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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Hope you can help me.

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

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

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

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

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

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

 

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

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DISTRACTED INTO POVERTY

GOLD & SILVER, GOLD AND MONEY   No comments yet

Atop the cake sits five candles. Each flame represents a year since our lives should have drastically changed, but undeniably didn’t. This September, September 2013 that is, represents the fifth summer/fall season since, for all intensive purposes, our economy experienced a credit crash. This correction should have propelled most Americans closer to poverty but only postponed an imminent lifestyle change unimaginable by most in our middle class.  The next few paragraphs will outline exactly how we didn’t dodge a bullet and, more importantly, what role precious metal will play in an economic undoing. Thanks for joining TPS (The Prospector Site).

Our primary goal at TPS is to justify physical PMs (precious metals) and their role in creating a life of personal independence. The ability to own a worldwide universal currency is precious and, in all likelihood, a road map for freedom. Most folks making the effort to afford silver and gold are most likely not as distracted as the majority of fun loving neighbors.

The art of distraction is nothing new. It works on puppies and kids, it works on students and patients. Access to easy credit is what distracts most Americans into a state of complacency. This lifestyle almost came to a stretching halt in September of 2008.

Our lifestyle will not function “as is” without credit. You will no longer accept the effort of those in power nor will you be as distracted in a world of low to moderate credit. The true state of our economy will surface as markets 95% dependent on easy credit turn nearly dormant. From college debt to low-rate mortgages, to near-zero auto loans to plastic money; all champion the illusion of a healthy economy.

We only accept the recovery lie because of the ability to leverage ourselves deeper in debt, both as a country and as a society.

Today’s media appears to fall lockstep into this dependency trap but is actually nothing more than a mirror of our society. Social networking fills precious time with personal and professional drama all while distracting intelligent individuals with wasted time and effort. Even today’s world of entertainment is nothing more than a Miley Cyrus report or another example of intellectual compromise. From the latest smartphone to tablet — Americans will stop at nothing in order to be entertained.

The cost to distract us is getting expensive. No longer will American’s accept lower-than-historically-normal mortgage rates. If you want us to buy, or leverage, then near zero rates is what it will take. The same goes for new car buyers as they grow annoyed with anything but zero interest auto loan offerings.

We view credit as an ability to further strive for an American Dream not realizing the puppet master changed the rules sometime ago. You may view easy credit as an avenue to live beyond your means (whether you realize it or not) but Wall Street now depends on this ocean of debit as a primary source of investing. Think about it– your retirement future is now dependent on a derivative of never-ending debt creation.

Physical silver and gold can’t compete in today’s world of paper wealth.  Metal’s smash-mouth method of wealth preservation is not fulfilling, nor is it entertaining, nor is it a viable distraction in 2013. Why “invest” in PMs when we can drive a new car or buy a bigger home?

Too few view the last five years in proper context. Less take advantage of this temporary reprieve to re-channel savings or wealth into physical silver or gold. The great distraction worked because so few understand a power committed to borrow at all costs jeopardizes her currency to do so. The end result is investors worth millions, probably billions (dollars), but still living a life in poverty.

We can no longer deny worldwide tensions that grow with each passing day. Syria is yet another example of an economic symptom as countries around the globe look for a justifiable reason to print money and further distract citizens. Americans grow tired of nonstop war drumming but fail to realize war is the ultimate political distraction. After all, how unpatriotic are those who fail to support our freedom, right?

As you can see the one commonality is the need to borrow and create more currency. Sure taxation and capital controls will find a seat within the first few rows but the big nut is credit/currency creation. I have no doubt physical metal will rise from the ashes as the world awakens from our great distraction. I also have little faith wages and lifestyles can keep pace with this next leg of monetary debasement.

Historically speaking the value of physical PM will rise in times of economic uncertainty and currency debasement. Folks, you don’t need me to point out that we are at the very intersection of economic uncertainty and currency debasement. The need to hyper-print our currency will only improve the wealth status of those safely holding physical silver or gold.

Reality will eventually snap us from our state of distraction. A hungry stomach, eviction, repossession, and foreclosure are hard to ignore. You have time to make a change; I strongly encourage each person to take advantage of this closing window.

QUESTION:  With the threat of war growing can you offer some insight on how this could affect rising PM. You didn’t mention war in Why Silver & Gold Will Go Higher, any reason why? Loving TPS, thanks for your effort.

TPS Reply:  Thank you for your support and questions. You’re right, I didn’t mention war in my book. In fact, lots of other PM influences didn’t make the cut either. Today’s book editors realize the attention span of most readers is retreating. We live in an age of constant information so her advice was to keep it simple, and she did.

