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PRECIOUS METAL: PROTECTION OR PROFIT?

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

September 2008 was not a good month for most DJIA investors. It took less than seven September hours to drain $1.2 trillion from shareholders as the DOW index experienced a meltdown the likes Charles Dow never considered possible. Today’s gold decline reminds me of September 08′s DJIA in many ways. The same fear, same economic darkness, the same “will values ever come back?“, too.

I have no idea what prompts you to read a blog like TPS (The Prospector Site). Some read for assurance, some search for protection, and some want nothing more than to leverage gold/silver for profit. The latter are greatly disappointed as of summer 2013; my fear is this disappointment has a short shelf life.

Brave DOW investors who beat back the uncertainty of 2008 were well rewarded. These vivacious souls understood a 7617 point DOW drop over a few weeks could equal huge returns for those more focused on profit than protection.

After all, it’s always the few who stand strong that profit the most while all others run for the exits.

I’m no DOW fan, but it’s undeniable that investors have profited greatly since the days of 2008 volatility. Is it possible these same brave investors realized that stock holdings within profitable companies should not have declined in such a waterfall fashion, as they did fall 2008? Smart stock investors realized that such a bargain was a closing window of discounted opportunity.

Today’s physical silver or gold opportunity reminds me of the discounted blue-chip stock offerings of late 2008. I won’t speculate when precious metal prices will rebound but I can guarantee one thing. An ounce of physical silver, or gold, is worth far more today than what a person can buy it for, just like a 2008 blue chip stock.

Profit or protection:

If you’re protection minded, PM speaking, then the latest PM price drop means little…… maybe even nothing. Your plan is all about long-term fiscal prudence all while realizing a currency built on overpopulation (printing) cannot sustain value or buying power forever. A temporary waterfall decline within your PM plan – although disheartening – means little when compared to your plan of preservation, self-reliance, and independence.

The PM protectionist views profitability as a byproduct of wealth preservation. They also view the ability to transport wealth as an avenue to rebuild after a currency and government prove themselves as less permanent than what 99% of our neighbors would like to believe. The fact is history has not ruled in favor of print friendly economies or fiat currencies, never.

July 2013 is extremely unique for those who still trust physical PM. Generally I write from a precious metal long-term point of view, you probably already know this. But today’s PM opportunity is on the verge of presenting a shorter term position for profitability. If this is of interest……. please read on.

From this point forward I want to be perfectly clear. This writing creation you’re reading is presented, and should be interpreted, as a form of short-term speculation. Speculation is nothing more than a tally of risk compared to monetary reward and only played by those who can truly afford it.

We are soon to hit a PM bottom, this I’m sure of. I don’t know when or how low but the price of physical silver or gold will soon change her recent course. When it does the potential for quick profit is very real, but still not for everyone. Make sure you don’t confuse long-term PM prudence with the risks of speculation.

QUESTION: I hate to ask but must, have we reached a bottom for gold? Oil prices are zooming but precious metal prices are still in decline. Care to speculate?

TPS Reply:  Thanks for asking, and reading TPS. “No”, my opinion is we’re not out of this temporary fog of PM volatility and gold prices could fall accordingly. It’s impossible to predict how many weeks or months this downtrend will last. But it will end and when it does paper investors will drum a rhythm of precious metal opportunity, and the bulls will run again. We’ve seen this many times before and this time will be no different.

As mentioned over the last couple of posts; I’m not buying silver or gold at this point. I’m storing the cash just like I would PM waiting for the PM market to stabilize. Why buy now when the same dollars will buy more ounces, most likely, in the very near future? I can do this because I’m already PM protected. What about you?

Now, as for your crude question, oil that is. The situation in Egypt is stirring oil uncertainty and we can only speculate how this volatility will translate into pump prices. My guess, this is only a sign of the times and I’m personally not expecting cheaper pump prices anytime soon. Will rising crude prices drag PM prices up, very possible but not worth betting the farm, IMO?

