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.
A few events are forever etched in our minds, literally. John Medina, a developmental molecular biologist, claims the reason some memories “stick” and some don’t is simple. Even the brain finds a few events so worthy of record that the mind actually strikes a deeper line in the brain.
Mr. Medina is also quick to point out another fascinating mind nugget. If not for the ability to instantly forget most information….. we will die, within days in fact. Honestly, I can’t deny or verify what this professor of bioengineering claims as factual. What I can say without doubt; I will always and forever recall the moment I decided to buy gold over a decade ago.
Before we dive in today, the Q & A section is all about dealing with PM (precious metal) crooks, be sure to catch it.
Every once in a while someone emails or calls TPS (The Prospector Site) looking to argue precious metal. They usually hangup thinking, “Gosh, this guy doesn’t know much about physical silver/gold for a bestselling precious metal author?” So be it. My goal is not to argue the worthiness of PM for those not ready to own silver or gold.
If I have to convince someone to buy they’ll like me less the first time silver or gold turns south. Before a person is ready to own PM they must first reach a point of realization. Maybe realization is the wrong word, maybe acceptance is better. Regardless, the old way of saving, investing and entrusting your wealth to someone else is over, period.
Until then silver and gold appear just as “risky” as a credit default swap or a Bernanke promise.
Politicians, corporate executives, and media pundits can drum recovery and economic stability but only the most hopeful continue to believe what PM faithful have know for some time. Each new day is another one closer to the demise of a fiat reserve currency. Your decision to own physical metal is a de facto admission of the dollar’s eminent demise; welcome aboard.
This liberation goes beyond silver and gold. My acceptance of monetary truth changed my perception in more ways than space. I found satisfaction beyond things driven by debt or greed. I found myself questioning everything, even to the point of questioning my faith. After all, it’s only after questioning what others blindly accept we learn, and then grow wiser.
Trading dollars for PM goes far beyond investing in the typical sense. Trading dollars for sound money offers savers the ability to grow wealth beyond the risk of confiscation that fills today’s evening news. Pension funds, retirement accounts, bonds, stocks, and real estate can’t offer the same peace of mind. Not that the aforementioned are bad investments, just not protected in this cannibalistic age of taxation and confiscation.
My Prospector Site email blew up Sunday as rumors of Cyprus bank runs filled my smartphone. Someday all bank accounts will face similar capital control challenges from central banks and/or government. At such a time, you too will remember when and why you decided to buy physical silver/ gold.
QUESTION:For your information, XWZ Corp (edited) is a con artist willing to sell old folks like me overpriced gold coins. Its been over two years and the coins are worth half of what we paid. A local coin dealer appraised the coins so I know what they’re worth……HALF, OR LESS. Something must stop the con artists in the bullion business!!!!!! (EDITED, A LOT)
TPS Reply: First let me say how sorry I am. You’re right, it sounds like you paid far over market for the nine rare coins we discussed during our phone consultation. This deceptive practice is unconscionable – but I hear stories like yours far too often. If I were in your position, I’d safely store the coins away knowing someday soon the PM market will, in all likelihood, surpass this over-market premium you paid. I realize this doesn’t help much but it’s not a loss unless you decide to sell short.
NOTE: I spent at least an hour with this client and, honestly, the situation is not fixable; but due diligence could have saved a lot of hardship. People are afraid like never in my lifetime. They hear about bank holidays (Cyprus), they see inflation stealing more from a fixed income, and then they hear some advertiser promoting gold as the answer to everything economically wrong. This, my friends, is when the trouble begins.
Now, let’s focus on how this never happens to you or anyone you know. Since I don’t sell PM let me first say the metal this author recommends exposes a PM crook in less than 30 seconds. Precious metal sellers can only take advantage of those lacking PM knowledge, this excludes you. The majority of PM victims do not know what they’re buying; they just know it’s made from silver/gold. Buying any silver or gold is not good enough; we must put the “right” metal in your safekeeping….soon.
If you truly feel the need to trade dollars for PM but are not 100% confident in the process, then call or email me. I represent you the buyer, never the PM dealer, broker or seller. I don’t charge a percentage; regardless if you buy all the gold stored in Fort Knox or one silver ounce, it makes no monetary difference to me. I charge according to how much time it takes me to find and secure the right metal FOR YOU, I receive zero compensation from the seller.
Locating the right metal for a customer sometimes takes less than an hour, in many cases, or it could take a little longer. Regardless, you’re only charged for the time it takes according to your situation, no surprises. It is not unusual for my fee to total a $100 – $200 (is $100 too much for the peace of mind knowing you’re PM protected with the right metal AND at the best price possible?). It’s time we bring integrity back into the PM market and this is exactly what I intend to do. Contact me here for more information.
QUESTION:I just don’t understand, gold doesn’t pay a dividend or interest, correct? It rests in a vault, in a secret location, all while protected by the best security possible. Wouldn’t you agree that the only thing physical PMs can offer is the chance of appreciation?