But this shouldn’t undermine the effect of war costs that always lead to deficit spending and currency debasement. The belief that war is an economic stimulator is not true. Sure war spending will temporarily stimulate the economy but the long-term effect compromises a country’s national security and stability.

My opinion is that America is looking for another war. Look how many families now depend on a large military for employment, benefits, and retirement. I look for regional wars to expand into major conflicts as inflation/debasement tensions arise from currencies trying to keep their economies competitive. This type of conflict offers a green light for currencies to ramp up the printing process.

War legislation always carries pork in some fashion. Politicians realize few constituents actually follow the pork and most voters digest their news in tiny sound bites just before watching their favorite program.

Over printing a currency always leads to higher silver and gold prices. Values may not change but prices do just to keep par with inflation. This is the beauty of physical PM. This is why it is so necessary to trade fiat for real money while the option still exists. Did I mention the discretionary benefits of storing wealth in physical silver or gold? Thanks for the questions.

QUESTION:  My local coin shop is making a good argument for pre-65 silver over the new bullion recommended on TPS. Any thoughts?

TPS Reply:  I’m all for low-premium pre-65/64……. better known as junk silver.  My question for you is what premium are they charging for junk? How does this premium compare to American Eagles, rounds or bars? I personally own both (junk and new bullion) but favor one-ounce legal tender coins most of all.

I realize you, like most readers, are focused on silver but please don’t forget gold. Gold is historically less volatile and definitely worthy of diversification. A 1/10 ounce gold bullion coin is not much more than five silver bullion ounces. Many TPS readers hold wealth in gold as a long-term method of storage and hold junk silver for when we reach a time of underground barter and trade.

I’m glad to hear you are trading at a local coin shop since it is important to support local trade. The ability to exchange some silver, or gold, for cash could become useful considering the age we live. Plus, most coin shop owners have short memories and little to say.

 

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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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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THE THIEF WE CALL “BLACK FRIDAY”

BUYING GOLD/SILVER, GOLD/SILVER COINS, STOCKS AND GOLD/SILVER   No comments yet

Isn’t it fun to spend money? I love to watch advertisers flirt with our pocketbooks this time of year just before Thanksgiving. You have to admit, their ads are catchy as actors smile over a new car tempting the rest of us why we deserve one too. The question I want to ask readers today is can advertisers trick us one last year? Is this the year we, collectively, say enough is enough by no longer willing to exchange debt for the illusion of fulfillment and happiness? I have my doubts.

I have a confession, I’ve yet to participate in Black Friday shopping….but this year is different. My wife convinced me to travel to our nearest big city, and then bite and crawl our way to a bargain we don’t really need. The only consolation is we have earned the right to participate in such mayhem. We have a savings of gold, savings of silver, and a level of debt that can never control or compromise what we have worked hard to amass. The same cannot be said for the other 99% shopping.

This holiday season’s success hinges on a economy that still stands only because of a government’s willingness to replace capitalism with fascism. Does this last sentence sound harsh? Fascism is nothing more than a corporate /government merger. This merger is the only thing holding the illusion of recovery, and Black Friday, together one more year.

You, nor I, can control a Congress unwilling to accept the defeat of a failed fiat currency. What we can control, or refuse to accept, is a belief that society can continue to move forward in a harmonious fashion while the walls of debt constrict around us.

The longer I write for TPS the more I’m convinced that most folks refuse to accept America’s peril because they have no clue how to protect themselves. They still believe the US Dollar is money, college education equals a good job, and their pension will be there when needed.

These same folks cannot explain why gold & silver climb. They refuse to admit the undeniable and willingly accept a reason to celebrate days like Black Friday by compromising the ability to think for themselves. They lack the ability to self educate, they accept fake money and, worse yet, they accept more government as the answer.

For them, silver and gold are a million miles away. We accept an economy dependent on spending, and Black Friday, because we no longer understand a true working economy. We accept an economy dependent on spending because we lack the education and common sense that will no longer accept such monetary bigotry.

This is why so many will stand in line to buy worthless items made from afar but not own one single ounce of gold.

A country willing to believe in fake money and a fake economy will willingly accept the loss of liberties and freedoms. What choice will they have without the ability to think for themselves or understand real assets like silver and gold?

I’m sorry to sound pessimistic, really. My goal is to motivate each of you, without bias, to individually research why silver and gold will go higher in the very near future. The motivation to own physical PM (precious metal) need not come from fear, uncertainty, or anything other than a true understanding of real money and then the willingness to react accordingly.