Some economists believe a rising dollar index has more to do with the current price of precious metal far over anything else. I won’t disagree, but believe the PM decline we’ve watched since April of 2013 has as much to do with a paper PM sell-off dragging down physical values too. Regardless, both forces are only temporarily influential over the long term.

 

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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WHEN WILL GOLD GO HIGHER?

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

Agitation; this is the only word I can think of that accurately describes how the gold faithful feel today. I, honestly, have no precious metal worry. My lack of reservation…… while others try to find faith in falling gold prices, comes from a confidence that gold and silver will go higher, multiple times higher. It all has to do with a chosen course of action or, better put, CONFIDENCE. Not as much a confidence in gold but a lack of confidence in dollars. Please let me take the next few hundred words to thoroughly explain.

Thanks for joining TPS (The Prospector Site) today. I really appreciate your willingness to at least test nontraditional waters thus providing a true opportunity to preserve wealth in an age of economic uncertainty. If this is your first visit let me say I am not a pessimist by any stretch. My goal is to provide a sound money education for the few willing to no longer accept monetary misunderstanding.

It is also worth mentioning I’m not a gold bug. I own silver and gold (and have for over ten years) for one reason. They are the only source of money unprintable in a fiat currency age. Let me try that one another way. Gold and silver are money and everything else folks mistakenly call money are currency. Currency is a promise, a promise based on something without true intrinsic value.

Intrinsic value confuses some folks when its meaning is quite simple. The intrinsic value of a car is the grand total of all the components & effort to build/sell the vehicle. The intrinsic value of your home is the total of concrete, land, metal, wood and skill it takes to rebuild it (Yes, I realize this value can drop below intrinsic level but such an occurrence is very rare).

The dollars in your pocket have no intrinsic value (maybe $.06 worth of paper, ink, and effort). Gold and silver have true intrinsic value, their value is the cost and effort to extract, mint, and hopefully end up in your hands.

WHY?

Why do we trust something of no real intrinsic value with a potential of infinite creation? Gold will not rise to my point of prediction until the world truly understands the value of US dollars. To better illustrated this PM (precious metal) to dollar comparison think of an antique scale with brass trays on each end; now picture dollars on one side and PMs on the other. Gold will not rise until the dollar’s mass (confidence) declines.

If this is the only thing holding gold from $5000 or $10,000 or $75,000 an ounce we must ask what, why, and when. But to answer such questions we must first answer why so many still trust the dollar – and why so few don’t. By the way, at anytime feel free to substitute the word “silver” for gold; both are real money.

If you happen to be reading this at your local coffee hangout I want you to look around. You are the 1% if you’re a real money believer. The others comfortably sipping through their day have no clue of the messy divorce that occurred when dollars vs. gold split the sheets so many years ago. Honestly, most sharing your space don’t care as long as life resembles “normalcy”.

Folks, gold and silver’s relevance hinges here, please read closely. The US Dollar and gold were once the same. At any time a dollar holder could equally exchange paper for real intrinsic gold OF EQUAL VALUE (please take another look at the picture above. Notice what’s written clearly at the bottom of the bill, “In Gold Coin Payable to the Bearer On Demand”). At such a time, our dollars were money. Today’s dollars no longer mention payable in gold because they’re not worth anything of value.

Why so many still trust dollars is simple. Those trusting do so because they continue to view dollars as money, a secure source of wealth storage, and the best means to exchange effort (work) for money. The facts prove otherwise.

This gold and dollar disconnect, or divorce, is why economies around the world are under great economic duress. This is why folks in Europe have taken to the streets under protest, this is why currencies are fighting to devalue themselves, and this is why gold and silver will rise beyond the realm of what most view as possible.

Something detrimental happened before gold and dollars divorced in the year of 1971. Most major currencies connected (pegged) to the US dollar in hopes of stabilizing the world’s economy (Bretton Woods System). The dollar made for a perfect choice since it and gold were one and the same. This is why you commonly hear the dollar referenced as the world’s reserve currency, simple enough.