TPS Reply: Thanks for the comment and questions. You are correct in regard to gold’s inability to pay interest, it typically does not. Respectfully, I 100% disagree that the only thing physical PM can offer is the chance of appreciation. Gold and silver equal money, everything else we typically call money is currency. Please stop thinking like an investor, think like an innovator (innovators are willing to change).
It’s time the PM skeptical face a few facts. Investors (savers) are long for the slaughter and Cyprus is proof. Eventually the entitled of the world will far outnumber the savers (depositors, pension holders; all investors with exposed wealth). At such a time, the entitled (impoverished) will not only condone new taxation and wealth confiscation – THEY WILL DEMAND IT.
The world’s stockholders fail to compare their risk to a Cyprus depositor (by the way, depositors in Cyprus are under capital controls by way of a bank holiday). A typically safe storage of wealth can no longer keep pace with inflation (certificates of deposit, money markets, savings accounts), they no longer pay a reasonable rate of return.
Even ultra-conservative investors now turn to stocks in order to preserve wealth; this is why the DJIA is at a new high. Someday soon the entitled of the world (impoverished) will far outnumber those holding wealth in stocks. At such a time, ones depending on entitlement will not only support new taxation – they will demand it. Remember, giants rarely die suddenly; they starve slowly but only after total consumption.
How can you or any other stock investor honestly believe your wealth glowing on Wall Street will not fall under confiscation, capital controls or painful levels of new taxation?
This is what happens when currencies die and governments lose power; this is what divides nations, states, communities, churches, and families, too. Thinking like an investor in an age of wealth confiscation is nothing short of dangerous. My advice is to transfer some wealth, if not most, into something less vulnerable to taxation and confiscation. Physical silver and gold are part of the few safe havens outside the banking/ investment system.
We’re past the point of arguing if silver or gold are worthy investments. The only questions left: how quickly can you turn dollars to PM, what to buy, from whom, and at least three safeguards for PM storage. Time will validate the aforementioned.
QUESTION: Just paid slightly over $33 per coin from an online PM broker. I’m seriously considering buying more silver but questioning if the price is fair? Thank you.
TPS Reply: Congrats to you for practicing such prudence; I just paid close to the same per ounce price. Now, I have a question or two for you. Do your coins contain one ounce of silver, many do not? Do you know the difference? Please contact me immediately if you don’t.
My suggestion is to view silver like a typical bank savings account. Most Americans no longer save; they spend every dime that comes in – plus some.
Using PM as a savings offers two huge benefits. One, it’s far more difficult to impulsively spend a savings in PM. Two, a savings in PM will rise beyond the imagination of even the most optimistic PM holder (my opinion, use due diligence). We’re living what history will someday describe as the largest monetary shakeup of mankind. The fiat currency experiment has reached the boiling point. Thanks for the question.
The most powerful man in the world is not a politician, not significantly wealthy….. yet rather mysterious to most folks obliviously wondering through life. His name is Ben Bernanke and it is certainly in your best interest to understand how his influence will directly affect your future. He is the most powerful man on earth and starting today we will feature a “Bernanke Watch” in each TPS post.
There is no doubt FED Chief Bernanke is a very smart man. His words are purposely patterned to instill monetary confidence and, unfortunately, monetary confusion. The trouble within our global economy is not Mr. Bernanke’s fault. Bernanke is nothing more than a very significant snapshot in time now controlling the most powerful, yet most secretive, monetary entity on earth.
In the above video Bernanke defends the FEDS actions with six powerful words. He said, “…..never lost a penny doing it“. It is imperative to understand that it’s impossible for the FED to lose dollars. They are the only entity in the world that can create unlimited amounts of dollars from thin air. Today’s era of no restraint allows the FED to create dollars, secretly, and obviously accountable to no one (according to the above video).
Don’t miss our next Bernanke Watch when we discuss exactly how the FED not only influences the DJIA but controls it too.
DC Carlton is the founder of The Prospector Site and author of Why Silver and Gold Will Go Higher. If you’re looking for trustworthy PM assistance feel free to contact DC regarding his personalized consulting service. TPS doesn’t sell silver or gold; we represent you, the buyer, looking for affordable precious metal from honest trustworthy sources. Feel free to register here for his free online newsletter that provides precious metal insight rarely mentioned from mainstream media sources.
Buying physical silver or gold is easy these days. Unfortunately, finding more PM (precious metal) in the future will become increasingly difficult, but possible. I don’t have a crystal ball, what I do have is an ability to understand what motivates folks to seek monetary protection….. and what doesn’t. Silver, especially silver, is the metal to watch as more folks realize a rising DJIA and housing market is nothing more than a temporary spike spurred from piles of fiat currency. Use ounces of gold to determine true value and it’s obvious neither the DOW nor real estate should be viewed with optimism.
The coming age of second hand silver, or gold for big spenders, is smoke on the horizon. Record setting silver sales over the last couple months prove our world thirsts for tangibility in an age of digital promises. Please prepare to say goodbye to “on demand” physical silver or gold.