QUESTION:  TPS – Thanks for the great site.  I made my first PM purchase 2 1/2 years ago through a self-directed IRA buying some gold and some silver.  Because the metals are held in an IRA, I was not able to take delivery of them.  They are stored in the Delaware Depository.  Sterling Trust is my agent/broker who put this deal together.  I have never received anything from the Delaware Depository saying my PMs are there although I do get quarterly statements from Sterling Trust which accurately reflect the value of my PMs.  

What can I do to satisfy myself that my PMs are safely there?  Additionally, I turn 59 1/2 in March of next year at which time I could liquidate my IRA without penalty and then take physical delivery of the PMs.  Are you familiar with Sterling Trust and the Delaware Depository and do you feel these are safe places to do business with?  I would deeply appreciate your recommendations.

TPS Reply: Great move with the self-directed IRA. I’m guessing you’ve realized a 40% return on gold and close to a 100% return on silver, good for you. We are now living in an age where all things real must be questioned regardless how large the entrusted institution or depository. Sterling Trust appears solid and I’ve not heard anything that leads me to question their reputation. The problem is many trusted advisers, agents and brokers are only as good as the institutions who hold the wealth, and I’m not just talking PMs. Look at MF Global as a perfect example.

I don’t give pinpoint financial advice but will tell all readers what I would do if in your shoes. I would liquidate, in March, and then take physical ownership of my metal (just as you mention). I would start the process now by making calls or emails asking for the exact procedure to take physical delivery so no one is surprised come March 2013.

I doubt a company like Sterling Trust will risk their reputation unless Delaware Depository is worthy as a PM depositor. I think it’s good for you to question but I also think you have little to worry about. Regardless, taking possession puts you one step closer to where all physical precious metal holders should be. Thanks for the great question and drop me an email in March so we can both celebrate your efforts.

 

QUESTION:  I just had a thought recently about joining one of the several Gold Prospecting clubs here in CO to go look for gold myself.  Do you have any experience with clubs such as this and what are your thoughts on this activity?

 Hope you are well – Happy Thanksgiving.

TPS Reply:  I’m great, and Happy Thanksgiving to you and all TPS readers. You must be reading my mind since I have toyed with the prospect of prospecting. I know little about such a venture but the thought of digging gold from the earth or stream is every man’s desire and every boy’s dream. I do receive calls from prospectors from time to time asking my opinion on future gold but most are extremely secretive on location (one actually asked to keep the conversation short since he was sure my phone is monitored by Big Gov’t), oh boy.

Prospecting gold is the ultimate definition of “untraceable” precious metal. States like Colorado (as you mention), Nevada, California, Wyoming and Montana have a deep history of gold prospecting and I have no doubt more gold is findable since the gold rush days. Streams change, rivers recourse, and the only constant is a growing value of silver and gold. Sounds like a great way to spend the weekend to me so good luck and happy prospecting.

 

QUESTION:  Shopping for Christmas and considering PM as gifts. Any ideas?

TPS Reply: Yes, and thanks for asking because I meant to bring this up. Silver bullion, rounds and bars make perfect Christmas gifts but I do have a suggestion or two. Don’t spend your cash on collector coins nicely boxed unless this is something a person really has asked for. Collector coins, proofs, carry a substantial premium over spot and to be honest I don’t think they are worth what most are paying.

Your local coin shop is a perfect place to find low premium silver and they can help with a coin protector to boot. Oh, this year could be different but last year we realized a significant drop in PMs at year’s end. Might be worth waiting a few weeks to see if PM prices do the same in 2012. Thanks for the question, and 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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WHEN GOLD JUMPS 5% PER DAY

BUYING GOLD/SILVER, GOLD & SILVER, SELLING GOLD/SILVER, SOCIAL UNREST   No comments yet

Last Friday was nothing short of the purest example of a typical day for future gold. When fear and uncertainty grip millions, maybe I should say billions, the results are a monetary flight to all things real.  We are living history and the world is soon to realize paper assets cannot compare to the real protection within silver and gold. How many days like last Friday will it take before the masses line up to pay 2 or 3 times today’s physical gold offering? Let last Friday go down as a sign of the times.

I wasn’t alive during the Great Depression to witness shuttered banks wipe out the wealth of good honest folks. I wasn’t around to watch folks in Germany push carts of currency necessary to buy hyper-inflated groceries during the days in Weimar Germany. But I will be around to witness the greatest wealth transfer in the history of mankind, this is all but certain.

It takes a loss of faith to push something like PM (precious metals) to the point of last Friday. I want you to think back making a mental list of who and how many predicated such a gold advancement like one witnessed last Friday. My list is empty. My point is we have entered a period of perpetual volatility on a massive level and anyone willing to make short-term predictions are unwise or arrogant.