Now, here is the problem. The Gold vs. Dollar divorce set the dollar adrift no longer hinged to anything of real value. This is why the dollar went from an equal value of $35 per gold ounce to now just under $1600 per gold ounce. Most individuals out earning a living today fail to see the correlation of rising gold and decline dollars. They don’t think much of it.

This misunderstanding between gold and dollars is near breaking point, not just at home but across the globe. The world’s oil trades in dollars and has since the 1970′s (petrodollars), but only one country has the power to print more dollars as they see fit, no longer limited to gold or any other monetary standard . Is it any wonder other nations without this ability to print the world’s reserve currency (dollars) are conflicted?

Our society’s ignorance, or monetary misunderstanding, hides behind a printing press and a Federal Reserve unafraid to use it.

The power of printing dollars coordinately disguises real money (gold & silver) from fake pieces of paper. Education will eventually expose such monetary trickery. Today’s gold fluctuations mean absolutely nothing in the overall picture; this is why I pay no attention to short-term PM rises or declines.

The rising costs of food and fuel will be the breaking point here in the United States. The debasement of the dollar will be the breaking point for the rest of the world. At such time, silver & gold will go higher.

QUESTION:  Thanks DC for The Prospector Site. What is my first step?

TPS Reply:  Congrats, you’ve taken your first step. Education is the key to understanding PM’s relevance in today’s monetary age. Without education silver and gold are just another one of thousands of investment options. I don’t view silver and gold as investments. I view them as a store of wealth in a worldwide currency soon to experience a demand far exceeding potential output.

Your second step is actually the question….. so let’s start there. Your local bank doesn’t sell gold or silver (not the metal I recommend), this means you will have to do a little digging to find someone trustworthy AND willing to sell physical silver or gold. As of the last 9 -12 months this is the most common question I receive here at TPS.

The art to buying physical metal should be shrouded in discretion. The less who know you own PMs the easier it is to safely store. My advice is to make a trip to your local coin shop and ask to hold an American Eagle or Canadian Maple ounce of silver. Notice how it’s heavy, tangible, and expensive compared to the dollar number written on it. This is what real wealth feels like. It may feel odd in a day of fiat paper currency but trust me, this is real wealth.

Ask your local coin shop representative the spot silver price. Then ask how much more the price for real silver… like the one in your hand. The difference is the price between paper silver and physical silver AT A MOMENT IN TIME. This price could decline before driving away, or it could appreciate too. Neither scenario has anything to do with silver’s long-term justification. Now, the next steps I recommend is to find someplace safe to store and then continue this buying pattern each month, regardless the price.

Thanks for the great question.

 

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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IS IT TIME TO TRADE GOLD FOR REAL ESTATE?

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

A Prospector reader recently asked if now is the right time to trade gold for a home or income producing property. What I find ironic is that some, maybe most, cash used to buy silver or gold came from real estate income of some kind. This only proves my point how assets cycle and those most prudent leap from an asset peaking to one ready to incline. I will say this from the start, regardless if you trade some or all metal for housing the bull run for gold is anything but over.


Depending on where you live the price of residential and commercial property is in all probability looking affordable. Just like we ask if gold will go higher, we must ask if real estate will further decline before deciding if now is a good trade from gold. Some of you are influenced by cheap mortgage rates and this is completely understandable.

The question worthy of asking, are cheap mortgage rates reason enough to buy an asset still declining in value? Is cash flow alone reason to jump from an asset poised to rise into an asset destined to decline? Some of you view real estate as a bargain but this is only when compared to an artificial high water mark that should have never existed.

Overall, real estate has a way to go before reaching bottom, the problem is sometimes the bottom is valueless!

Let’s throw out some numbers just to keep things interesting. What if today you buy a nice rental unit paying $120k that nets $800 per month (8% +-). The currency to buy the unit comes from selling 70 bullion ounces of gold (not factoring capital gains just to keep it simple). The result of such an investment will net an annual income of around $10k depending on vacancies, etc.

