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THE ART OF BUYING OR SELLING GOLD

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

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

FACT #1: Not all Gold is good

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

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

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

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

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

FACT #2: Not all PM advice is good

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

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

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

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

FACT #3: You will someday sell

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

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

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

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

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

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

Looking forward to your reply and thank you very much.

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

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

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

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

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

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

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

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

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

 

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

 

 

 

 

 

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A FEW MINUTES WITH “RANTING ANDY”

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

Thanks for joining us today.  Before we dive into my recent Q & A with Andy Hoffman with Miles Franklin I want to take a moment to discuss this week’s leading headline.  Let me be perfectly clear at this point, it’s not like Europe is burning down. It’s not like record numbers of Americans are on food stamps or record numbers underemployed or out of work either. With so many pressing issues facing us today can you guess what leads our mainstream media? Yep, the most important issue of all is Obama’s stand on gay marriage, absolutely unbelievable.


Folks, this nonsense is nothing more than a distraction. I’m so glad you, my readers, are in tune with reality and willing to accept the challenges that lie ahead, good for you. I’m most glad you understand how necessary owning PM is in such times.

RANTING ANDY HOFFMAN:

If you have yet to read or listen to Miles Franklin front man Andy Hoffman then you are truly missing out. Andy is somewhere between the late Randy Savage (WWF) and Einstein, but with slightly less hair. Agree or not, Andy’s commentary always leaves readers in deep thought and little doubt how Andy truly feels about PM manipulation, Wall Street, and the Feds. I’m very thankful Andy agreed to share a few minutes with TPS.

Prospector Question: Joining Miles Franklin is obviously a good fit for Ranting Andy. Does writing such an in-depth PM newsletter help filter today’s attacks on silver and gold, personally speaking?

Ranting Andy: My blog has enabled me – in serial fashion – coordinate years of observations into a daily newsletter.  The creative process utilizes the analytical skills I learned as a sell-side analyst, the communication skills learned in investor relations, and my PASSION for helping PROTECT people by educating them about Precious Metals.

Prospector Question: It is now clear China’s plans for gold include backstopping the yuan into a reserve currency. Andy, Bernanke and the gang might be academics but they’re not stupid by any means, do they understand how destructive this type of monetary switch will be on the USD?

Ranting Andy: I believe Bernanke is stupid, contrary to popular opinion that he “must be to occupy such an office.”  As a lifetime academic – like Obama – he is particularly dangerous, with no understanding of the real world.  Irrespective, the point is moot, as he MUST continue with “QE to INFINITY” to prevent an all-out collapse TODAY.

Prospector Question: The perception today is that plenty of new bullion (both gold & silver) is available but we both know this is far from true. Does the average PM fence sitter truly realize how little PM actually exists?

Ranting Andy: I don’t feel such a perception exists, as nearly no one – particularly in the States – is even aware of Precious Metals, let alone to have an opinion on supply.  In other words, the “average PM fence sitter” probably describes less than 1% of the U.S. population, and less than 10% of the world population.

Prospector Question: Why is it so few understand the power of physical PM as real money? Have our centers of higher learning let us down?

Ranting Andy: Our “centers of learning” are part of the problem, prescribing curriculum that meet their goals of teaching undisputed U.S. – economic, financial, and military – hegemony.  Plus, the Mainstream Media is bought for by Washington/Wall Street, which HATE PMs.  Otherwise, very few people even have the MONEY to protect themselves in this world of dying middle class, so why bother trying to understand.

Prospector: Thanks. Andy only agreed to our Q & A if we kept it short and to the point. Andy writes 30 – 40 hours per week as part of his position as marketing director with Miles Franklin Ltd. You can reach Andy at www.milesfranklin.com.

Comments & Questions:

Comment: I’ll tell ya I hate to see what it’s going to be like when my two boys are my age!! (They are 13 and 15) I’m new to your site,,,and I think it’s great.. I’ve invested in silver about 2 months ago FROM Colorado Gold and I think we will see historic highs on the horizon.. I was reading one of Don’s columns and he led me to your site…

Prospector Reply: I’m very glad you found us and thanks for commenting. Look, I’m guessing this is the first time I’ve heard from you since it sounds like you’re new to PM. My point, you are spot on and I also have two boys very close to your children’s age.  Their future is not as bright at some would like to believe. The monetary games played today don’t have our children’s best interest at heart, not by along shot. Andy (Q & A above) said it perfectly when he mentioned, “As a lifetime academic – like Obama – he is particularly dangerous, with no understanding of the real world”.

