HOME | THE PROSPECTOR SITE & YOU | BLOG | REGISTRATION | CONTACT

Posts Tagged ‘rare coins’

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.

 

 

 

 

 

Tags: , , , , , , , , , , , ,


SILVER RESOLUTIONS FOR 2013

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

Resolutions in general are very predictable in our age. January is a month we commit to losing weight, increased family time, paying down the balance on credit cards, you get it. But this January I’ve noticed a new resolution unlike any year prior as silver offers the affordability few PM (precious metal) experts predicted.  Silver bullion sales are through the roof as we kick off the New Year and I’ve personally made a commitment to add to my silver stack each month in 2013. Maybe it’s time you make the same silver resolution too?

I’ll admit it. Over the 2012 Holiday Season I blew a gasket during an informal PM consultation. After nearly two years of debate, this acquaintance still owns zero ounces of silver or gold. We’ve discussed the importance of wealth preservation in an age of over reaching government (he agrees), we’ve discussed dollar debasement thanks to endless printing (he agrees), and we’ve discussed how this administration, like ones before, bailout the chosen few while all the rest pay for it (he agrees, too).

Now, for those who’ve worked with me know that I’m a very patient person. My goal is to simply explain the options including how to buy, who to trust, where to store (internationally and at home), and then let you, the client, make the final decision. I don’t sell PMs so a conflict of interest is never an issue.

But this time was different. This time I couldn’t take another conversation ending with inaction. Maybe this is why I blurted something I should mention but never have said. “Look, one day you will buy PM. Right now it’s by choice and controlled. But someday it will be from desperation as you watch other assets and wealth sources quickly declining. Don’t wait until the mania arrives to attempt to buy silver, or gold, because both at such a time will have few sellers and those willing to sell will only do so when offered a great premium.”

In case you’re asking this person still doesn’t own PM (they can afford a boatload). Their resolve to preserve wealth is low. Therefore, a silver resolution is not at hand. I only bring this up today since it’s possible many of you are sitting on the PM fence. Maybe your inaction stems from confusion but it’s hard to say without knowing the situation. I encourage you to strongly consider a plan like the following if nothing else.

 

A Silver Resolution for You:

I often hear from those new to PM that they don’t know where to start. If this is your question today I urge you to read closely. First, you’ve made the first step by reading TPS or other educational sources relating to PM….congrats. Next we must turn this education to action so let’s look at the best way to accomplish such a PM action plan.

Step 1:  This action must land a few ounces of silver, or gold, into your possession. Don’t get hung up on the monetary challenge of buying cases of silver when just starting out. Buy what you can afford, for now. I recommend buying low premium silver bullion, rounds, bars, or “junk silver” from your local coin shop when getting started. Part of this plan must include a safe method to store it. A proper storage plan must grow as your stack of silver or gold grows (more in a moment).

Step 2: Next, I recommend committing to a number of ounces each month regardless what comes up (it can be 2 or 20 ounces – the number is relative to your budget). If you are like me something monetarily always comes up but this “something” must take a backseat to the commitment to save. Like I mentioned earlier, the time to comfortably buy PM is closing and one hour researching current economic events proves this as fact.

Step 3: Be discrete. There is no need to convince your office or peers how relevant PMs are in 2013. Remember, when you promote silver and gold you are exposing yourself as a target of wealth in an age of war on wealth. The fact is 99% of your friends and relatives see no relevance in personally owning silver or gold. Most, if truth were known, still believe economic recovery is only a couple trillion borrowed dollars away. If they ask tell them, if they don’t…don’t.

Step 4: The cost (currency) of PM moves up and down throughout the day, week, month and year. Don’t use “dollars” to validate silver or gold. Don’t celebrate when metals rise and don’t worry when they dip. Owning silver and gold must be viewed as a long-term tool of wealth preservation in an age of long-term economic challenges.

Step 5: Eventually establish a plan that includes storing PM over two… three is best, different locations. This can include home storage (if done correctly), bank box (if short term and proactive), passive storage (with someone or a vault company trusted and accountable), and international storage (outside the banking system, outside your country of residency).

