready for PM, not personally at least. This is okay. Each person first has to come to terms that our economic recovery is an illusion before giving an ounce of thought to gold. I find myself comparing it to a gravely ill loved one who is imminently facing death. Like a life ending, the transition of currency back to sound money (hard assets) is a natural occurrence often repeated throughout history.

It usually takes on hour with a client – by phone -to match the right metal, where to buy it, and how to store it. This assumes the person is really interested in buying PMs in the first place. Some folks aren’t ready for the party to end. They’re still holding out for “normal” to return and, honestly, suffering from a self-centered perspective.

Buying silver or gold is a timing thing. My decision to own PM developed along with an overall life plan for independence. Growing wealth by way of PMs is a byproduct of self reliance. Sure I like the fact my savings grows each year but I like being a spectator during times of economic calamity most. I’m not sure what others think when I compare PM to monetary insulation.

Some have emailed asking how to convince a spouse or adviser of PM’s relevancy in this age we live.  I’ve even had some clients ask me to speak with a spouse which, by the way, is rarely enjoyable for either party. It’s not uncommon for one spouse to eventually buy silver or gold behind the other one’s back. I don’t recommend this in most situations.

I personally don’t believe in convincing people to own PMs. I’ve seen this turn into a blame fest the first time gold dips or silver turns volatile. It is much more productive to establish signals of relevance; below are but a few examples.

1.  Keep track of food costs; even to the point of writing costs down (rising costs are signs of inflation).

2.  Watch how often Washington solves fiscal problems by borrowing and taxation, never cutting.

3.  Begin to track values not in dollars but gold grams.

4.  Pay close attention to your local economy (a local economy is far more relevant than a national or global one).

5.  Make yourself aware how often elected leaders blame others or an event for a bad job’s report, growth, etc.

6.  Be aware how often the media distracts viewers in regard to “real” economic events.

7. Make note the ways the US simulates the failing path of Greece and Spain.

8. Research and track where the money comes from (who backstops the mortgage industry?).

Well over 90% of those sitting on PM sidelines are waiting for metal prices to rise. They gauge silver and gold’s relevance on rising metal values. The last couple of bubble decades have ruined too many small investors. They fail to ask themselves “why” an asset rises. This is why so many lost a fortune in the last housing bust. This is why others will lose a fortune in the next housing bust. We used to be “buy low” investors and good money stewards. Now, we’re “buy based on demand and a rising price” investors.

I began my gold voyage when it sold in the high 300s. I viewed gold’s protectiveness first and potential wealth gain secondly. The fact so few have the same view only proves far too many folks today underestimate the gravity of today’s economic situation. They are, in all actuality, still looking for the quick buck and care less about protecting their assets.

Dare to guess the number one reason folks aren’t buying precious metal? It is because precious metal hasn’t experienced a big price jump in the last year or so. This inaction leads to complacency. The one thing this writer can just about guarantee is this next point.  We will reach a time, in the near future, when everyone with a dime to spare will long to own PMs….. without convincing.

 Question: Thanks for TPS. I’m struggling with a safe way to protect my PMs from confiscation and theft. I’ll get to my point quickly since I’m sure you receive many emails. If I decide to store some of my gold internationally will these depositories notify the IRS when I sell? Any ideas how to discretely buy and sell?

TPS Reply: Thank you for reading TPS, and asking such great questions. As you know, today’s administration is adamant with everyone paying their fair share. This means your PM profit has a big bull’s eye on it. I would expect to receive a 1099 when you decide to sell, and this includes all assets…..not just PM. I recommend keeping record of price paid, price sold of all reportable gold.  To answer your question I would expect a 1099 form regardless where the metal is located.

Here is my plan, for what’s worth. I’m a long-term PM owner. I believe I can outlast our overreaching government. This means I have no plans to sell my gold anytime soon. Things change quickly and my plan may have to adapt along with this change. At some point precious metal values could get ahead of themselves (bubble).

I believe silver and gold will eventually back a new or existing currency. How can this not be good for those of us holding physical PM? If my choices are to chance paying high PM taxes or losing my wealth in dollars, I’ll pick gold seven days a week. The “Golden Rule” always works in favor of those holding real money.