Today, the price for an ounce of physical silver adds a 10 -12% premiums (minimum) over spot or paper metal. A hunk of real tangible silver, aka money, sells for $32.50 an ounce as I click away this beautiful March 2013 morning. Even though greatly discounted compared to previous offerings, a silver buyer today can find a boatload of options . Buying second hand silver is not necessary, not yet.
Caliber 223 ammunition may offer a not so distant glimpse into silver’s future; just months ago, rounds of 223 ammo filled shelves all while reasonably priced – not cheap, but reasonable. Today sporting shelves collect dust where 223 rounds once rested. Oh, don’t get me wrong; 223 ammo is available but predominantly sells on the secondary market. Did I mention 223 ammo costs have tripled in 2013 alone?
This run on ammo is not by duress. I know of no city street’s burning, no riots, and no other out of the ordinary civil unrest here in the United States. The run on 223 ammo is on red alert because our liberties are under full assault. Caliber 223 ammo is nothing more than a 17th century pitchfork revolution.
This article’s primary focus is second hand silver, I don’t want to lose focus here. We can safely compare silver’s future demand on a monetary loss of liberty….that’s fair. But the point I truly want to make is how such an era of increasing silver demand will influence who and how we buy physical PM.
Some of today’s precious metal experts are misled, respectively. Silver sales will not cease when demand greatly outpaces output; there will always be someone holding silver who’s afraid it has peaked and therefor willing to take profit. Simultaneously, there will be buyers who believe silver will continue to climb…..no matter how many hundreds or thousands of dollars per ounce. The only difference in tomorrow’s silver world compared to todays is a SECOND HAND premium…..just like 223 ammo in a Obama second-term world.
Ammo prices in popular calibers have steadied. This means demand, price, and availability have found an equilibrium. But this lull provides a far greater indicator. It means ammo is to the point unaffordable for many, maybe most. Future physical silver wannabes will face the same fiscal fate.
We are reaching a point when everyone will “want” hard assets and sound money. But just like the 1000 rounds of 223 ammo for sale on gunbroker.com, only a few can justify or afford the second hand market.
QUESTION:Can you compare a currency like Bitcoins to silver or gold?Are they as good investment as precious metals?
TPS Reply: Thanks for sending over a couple of great questions. BTC is a virtual currency completely independent from a banking system or government. I’ve watched Bitcoins since March of 2011 with great interest. It amazes me how BTCs have appreciated when you consider this currency is nonexistent and attached to no commodity.
The creation of a currency….. like BTC, is only possible because of technology. The advancement of a currency like BTC is only possible when citizens revolt against the merger of government and banking to create a means of wealth preservation. No government can control a virtual currency, bitcoins have no physical corporate location.
What governments can do is tax profit and income. This is when and where competing currencies, like BTC, will conflict with an overreaching gov’t hellbent on more taxation. It is very possible a currency like BTC could be the precious metal of the virtual world, time will tell.
Now, to your questions; are BTCs a good investment? Below is a chart that goes beyond the need for explanation. Will such BTC appreciation continue? I have no idea but I do recommend using due diligence; no appreciating asset is reason alone to invest. If I were to buy BTC, here are the questions I’d ask beforehand.
1. What or who controls BTC output (creation)?
2. Is my BTC investment protected by way of discretion?
Below is a chart comparing Bitcoins to gold, not dollars – thanks to our friends over at www.pricedingold.
COMMENTS: TPS (The Prospector Site) received several comments regarding our last post, The MONEY CURE. First, thank you for commenting. Secondly, thanks for forwarding TPS over to friends, enemies, and everyone in between. Keep sending over your comments and questions since many are not only finding their way to this site but also mentioned in an upcoming book (never a name attached to a comment or question).
DC Carlton is the founder of The Prospector Site and author of Why Silver and Gold Will Go Higher. If you’re looking for trustworthy PM assistance feel free to contact DC regarding his personalized consulting service. TPS doesn’t sell silver or gold; we represent you, the buyer, looking for affordable precious metal from honest trustworthy sources. Feel free to register here for his free online newsletter that provides precious metal insight rarely mentioned from mainstream media sources.
It’s unlikely you’ve heard of John Snow or the millions of lives he continues to save long after his death. Before I introduce Dr. Snow I would like to paint a picture. The year is 1848, London, and we’re living in the midst of one of the worst epidemics in human history. The only emotion left is fear as thousands lay dead, or dying, from an outbreak we now call cholera disease. Both wealthy and poor wait to die while the only hope remaining racks his brain by candlelight deep in the darkness of night. His approach to a deadly problem literally redirects the fate of every human living on earth thereafter. Finally, hope.
A death by cholera is horrid. The body literally dies from dehydration by not allowing the digestion of water. Without water our only solution is death. Today we can only imagine the anguish, of both patient and caregiver, as someone loved loses life’s battle to such a horrible disease.