 

QUESTIONS & COMMENTS:

Question:  Hi, I’ve been reading all your blogs recently…thank you for the great tips! I want to ask you if it is necessary to protect my silver coins/bars with Air tight cases to prevent them from tarnish? These cases are expensive and add cost to my investment. Thank you so much for your advise.
Regards

TPS Reply:  Thank you for reading TPS, and the great question.  I don’t use air tight cases since I care nothing about the collective value of silver or gold.  Tarnished bullion, round, bar or junk carries the same relative metal value. You’re correct when you mentioned the extra expense of air tight cases and I believe this cost is money that could be spent on more PM.

The exception to this is rare or numismatic coins that derive value from the coin’s condition. These coins are not the ones TPS recommends for those trying to protect wealth in 2013. Rare coins will in all probability appreciate along with rising PM but the premium side is subjective.

We will soon witness a period where all silver is in high demand regardless the condition, age, design, or weight. Any hunk of silver works and will do in such an age. Thanks for the question.

 

Question:  My house sits over a crawl space not a concrete slab. What is the best way to anchor a standing safe (I use it to store gold) to my home’s foundation? Thanks and enjoy the site.

TPS Reply:  Thanks for the question. My last house had the same problem so I can relate to your security challenge.  Attaching something heavy, like a gun safe, to a wood floor is easy but not nearly as effective as attaching it to concrete. Try adding additional wood support to the underside of your home’s subflooring and then bolt through the safe, subflooring and new wood support.

The idea is to make the prospect of stealing the safe difficult. Difficulty adds time and most thieves hate the idea of sticking around any longer than necessary. The only way I know a thief can steal a bolted safe is to cut it away from the subflooring, this usually means the 600 lbs safe is now resting at the crawlspace bottom or at least a part of it is.

Here is a suggestion. Pick up a cheap big box store gun safe and leave it unattached to the subflooring (throw some decoy metal or rocks inside just to make it sound like the mother lode as it exits your home) yet somewhere easily found. In conjunction, pick up a good floor safe and concrete it into your crawlspace’s dirt floor area below the home. Make sure the floor safe sits below grade well hidden from anyone servicing the home or looking to part you and your metal. This will take some effort but the peace of mind is well worth it.

Think like a thief to someday live like a king.

 

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

 

 

Tags: , , , , , , , , ,


KEEP YOUR GOLD & SILVER SAFE

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

Have you noticed that there really is nothing 100% “safe” from theft? From Wall Street to Main Street the threat of someone taking something from you is as real as I can remember. The longer I write about precious metals the more I realize theives come in many shapes and sizes and by no means stereotypical. Now I’m not just talking thievery like we see on TV where thugs with covered faces rob folks at gunpoint. The biggest threat to your wealth is the guy sticking campaign signs on your neighbor’s front yard, or his cronies (taxation). The second threat is inflation and the sad side of this threat is that most victims don’t realize how much wealth is right now lost from it.

This is why it’s so vital to not only own physical silver and gold but to also have a bullet proof plan to keep it safe. This is where I can help so thanks for joining us today.

Keeping your PM safe is not difficult but does require a well organized security plan with a continued effort from you and whoever shares your address. I’ve heard from readers who question the above statement by mentioning other family members living in the same home know nothing about the stash of silver or gold. This, my friends, is a recipe for disaster since those not knowing can’t be part of a plan to protect your metal, not good!!

I don’t believe in secret PM storage programs, here is why. My thinking is PM security is a family effort since the fact you are storing the metal in home means you are willing to put all those living there at risk. Risk you ask? Yep, owning PM and storing it at home carries risk and only someone naive will believe differently. Maybe it’s time we put the cards on the table showing exactly the growing risk each PM holder will face as our economy continues to unravel.

I knew when I wrote Storing Silver & Gold that some readers would find true examples of home invasion too much to take. I’m guessing my book editor right now is thinking the same thing. I warned readers before hand with each home invasion example because each of you must prepare for the risk that comes with something that every person on the earth will soon view as necessary. I hope I’m wrong but doubt it.