The average person doesn’t realize how quickly wealth can transfer in our age of instant money movement.  Are we on the verge of such a wealth transfer into silver and gold, I think so? The great rush into 10-year treasuries paying under 1.5% could be such a sign of the times described today. Eventually, the result is a flight to PM but no one said the flight is direct.

The few still hanging onto recovery also anxiously wait for the next bailout. Who honestly believes a life of endless bailouts can continue?

Last Friday’s amazing, soon to be typical, gain attributes to a worse than expected jobs report and continued trouble in Europe. Yes, this news lit the fuse but the winds fanning the flames comes from a giant media base willing to sensationalize anything from collapse to celebrity addiction.

This is why I believe gold’s next bull run is an accumulation of multiple factors sensationalized into the greatest flight to safety in our lifetime. Think of it like a person shouting “fire” in a smoky room not to save others but to create a profitable scene of chaos. Nevertheless, the results are the same.

Like most weekends, this one was no different when an individual asked the one question I hear so often, “Why is gold the best choice right now?” See the question below. I’m willing to bet this same individual didn’t have gold on the radar until recently.

Can you imagine a week of multiple days of 5% or better gold gains and how the media will sensationalize gold as the hurry-and-jump-on-metal? You can bet that we’ll be right here to sort it out by making factual silver and gold observations.

QUESTIONS & COMMENTS:

Question: What makes precious metals the best choice considering the volatility around the world? Second question, silver or gold? (verbal question during consultation)

Answer: Thanks for the questions. Just to make sure we’re all on the same page here let me start by saying we are talking physical metal. Also, we recommend low premium bullion, rounds, bars, and junk over rare or numismatic coins.

As said in Why Silver & Gold Will Go Higher, precious metals are the safest store of wealth today. We have to realize the ill economic effects we’re feeling now started many years ago (actually decades ago). Up until recently we papered over the problems with borrowed money but this appears to no longer work.  A life of credit allowed a lifestyle that should have never existed in the first place.  A consumer based economy driven from credit allowed us to invest in assets that appeared solid or trustworthy but are not.

More of us realize with each passing day that traditional investment or savings sources are in huge trouble, this realization drives more in search of solid trustworthy assets. Nothing has a history like silver and gold, nothing ever will. Think of it like the perfect storm driving masses to the one cove of shelter but on a global scale.

As per your second question, I see little chance silver will not benefit from gold’s draft and I personally own both (80%/20% gold over silver). But I do recommend using silver as a segue into PM since it’s easy and cheap to buy. Hope this helps.

Question: I love reading TPS and enjoy your realistic view of precious metals (I bought gold many years ago). I’m thinking about taking advantage of cheap mortgages and discounted real estate by exchanging some metal for income property. I recall something you wrote last year mentioning this is wise under certain situations, this leads me to ask two questions. Should I offer gold as part of a down payment or completely “cash out” the properties?

Answer: Thanks for the nice words and reading TPS. I hear your questions and I’m making the same decisions myself. Like you, many of us bought gold for hundreds of dollars and now tempted to buy discounted real estate. I will devote an entire post to real estate this Wednesday and I have no doubt your questions and more answered. Thanks for asking and be sure to catch us on Wednesday.

News Worthy:

CBS DENVER: Embalmer Pleads Guilty to Stealing Gold Teeth from Dead

LONGMONT, Colo. (CBS4)- A man who was working as an embalmer says he stole from the dead in order to support his family. Adrian Kline, 43, of Brighton, pleaded guilty Thursday to removing gold crowns from the teeth of dead people and then selling them.

Kline received a deferred sentence, probation and community service after pleading guilty to two counts of providing false information. Police believe Kline may have recovered or extracted hundreds of teeth from the deceased or the deceased’s remains.

After a body is cremated, any metal — including dental work — is usually removed from the remains to be recycled. Kline claims he only took the gold crowns that were going to be thrown away at the funeral homes, but one funeral home manager in Brighton said Kline was fired after jewelry belonging to a deceased man went missing. Creepy, but readable right here.

News Worthy:

KSEE 24 NEWS: Increase in Thieves Snatching Gold Necklaces of Necks

Gold theft is on the rise in Fresno. Fresno Police Sgt. Mark Hudson explained, “They’re coming up behind the victim or somewhere beside them, running by, snatching the chains right off of their necks and then taking off that way.”

One of the most recent thefts happened at the Git N Go Market on Tulare and Peach. Gerald Kane was arrested after he was caught on surveillance video snatching the cashier’s necklace. This past month alone, there have been ten of these types of thefts in Southeast Fresno. Most of the victims have been women. Police suspect the increase in this crime is due to the increase in the price of gold. Read it here.