I apologize for today’s morbidity but the correlation between 1848 London and today is one we cannot take lightly. Like the cholera outbreak, today’s approach to solving our monetary disease only worsens the problem. The course taken spreads both fear and poverty because the problem solvers refuse to approach today’s monetary outbreak with John Snow insight.
Dr. Snow didn’t solve the world’s cholera problem. What this amazing doctor accomplished was the ability to disconnect a human life from the tiny bacteria carrying this infectious disease. His abstract approach, certainly abstract to the medical world of 1848, proves why knowledge is a better cure than more medicine.
Today’s monetary leaders try to fix our economic disease with more medicine, and it’s not working, In fact, like the cholera treatment circa 1848, it’s compounding the devastation. Dr. Snow realized the water source was the problem. The cholera disease found its way into humans through tainted water sources. Caregivers unknowingly worsened the dehydration problem by administering more tainted water into a cholera stricken person.
Up until Dr. Snow’s discover, the medicine was literally killing the patient.
Dr. Snow’s sewer tainted water discovery harnessed a killer, but only after a willingness to accept the medicine and disease as the same. It’s no secret today’s fiat money system spreads impoverishment across the globe. The wealthy, and elected, are the only ones truly benefiting from such fiscal insanity. All others are living in denial.
If not for Dr. Snow’s brilliance this disease would have turned London into a morgue (hundreds of thousands died as is). Like Dr. Snow, we must immediately change our mindset, and then approach, to what most call money. No amount of dollar printing will stabilize monetary imbalance, just like no amount of tainted water could cure cholera devastation.
Each person is accountable and responsible for their own financial situation. This requires each of us to become educated, and then empowered, to redirect our monetary position in today’s money world. It is no longer enough to entrust your family’s future in traditional investment streams DOLLAR DEPENDENT.
We have entered an age of instantaneous change. Technology has forever connected the influences of the world and without the ability to adapt we are left behind. The ability to see things from tomorrow’s perspective are far more important than today’s vista. Everyone from financial planners to stock brokers have failed to change perspective, they still view “wealth stability” through yesterday’s eyes.
The good news is this leaves you. There is a money cure but like Dr. Snow’s cholera approach it is not monetarily acceptable, not yet at least. Up to this point the words silver or gold are purposely not mentioned in this article. Precious metals cannot fix the currency outbreak that engulfs us. But like Dr. Snow’s discovery….precious metals can separate our wealth from this infectious monetary disease.
DC Carlton is the founder of The Prospector Site and author of Why Silver and Gold Will Go Higher. If you’re looking for trustworthy PM assistance feel free to contact DC regarding his personalized consulting service. TPS doesn’t sell silver or gold, we represent you, the buyer, looking for affordable precious metal from honest trustworthy sources. Feel free to register here for his free online newsletter that provides precious metal insight rarely mentioned from mainstream media sources.
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 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.
Are you one of the many concerned about silver’s future? Just this week I heard a talking head mention the volatility in precious metal as 2012 closes its final chapter. She confidently mentioned why investors sell silver and gold to wisely buy equities now that politicians are on the verge of solving our fiscal cliff issue. Wall Street celebrates this great news with a year-end rally almost like they realize Washington has no other choice but to feed the giant that holds the wealth of Middle America. My concern, my truest concern, goes far beyond the fiscal cliff or the triviality of our mainstream media, I’ll explain.
I would like to take a moment and do something I rarely do. I want to make a prediction, a silver prediction that is, and I’m asking each reader to, well, read closely. By the way, this prediction has everything to do with my concern of the day.
While paper silver sells down…. physical silver disappears at near record pace. Because of this I’m concerned something “big” will cause a sleeping society to awaken to our fiscal reality. This reality has the potential to dry silver inventories nearly overnight.
For those new to physical silver I want to share a fact or three. The majority of silver on the market today is newly minted silver in the form of bullion, rounds and bars. The number of mints making silver bullion, rounds and bars are few. Most of you that own silver bought it through a third party (online bullion broker) and not from the mint itself.
Your source, the bullion broker, in all probability isn’t sitting on a huge inventory of silver in hopes you call for more. The price of silver fluctuates too much for silver sellers (brokers) to risk anything other than placing a “buy” order only after you ask for more. This means those brokering silver sales are limited to what’s produced or allocated from the few minting silver.
We will soon see days of silver rationing meaning those wanting to buy silver will be limited to a few ounces, at best, or only the highest premium and less desirable forms of physical silver.
Now here is where my concern takes over. People prudent enough to own physical silver have no intention of selling anytime soon, why should they? This December’s drop in silver means nothing to those sitting on physical silver. There is no way a person wise enough to protect with physical silver will sell it, one call to any silver broker will prove this as true.
The new-age bubble investor will run to silver not driven by wisdom but emotion. This is why so many scurried to buy silver not long ago when it hit nearly $50 per physical ounce. The combination of short inventories and the unwillingness of those holding silver to sell will create a shadow market in PM making the true value of physical silver hard to pinpoint. This value will be far beyond silver’s daily paper fluctuations we watch today.