The result is 70 ounces of gold gone and an income producing property fully owned, easy enough.  The value of the home is now in the hands of a tenant, let me explain. Income producing property finds value according to net income over say replacement value or comps. Some will argue this but they are wrong since we have now entered an era where real estate value is always in question. Each bank owned property further devalues the surrounding homes in the same area (distressed or not).

Okay, let’s agree the value of your new rental hinges on the new tenant who recently lost their home to short-sale or foreclosure. The only reason a hot rental market exists is because of a historic failure in home ownership.

At this point you traded hidden wealth (no wealth is more hidden than physical PM) for exposed wealth, all for passive income not possible with silver or gold. Shouldn’t we at least discuss the dangers of exposing wealth in an age of fix-all taxation and regulation? Overreaching government doesn’t die easily and your 3/2 property sits ripe for bureaucratic picking.  Please expect boatloads of fees, taxes and regulations to find landlord coffers someday soon.

I’m not saying fees and taxes won’t find silver and gold but remember increasing wealth from PMs are typically more “hidden” compared to an asset with a roof line. Also, international storage makes this asset less likely to find domestic taxation near the level of domestic real estate.

Regardless, let’s move on with your income producing unit providing $800 per month income. We all agree the value of your new asset hinges on income ability over standalone value (like typical owner occupied units).  This means two things can increase your rental’s value. The first is a rise in rent and second a rise in property values. Let’s look at a rise in rents first.

Jobs are the determining factor of realized rental income. If you own income property in a strong job market then the result is higher rent, the opposite is true as well. The trend here in the US is a declining job market with reduced incomes for those still working.

More than 50% of all college graduates under the age of 25 unemployed or underemployed. Shadowstats claims actual overall unemployment is over 20%.

It is safe to say you will not raise rates anytime soon, at least not enough to keep up with real inflation.

This means lucky landlords will find tenants with steady jobs but content to keep units occupied and less concerned with raising rates. Now, here is the problem for those not three steps ahead of my slow typing skills. A flat rate of passive income means trouble when groceries, heating fuel, electricity, and other necessities all rise with inflation.

Not one realistic person on this earth will argue against inflation rising. This means your 8% return lessons each year in real terms. My guess is $800 in today’s terms will buy less than $400 someday soon. This also means the newly inflated cost to own your property rises too (maintenance, property taxes, etc.)

The second option to improve “worth” of our new rental unit involves making improvements to the unit; this requires more currency and effort from a landlord. We should argue that a new wave of easy credit could also increase the rental unit’s value.  But how many of you feel the age of easy credit is coming back anytime soon? It’s safe to say your new rental unit will not find increased value derived from a rise in property appreciation anytime soon.

Well, where does this leave us? It leaves us with an asset far more likely to provide declining income (in real terms) and far less overall standing value. Does this mean we traded gold for something paying less than expected in cash flow and worth far less than perceived? Yes!

REAL ESTATE QUESTIONS:

Question: What if we take gold out of the equation? What if we trade dollars in savings for income producing property?

TPS Reply: Great question. Trading dollars for income property makes more sense than trading gold. Dollars are (and will continue) in decline so moving dollars to a real asset makes sense. This doesn’t change that most property is declining and trending to continue. My recommendation is to find a knowledgeable Realtor in your area who understands the importance of buying distressed property deeply discounted.

(NOTE: Part of the services offered at TPS include phone consultations offering PM owners the peace of mind coming from an informed perspective. You can find more information here if interested.)

Question: Do you see any value in trading gold for real estate?

TPS Reply: Yes, but only if an opportunity surfaces allowing a gold holder to buy a greatly discounted home and then turning the home for a quick profit. This type of “bouncing” can provide quick income but does carry obvious risk. It may be suited for those of us sitting on old gold or using no more than 1/3 of our gold investment.