TPS adds, we expect to see more of this type of crime as metal prices rise and the economy continues to correct. The problem complicates when we reason states like California no longer have the revenue to incarcerate at the level necessary to clean trash like this off the street.

News Worthy:

AMMOLAND: Firearms Industry Numbers Reflect Record Pace of Gun Sales

NEWTOWN, Conn --(Ammoland.com)- Following the eleventh straight month-over-month increase in consumer firearms purchases, firearms and ammunition manufactures are reporting strong sales even with the down economy.

RUGER SALES UP 10.5 PERCENT IN FIRST QUARTER

Sturm, Ruger & Co. (NYSE:RGR) reported that first quarter sales increased 10.5 percent compared to the same period last year. Read more here.

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TWO FACES OF SILVER & GOLD

GOLD & REAL ESTATE, GOLD AND MONEY, GOLD/SILVER COINS, SURVIVAL & GOLD/SILVER   No comments yet

You know who you are, to be honest; I know who you are too. Well, I have it nailed down to one of two choices. There are only two faces of PM (precious metals), owners that is, and each one motivated to own silver and gold for opposite reasons. One side is more vocal, aggressive, and independent if you will. The remaining side is calculated, confident, even consuming. The one thing both sides have in common is the desire to amass as much silver and gold as possible. My view, I think both sides are very wise in the last regard.

Just to simplify let’s break each side into type one and type two. It makes sense to start with type one since I hear from this type most often.


Type One Silver & Gold Holder:

Last week’s post Rivers of Silver found favor among this type. In fact, tens of thousands read the post and we heard from readers around the world, thanks. Regardless of location, regardless of motivation, all comments sounded similar.

In case you missed Rivers of Silver, we peeked into silver’s future and into a time when one ounce silver is no longer affordable to the masses. An age of expensive silver justifies fractional coins, bars, and rounds for trade and affordability.

Let’s get back to type one PM holders. Better yet, let’s let them speak for themselves.

“If you don’t hold it, you don’t own it”…

or

“What the future holds?…well….get ready today for the way that you want to live tomorrow.”

or

“I will only release coins to jump start the barter system and for the black market because sooner or later…”

or

…”the answer is to use real money, money that is just as good in China as it is in the USA.”

and lastly

“I wish we didn’t have checks, much less plastic, I hate paper trails… : )”

Type One metal owners see the end of this debt debacle as nothing short of a full dollar collapse (nearly all currencies). The plan is to hold something of monetary value which will someday function as money. The plan is to trade silver coins for eggs, milk, bullets, or whatever necessary.

This type doesn’t necessarily view silver as a wealth transport but a tool to barter or trade. This type doesn’t trust government and is very unhappy with our loss of liberties. They view the world as distracted, off course, maybe unwilling to accept the inevitable economic collapse.

Some still own silver they bought for $3 or $4 or $5 per ounce. This type owns fractional silver fully understanding silver trade and barter. This type is not wealthy but they are prepared, prepared for whatever comes their way.

Type Two Silver & Gold Holder:

This type views trade or barter silver as background noise, maybe necessary or maybe not. They own silver and gold with no interest in how it has appreciated but more concerned with how it will appreciate. This type includes those interested in wealth preservation and wealth accumulation. They make comments like the following.

“…your view on storing gold in Zurich?”

or

“Junior gold mining stocks are….”

or

“Please discuss transferring an IRA into silver or gold…”

They view silver and gold as part of an overall wealth building plan. They see real estate as cycling downward while PM cycles opposite. They understand wealth cycles, recessions, corrections, depressions, and eventually recovery.

This type is less fearful and more calculating, economically speaking. They want what is best for their family but themselves too. They see opportunity over protectionism.  This type will continue to buy silver and gold only until they see the next under priced asset.

WHAT ABOUT YOU?

Here is what you must ask.  Are you trying to preserve wealth or planning how to feed your family when eggs cost $65 per dozen? Aren’t both necessary?

Both sides bring something beneficial to today’s PM table that I want to point out. Type one, they are unassuming and survivalist. We all can learn from their ability to prepare for an uncertain future. They are a growing minority.

Type two offers yet another aspect we can all learn from. Unlike type one; they understand a need for cash flow or fresh income. PM used for barter and trade work well but eventually consumed. Cash flow fills the coffers like a year around stream. Type two understands leapfrogging wealth and the need to transport by way of silver and gold.

Here is what both types should also understand. Silver and gold offer many benefits to those who willingly trade currency for real money, but nothing more beneficial than a hedge value or insurance value. I truly believe both metals offer protection against monetary miscues and fiscal irresponsibility.

At this point some are asking, “Ya, so what, what does it matter as long as I’m protected with PM?” You are correct, kind of. We often hear from PM newbies and all ask the same questions on what, when, and where to buy. Just as necessary is the need to pinpoint your PM objective.