Does this mean a life of limited opportunity for our children? No, not at all.  It means young minds must understand opportunities do, and will continue to, exist but only for those willing to create opportunity (after all, this is what built our great country in the first place).  The wealth from their hard work must store in real assets that include gold and silver.

Question: Okay, one big question if you’re up to answering. Where does all this end (endless printing, never-ending recession, etc)?

Reply: You are not the only one asking this question so let’s see if we can shed some light.  We cannot stop printing currency, not just here in the US but worldwide. Your next question is why do we purposely expand debt when the outcome is predictable and dangerous over long term?

We have entered an era of debt addiction like a junkie’s drug dependency. Where this all ends depends on if we continue our destructive nature to borrow currency while pretending this supports a stable economy, it does not. I believe the borrowing will continue and this is why I own silver & gold. In Why Silver & Gold Will Go Higher, I describe how the rich have a grace period that the middle class doesn’t.

The “end” you ask about resembles an extended version of poverty more than anything else. Only then will the masses understand how necessary fiscal restraint is (both home and in government) to maintain a constant monetary balance. The end is more like a correction in my view since opportunities still exist, even during bleak times, at least for those willing to accept life’s challenges.

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PANIC BUYING

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

Many times we’ve watched grocery store shelves clear as unprepared or panicked shoppers desperately stock up on life’s necessities.  This nature of living in the moment epitomizes our society’s assumption nature. Earlier this week we asked readers if someday silver and gold will run dry. In my mind I see very little odds of this NOT happening but, more importantly, the question is your perception or odds of such a time. Precious metal ownership is proactive by nature. PM ownership is the pantry supply of monetary necessity. My concern is the masses view PM as unnecessary therefore see little reason to “stock up”. This perception is also assuming and soon to change.


Today we will fast forward to a time unknown.  When Silver & Gold Run Dry (post last week) dispels new bullion silver or gold as bottomless. We discussed how online dealers buy from only a few wholesale or distribution type sources and only when you place an order to buy.

Online bullion brokers are not sitting on pallets of new bullion silver and gold.

I personally witnessed cracks forming in bullion availability in 2008 when I waited over a month for an order of gold American Eagles. My contact at Blanchard Co. tried to reassure me, as the weeks passed, but I have to be honest when saying I grew more nervous each day.

This is not the case today. Most don’t wait long for new silver or gold bullion. This luxury will diminish and the result will be higher PM prices. 2008 is not 2012 economically speaking.

Four years of wilting green shoots, never-ending housing decline, and worldwide market volatility continues to wear on even the most trusting.

Perception of recovery is very different from real recovery. Political season can spin job reports and economic data but ultimately silver and gold prices tell the true state of the economy. This realistic indicator now trickles Newbies into something most know nothing about. This could be why you’re reading here today, thanks.

Here is how I see this scenario playing out.  Some event will eventually trigger some form of worldwide instability; conflict in Iran, Dow Jones decline, who knows what it will be? Simultaneously, the social networking world rumors of physical silver and gold shortages, true or not.

This easily can be compared to yelling “fire” in a crowded theater. My estimation is millions of Americans watch PM from the sidelines tempted to jump in but waiting to see if precious metals are truly justified. This hesitation will, most likely, result in paying far more than today’s PM prices.

Panic buying is not buying on dips. Panic buying is paying whatever a panic market dictates. Why, because the secondary PM market could develop over night during an era of panic buying?

Here is why. Many selling PM understand the higher the prices larger the dips and spikes. Few PM experts disagree. But panic buyers don’t understand PM swings. They only react to the urge to protect what wealth still exists. This rationality will deplete new bullion inventories quickly, at least in my opinion.

We are soon to enter a return to all things real. Virtual money, paper silver, and promises of gold are not included in all things real. Physical silver and gold are a historic linchpin of all things real. This is why we are living history as we watch PM turn into a worldwide currency.