Now, your last question about discretion is good. We still have choices as of February 2013. This means you can legally buy physical silver and gold with no records attached. I strongly advise each person reading to consider exercising this freedom. Thanks for the questions and send new ones over anytime.


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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Bill O’Reilly is on our side of precious metal and doesn’t even realize it yet. It only took Mr. O’Reilly 3:37 minutes to explain why each person with wealth must exercise a plan to protect it, regardless the monetary size.  Please take a moment and listen for yourself before we continue.


To fully understand gold and silver’s future we must first absorb the impact, or awakening, when a person as polarizing as O’Reilly uses words like “unsustainable fiscal path” or “collapse of savings” or “dollar collapse” in his opening prime-time monologue. Such a truthful 3:37 minutes I’ve yet to hear in front of an audience of millions.

We will not awaken one morning to $400 or $500 silver overnight. Nor will we awaken one morning to $15,000 – $20,000 gold overnight, either. The progression from where we are now to where we’ll soon be is chucked full of necessary steps of awakening. The video above is yet another one of the steps we’ve spent the last 22 months describing.

Just three people; only three people stood in front of me while I waited to buy more silver ounces from my local coin shop this week. It’s worth questioning why in such an age of economic calamity the line doesn’t wrap around the corner. Is it possible Mr. O’Reilly is correct when he mentioned that most Americans simply will not listen or, worse yet, too stupid enough to care?

I refuse to believe folks in this country are inherently lazy, selfish, or too wrapped up in individual pursuits. Sometimes facing reality takes multiple knocks to the head before we realize the same old same old is not only not working but draining generational wealth byway of inflation and dollar debasement.

The awakening that will propel silver and gold much higher is full of postponement and laborious.  One postponement; 99 weeks of unemployment benefits. Another postponement; the 65% increase in food stamp participation over the last four years. Another postponement; the number of dieing industries still standing thanks to taxpayer bailouts and endless stimulus.

Our silent economic depression hides well behind a 17 trillion dollar deficit and an administration more concerned with growing government than impoverishing our nation.

The words Mr. O’Reilly use in the video above are all PM (precious metal) triggers. These “trigger words” snap the viewer holding a bag of Cheetos to attention. Our nation slowly gravitates away from mindless entertainment to a thirst for monetary truths. O’Reilly understands this thirst leads to more viewers, more book sales, and ultimately more folks no longer willing to accept political manipulations.

The video also mentions a Congressional agency called Government Accountability Office (GAO) preaching the ill effects of too much national debt on our economy. Being honest, I had to look up the GAO…. and guess what? The GAO site should be a warning, or awakening if you will, to everyone with a computer.

Look for more media figures, sports figures (pro golfer Phil Mickelson just this week mentioned his disdain of paying a tax rate of 62%, read it here), and everyday Americans to join the minority unwilling to accept the monetary status quo. Guys like O’Reilly and Mickelson may not own silver or gold yet but I’m willing to bet their willingness to publicly call B.S. will eventually lead them to the same mindset we share. All while the rest of the world awakens to gold and silver in their own way and time.

Question:  After reading your book it inspired my husband and I to buy silver. We refuse to believe a growing deficit will take our country back to “normal”. It is now very clear that those in power have their best interest far over ours. Care to guesstimate future silver values? Also, what about Morgan silver dollars? Thanks DC.

TPS Reply:  Thanks, and congrats on making silver part of your financial future. A few PM experts are throwing around some hefty silver values so maybe today is a good time to fact check. I recently heard Doug Casey mention $300 silver.  Miles Franklin team often mentions $1000 an ounce physical silver.  With that said who knows what to believe?

Ones willing to predict future silver values do so by dividing currency in circulation by known gold ounces. Then, they guess what the silver to gold ratio could be according to historical ratios; this number in dollars is staggering compared to today’s standard. Here is my take for what it’s worth.

I believe this administration, like so many before, will continue to print and grow our deficit therefor debase the buying power of the very dollars you and your husband work hard for. The problem is we have continued this reckless spending for so long now we no longer get the same boost as before. This is why economic negativity grips all corners of the earth as you’re reading today.