As precious metal holders, few look beyond future wealth and riches. We think of the nice things we can buy or opportunities to help others but rarely invest thought that a rise in gold’s value equals a decline in society as a whole. This exposes you as different – even lucky, or wealthy – putting a big old bull’s eye on your family’s back. Think about it.

The challenge to keep your metal safe will grow as the economy weakens, sorry.

This is why it’s so important to begin a plan now to store physical PM in multiple locations. I do recommend keeping at least 1/3 of all PM owned in hand or at least close at hand. I like storage diversification most because it adds an insurance value to all eggs in one basket. Another thing I like is insurance (yes, insurance exactly like the policies you have on life, home, car, etc) on every ounce of silver or gold you own.

SEND OVER YOUR QUESTIONS OR COMMENTS ANY TIME. FEEL FREE TO SIGN UP FOR MY ONLINE NEWSLETTER TOO.

QUESTIONS & COMMENTS:

Question: You wrote about insuring gold so I thought instead of emailing I would call, hope this is okay? My question is can I determine the value of a particular coin when buying insurance? Will the company offering this insurance ask for an appraisal?

TPS Answer: Thanks for calling and “yes” it is okay to call (I actually prefer email but realize some want to discuss by phone, this is okay too). No, my understanding is a person cannot simply request a rare coin worth $3000 insured for $6000. I don’t have rare coins insured (I’m mostly in bullion, rounds, and bars since they carry less of a premium) but can tell by the conversations I’ve had with those offering insurance that value must be proven. They could ask for a proof of purchase and this will help determine value at least at time of purchase.

Something else comes with each new policy all readers must be aware of. Each new policy comes with a signed fraud statement plainly explaining the charges for insurance fraud. My advice is to keep it straight and sleep well at night.

If other readers have questions on insurance for physical silver or gold please feel free to email me at theprospectorsite@gmail.com.

Question: What exactly does The Prospector Site do?

TPS Reply: We offer facts related to why, how, where to own physical precious metals all without readers worrying with a motive. Most PM information floating around the internet comes from companies selling PM (most have a buyer’s best interest in mind, some don’t). TPS doesn’t sell silver or gold, we only write and consult with individuals why it’s so necessary to own it and then offer proven ways to buy and protect it (precious metals). Thanks for the question.

 

 

 

 

Tags: , , , , , , , , , , ,


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!


Tags: , , , , , , , , ,


WHAT ABOUT RARE COINS?

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

Do you remember the old western movies where a thirsty cowboy entered the saloon looking to wash away two days of dust, with room temperature whiskey to boot? Can you remember the “ringing” sounds of real money as it hit the bar counter? This coin of real money most likely was a silver dollar or, if wealthy, a gold piece. Regardless, this was back in the days of real money made of gold and silver. Today we continue our series called “Keeping Gold Simple” by taking a look at rare coins.


It is very possible many of you are already gold and silver holders but have no idea what your holdings are worth. It can be tricky putting a value on rare coins so maybe spending some time discussing them is wise. We hope we’ve been clear that we don’t recommend new buyers start with rare coins. There is just too much room for error for those less than experienced. We recommend saving the rare coin market for down the road but the fact remains some of you already own rare coins passed down from a generation or three.

Rare coins originated hundreds even thousands of years ago dating back to nearly every currency. Putting a value on a rare coin is subjective, at best, since sellers tend to see the quality within the coin and buyers usually see the flaws. More than one rare coin dealer has found themselves in hot water for misrepresenting a rare coin’s value. Think of rare coins the following way. Each rare coin has two combining parts to determine its value. The first part is the gold or silver content within the coin (commonly called its intrinsic value). The second part, also hardest to determine, is the value derived from its rarity and condition. If a rare coin has only a few others like it, and in good condition, its value is high. The opposite is true as well.