I’m not convinced now is the best time to trade gold (even $300 gold) for rental income producing property, at least in most cases.

Question: Do you see any justifiable reason to exchange gold for income producing property?

TPS Reply: I recall a reader last year very caught up in when to sell or how to know what to buy (after gold/silver) and if I remember correctly this reader appeared elderly, at least by my perception. Anyway, my advice then, and now, is why I suggested we must also remember to live life. This means serving others, this means making the trip to see family living states away, this means fulfilling a calling regardless of today’s economic challenges.

It is important to remember the goal here is not to crawl in a hole and hide. Sometimes economic volatility paralyzes us from living life, if this “living” requires spending some gold/silver then why not?

SEND OVER YOUR COMMENTS AND QUESTIONS HERE. ALSO, DON’T MISS A POST FROM TPS BY REGISTERING FOR OUR ONLINE NEWSLETTER.

News Worthy:

EXAMINER.com — Market Rumor: Pimco and JPMorgan halt Vacations to Prepare for Economic Crash

On June 1, market rumors were coming out of a hedge fund luncheon stating that Pimco, JP Morgan, and other financial companies were cancelling summer vacations for employees so they could prepare for a major ‘Lehman type’ economic crash projected for the coming months.  These rumors came on a day when the markets nearly came to capitulation, with the DOW falling more than 274 points, and gold soaring over $63 as traders across the board fled stocks and moved into safer investments. Read it here.

News Worthy:

REUTERS: Gold Rally Triggers Scrap Sales in India

Gloomy equity markets and high interest rates have forced investors in India to cash out of gold, said Prithviraj Kothari, president of the Bombay Bullion Association.

“There is no money available and people are selling their old gold,” Kothari said, adding that India could see scrap sales rise to 400 tonnes this year, more than triple last year’s 130 tonnes.

“I last sold gold about a year ago and I am back again as prices are high,” said a woman selling 100 grams of 20-year-old jewellery worth 300,000 rupees to a scrap dealer in Mumbai’s famed Zaveri Bazaar, who declined to be named. Read more here.

News Worthy:

THE SOVEREIGN INVESTOR:  How to Get Ready for the Next Leg of the Gold Rally

The long-term bull market in gold is now 11 years old – and, in spite of recent market stagnation, the latest phase of the rally appears to have just started. My advice is simple: Prepare yourself. It still has a long way to go.

In the wake of very disappointing news on the U.S. labor market, the gold price today soared above $1,600 an ounce.

The long-term bull-run in this yellow precious metal has been slow and steady. After Gordon Brown finished selling 60% of the U.K.’s gold reserves in 2002 at an average price of $275 an ounce, the market has never looked back. Read more here.

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PERCEPTION OF RECOVERY

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

“THE MOST DANGEROUS UNTRUTHS ARE TRUTHS MODERATELY DISTORTED” GEORG CHRISTOPH LICHTENBERG

Wouldn’t it be nice to believe in things we know not true?  Who wouldn’t want to believe in a Santa flying around in a sled dumping off awesome gifts while we sleep?  As adults, when we believe in something too much we sometimes find ourselves willing to overlook counter support or even realistic proof otherwise.  As a gold advocate I often challenge myself to read articles counter to gold rising.  To only study supporting information is nothing more than following masses and the gold masses usually sell gold (sometimes their opinions are bias if not scripted).  The United States is slow to find physical gold and I can only attribute this to a false perception of recovery.


Last night (2/12/2012) 60 Minutes ran a segment on India’s physical gold thirst that every gold holder will find interesting. Physical gold in the form of jewelry is not only ceremonial it’s their savings.  Jewelers find it easy to sell gold jewelry because each buyer views it as a savings account one can wear.  Our Indian neighbors have a solid perception of gold’s power as real wealth, both in jewelry and bullion. But Americans can’t see the need for something so idle like physical gold or silver.  We thirst for the good old days of new cars, houses, and vacations and to be honest gold doesn’t fit well into our consumer lifestyle.  We hear recovery because we want to see recovery, but this doesn’t change improvement supported by never-ending debt.