Silver, as mentioned many times on TPS, is reactionary. It will rise, or react, as high as necessary until monetary reasoning returns. Right now, few currencies in existence are not participating in printing so it’s hard to say how high silver will climb before bubbling down someday. My guess is the dollar value of silver will far surpass what most can imagine.

But even $1000 or $10,000 per ounce silver is as relative as each dollar’s buying power. Eventually we will reach a point, if the printing continues, when silver will not be assigned a dollar value. At such a point silver and gold will be the first currency choice and USDs (or whatever currency is second most dominant) will become a distant second.

Mike Maloney pointed out a real case scenario in his book Guide to Investing in Gold & Silver. The Roman Empire debased their currency over several decades until finally minting coins with little or no silver. Roman soldiers eventually refused to protect politicians and people of prominence unless they were paid in real silver. Everyone else had little choice but accept the new fiat currency coins and the rest is history. The US is dangerously close to reaching such a point.

Now let’s take a moment to discuss the Morgan Silver Dollar question. Morgans are cool old coins and just this week I contemplated adding more to my silver arsenal (my local coin shop sells melt-grade Morgan Dollars $30 -$36 per coin). Unfortunately….. Morgans are not a full silver ounce (I believe they’re 90% silver weighing around .77 an ounce… depending on wear) so keep this in mind when buying old coins. Personally, I will only buy melt Morgans that hold no numismatic value since I’m only interested in the coin’s silver content. Due diligence are the two words that pop in my head. Thanks for the great questions.

PS – If you’re buying or own rare coins, like Morgan Dollars, please share your knowledge with other readers. We would love to hear from you.


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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I recently received an interesting question or three from a very worried reader leading me to ask all readers if owning gold in 2012 is really worth the trouble. Most of us understand the natural progression to protect begins monetarily but at least one reader questions gold’s worthiness during what history will write as the economic correction of the century. I believe gold is relevant but, more importantly, what do you think? Here is the question with all its raw honesty.

Question:  Okay, I bought gold bullion many years ago preparing myself financially and emotionally for a day I see as imminent. By doing so I made great sacrifices at my family’s expense that includes living on a narrow budget, taking few vacations and lots of worry. At times my family viewed my decision (to own gold) as overreacting but has slowly come around to the same conclusions that led me to precious metals. The problem is lately I’ve doubted my decision to own gold and here is why.

I see the entire world facing long odds of economic recovery in my lifetime. I see severe social unrest and I see more totalitarian governmental control that only compounds problems by stealing more wealth from those making deep personal sacrifices. To be honest….what good is a boatload of precious metal if a government steals it through taxation someday? I question the benefit of owning silver, gold, or any other storage of wealth in such an age.

TPS Answer: First let me say I do appreciate your honesty and candor. This site receives many gold related questions but few as honest as the ones you’re asking. Most folks are miles away from your prudence and just now looking for ways to preserve what wealth is left in 2012. You on the other hand have accomplished what few will ever realize but still question such prudence, I understand. To be honest, I too have asked myself similar questions and this is why I would rather live in a world with $500 an ounce gold than $10k (quality of life is more important than individual gain).

You are realizing growing gold values come with a price far beyond growing wealth. The downside to expensive gold (gold appreciation is on its second decade) is the pain and suffering as those unprepared realize dollar dominated wealth is an illusion all while gold grows out of reach. “Yes” overreaching governments will take wealth unprotected and exposed. “Yes” social and civil unrest worldwide is happening and will probably expand as the economy corrects.

But all these things you mention will happen if you own gold or not. Those holding wealth have choices other don’t and this means more options for someone like you and your family. The option to relocate, the option to serve others, the option of better health care and the option of growing wealth. But another option is rarely mentioned and one I want to make most clear. A great option of wealth is the ability to protect it, let me explain.