We have no doubt the majority of rare coins sitting is shoe boxes or chest of drawers hold most value from their gold or silver content. Of course we would all like to believe the old coin passed down from grandpa is very valuable but actually it’s probably worth slightly more than the metal within. There are exceptions and any coin shop can help you determine worth but in most cases we are correct. This doesn’t mean you’re not holding a good savings in real money because you are. Just don’t quit your day job yet.

Rare coins can be confusing for new precious metal buyers and the Morgan Silver Dollar pictured above is a perfect example. This coin is legal tender which means it was minted as a currency but made from silver.  The silver content within the Morgan dollar is worth far more than one dollar minted on the back it.  The confusing part is this silver coin is not made of a full ounce of silver (it has .77 oz of silver).  Many other rare coins, both gold and silver, are “fractional” as well.  Now you can see why we recommend sticking to bullion style gold and silver at least until you familiarize yourself with collector coins.

Q & A:

Question: I notice the numbers .999 on most of my silver but not sure exactly what this represents?

Answer: All minted silver should have the numbers “.999 pure” somewhere on it unless it’s legal tender coins.  This means content is 99.9% pure silver.  This includes all silver rounds, bars, and most silver jewelry.

Tags: , , , , ,


THE TITANIC COURSE FOR SOME GOLD HOLDERS

BUYING GOLD/SILVER, GOLD & REAL ESTATE, GOLD & SILVER, STOCKS AND GOLD/SILVER   No comments yet

I can only imagine the horror aboard an unsinkable ship that took the lives of 68% of its passengers.  I wonder how many passengers boarded paying little attention to an inadequate number of lifeboats?  Do you want to really know why so many perished in the frigid water this dreadful night?   From passenger to captain, from shipbuilder to designer, they all assumed everything was fine and failed to prepare for uncertainty.  History makes it obvious to us but only because of hindsight.  How many of you are sitting on the sidelines wondering if the economy is as bad as it is? How many of you are counting lifeboats?


Something very odd happened during my recent visit to the US Mint in Denver. As most watched dimes, nickels, and quarters pressed into legal tender I noticed a very concerned look on the face of our armed guard as he stared out a window. I joined my guard noticing a late-model car with its windshield completely smashed and several armed guards standing beside it.  I asked my guard what happened when he explained a roofing crew was working atop our building and must have thrown old roofing off the roof top and straight down on top of this new car.  The roofer assumed it was OK to toss debris from a three-story building without looking, maybe this is why they were the lowest bid?

How many of us assumed a good college education would equal a prosperous career?  How many of us assumed our homes would always be a safe store of value? How many assumed 401(k), stocks, bonds, and savings would provide more than enough income as we prepare for retirement?  How many assume buying gold is all they need to protect in times of economic collapse?  It concerns me how many jump into a lifeboat of gold only to soon realize even their lifeboat has a hole in the bottom.  It amazes me, even in this day of economic calamity, how many willingly buy gold from experts (advertisers) without fully understanding why they should.

I have received several emails complaining www.theprospectorsite is not defining enough with our information on purchasing gold and silver.  Some feel spending a few minutes in front of their computer should provide enough knowledge to make lifelong financial decisions.  I’m sorry but it’s not this cut and dry, not by a long shot.  I have spent over ten years trying to grasp the power of gold and silver only to realize I know so little about it.  Gold and silver can help stabilize ominous times but personal effort is needed to not be taken advantage of.  Education (knowledge) is the first and most important step to stabilize these economic waters.

The faint yet growing sound in the distance is no doubt the herd working its way toward gold and silver. Some in the herd will buy worthwhile metal finding protection there.  But most will follow salespeople’s recommendations trading dollars for high premium rare coins, numismatics, risky gold stock, and fake metal.  All will truly believe they’re protected finding false satisfaction in their prudence when actually most are taken advantage of.  Just like useless educations, just like homes that aren’t really assets, and just like trusting misguided financial planners.  Just to be clear I’m not saying rare coins are unwise I’m saying rare coins are unwise for the uneducated metal investor.