This writer believes we have reached such a point but the monetary spread between physical and paper hides behind a splinter of availability (silver inventory), an inventory on the verge of disappearing.
WHAT ABOUT YOU?
My intention is to shout silver’s praises from the highest mountaintop so that as many folks as possible replace at least 10% of their net worth with precious metal. For those asking, 10% is a minimum and something closer to 20 – 25% is best (my opinion based on what I feel silver and gold’s actual physical values are today). Remember, I gain nothing financially if you buy a boatload of silver since I sell neither metal.
But the problem, or concern, is that the physical silver window is closing just as those who trust a fiat currency need PM (precious metal) most. To put it simply, there is not enough AFFORDABLE silver or gold to go around. This is why both metals will go higher as more individuals realize we bought into a temporary currency system that still stands only because of the ability to print more.
Today’s silver buyers are a crafty bunch. They silently buy boxes of silver with little mention to anyone outside the few trusted, very wise. Is this why the silver cookie jar suddenly nears empty? Not exactly, physical silver has a bigger problem than its sneaky buyers.
Mining silver is challenging in today’s world. A global market may thirst for silver but politics and environmental issues dictate how fast silver leaves the ground. This conflict worsens as demand and prices grow, how could it not?
While preparing this post I typed “conflict in silver mining” and then watched nearly 3,000,000 results pop up on my screen. South America’s mining industry rages with conflict as inventories cry for more.
This only proves the option to own silver is not infinite.
I urge you to keep the above facts in mind each time a drop in paper silver prices rattle your PM faith. The fiscal issues our Congress address today are long-term problems that will take many attempts to fix. This makes protective assets, like silver, a long-term protective measure that each person who wishes to sustain wealth must own. Why not add a few hundred ounces to your stash while the opportunity to buy cheap silver still exists?
COMMENTS & QUESTIONS:
QUESTION:You mentioned storing PMs in two or three locations as part of a proactive storage plan. One you recommended to another reader involves international storage which requires funds wired from a banking account. To my knowledge, the only way to someday retrieve this wealth is to have the funds (from PM sold) sent back to the same bank account. Here is the problem as I see it. What if the bank is no longer in business? What if the IRS decides my bank account is in their control regardless if I’m delinquent or not? Not sure I like the method for retrieval with international metal storage.Your thoughts?
TPS Reply: Awesome question so thanks for sending it over. “Yes”, I recommend that each person who owns physical PM to use an aggressive proactive plan for storage. This could include international storage but two words popped into my head as I read your email, DUE DILIGENCE. I commend your efforts to look at international storage through realistic eyes because the risks you describe are very real, but.
I won’t speak for companies like BullionVault or GoldMoney, but my understanding is most depositors can retrieve real metal as well as cash back into a registered bank account. This means they will send real PM back to those who request it (for a fee). Does this take 100% of the risk out of international PM storage, of course not? I know of no way to store PM that is completely risk free.
My advice is for each person considering international storage to take the time to ask “what ifs” before taking the plunge. I personally feel it is well worth the risk depending on where you live. Thanks for the questions.
QUESTION:You mentioned something about insurance for those who store PM at home?
TPS Reply: Yep, insuring PM stored in your home is a great option…. and one recommended. The last I checked the fee for storing $100,000 in bullion was around $500 per year, well worth the effort and cost in my opinion. I’ll send the info over.
QUESTION:Found your site on the internet looking for silver and gold information. I have so many questions I don’t know where to start and can’t afford the one-on-one consulting service you offer. In a nutshell, can you explain the steps to protect with physical silver?
TPS Reply: Would love to….. and thanks for spending time with TPS. You have taken the first step to financial freedom, so congrats. Research is the key to understanding the power of silver/gold and how they protect in times of huge currency creation. First, continue to educate yourself why silver and gold are so relevant today. Next, buy PMs as close to spot (paper) price as possible. I own bullion, rounds and bars…for what’s worth. Next, formulate a comfortable plan for storage that includes several options just in case one option fails. Next, forget the metal exists and live your life in the confidence that only comes from an independent nature that leads you to own a real asset like silver or gold.
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
Have you noticed that there really is nothing 100% “safe” from theft? From Wall Street to Main Street the threat of someone taking something from you is as real as I can remember. The longer I write about precious metals the more I realize theives come in many shapes and sizes and by no means stereotypical. Now I’m not just talking thievery like we see on TV where thugs with covered faces rob folks at gunpoint. The biggest threat to your wealth is the guy sticking campaign signs on your neighbor’s front yard, or his cronies (taxation). The second threat is inflation and the sad side of this threat is that most victims don’t realize how much wealth is right now lost from it.
This is why it’s so vital to not only own physical silver and gold but to also have a bullet proof plan to keep it safe. This is where I can help so thanks for joining us today.
Keeping your PM safe is not difficult but does require a well organized security plan with a continued effort from you and whoever shares your address. I’ve heard from readers who question the above statement by mentioning other family members living in the same home know nothing about the stash of silver or gold. This, my friends, is a recipe for disaster since those not knowing can’t be part of a plan to protect your metal, not good!!
