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SET FOR LIFE?

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

There is an interesting commercial making its rounds where a gentleman travels the world all while shouting, “Set for life” along each stop. Obviously this guy recently won the lottery and is now out enjoying the experiences of only a lucky few. Now, for the record, I’m not a lottery player. In fact, I bought lottery tickets several decades ago when California first introduced a state lottery but never scratched them. Who knows, maybe I missed out on my own “set for life” opportunity – but I doubt it, and here is why.

Each person has their own perception of what it means to be set for life. Unfortunately most perceptions are unrealistic considering the time we live. “Yes” this includes those who store wealth in physical silver or gold, too. Somehow most of us walking God’s green earth falsely associate wealth abundance with a “set for life” situation; not true.

While consulting with those interested in storing wealth in PM (precious metal) I usually ask, “Why”. In other words, what is the goal of making such a nontraditional monetary effort when 99% of the pack is content on striving for the proverbial American Dream?

The answers vary between leveraging PMs as insurance (please see the Q & A below), wealth preservation, or even financial stability – but some flat out admit the goal is to ride gold, or silver, to a point of filthy rich. The ones motivated by the later fail to recognize what a world with $500 per ounce silver means for a society unfamiliar with economic correction yet victimized by decades of monetary intervention or the asset bubbles derived from such unrestricted intervention.

As of October 2013 things are clicking along pretty good, right? Sure we have Capital Hill arguing over Obama Care. Sure we have our national parks closed while the powers in charge battle over how to spend the next record level of borrowed money (currency), too. But all in all most Americans view life as improving somewhat content by the illusion of recovery. For most, they view the future as improving.

But those entrusting PM are not experiencing improvement. Many of you bought gold and silver only to watch it plummet, in dollar terms, well below what most PM experts could imagine. Some of you are to the point of doubting your prudence all while dismayed by a safe haven not looking so safe – I understand. The benefits of wealth stored within the confines of such discretion are yet to be realized, but imminently closer with each passing day.

For you – physical silver or gold is a world away from creating a set for life financial situation.

For you I offer this comfort. Enjoy this temporary era of monetary stability derived from the ability to debase a currency by creating trillions of dollars from thin air. Some, maybe most, trusting hard assets awake each morning thinking today is the day all monetary hell brakes loose sending PMs soaring to the moon. You underestimate the power to print money and the temporary stability it provides.

Looking into our future we see a set for life mentality replaced with the longing for opportunity. The dream of a never-ending retirement portfolio will be replaced with the dream of enough employment just to get by. The home on the beach replaced with a roof over the head along with a warm meal on the table. This new perspective will be the ultimate monetary education most are yet to comprehend.

But for now all those entrusting physical PMs live with the daily love-hate relationship that comes from a global currency yet to find its legs in an age of global monetary intervention. This writer will not pretend to guess when PM will break from the pack but if history is a good indicator then metals rising should be expected. Until then we stay the course realizing most living in the USA live a life well beyond what most of the world could ever dream.

COMMENT: I view precious metal as insurance just like any other “what if” insurance policy used to protect any other asset. Accumulating additional wealth byway of gold is not my expectation as much as protecting what I have. My PM goal is to preserve and my expectation is nothing more.

TPS Reply: Good, and thanks for the comment. I too view PMs as insurance but my opinion is you’re selling PM short by failing to factor the vulnerability of other dollar-based assets or the benefit of a universal currency (physical silver and gold).

Honestly, other assets will not hold today’s “value” in terms of comparable value. We must agree that a currency victimized by debasement blurs true value in a currency sense (cents). This is why hyper-inflated economies of the past used billion-dollar bills to buy loaves of bread. We cannot compare today’s bread value to such an era of debasement and economic calamity, agreed? Nor can we view those holding substantial wealth in hyper-inflated dollars as wealthy or financially protected.

I don’t singularly hold wealth in gold to “insure”  or hedge against the value of my home or other personal assets. I realize gold rising will not support my wealth derived from other assets (insurance) as much as replace it.  This is why PM experts refer to such a time as a transfer of wealth. Wealth transfers to countries, and individuals, holding hard assets. This is nothing new or just my opinion, this is historical monetary fact.

One other point, please. Overgrown governments do not go away without a fight. They first consume the wealth of her people in order to appease the masses (those feeling entitled). Five minutes watching your evening news will validate we are living in such a time as you read this reply. You can call it insurance if you like but I call it financial freedom stored in inconspicuous ounces.

Thanks for the comment.

QUESTION: I read how you store your savings away from traditional banking institutions. Can you expand on this?