So where are you standing during what history will write as the greatest wealth transfer of our lifetime? I’m guessing since you are 600 words invested into this article you’re searching for the safest path to financial independence.  Congrats for taking the time to do this.  If you are searching for gold/silver buying advice let me say just this.  Buy gold and silver from someone trusted yet buy as close to spot price as possible.  Gold and silver bullion and rounds are a perfect start and a quick visit to our friends over at Gold Shark will provide competitive online buying options.  Your local coin shop will be slightly higher but possession is immediate in most cases.  Know what you’re looking for and what market value is BEFORE buying.

Tags: , , , , , , ,


WHAT YOUR GOLD BROKER WON'T TELL YOU

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

Do you like surprises as much as I do?  This morning’s news warmed hearts when a young baseball player got surprised by his dad’s homecoming from a war-torn land.  What a neat surprise it is when something special brings unexpected fulfillment to our lives.  But not all surprises are good certainly not when it comes to our money.  The truth is many gold and silver buyers will someday experience a surprise that could cost them plenty.  Ask any precious metal broker who today’s buyers are and they will admit it’s new buyers.  If you are  new to gold and silver please take note of what your gold broker might not tell you, but we will.


I have learned there are only two legal ways to prosper from gold and silver coins.  The first way to prosper from precious metal is to be on the supply side of metal economics by selling metal for a premium.  Gold Shark will direct new buyers of precious metal to competitive sellers guaranteeing the best price for your money but what isn’t guaranteed is the best choice for your money.  Let me explain.  The best way for new buyers of gold or silver to enter the metal market is through new bullion, rounds, or bars.  The problem for those that sell new bullion, rounds, or bars is low profit margins.  By the way, the second way to prosper is simply buy smart and own physical gold and silver, that easy.

FISH ON:

Because of low inventories of new metal and low margins many precious metal brokers are pushing new buyers into the world of rare coins.  Now don’t get me wrong many investors have made fortunes off rare coins but you will not be one of these in all likelihood.  Every rare coin has two sides that make up its cost.  The first side is what interests you and this side is the gold or silver content within each coin.  The second side, or secret side, makes up the premium part of the coin and is very volatile and subjective.  The premium side of most rare coins is slipping away like a melting ice cream cone in August.

Gold and silver brokers won’t tell new buyers of this slide but we will.  The slide or should I say premium decline is because new buyers want to trade dying dollars for gold and silver not rarity.  They care nothing about collecting, hobby coins, or rarity but just the value in precious metal.  The premium side of rare coins is in decline at least with most rare coins.

WILL THE VALUE OF RARE COINS RETURN?

The long-term value of rare coins will return only when inventories of new gold and silver are gone or very low, at least for most.  Certainly the rare coins that you can afford will be more volatile than say new bullion coins or rounds.  We have often posted the best question to ask your broker is what will they pay you (for the same metal they are asking you to buy) if you walked in to sell it instead of buy it.  The difference might surprise you.  Stay away from high premium metal until you fully understand the precious metal market and have a savings in new gold or silver.  It could take years for your rare coin to appreciate to a break even point.

Thanks for taking the time to read The Prospector Site and register for our free newsletter emailed straight to you weekly.

NEWS WORTHY:

USA TODAY: Cash buyers are kings in weak home-sales market

In Las Vegas, the foreclosure capitol of the U.S. for the past four years, cash buyers accounted for 49% of first-quarter sales vs. 20% in the first quarter of 1997, says data from real estate site Zillow.com. In that area, home prices are almost 60% off their 2006 peak.  Read it here.

NEWS WORTHY:

MARKET WATCH:  Your well-paid, middle-class job is in danger

The ongoing movement of jobs to countries where labor is cheaper, plus the development of new technologies, may mean fewer opportunities for some well-paid positions in the U.S. over the next decade, said Larry Katz, an economist at Harvard University.

“Employment growth has stopped, or even declined, among many middle- class jobs that are high wage” and don’t require a college degree, Katz said.  Read it here.

NEWS WORTHY:

BEFORE IT’S NEWS:  If the Dollar Collapses, What Happens to You?