I don’t believe in secret PM storage programs, here is why. My thinking is PM security is a family effort since the fact you are storing the metal in home means you are willing to put all those living there at risk. Risk you ask? Yep, owning PM and storing it at home carries risk and only someone naive will believe differently. Maybe it’s time we put the cards on the table showing exactly the growing risk each PM holder will face as our economy continues to unravel.
I knew when I wrote Storing Silver & Gold that some readers would find true examples of home invasion too much to take. I’m guessing my book editor right now is thinking the same thing. I warned readers before hand with each home invasion example because each of you must prepare for the risk that comes with something that every person on the earth will soon view as necessary. I hope I’m wrong but doubt it.
As precious metal holders, few look beyond future wealth and riches. We think of the nice things we can buy or opportunities to help others but rarely invest thought that a rise in gold’s value equals a decline in society as a whole. This exposes you as different – even lucky, or wealthy – putting a big old bull’s eye on your family’s back. Think about it.
The challenge to keep your metal safe will grow as the economy weakens, sorry.
This is why it’s so important to begin a plan now to store physical PM in multiple locations. I do recommend keeping at least 1/3 of all PM owned in hand or at least close at hand. I like storage diversification most because it adds an insurance value to all eggs in one basket. Another thing I like is insurance (yes, insurance exactly like the policies you have on life, home, car, etc) on every ounce of silver or gold you own.
Question:You wrote about insuring gold so I thought instead of emailing I would call, hope this is okay? My question is can I determine the value of a particular coin when buying insurance? Will the company offering this insurance ask for an appraisal?
TPS Answer: Thanks for calling and “yes” it is okay to call (I actually prefer email but realize some want to discuss by phone, this is okay too). No, my understanding is a person cannot simply request a rare coin worth $3000 insured for $6000. I don’t have rare coins insured (I’m mostly in bullion, rounds, and bars since they carry less of a premium) but can tell by the conversations I’ve had with those offering insurance that value must be proven. They could ask for a proof of purchase and this will help determine value at least at time of purchase.
Something else comes with each new policy all readers must be aware of. Each new policy comes with a signed fraud statement plainly explaining the charges for insurance fraud. My advice is to keep it straight and sleep well at night.
If other readers have questions on insurance for physical silver or gold please feel free to email me at email@example.com.
Question: What exactly does The Prospector Site do?
TPS Reply: We offer facts related to why, how, where to own physical precious metals all without readers worrying with a motive. Most PM information floating around the internet comes from companies selling PM (most have a buyer’s best interest in mind, some don’t). TPS doesn’t sell silver or gold, we only write and consult with individuals why it’s so necessary to own it and then offer proven ways to buy and protect it (precious metals). Thanks for the question.
We seldom hear “gold” and “urgency” mentioned together and this concerns me. My concern is not personal, I own silver and gold. My worry is for those who assume silver and gold will always be an option; the facts prove this anything but true. Today I want to paint a “what if” picture especially for those sitting on PM fences. Keep in mind I don’t sell silver or gold nor do I benefit if you buy boatloads of each metal. The goal today is to present how a growing trend jeopardizes inventories of the one asset we all need.
The question, what happens when silver & gold run dry?
To see an exact snapshot of today’s PM availability please take a moment to visit www.GoldShark.com. Like us, they too do not sell PM. GoldShark only provides competitive pricing from reputable online bullion dealers. My intent is to not promote GoldShark but prove how a perception of silver and gold inventories clouds accuracy.
This information fascinates me for several reasons. Notice how competitively priced each online bullion broker is with the next. From a buyer’s perspective, it appears many sources provide new bullion even if the next one runs low on PM inventory. This is nothing close to the case.
If you take one thing from today’s post please let it be this! Online bullion dealers inventory very little silver and gold. Most place an order only after you commit to purchase.
This means only a few wholesale distribution sources supply bullion dealers across the internet. This equals limited supplies even in a time of record e-commerce and online trading. All the online broker services in the world serve no benefit if wholesale inventories and distribution run dry.
Silver and gold confuses Americans. They not only misunderstand its purpose but take for granted its availability. Both will change in the very near future and this revelation will deplete inventories quickly.
One benefit of founding The Prospector Site is an elevated worldwide perception of silver and gold. This allows me to follow worldwide PM trends and then combine monetary events with silver and gold demand. Silver is the metal most concerning reminding me of ocean bait fish falling prey from pelicans above and bottom fish below.
We often mention silver’s industrial demand but few piece together future demand derived from masses perceiving silver as money. Like the bait fish, silver stands the best chance of depletion from multiple demand forces.
I wish I could say gold is different, it is not. Feeding gold’s worldwide appetite is nearly impossible. While researching my book Why Silver & Gold Will Go Higher (scheduled for release in April) I noticed a concerning trend how environmental organizations are now paralyzing the gold mining industry. Unfortunately, this is a worldwide occurrence.