I’ve owned small private businesses my entire adult life and can honestly say nothing can protect wealth more than a compatible team of professionals committed to protecting what you have worked hard for. This is why big corporations pay little in taxes while the middleclass continues to see inflation tax away any real chance of a prosperous future. Your storage of gold – hopefully silver too – provides the ability to pay those with the professional capacity to protect wealth, even from an overreaching government. Now is a good time to take your wealth to the next level, the protection level of metal ownership.

In the meantime, try to enjoy what you’ve been blessed with and appreciate what most can only dream of owning. Thanks for the questions and honesty.

Question:  Do you feel comfortable putting a number to year end gold prices? I’m sitting on the sidelines waiting to buy more gold while hoping gold dips at year end exactly as last year.

TPS Answer:  Great question and thanks for asking. I’m assuming you’re asking in terms of dollars? If so, any year end gold prediction would only be a guess. Gold could drop over short term but no one with a simple understanding of economic sins believes gold will do anything but substantially rise over the longer term (rising deficits equal dollar devaluation which in return equals rising gold prices). I don’t have a problem with waiting since you sound as if you already own gold and looking to add more. If I’m misreading, and you don’t own gold, then don’t wait since marginal gold inventories could leave new buyers outside looking in.

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Will you agree that no one plans on living a life in poverty? The masses do not see the correlation between declining personal wealth and food stamp dependency. Not even national news that recently exposed a 40% decline in net worth snaps our middle-income class into realizing how close most are to depending on food stamp allowances. It’s no wonder physical silver and gold are so far off the radar considering such an accumulation of failure. Most of us stand and watch asset wealth drift away unwilling to see the sand eroding under our very feet.

I want to breakdown the progression to food stamps just in case some readers haven’t figured it out.

  • Declining real estate equity gradually siphons wealth away from the unsuspecting. Declining equity makes up most of the 40% net worth decline here in the U.S. (since 2007). The great housing bubble made it possible for those accustom to living paycheck to check to live beyond their means. Years of using a home as a store of wealth is proving costly to savers especially when we accept that housing hasn’t reached bottom. What does this mean for those with remaining equity? It means most of us are about to become poorer.
  • Declining wages arrive just as the price of necessities rise leaving millions in the middle class one step closer to poverty. Some argue wages have not declined but fail to mention how employees are paying a bigger share of insurance and pension obligations. This is no different from a reduction in wages since the bottom line is lower at month’s end. The only alternative is to feed your family less or rely on food stamps. A decline in true purchasing power of the USD only confuses those who trust currency as money. The confusing part comes when the numbers on our currency stay the same even though the buying power mysteriously declines. Welcome to the wonderful world of hidden taxation, inflation.
  • Declining savings.The trade-off for a credit addiction is a decline in savings. Last decade’s rise in credit exposes just how bad Americans are at saving for rainy days. This is sad when we consider most missed an opportunity to grow wealth and take advantage of cheap silver and gold. Not to justify a failure to save but the truth is savers are punished because of artificially low rates of return. Why save if the reward is less than inflation, why not borrow ourselves into an unsustainable lifestyle?
  • Nothing to sale, no savings, and soon no available credit parlay our world’s middle class one rung closer to poverty. This is why houses are so cheap in cities like Vegas and Scottsdale. High inventory drives prices down especially when coupled with declining capital (credit). This is why we suggest waiting to buy a car, truck, motor home, vacation home, condo, business, airplane, and dream vacation. Sellers sell cheap when liquidation is the only option to pay the water bill or keep lights on. As you can see below, Food Stamps are no longer for the stereotypical poor.

CNN MONEY: Living on food stamps in Middle-class suburbia.

Morris County is known for its wealth and million-dollar homes. Median household income there is over $91,000. Yet, the number of people receiving food stamps in the area has nearly tripled in the past five years.

Phyllis Tonnesen is on the front lines of the epidemic. She works for the Department of Human Services Office of Temporary Assistance. In her 27 years at the agency, she says this is the worst she’s ever seen it.

The food stamp caseload has increased 240% since the beginning of the recession.

“These people thought they had the American Dream,” Tonnesen said. “They had decent jobs, a home, a new car every five years, took the kids to the shore for vacation. Suddenly here they are applying for food stamps.”

The Smiths are one of those families. That’s not their real name. They want to keep their identity secret so their three kids won’t be teased at school.