Doug Casey also spoke; he laid out five “sure things” for the next ten years:

1. Short bonds/bet on rising interest rates

2. Short the yen/go long on Japanese small- and mid-cap stocks

3. Borrowed money: “It’s an excellent way to short the dollar, and you get a tax deduction.”

4. Gold: “It’s not cheap, but it’s going higher. Buy it and store it abroad.”

5. Small-cap mining stocks.  Read it here.

Tags: , , , , , ,


CONFISCATABLE GOLD, NONCONFISCATABLE GOLD

BUYING GOLD/SILVER, GOLD & SILVER   1 comment

At least once a week someone brings up gold confiscation and with no wonder since this is exactly what President Franklin Roosevelt did back in 1933.  If you want to send a chill of panic into a gold holder bring up the possibility of our federal government calling in physical gold.  As unlikely as it may seem my guess is confiscation seemed unlikely to gold holders in 1933, but it certainly happened. The call to surrender gold in exchange for Federal Reserve notes, dollars, surely took most by surprise.  What you may not know is FDR gave holders around three weeks to deliver or face fines or jail time.  Today we look closely into gold confiscation.

Feel free to read the Gold Confiscation Order right here. We must realize The Great Depression was at peak level with thousands of private banks in collapse long before banks were “insured” by the federal government.  The run on banks brought about government fear with some officials fearing a gold run possibly causing an export of gold to other countries.  Let me paint a 1933 picture here.  Real estate in major decline, stocks in major decline, banks failing, and the only value of wealth still standing is gold.  My question for you is how close would we be, right now, if the federal government hadn’t bailed out banks, corporations, and investment firms back in 2008?  It is now very clear, in 1933, the government confiscated gold because gold was the only source of wealth still standing and could not afford to have it leave the U.S.

If you read The Prospector Site you know I’m not a big rare coin advocate. My reasoning is that most do not understand numismatic, heck most can’t even say it, or rare coins enough to safely buy at fair market value.  I would rather see new buyers of gold stick with bullion or rounds that can easily be bought slightly over spot, but.  The “but” is the only gold possession allowed during the last confiscation was “rare and unusual coins.”  Many experts feel rare coins are the only physical gold not in danger of future confiscation if the situation comes to pass.  My opinion is rare coins are worth a good look as a hedge against confiscation by I do urge caution at time of purchase.

Another issue worth noting is many rare coins are as close to spot as they been in many years.  This is bad for those that paid hefty premiums in the past but great for those wanting to add a few just in case of confiscation.  If you care to know what the premium is just ask your broker, seller, what they would pay you for the same coin.  The difference just may surprise you, it certainly did me.  The fact is future confiscation could be entirely different from 1933 so trying to guess what desperate governments will do will only drive a person crazy.  Personally, the benefits of owning gold far out weigh the chance of confiscation.

NEWS WORTHY:

USA TODAY: “Ireland’s debt crisis, austerity offer a lesson for Obama”

Jobs have been jettisoned, salaries slashed, pensions and health benefits reduced. Unemployment hovers near 15%. The economy, which shrank 8% in 2009 and 1% in 2010, is barely back in the black — and the government is paying 5.8% interest on its bailout loans.

Ireland’s debt was about 25% of its economy before the housing and credit bust prompted the government to bail out the banks. Now it’s 112% and rising.

“This will be an important chance for the president to see what this has done, politically, socially and economically,” says Heather Conley, director of the Europe program at the Center for Strategic and International Studies. She cites the rise of nationalist, populist and anti-immigration groups.

FOX BUSINESS: ” Gold Rallies to Two-Week High on European Debt Concerns”

Further reasons to buy gold came in the form of doubts about Spanish austerity measures, an outlook downgrade to Italy’s credit rating and growing speculation about Greek debt restructuring.

However, holding gold in check is the higher dollar against the euro, which makes commodities priced in the U.S. currency more expensive for holders of other currencies.