Just like a percentage of wealth should rest in silver AND gold, so should a plan include preparedness (type one) and wealth preservation (type two).

The final question is one only you can answer. Where do you fall?

WE WANT TO HEAR FROM YOU. SEND YOUR COMMENTS AND QUESTIONS TO US RIGHT HERE. DON’T FORGET TO SIGN UP FOR OUR FREE ONLINE NEWSLETTER TOO. THANKS FOR FOLLOWING THE PROSPECTOR SITE.

COMMENTS & QUESTIONS:

COMMENT (Regarding Rivers of Silver post):

I think you’re right. Fractional silver could very well become a necessity before we know it. Which reminds me that China’s currency used to be silver. I wonder how much they hold now?

You answered very well the argument of why gold and silver will be important when the current system fails. I get a lot of people who say to me you can’t eat gold or silver and live, so it’s better to stack no perishables and learn to grow. But those people in the big cities, in the apartment complexes, they are not going to be able to grow enough to live on other than some herbs in a window.

PROSPECTOR REPLY:  Thanks for the comment, and observation. Correct, most no longer have option to farm, raise cattle or chickens. This has changed over the last 100 years as folks migrated to the comforts of big city life. This migration also created an assumptive nature as we find ourselves dependent on passive services.

Silver and gold offer a fresh level of independence. Like our big city migration, our wealth has migrated too. Unfortunately, this wealth migration has allowed those less than trustworthy entrusted with our savings and retirements. It is now estimated that 56% of America’s economy rests in five Wall Street banks, the same ones too big to fail (joint bank assets compared to a percentage of US economy).

A wealth migration into silver and gold could come quickly or not, we just have no way of knowing. It will arrive and when it does the premium for PM will rise beyond what most can imagine. Now might be a good time to plan for such a time.

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BEST WAY FOR NEW BUYERS TO OWN GOLD & SILVER?

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

Earlier this week I spoke with a New York Times best-selling author on the subject of buying gold.  This person is what I consider a leading economic authority but since I don’t have permission to name this person I won’t.  More important than who they are is what they said when we got to the juicy part of buying gold and silver.  This best-selling financial author told me many clients they consult with have no idea how to buy gold or silver.  Millionaires to middle class included.  It seems the only true source of real money is a mystery to the wealthy and the masses.  Today we’ll expose the best way to own gold & silver.


If you are one of the many newbies to owning precious metal my goal is to help simplify the buying process by answering a new question each post over the next few weeks. As you can see from my conversation earlier this week you are in good company all while learning very important steps to wealth preservation and prosperity.  There are several ways to own gold and as you progress it’s possible you might use each one somewhere down the road.  Are some ways more risky than others?  Absolutely, but like a Vegas gambler risk is not as risky when we’re playing on house money.  But starting out we need to be as sure-footed as possible saving risk for down the prosperity road.

One other thing before we dive in. I recommend, if new, following closely over the next few weeks before buying metal of any kind.  Sure there is risk of metal going up in dollars but actually far more risk in jumping the gun making a not so good precious metal investment.  I will start off in order of what I feel is the safest yet prosperous progression of owning gold or silver knowing we have plenty of time to discuss more advanced ownership methods down the road.

PHYSICAL GOLD/SILVER:

There is something liberating about owning gold and silver. Not sure if it’s the feeling of independence but knowing I own something that can’t be printed or debased is satisfying especially in today’s economic climate.  There are countless ways to own precious metal and I have no doubt most ways will prosper down the road.  The fact remains the best method right now is to own physical metal paying as close to spot as possible.  To keep it simple spot price is nothing more than the price of metal you see on the upper right of this page.  This price moves up and down as metal trades around the world just like stock shares do.  You will not find physical gold at this price unless someone is really looking for quick cash.

The extra price over spot is the premium part of physical gold or silver. For example, a one ounce silver coin (bullion) is currently selling around $34.50 each or $4.00 over spot.  We have to pay $4.00 over the spot price for one ounce of real physical silver.  The four dollars is the “premium” added to the spot price.  Little confusing but we’ll spend more time down the road with spot and premium but one thing to keep in mind is most gold buyers or sellers like myself rarely pay attention to spot pricing since this isn’t what we pay for physical metal.  PLEASE NOTE:  The premiums are rising especially for metal in inventory (no long wait by taking possession quickly) and will continue to do so as long as demand for physical metal grows.

The bullion coin just below this sentence is an American Silver Eagle which consists of one ounce of silver.  This is a very popular silver investment and sells for around $34.50 at this time.  It also is a legal tender coin which means you could take it to your local Seven-Eleven store and spend like any other coin.  The reason we don’t is because the value in the bullion coin is within the silver content not the dollar number minted on it.