It is now safe to say gold mining challenges combined with historically low availability will complicate gold inventories worldwide. This comes as more central banks and global economies ramp up gold stockpiles. This must be viewed as a “perfect storm” of demand in an age of very limited supply.
But like they say, “It’s only a surprise for those unsuspecting”
Unsuspecting is the current American perception. I know this as fact from how few own silver or gold bullion. The illusion of availability spurs a false security for most Americans. Combine this with nonstop media recovery hype and it’s easy to see the “perfect storm” clouds gathering.
The last word is this, 99% of us unprepared for a day when silver & gold run dry!
EMAIL ME RIGHT HERE TO SHARE YOUR COMMENTS AND QUESTIONS.
Be sure to join us on Monday when we feature a post called“PANIC BUYING“. Panic buying is a term describing what we feel represents an age of limited new metal availability and a growing secondary silver and gold market. If you’re wondering how high silver and gold can easily soar don’t miss this post. See you then.
Okay, after months of thinking, reading, and watching you have decided to buy the one asset no government can print into worthlessness. It’s nerve racking, I know, and this is why you’ve put off trading dollars for silver or gold until now. Part of you is angry. Angry you didn’t buy two years ago with gold at $1100 per ounce or silver at $16.90 (oz). Angry each time another too big to fail finds billions of dollars in favor while you work double time to make ends meet.It is a big decision but a necessary one, this is why you’re reading this site and this post. Now, I have one last question before you head off to your local coin shop or make a call to an online bullion dealer. How safe is your silver & gold?
Congratulations on committing to an asset few others understand or find worthy. You are now part of the 1% protected from fiscal insanity and on the path to monetary self-reliance. I know what you’re thinking because I hear it nearly everyday; you are thinking how little metal comes from such a huge dollar price. I thought the same thing 10 years ago as I bought my first coins of gold. Want to hear something kind of funny? The guy down your street will pay three times what you paid all while thinking the same thing. Silver and gold values will rise, they have to. The only way this trend reverses is if economic growth surpasses spending or those in monetary control reverse spending.What is your bet?
Buying physical silver or gold is similar to bringing a baby home for the first time. Nothing can prepare us for the challenges, insecurities, or confusion that comes with either. Like a child, others have faced the same PM (precious metals) obstacles for thousands of years, and survived. Develop a plan for storage as soon as possible, silver or gold cannot protect you if you don’t protect it. Bullion coins, bars, or rounds can be nearly impossible to locate once they walk away. My goal, to make sure you establish a comfortable method to store this new bundle of metal.
My recommendation is to personally store at least 1/3 of all silver or gold held. This means you or someone trusted finds a safe but non-passive means for PM storage. This should be no different from the plan you established, and then implemented, when buying physical silver or gold. Developing a storage plan to safeguard silver and gold need not be clumsy or nerve racking. Like buying, you first educated yourself, developed a plan, and then implemented the plan according to your budget and taste.
It is often said that 90% of all physical metal stores within the owner’s home.
This is very possible but my bet is less than half storing at home are adequately protecting something as valuable as silver and gold. I just don’t feel securing PM is at the level of gold’s popularity or demand, this is concerning. It is no longer adequate to toss twenty ounces of gold into a wall safe or gun safe. This type of singular protection worked with prices 50% of today’s value but rising prices must include multilayered protection. The alternative could be devastating for those less prepared. So what does a multilayered plan include? Multilayered PM protection includes more than a free-standing safe. Multilayered security includes everything from outdoor lighting to wireless alarms. Multilayered security includes tapping into professional security advice if in doubt. Multilayered security includes a proactive mindset and then a proactive plan of implementation.
FIVE LAYERS OF PROTECTION:
Discretion before, during, and after the purchase.
Diversifying storage options including passive and personal storage.
State of the art in-home security system consistently armed.
Decoy safe with decoy metal along with well hidden, well attached, PM safe.
Perpetual storage plan adapting to changing times.
Never allow (use) social networking to promote travel plans or vacations away from home.
Inform all family members of strict discretion.
Never buy from Craigslist type sellers.
Buy from reputable shops or bullion dealers.
Use caution when trading at local coin shows.
Use caution when entering & exiting home or apartment.
Below is a website I recommend all readers not 100% comfortable with this home security issue. If you take one thing from today’s post it must include a proactive security plan. Implementing such a plan greatly reduces your odds of silver or gold theft, there are just too many easier victims. The website I recommend is www.GlobalSecurityExperts.com. This site offers free tips on securing a home but also provides a personal home evaluation/recommendation for those willing to invest a few hundred dollars in such peace of mind.
TELL US YOUR TAKE ON HOME STORAGE. REACH ME RIGHT HERE.
COMMENTS & QUESTIONS:
Question: Can I ask which online bullion brokers you recommend?