Most Americans want to perceive recovery because of a desire to return to “normal” debt based spending. From now until November we will continue to look at “recovery” closely.  Those seeking re-election are quick to offer such a perception but even a fool knows this as risky, at best, if not unlikely.  No doubt recovery will happen but what we have entered is a correction phase that will exhale plenty of air before improving.  The price for believing in a perception over reality will play costly for most Americans and no gold justification on my part can win over what you want to hear as recovery.  Gold is something many turn to as last resort or ultimate protection when all else seems risky or ambiguous. 

Few of us are willing to ask how much a perception of recovery will cost our children because another trillion is impossible to comprehend. Since comprehending is nearly impossible why not believe what we perceive as those in control, right?  If we can’t trust elected officials and masterminds in the Federal Reserve than whom can we trust?  Not many will stop and question a fiat (currency) plan that has never worked or a worldwide scenario with as much debt.  I’m not sure how high gold and silver will climb when this false perception shows itself as, well, false but I’ll bet it will be far over today’s prices.  I doubt $38 silver or $1810 gold (physical) will be an option but time will tell soon enough.

This could sound odd but the same false perception of recovery will find its way into a false security within gold. As a founder of this site I have little doubt folks will eventually find gold but few will understand its value as they should.  Yes, gold will find the same ill-conceived perception someday pushing PM far beyond true value.  I’m sure many years from now I’ll write not about a false perception of recovery but a false perception of gold & silver, kind of ironic wouldn’t you say?

WELL, THIS IS MY TAKE SO TELL US YOURS.  YOU TOO CAN REACH US 24/7 RIGHT HERE.

YOUR COMMENTS & QUESTIONS:

COMMENT (Regarding “Creating Your Own Gold Standard”): This article caught my attention. I have been a coin and bullion collector since 2000.  I have often said that I am my own IMF (Individual Monetary Fund). I do not save Federal Debt Notes, I exchange them for something of value, bullion, stored food, firearms, ammunition, gasoline, etc. Great Web-Site keep up the good work!

PROSPECTOR REPLY: Thanks for the comment and congrats on such vision back in the year 2000.  Love the idea of your own IMF because you, like other readers, understand the importance to distance from the illusion of wealth and false prosperity.  Others are slow to awaken but will soon and when they do the value of things necessary and real will remain while debt supported assets decline.  Those prudent enough to physically own now will inherit the wealth of tomorrow (nothing new here just history repeating).  Your comment plays into today’s post perfectly because many are still willing to believe buying from our own child’s lemonade stand is somehow profitable for our kid even though we borrowed the currency to do so.  Good for you and thanks for the comment.


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GOLD FICTION & FAKE PROMISES!

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

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


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

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

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

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

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

WARNING: Next Gold & Silver Trend!

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

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

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


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SELL GOLD IMMEDIATELY; ALL PROBLEMS SOLVED

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

So gold, and silver, got ahead of themselves and now correction has new buyers asking, “What the heck did I get myself into?”  Some of you, if being honest that is, are thinking about cutting losses and selling short even as you read this.  So does all this mean sell, sell immediately?  Before anyone does anything lets take a breath and a deeper look at what’s happening.


I’ll be honest by saying I hate this dip in particular. Not because of the dollar sign next to my gold or silver but the time of year.  As a writer, as a consultant, I like to use calendar year as an example of year over year precious metal gain.  This year’s gold/silver value will soon move into history as a not so great year at least compared to last year. So let’s move past this timing thing and talk more about what you are doing.

IS FAITH RESTORED?

Let me ask each reader a question. Do you feel (wherever you live and work) your local economy and overall wellness of your community are better?  Does your local news speak of well-funded retirement programs for public workers both working and retired?  Are schools in your area excited about new expansion, improvements, and smaller class sizes?  Are your classifieds filled with Help Wanted ads or does your paper overflow with foreclosure notices? 