The above coin can be bought in gold as well but to keep things simple today let’s stick with silver. The next option to own physical silver, or gold, is rounds. Most rounds are one ounce too but are privately minted so they aren’t legal tender coins like the Silver Eagle above.  Nevertheless they usually hold one ounce of silver so they are a great way to invest in precious metal.  Below is a picture of a typical “round” of silver.  This coin will cost a buyer (varies) around $33.00 or a $1.50 less than the Silver Eagle.  Both coins have the same amount of silver.

Another great way to buy precious metal is in the form of bars. These bars can vary in weight and don’t look like a coin or round.  The bars are simply a hunk of precious metal hopefully with a minted stamp showing purity and weight.  Investing in larger bars will save money but will be harder to sell in most cases.  If your goal is to simply hold silver or gold as a long-term savings big bars could be what you’re looking for.  Below is a picture of a typical 10 oz silver bar.

FOR THE ADVANCED GOLD/SILVER OWNER:

Several things in the news lately pointing yet another arrow toward the benefits of owning precious metal. Geopolitical issues continue to apply pressure as governments across Europe solve debt problems with more spending.  Not a day goes by without the word “default” coming up and an end to the euro currency.  No one knows what will happen as austerity and greed battle it out but one thing for sure the euro zone nations are learning how to live off less.

Many Americans are asking if the same conflict is possible here and it certainly is worth watching. This administration is full throttle with quantitative easing but they are getting very good at rewording it.  New words appear daily like “investing” or “supporting” but in the end it’s about throwing more printed money at bad.  Gold and silver have stumbled along going slightly up one day and then down the other.  Part of the reason has to be a renewed confidence in the dollar but one has to wonder if it’s simply the least worst right know?

The stabilization of gold and silver is holding some along sidelines but even with that strong sales of physical metal are common. I can’t help but wonder what event will open precious metal gates in the near future.  No doubt with all the uncertainty and unrest something big will send metal just beyond what many folks can afford.

If you would have told me several months ago that a monster box of silver could be had for less than $17k I would have laughed.  Hopefully new buyers are seeing this stabilization as a discount and taking advantage of prices.  Who knows but my bet is higher prices soon.

Thanks for reading www.theprospectorsite and if you have friends, relatives, heck enemies that could benefit please send over our link.

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IS PHYSICAL GOLD WORTH IT?

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

There are at least two gold vending machines in the US and my recent trip found us standing in front of one. I have to admit it’s kind of cool looking at a machine that spits out gold like it was a pack of gum. Two things I quickly noticed was one, the machine doesn’t accept credit cards and two, the price for a one ounce American Eagle carried a hefty premium. But it was something my teenage son said that really leads me to ask is physical gold worth it?


The day of my visit found the American Eagle price slightly more than 5% over what an online broker would sell it. I must have muttered something under my breath about the extra cost when my son reminded me of a good point. Yes the price is definitely more but possession of gold is immediate. No waiting for inventory, no excuses, no delay, nothing but 100% immediate ownership.

Most of our readers at The Prospector Site realize we are not big on paper gold. The thought of several other folks owning the same right to physical gold as me doesn’t sit well. But the truth remains paper gold can be bought for around $100 less than physical gold (one ounce gold bullion). Compared to a vending machine, paper gold is a couple hundred less than physical metal.

I truly believe our vending machine mark up is just a small example of future physical gold at least as it relates to rising premiums. As demand grows physical gold holders will realize newcomers will pay whatever it takes to actually own gold coins, bars, and rounds. Couple this with a decline in folks willing to sell and a perfect storm for inflated premiums makes sense. Price will be a distant second to security as premiums grow and gold prices top new highs. This buying frenzy will make the 1980 run look small and my guess is it will last for some time.

What sounds like a golden opportunity to me is a vending style machine, like the one pictured, but selling silver bullion and rounds. The benefit of selling silver is a larger market compared to gold for no other reason than affordability.  Something to think about for those interested in profiting from this silver bull run beyond simple ownership of precious metal.

I strongly urge readers to take a close look at physical metal soon. The economic news of today is concerning and no one knows how long our dollar will hold what little value it still has. An insurance in physical metal can’t hurt and in all likelihood will be the best source to preserve wealth at least over the next few years.

NEWS WORTHY:

FINANCIALLY FIT:  Most & Least Indebted States

Residents of California and Hawaii are the most indebted individuals in America, but they’re also among a group that are making the most progress in paying down the amount they owe, according to a MoneyWatch analysis of state-by-state debt statistics.