PROSPECTOR REPLY: Thanks for the short question. Yep, it can be a little confusing but many good bullion dealers are available to provide reliable silver and gold options. As you know, I don’t sell silver or gold on The Prospector Site. I buy from three online bullion dealers and have found all great and reliable, I can’t speak for the others. Visit our friends at www.GoldShark.com for the most competitive bullion pricing (posted prices include shipping too). I buy from Blanchard Inc, Gainesville Coins, and Miles Franklin. I also trade at a local coin shop, hope this helps. Oh, one last thing. Make a plan including what you’re buying, how much, and where to store BEFORE calling. Stick to the plan regardless (email me if something doesn’t sound right). Good luck and congrats.
Something you mentioned in Silver Ponzi Warning stopped me dead in my tracks. It is so true that “Silver and gold are only as reliable as the sources selling each metal”. My fear is many will find this out first hand considering the number willing to say or sell anything to make a buck. Just this week I read about tungsten filled gold bars (not the big ones either). Keep up the good work and don’t be afraid to call-out the bad ones.
PROSPECTOR REPLY: Thanks for the comment, and reading our site. I too have the same concerns and truly believe stories like this one will only increase as gold/silver do. The best defense consumers have is education and the internet. The article you mentioned about tungsten is very concerning and we wrote about it several months ago. I feel tungsten risk is limited and excludes gold bullion coins and smaller bars, keep that in mind next time you add to your gold stash. Thanks again for the comment.
One thing I can tell you after several years of metal investing is the higher gold & silver go the bigger the dips. But should this scare investors away from buying in times like now? If you are seriously considering buying gold or silver, or both, don’t miss this post because we are going to break down the ups and downs of physical metal investing.
WHAT MAKES GOLD/SILVER TICK: To comfortably invest in precious metal requires a slight understanding to what motivates movements in metal. Gold, such as, has seen something like ten plus years of gains but is this rally done? Silver is at record highs so why month over month does it keeps going up? Why do both metals move up one day only to fall off the next?
New investors are constantly boarding the gold train and maybe you are one of them. If so, congrats on being one out of a hundred that realize the best method of wealth storage is in precious metals. Let me also say thanks for reading The Prospector Site and let us know what you think. Many metal investors bought when prices were much lower than they are now. Some of these same investors set a ceiling or trigger to sell realizing cash profits. When enough of these sellers hit the market simultaneously it drops the price of metal. New folks see this drop and like pelicans to anchovies dive into the market better known as a “dip”.
This cycle of selling and then buying repeats itself over and over but each time the number of buyers increases ever so slightly. This makes for a higher gold/silver price at the end of each cycle. As metal prices increase the dips or cycles become deeper and possibly longer. But are we due for a deep dip in metal?
THE BIG DIP: I have no way of knowing for sure but my gut says a big dip is coming and here is why. My thought is plenty of new buyers are moving to gold but really don’t trust the metal yet. I guess you can say they are nervous investors. Nervous investors have a way of keeping a finger close to the sell button and every 3% or better dip sends them into a panic. If they truly understood what drives metal they would relax and take peace in the most solid investment since man kind. But this is easy for me to say because I have faith in metal.
I think silver shows the highest chance of showing us it’s back side between the two metals. Silver has not only investor appeal but its one heck of an industrial metal as well. Several things could knock silver back, only for temporary, like maybe consumers buying less phones, electronics, and automotive products. But who knows, this world is very big even in the age of instant communication. Should you sell silver if it dumps say 15% next week? I won’t because I believe silver is the most affordable metal and potentially the biggest number of buyers. I guess you can say it is priced to where everyone can afford to invest.
PANIC SELL OFF!! I think a panic sell off is possible for gold or maybe silver. I believe there is a better chance of gold/silver being the beneficiary of a major stock sell off compared to the reverse. My reasoning is that many corporations are becoming addicted to bailout money and we all know this spending will not last forever. One of the many things I like about metals is that they are big boy investments that stand on their own merit. When was the last time you heard of a bailout, tax deferment or credit, government take-over, or cash for clunkers program for gold? Gold continues to be the dirty little secret that insiders and economist ignore. Unfortunately for these folks, gold and silver will soon see their deserving spot light.
QUESTION: I want to buy silver on the next big dip but I’m growing anxious to do so. Should I wait or buy now?
ANSWER: This is the million dollar question and to be honest I constantly ask myself the same question. I’m leaning toward waiting for the dip. Many new investors feel pressured to buy once they make up their mind gold/silver is right for them. Some of these same investors buy slightly higher than true market from lack of patience. Dips are important but they are only a light shove of momentum into a long life of metal investing.
TIP OF THE DAY: Take a close look at silver rounds if your only concerned with buying a storage of silver. Unlike silver coins, these rounds are simply masses of silver but easy to buy and sell. Rounds will have less buying fees associated with them which means you can buy for less.
You will find this Blog is comprised of 100% unbiased research designed to provide the best scenario for protection of your family’s financial security. You will rarely see predictions but will see living evidence of how gold and silver is changing the investment world. Everyday another billionaire or country makes a large investment in metal and for good reason. This side of the site will also have links to business sources if you decide they are relative to your future investments.