Future PM reminds me of a bidding war I witnessed at a recent fundraiser. Two grandfathers bid a BB gun to a point 10x retail value in hopes of buying it for their grandson. The value of this gun, the value of all things, are whatever someone else is willing to pay.

Secondary markets understand this concept too well. They understand how PM ignorance (this is not meant as mean, just as not understood) leads to reaction over reasonable planning.

A secondary PM market will develop when new bullion silver or gold becomes scarce. Right now new bullion selling is highly competitive. Profit margins low, premiums over spot low, basically a patient PM buyer’s dream (patient buyers wait for dips and then buy remarkably close to spot). Most of us will look back on these days asking why we didn’t buy more.

Readers often ask how high silver and gold will rise. What they’re actually asking is this.  I don’t care what PM has done over the last 11 years, I want to know if they will rise over the price I’m paying today. No one can honestly answer this question, not honestly.

This is why I continue to stress importance of understanding what motivates PM well before owning them!

Let’s continue with our scenario.  Something triggers a rush into gold & silver. New bullion virtually disappear allowing bullion dealers to only sell a limited supply of least desirable PM. This creates a secondary market satisfying the hunger of desperate shoppers similar to our grocery shopping example above.

This is where the media and social networking has ability to exploit PM into prime time captivation. Exploitation only finds its victims from those who don’t understand history.  This is unfortunate.

This inevitable rise (PM) could last many years. If so, the price will double several times more driven by fear, greed, and most of all natural monetary correction (return to real money). The oddity is a dollar value is irrelevant at such a point.

My gut says silver and gold will soon trade across to other assets. This is unlike today where PM holders “cash out” metal by trading back to a local currency. These days are numbered if currency printing trends continue.

My job is not one of prediction. Most know I don’t sell silver or gold either. My goal is to provide a stimulating prospective allowing reader to fill in the blanks.

Only one question remains. How long until panic buying becomes the new PM normal.


COMMENTS & QUESTIONS:

QUESTION:

I have gold jewelry and several ounces of gold in my safe deposit box. My question is how safe are they? I’m now told contents often disappear without prior contact, this has me double guessing my storage method.  Always enjoy reading TPS.

ANSWER: Thanks for the question and maybe we can put your mind a little at ease. Times like we live can create unfounded anxiety and concern. The fact is safe deposit boxes are still safe in 2012, in my opinion.  The risk is more related to the bank’s financial status more than anything else. I recommend using a local bank over larger banks but keep in mind things can change quickly today.  Don’t assume your local bank can’t fall victim to economic correction. If it does, pull your stash out and carry out plan “B”.

I do want to clear up a few safety box rumors that continue to haunt the PM world. Law enforcement cannot seize box contents without a court order.  “Reasonable cause” must exist before a court will issue or approve seizing contents. The IRS can “freeze” your assets and this includes all banking accounts and box contents. Freeze involves holding assets until a judge can prove, or disprove, a dispute over debt. So what does all this mean to those storing PM in bank boxes? It means the moment a IRS dispute arises all box contents need to relocate.

Now, let’s dispel  rumors of disappearing deposit box contents. It is extremely rare for contents to simply disappear. I recommend placing all PM in a shipping type box well identified as yours (before placing into security box). This clears box identity confusion should it arise.  Disappearing contents usually includes unclaimed property when a deceased box holder’s family fails to retrieve contents or pay box rental. This usually leads to all contents turned over to the state as unclaimed property; heirs still have rights to property (contents).

My point is this. If you are not comfortable storing PM at home then someone else must be trusted. This is exactly why I recommend diversifying storage methods and options. Thanks for the question, and reading our site.

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GOLD FICTION & FAKE PROMISES!

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

Will someone please just give us the facts so we can make an informed decision. One reason we choose to not sell gold and silver on The Prospector Site is to avoid bias confusion.  Do you feel sorry for the guy out looking for economic straight talk because sources, to me at least, seam skinny at best?  Separating facts from straight out fiction is not easy these days and my bet is it will worsen as metal prices continue to climb in price.  Our goal is to always look after the gold buyer’s best interest even if it is not exactly what’s expected. Maybe today is the right time to clear a few misguiding opinions before things get out of hand?