On the other hand, in states where housing prices have suffered with double-digit declines are also where consumers are making the biggest dent in what they owe.  Read it here.

NEWS WORTHY:

BLOOMBERG:  BofA Donates Then Demolishes Houses to Cut Foreclosures

Bank of America Corp. (BAC), faced with a glut of foreclosed and abandoned houses it can’t sell, has a new tool to get rid of the most decrepit ones: a bulldozer.

“There is way too much supply,” said Gus Frangos, president of the Cleveland-based Cuyahoga County Land Reutilization Corp., which works with lenders, government officials and homeowners to salvage vacant homes. “The best thing we can do to stabilize the market is to get the garbage off.”

The lender will pay as much as $7,500 for demolition or $3,500 in areas eligible to receive funds through the federal Neighborhood Stabilization Program. Uses for the land include development, open space and urban farming, according to the statement. Simon declined to say how many foreclosed properties Bank of America holds.  Read it here.

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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.

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BUYING GOLD AND SILVER WITH A $500 BUDGET

GOLD & SILVER, GOLD/SILVER COINS   1 comment

This post started with a question a reader asked wondering if $500 was enough to start trading dollars for gold or silver.  As with most questions, if one person is asking more are thinking it so here we go.  Off the bat we should realize it’s not the amount of money but the way it’s spent on gold or silver.  Many of us picture the typical precious metal investor as this wealthy investor buying huge amounts of gold and silver but this isn’t the case.   The average reader of The Prospector Site is one of many Middle Americans no longer buying “everything is fine so just keep borrowing money and voting for me” crowd.  Nurses, teachers, truck drivers, pastors, are all trading dying dollars for gold and silver most a few hundred dollars at a time.

THE $500 START:

If you are asking the same $500 question as the reader mentioned above congrats on making the first step to financial independence.  Every physical gold or silver holder started with a small purchase with only a few exceptions, I certainly started out small.  Too many Middle Class and down fail to realize the true magnitude of today’s economic situation.  I will keep this post simple by showing several $500 options not recommending one over the other.  The Prospector Site doesn’t offer pinpoint recommendations but simple provides an unbiased information source that assists you in all aspects of gold and silver.  Here are the options I use when limited to under $500.

OPTION ONE:

Physical silver is in a holding pattern because of the great spike/drop early this year.  When silver corrected this scared many new buyers away but added fuel to the fire of investors that understood the power of future silver values.  I continue to buy new silver every chance I get without hesitation. If you want to keep your $500 dollar option simple follow the plan below.

  1. Twelve one ounce American Silver Eagles. ($500.00)

OPTION TWO:

I personally like option two because it divides your purchase with both gold and silver.  Many don’t realize new gold can be bought by the 1/10 ounce making it an easy investment for those on a tight budget.  The only downside is an additional premium for the fractional coin of gold.  Here is an option.

  1. One 1/10 ounce Gold American Eagle coin. ($178.00)
  2. Seven one ounce Silver American Eagle coins. ( $283.00)
  3. One ounce silver round of your choice.   ( $38.00)

OPTION THREE:

Option three mixes a little secret most metal investors know nothing about.  Little nontraditional but well worth it.

  1. One 1/10 ounce Gold American Eagle coin. ($178.00)
  2. Four one ounce Silver American Eagle coins. ($162.00)
  3. 3200 nickels.  ($160.00) *

*  Nickel coins now have around $.08 value of copper and nickel per coin.  Great secret for metal investors.

WHERE TO BUY:

One of my new favorite websites is Gold Shark.  Gold Shark takes all the hard work out of buying precious metals for both new and old investors.  Here is how it works.  Simple register, it’s free, then fill in the number and coin type and Gold Shark will compare something like six reputable precious metal brokers for you, that simple.

NEWS WORTHY:

MARKET WATCH:  U.S. economy’s rough patch: Here to stay?

The industry continues to suffer through its worst slump in modern times amid a wave of foreclosures, a high jobless rate and greater difficulty for home buyers to obtain loans. Economists say it could take several years for the housing market to recover.

The Federal Reserve is expected to acknowledge this week that the U.S. economy has stumbled once again, though Chairman Ben Bernanke insists it will be a short-lived condition.  Read it here.

NEWS WORTHY:

BEFORE IT’S NEWS:  The New California Gold Rush

They were no doubt inspired by the chance discovery of an 8.7 ounce nugget in May near Bakersfield, worth an impressive $10,000. Local folklore says that the Sierra’s have given up only 20% of their gold, and the remaining 80% is still up there awaiting discovery. Out of work construction workers are taking their heavy equipment up to the mountains and using it to reopen mines that have been abandoned since the 19th century.  Read it here.

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