THE GOLD REPORT: May 19, 2011

…..” that the Fed will move heaven and earth to prevent it and will even choose hyperinflation above deflation because it buys the Fed more time.”  Clive Maund when asked about debt-saturation.

“Silver could drop back to the high $20s before this Dollar rally is done and that should present a great buying opportunity, higher margin requirements or not. This is because inflation is expected to continue to build in the direction of hyperinflation, as QE is the only way out due to the massive debt and derivatives overhang.”  Clive Maund

FAIR PRICES IN GOLD & SILVER (8:00 am MDT)

  • ONE OUNCE SILVER BULLION:                 $39.87

  • ONE OUNCE SILVER ROUND:                     $37.22

  • ONE OUNCE GOLD BULLION:                     $1588

  • ONE OUNCE GOLD BAR:                               $1550


Tags: , , , , , ,


WHY MOST PEOPLE DON'T OWN PRECIOUS METAL

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

By the time most people decide to trade dollars for gold the metal bubble will be at full expansion from misinformed experts.  The unfortunate part is trading dollars for gold too late in the game will be worse than not buying  metal at all but holding back fear and greed is nearly impossible. Congrats to you for having the forethought of learning the dynamics of dollars to gold.  Today less than 3% of the world’s wealth is vested in the most proven form of money ever recorded, gold & silver.  To understand why more people don’t see the value in metal can be broken down into two basic reasons.

There is a scene in the movie Forrest Gump in which Forrest decides to run across America, several times in fact, only to find ordinary folks following along.  More join some as the herd finds themselves in the middle of a desert when Forrest decides he has run enough.  Many investors follow the masses not knowing one good reason why their money flows where it goes then shocked by bad news of big losses. The days of assuming your money is safe are as over as $2.00 gasoline.  Reason #1 why more do not realize the value of gold/silver is because they are content to trot along just like the rest of the herd.

Over ten years ago I started to realize something was wrong with my dollars I worked so hard for. I had always worked for myself so watching over money was a normal way life since I, like so many, had no safety net.  A ton of research lead me to realizing gold is money and dollars as nothing but worthless paper supported by mistrust.  I’m guessing everyone that has turned to gold somewhere down the line came up with the same conclusion as me.  The downside of investing away from the herd is few are willing to say what to buy and when.  The up side is financial freedom without any dependence on social programs, underfunded pensions, or broke government.  Reason #2 why most don’t own precious metal is they are simply not up to taking a path of resistance.

Gold and silver profit is hard to ignore but the majority are only watching and waiting to see if this vertical movement is real before switching dollars into metal.  Any research at all will expose that central banks world-wide (central banks control the worlds money supply) are now buying gold like never before.  Think about this, they are dumping the most common storage of wealth, your dollars, and now buying gold. Talk about the rats fleeing the ship. All because printed money is devaluing every major currency making the middle class poor and the poor destitute.  The media spreads misconceptions of rising commodity prices due to weather, drought, unrest, etc but the truth is too many dollars in circulation equals more needed to buy less.  You must understand that gold floats with inflation so rising prices of necessities are only an issue for those that have saved in dollars but not gold.  Please take a hard look into how metal can preserve your families quality of life.

QUESTION:  My local coin shop has a good inventory of new silver and old silver with both competitively priced.  Is one better than the other?

ANSWER:  Congrats on making the plunge into precious metals and it seems you have done your homework.  Generally rare coins or “old” coins have a higher premium (price over gold value) attached to each coins but many rare coins have done well.  Consider buying which ever coin has the lowest premium as a safe way to kick off your metal portfolio.

TIP OF THE DAY:  Never buy a gram of gold or silver without researching two things.  One, how big of premium is “built” into the cost of each coin.  Two, how easy is it to liquidate (sell).

FAIR PRICES OF GOLD & SILVER (9:00 am MST)

  • ONE OUNCE SILVER BULLION:                       $45.90

  • ONE OUNCE SILVER ROUND:                           $43.56

  • ONE OUNCE GOLD BULLION:                           $1543

  • ONE OUNCE GOLD BAR:                                     $1506

Tags: , , , , , , , , , , , , , ,


WHAT SHOULD YOU DO RIGHT NOW?