Let me dive in here starting with residential real estate and then tying this into gold and silver. The Commerce Department said Thursday (1-26-2012)  that 2011 new-home sales numbers the worst on records dating back to 1963!  This means 2011 was the weakest year for new home single-family construction ever. Of course, this dropped median sales prices since builders found themselves cutting prices just to move inventory.  I doubt anyone is too surprised by these numbers, but one source is seeing it differently.  Do you want to guess who?

NAR (National Association of Realtors) has an entirely different forecast for 2012. They expect new-home sales to slightly rise and buyers may not get the same bargain they got last year.  In fact, they forecast new-home sales to rise over 15% in 2012 over 2011.  Of course these are projections only but what I don’t understand is why the leader in real estate doesn’t take a more factual approach to a worsening market. If gold prices dropped several years consecutively I certainly wouldn’t gain creditability by forecasting a spike during the worst economy since the Great Depression. Look, I’m not knocking Realtors here because I work with plenty of professionals within the industry.  My point, it’s time to deliver unbiased information because everyday Americans are relying on industry professionals to provide facts even if they’re not what we want to hear.

But is the precious metal industry doing any better separating fact from opinion, I’m not so sure? Bullion dealers constantly remind customers to hurry and buy because some experts expect gold could double. The fact is no one knows what gold will do in the short term.  Yes, of course, gold’s long-term trend is to skyrocket but we don’t know what PM prices will do next week, month, or year. Other dealers and shops are quick to point out rare coins undervalued and poised for steep gain. Maybe rare coins will see improvement but most haven’t since new buyers care little about collector value and only concerned with gold or silver metal. Online dealers market gold and silver like their coins are the last minted. The truth is inventories can diminish quickly but most mints have increased output to meet growing consumer demand.  Not only is new metal (bullion coins, rounds, and bars) available but the secondary market is an option too (you will pay more on the secondary market).

Isn’t it time honesty supersedes a motive, quota, or whatever it takes to sell a few more ounces. Remember, today’s buyers are relatively new to both gold and silver and most will trust a professional’s opinion as FACT.   I’m the first to preach due diligence and a buyer beware concept but somewhere down the line responsibility must start with those most familiar with metal volatility. I fail to believe anyone selling an asset should insinuate the asset will climb in value unless they truly know it will. It is okay to sell metal under the pretense of insurance against everything bad that can happen in an unstable economy like today.

If you’re in the PM market or looking for an entrance to gold and silver please read this closely. Education is the best defense against buying overpriced or fake gold or silver.  I know because my first gold purchase was fractional rare coins and I paid far over market.  There is no reason for something like this to happen to our readers, not in this age of instant information and technology.  Take your time; do your homework, whatever it takes to stack the PM deck in your favor. Base your next purchase not on a crafty sales pitch but solid facts all while realizing short-term metal could experience major corrections and spikes.  This is all about long-term protection in an age of economic uncertainty.

WARNING: Next Gold & Silver Trend!

Do you agree with mainstream media sources who continually repeat economic recovery is real?  Nope, neither do we, and this is why we want to encourage readers to stick with the PM plan. Part of the plan is buying the right metal, right time, and right price; I’m sure few disagree.  The gold/silver bullion market is becoming highly competitive and to be truthful margins are low, very low.  You may have noticed the increase in PM advertising both on radio, internet, and Television.  You probably realize advertising is not cheap and companies investing millions in advertising must sell high profit PM products to keep doors open.

The next metal trend we see is a push to convince consumers, you, to buy rare coins over new bullion metal.  Rare coins allow sellers to charge higher premiums and a high premium is good for the bottom line.  Unfortunately, this may help sellers (coin dealers, bullion dealers, etc) but might not help you as much.  We recommend investing in plenty of research before investing in the rare coin market.  If you are one of the lucky who inherited rare coins don’t worry because they are a safe way to own PM.  I wouldn’t rush to trade old inherited metal for new bullion anytime soon but the choice is yours alone.

WANTED; we want to hear from you and your opinion as it relates to gold and silver.  Do you feel comfortable with your PM dealer?  Do you buy in person or online?  Tell us here.  Thanks for spending time with The Prospector Site!


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