Four years ago, Mr. Smith lost his six-figure job of twenty years at a telecom company and ended up selling shoes for $10 an hour.

Read the rest here.

Questions & Comments:

Comment: First and only rule to making money (…..not waiting forever for a buyer for an overpriced coin) with coins.. BUY FOR THE METAL VALUE ONLY. Obviously, there will be a premium for the gold or silver in a coin form but the closer you can pay to spot, the better. The only thing rarer than a rare, expensive coin is a BUYER for one. Don’t buy numismatic coins to make money. Buy them for their metal content. It will not only hedge against inflation, right now, your wealth will grow.

TPS Reply: Well said and thanks for commenting. It really is all about metal content considering rarity is of little value to those trying to protect, or grow, wealth. Unfortunately, most shops selling rare coins work diligently to convince PM (precious metal) “Newbies” otherwise. It really is all about the premium for those on the selling side and rare coins offer great premiums over new bullion. Right now we have choices: bullion or rare coins. But these days are numbered since one day soon the few holding bullion will not sell (who will consider selling when the world realizes fiat currency has a baseless value?) leaving PM latecomers with nothing but higher premium rare coins.

Question: Okay, I’m a little confused. At least a dozen times  you refer to today’s economic meltdown as a “correction” (in Why Silver & Gold Will Go Higher).  To me this seems like an underestimation at least compared to other silver and gold newsletters & sites. If the economy continues its course, I doubt record levels of unemployment, foreclosures, bank runs, and social unrest will seem merely like a correction. Care to expand a little here?

TPS Reply: Great question and thanks for asking it. As mentioned in the book, I refuse to call the age we live anything other than a correction since historically this accurately describes our time. Real money will correct the sins of an abused fiat system every time (not my opinion but history’s). Will this correction devastate masses? Yes, it certainly will but monetary corrections always blindside those unprepared, all while the few invested in silver & gold watch wealth grow. This is why it is so important to trade currency for real money like silver and gold. It is only a correction for those unprepared, this is why I refuse to sensationalize our economic plight into anything other than what it is. Thanks for asking.


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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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Several years ago my 8-year-old son misplaced his wallet and was visibly upset. We went through the gamut of where did you leave it, when is the last time you saw it, you know. Days turned into weeks until one day he came into my home office to explain his lost wallet held all the money he owned, $27.50.  I felt the little guy’s pain and was thankful one day when he found it in the mess resting under his bed.  Unfortunately, the wealth disappearing today is not “findable” like my son’s small fortune.

I hold not one penny in Wall Street investments. The story featured today will explain why I own physical silver and gold no longer willing to trust “traditional” sources of investing. It makes me sick to see so many still entrusting what history will soon describe as “crooks” but, unknowingly, trusting types will have to learn by example.

The Wall Street Journal recently ran an article describing how J.P.Morgan lost a few investor dollars, actually the number is around $2.3 billion but no need to split hairs.  J.P.Morgan’s mouthpiece describes the incident as controlled or calculated but I see it entirely differently. Let’s skim the highlights of the article for when you find yourself doubting physical silver or gold.

THE WALL STREET JOURNAL: A massive trading bet boomeranged on J.P. Morgan Chase JPM -9.54% & Co., leaving the bank with at least $2 billion in trading losses and its chief executive, James Dimon, with a rare black eye following a long run as what some called the “King of Wall Street.”

Jamie Dimon has been one of the U.S.’s most successful and outspoken bank executives since the financial crisis. On Thursday, he took the blame for a $2 billion trading blunder. David Reilly has details on The News Hub. Photo: Getty Images.

The losses stemmed from wagers gone wrong in the bank’s Chief Investment Office, which manages risk for the New York company. The Wall Street Journal reported early last month that large positions taken in that office by a trader nicknamed “the London whale” had roiled a sector of the debt markets.

The trading loss “plays right into the hands of a whole bunch of pundits out there,” Mr. Dimon said. “We will have to deal with that—that’s life.”

Asked about the Volcker rule, he said, “This doesn’t violate the Volcker rule, but it violates the Dimon principle.”