TPS Reply: You’re correct, and I would love. The risk of capital controls in today’s age is very real. Some call it a banking “bail-in” – some call it a banking holiday. Regardless the term, the result is a separation of wealth which means a separation of personal freedom. A society separated from their wealth is vulnerable to those controlling it.

I choose to maintain control of my savings by storing most of it in physical silver or gold. This sounds unusual to most but up until the last forty years this is how everyone stored wealth (gold-backed dollars). A twenty dollar bill was easily exchanged for $20 in gold from a bank which means your savings was stored in PM.

Today nearly all savers view their savings as safe thanks to the FDIC. This safety net is less comforting when we consider this insurance will protect savers from an institutional failure but offers no protection from a capital control mandate. The difference should be researched if confusing.

This may come as a surprise but I’m not a gold guy. I own gold for many reasons but much prefer to store wealth in an emerging business properly structured and income producing. It is far easier to generate wealth from a small business than wait for gold/silver to appreciate.

Now, back to your question. If I need to use my “savings” I simply convert a few hunks of gold for dollars. This allows me take a vacation or do whatever anyone else could do with a more traditional bank savings. Email me, or call, to find out exactly how I safely make this PM to dollar exchange. Thanks for the question.

 

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

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THE ART OF BUYING OR SELLING GOLD

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

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

FACT #1: Not all Gold is good

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

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

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

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

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

FACT #2: Not all PM advice is good

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

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

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

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

FACT #3: You will someday sell

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

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

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

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

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

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

Looking forward to your reply and thank you very much.

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

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

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

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

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

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

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

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

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

 

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

 

 

 

 

 

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Fake Money Threatens our National Security, again!

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

Does the name Sam Upham ring a historical bell? Mr. Upham imprinted his name into history books in the most unusual fashion. In fact, Mr. Upham learned, well before Mr. Bernanke I should add, that the power to print is more profitable than the effort to work. Maybe this is why our gentleman of the hour printed nearly 15 million counterfeit Confederate dollars during this country’s Civil War over 150 years ago. Some respected historians believe our Civil War’s outcome was offhandedly determined by one “Yankee scoundrel” with the power to print money.

History is a road map seldom followed. So many readers are asking what it will take for physical PM (precious metal) to rise without questioning what happens when fake money rules the world. Like a wave building, the ill effects of fiat printing will soon position those holding sound money into a posture of wealth accumulation. Our country’s history is the only proof needed.

I would like to expand our history lesson for a paragraph, or two, before comparing a circa 1862 American currency to today’s precious metal alternative. The Confederate South created a fiat currency to afford a war. This new fiat currency, commonly called Confederate dollars, held no gold restraint because of a 100% reliance (sound familiar?) on those with the power to print.

Over creation, or over printing Confederate dollars led to rapid inflation as confidence in the money dropped all while volumes of Confederate dollars increased. It is worth mentioning that the cost of a man’s suit ran just under $3000 Confederate dollars as inflation gripped……. and then crushed this fiat money of the South.

For the record, the aforementioned Mr. Upham didn’t work for the Confederate Treasury. In fact, Mr. Upham was nothing more than a money bootlegger who realized the potential of combining cheap paper with barrels of ink. His ability to create fake money accelerated the Confederate currency into an inflationary spiral that led to the end of the Civil War!!!

I’m not a conspiracy theorist but it’s worth mentioning Mr. Upham was never caught, even with a $10k bounty on his head, and rumored to be protected by our country’s secret service till his death, hmm.

NATIONAL SECURITY:

Not a day passes without the mention of our country’s national security. The War on Terror rages long after September 2001 and the argument of a safer world is debatable. Less debatable are the costs of wars under the pretense of national security. To put it bluntly, we continue to borrow/print money in order to fight rotating wars.

The parallels between an extinct Confederate currency and today’s US dollar have reached an undeniable state of similarity.  The very act of overproducing our currency is now a compromise to our national security. This realization grows more haunting when we factor growing Middle Eastern tension and other threats of war.

Only a thin line separates the power to print, and then wage war, with the vulnerability of over creating a fiat currency that intensifies the threat to our national security. The Federal Reserve Bank promotes control but their actions say otherwise.

I’m not sure who tomorrow’s history will blame for the demise of today’s reserve currency. Will we print our dollar to death in order to sustain our consumer-based economy or will we destroy our currency in the name of national security while fighting never-ending wars?

Regardless why, physical silver and gold will protect the wealth of the few willing to accept today’s historical monetary lesson.