BUYING GOLD/SILVER, GOLD & SILVER   No comments yet

Not a day goes by without my email looking back at me with the question“what should I do right now?” This confusion is creating a state of economic disorientation stemmed from once solid sources of income drying faster than a Polar Bear dipper on New Years Day.  The premise of The Prospector Site is not about advising folks how to invest but to offer an informative resource that assists you in making smart, and independent, decisions with your money.  We could easily talk one day about silver rounds then the next about rare gold coins ( and certainly will) but these are features of metal ownership when benefits are what we are after.

Acceptance of old retirement and investment ideas as dead is the first step to taking control of your personal financial independence.  The days of sending off a percentage of your paycheck and then praying it grows is as outdated as the typewriter.  We saw just how volatile 401(k) accounts are back in 2007/08 when the stock market crashed to half of its high in a matter of days.  The odds of this happening again are as high as the ever-increasing national debt.  Another concerning fact is underfunded pension plans from state to state.  I completely expect many pension contracts to be restructured before this is all done.  My question is why chance it if you have a choice.  The choice for many is to add gold and silver to help give a source of savings for your families future.  The days of one single form of retirement are over.

The second thing I would do right now is empower myself on how to trade dollars for gold or silver.  I will go as far to say silver would be first choice.  I would go online or call at least one major precious metal broker like Kitco.com or Blanchard.com to see current prices for one ounce silver coins, rounds, or bars.  I would then go to my local coin shop to see what they sell the same silver for.  If I could buy local and close to what I could buy online for then local it would be.  What I wouldn’t do is be talked into buying rare coins that I know nothing about.  What I wouldn’t do is rush into something without due diligence. Let me recap in list form.

  1. Research all aspects of gold or silver ownership including risk.
  2. Check with online silver or gold brokers for current prices of physical metal.
  3. Check with local coin shop(s) to compare pricing.
  4. Not accept advice to buy rare coins as first purchase.
  5. Buy as much as comfortable realizing this is part of the learning process.
  6. Not watch over my new silver or gold like a new-born baby.
  7. Make a long-term plan including how often to buy and how much.

WAYS TO PURCHASE GOLD OR SILVER:

  1. Local purchases can be with cash, check, or credit card depending on your shop.
  2. Online purchases can be made by check, wire transfer, money order, cashier check, etc.
  3. Most gold & silver purchase are not subject to sales tax.  Check with your state or shop.
  4. EBay auction houses will accept PayPal type pay services.

QUESTION:  Say I decide to buy silver coins from a silver broker.  Are the coins new, do I actually receive the coins, and how do I use the coins?

ANSWER:  Good questions from a new metal investor and congrats on taking the plunge.  It depends on the silver you decide to buy.  For instance American Silver Eagles are new (uncirculated) regardless of the date on the coin.  No one would use a minted $1.00 coin that is worth many times face value because of the silver within it.  If you decide to buy junk silver or rare coins than “yes” the coins within are pre-1965 circulated coins that attribute value not by the number on the coin but the silver content of each coin.  The last part of your question about how to use the coins can be answered by one word, “don’t.”  Find a safe place and store them.

FAIR PRICES OF NEW GOLD OR SILVER

  • ONE OUNCE SILVER BULLION:                     $44.32

  • ONE OUNCE SILVER ROUND:                         $41.98

  • ONE OUNCE GOLD BULLION:                         $1535

  • ONE OUNCE  GOLD BAR:                                  $1498

TIP OF THE DAY:  You cannot go wrong with new silver or gold coins.  These coins usually come with a low premium(compared to proof or rare coins) and their value is easy to track.

Tags: , , , , , , , , , , , , ,













Home | The Prospector Blog | The Prospector Site & You | Registration | Contact


Copyright 2011 The Prospector Site | All Rights Reserved | Terms of Use | Privacy Policy


Design & Development by Vantage Technology Development

Powered by WordPress Entries RSS Comments RSS