On Thursday he admitted the bank acted “defensively” when news reports surfaced. “With hindsight we should have been paying more attention to it,” he said. “This not how we want to run a business.”

“This is yet another example of the need for the more than $700 trillion derivatives market to be brought into the light of financial regulation,” said Dennis Kelleher, president of Better Markets, a liberal nonprofit focused on financial reform. More here.

PROSPECTOR: Some of you doubt silver, maybe doubting gold too. I want to be perfectly clear today when I describe one of the many major factors soon to push PM (precious metal) prices forward. Wall Street is no longer trust worthy. Articles like the one above prove either incompetence or as untrustworthy, you can decide which one.

Is it possible one of the world’s largest banks took such risk because they know a bailout awaits if their Vegas like actions backfire?  Of course, and the sad part is debt derived derivatives will implode and not one rationally minded individual can argue counter.

But today’s post is not to argue if $700 trillion in derivatives is sustainable. Today’s post is to ask what will happen to real assets like silver and gold after $700 trillion of your wealth disappears?

Wall Street banks may be suspect but they aren’t stupid by any means. My prediction is Wall Street will soon recognize the house of derivative cards for what it is and this will eventually leave wealth looking for a safer landing. Who could possibly doubt a large percentage of this wealth will land on silver and gold (this includes both paper and physical metal)?

Andy Hoffman was correct last Friday when he mentioned 99% of all Americans don’t have precious metals on the radar. If true, this means they still believe in banks that lose $2.3 billion dollars by betting on risk and debt. This story is eerily similar to MF Global’s multibillion dollar disappearance which leaves me to ask how much longer will the pack accept excuses from guys still receiving multimillion dollar bonuses, win or lose?

So many of us are quick to judge silver or gold right now. We all know both metals have done well over the last decade but we aren’t sure how they will fair in the future. I understand this and personally feel it is wise to question what is real from not.

We are soon to enter a period when all assets are suspect, especially ones who lose billions overnight. I have little doubt stories like the one today will eventually drive remaining wealth into history’s safest long-term asset, gold.


Comments & Questions:

Question: I still don’t understand how gold will keep up with inflation? Even if it does (keep up with inflation) how will this benefit those holding gold, will they trade it back into currency vulnerable to inflation? Just confusing to me!

Prospector Reply: Thanks for the questions. Maybe a simple explanation will help since I admit things like inflation and debasement can be confusing. Let’s start with the facts. Fact one, inflation is a hidden loss of buying power and wealth. I said hidden because the numbers printed on our currency stay the same even though they buy less. Fact two, inflation is now to the point of being perpetual since currencies worldwide are printed then injected into economies replacing $ you no longer have to spend.

Okay, let’s recap this. Inflation is a hidden loss of buying power. Two, baseless currencies are now flooding markets worldwide trying to prop up economies.

Now, here is the kicker. If you save, or store, your wealth in currency (dollars, euros, yuan, yen, etc) then you are vulnerable to ride the inflation train to wherever those printing the currency decide to take you. The only way to depart from this inflation is to trade from currency and into something that benefit from inflation, like silver and gold.

So how does this help you ask? Because the same amount of silver or gold usually buys the same amount or more of a product, service, or asset regardless of dollar cost.  By example, a few ounces of silver could fill a car’s tank two decades ago and still fills up a car today (FYI, gas was $.95 per gallon two decades ago). Precious metals seem to “go up” when they actually maintain the power to buy or trade at a constant. Can you imagine your local gas station today selling gas for $.95 per gallon?

Let’s tackle your second question since this confuses plenty. When to trade metal back to cash is always the question but this is only because we let currency (dollars) dictate what we perceive as money, cash is not money. If our current trend continues, and I certainly believe it will, less will trust cash and more will prefer real money, like silver and gold.

This is nothing new and I’ll go so far to say this is history repeating itself. The problem with what to do with future silver or gold is one that deserves little worries or concern. Silver and gold have and always are real money. At any time in the future your stash of PM is exchangeable for all currencies worldwide (if you chose to do so), or most assets. Thanks for the questions and thanks for reading TPS.

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