I won’t insult those new to gold or silver by saying now is a great time to buy or add to your stash. I realize concern overrides timing 10 to 1.  Someone doubting a past metal purchase (because of major dip) is not thinking about adding more metal, not now at least.  Not sure why, but this is how human nature works the majority of time. Down deep most holding gold & silver think of riches, wealth, and prosperity. Few truly understand both metals as a hedge or insurance for everything wrong or manipulated.  Maybe the answer is to not worry but understand precious metal as it’s intended?

WHAT IF GOLD & SILVER CONTINUE TO DROP?

What if both metals continue to dip even lower than imagined? Is it possible this was the precious metal bubble the mainstream media has dreamed of for so long?  You know what really is amazing?  While we worry, doubt, and fret, over this dip the Chinese and other prudent buyers are gobbling metal up like it was summertime ice cream.  Americans, Europeans, etc, have become so spoiled from two decades of asset bubbles we can no longer wrap our minds around normal dips and peaks of a real asset like metal.

Here is another amazing situation.  As I write this post, our president (Obama) called home, from vacation, and the conversation went something like this. “Aloha from the islands of Hawaii.  Just wanted to touch base with Washington and say all is well here.  Oh, by the way, please deposit $1.2 trillion from our overdraft account so I can pay social security and keep the doors of Washington open.”

Do you want to hear something just as crazy? Governments around the world are doing the exact same thing.  The only thing keeping the facade vertical is debt, after debt, after more debt.  Folks one day soon the wheels will fall off this thing we call a recovery and a dip or spike will be the last of your worries.  But if you honestly feel all existing problems are soon solved then sell your gold immediately. I’ll continue to stick to the long-term plan by paying little attention to dips, spikes, and everything in between.

Please tell me what you think.  Are you halfway to your local pawn shop now and ready to sell?  Are you planning to hold metal regardless how low gold/silver dip?  Tell us what you’re thinking, and why, right here.  Thanks for spending 8.5 minutes with us today.


YOUR VIEWS:

Your Comments (regarding using home’s equity to buy gold)

I came here after doing numerous searches on google trying to find ANYONE who is betting on a decline in gold and I couldnt find a single article or blog post about shorting gold. And lollololol you actually think it might be a good idea for some people to borrow money to buy gold. Its NOT OK FOR ANYONE except professional traders to do this. Its ridiculous to even post this. Gold is in a decade long bubble run that looks ready to pop. PLEASE dont buy gold or silver or any other worthless metal that we dont use to make anything. The media is feeding you BS that you need gold to hedge against the end of the world or hyperinflation or whatever. Its all BS. Sell SELL SEELLL please!!! I know you wont listen but you should at least post this comment for others to read. Im only trying to help. Get out while you still can. Once the price starts dropping nobody will want to hold it. As you said it doesnt pay a dividend, doesnt have cashflow and never will.

THE PROSPECTOR SITE REPLY:  Wow, just to make sure I understand, you do not recommend anyone buy gold or silver?  Thanks for reading and thanks for the comment.  I do love your passion but disagree with your entire comment.  First, the article pointed out several options but never advised anyone borrow to buy gold.  The idea here is to generate ideas that will aid people to take control of their own future.

Second issue I have with your comment relates to value.  The useless metals you describe are not as useless as you think.  Silver is the #2 most used commodity (second only to oil).  Gold is extremely rare, durable, and divisible, which makes it the oldest source of real money.  The third issue is the need to sell, sell, sell!!  If we do sell what should we do with the money?  Bonds and CDs pay near nothing not even keeping up with inflation.  Real estate is still in decline over most of the world too.  Stocks are difficult to value since many companies are so propped up from stimulus it’s nearly impossible to know if they’re profitable or not.  I’ll roll the gold/silver dice.  Thanks for commenting.



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