QUESTION:  DC, are we talking about someday trading pricey PMs back into a fiat currency (US Dollars)? Not sure I’m comfortable exchanging sound money for paper promises.

TPS Reply: Thanks for the comment and question; not a week passes without someone asking the same “what to do when it’s time to move on” question. You are correct, there will come a time to leverage wealth stored in silver/gold for another asset. We often envision this step, or process, transitioning through dollars first but this most likely will not be the case.

Complications arise the minute we convert an asset back into dollars. This complication could be a tax consequence (red flags or capital gains), wealth exposure, even security issues. The word that comes to mind is discretion. Discretion is a key component to owning, storing, and someday trading precious metal.

It’s worth mentioning that the same forces soon to propel PM higher will also have an adverse effect on other assets now over leveraged; real estate, stocks, and many businesses are a perfect example. When a business or property becomes overly leveraged it becomes vulnerable to a decline in revenue. The burden of leverage remains the same even if profits decline. This is the number one reason small businesses fail when a consumer-based economy cuts back on spending.

The potential to buy (trade) severely discounted property, stock, and businesses for precious metal will increase over this decade and probably the next, too. Those storing wealth in silver and gold will eventually realize the financial benefit of trading PM for another distressed asset. This trade bypasses the need to liquidate PMs into dollars, if structured properly.

This site will discuss many other options to trade, or sell, physical silver and gold in the near future. Thanks for the question.

QUESTION:  How does someone new to PMs know the best time to buy? I hear experts mention a “bottom” but how is the bottom recognizable?

TPS Reply:  Great question, thanks. The PM bottom is not recognizable…….. anyone claiming to know differently is nothing more than a paid PM spokesman. Too many forces now control day to day PM fluctuations, unfortunately. This means we must keep our eye on the long-term goal of wealth preservation by creating our own personal gold standard.

If you’re new to PM, and unprotected, please consider buying ASAP. No one knows when some event will push our economy to the brink…… just like the days in September 2008. The world’s banking institutions are now risky investment houses and highly leveraged. Sure central banks have rolled billions in dollars of liquidity into some banks but this cushion is pale compared to the exposure of most financial institutions.

My opinion is regardless the price paid PMs are worth it, especially when we consider the potential to preserve wealth ever so discretely. No need complicating this gift by guessing an actual PM bottom that will someday soon seem irrelevant.

Contrarily, I often recommend those PM protected to exercise patience when adding to their growing stack. The trend of late is declining. This means, in all probability, the same dollars will buy more metal in the very near future but only recommended for those already PM protected. Thanks for the question, and reading TPS.

 

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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BEST WAY TO SELL YOUR GOLD!

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

The only true way to profit from gold is to someday sell or trade it for something else.  Unlike other assets, gold does not provide passive income but is unmatched as a store of wealth.  As you have noticed, most of our posts focus on the how/why to own precious metal but it’s worth investing time into ways to sell.  We will continuing forward with our “Keeping Gold Simple” series attempting to answer questions for all those new to gold.


The Prospector Site doesn’t recommend selling gold at this time but we do realize some holders will need quick cash for unexpected expenses. Life changes, kids grow up, and once solid sources of income go away.  It is good to know your savings is within an asset (growing asset to boot) easily turned into cash.  No other source of savings can match what gold has done over the last decade, none will.  Gold is in the eye of a perfect storm caused by unmatched  economic uncertainty.  Volatility and uncertainty is only fueling the gold fire.

For those new to physical gold I want to be clear on this next point. We don’t recommend buying gold (or silver) until you fully understand why, how, and how much, first.  We also don’t recommend buying until you understand how to sell it if the need arises.  Now let’s dive into three ways to sell your gold.

FACE TO FACE SELLING:

The most profitable way to sell your gold is to another private buyer like you. I have one very big problem with this but you may not.  The only way to connect with a private buyer is to promote your metal for sale.  Promoting your metal for sale lets everyone know you own gold.  Cutting out the “middle man” can be costly in many ways since you know nothing about this new buyer.  The only time I recommend this type of selling is if it’s to someone you know and trust.  If you must sell to a stranger set the transaction at your bank or other public place for security reasons.  Crooks are constantly trying to part gold owners from their gold and this trend will continue as gold becomes more valuable.

COIN SHOP SELLING:

Last week I needed to come up with $1700 cash for an expected cost. Within ten minutes of walking into my local coin shop I walked out with $1715 by selling one gold bullion.  This not only worked out well for me it worked out well for my local coin shop too.  I’m sure he resold the same gold bullion $65 more than he paid me.  Coin shops will buy back metal slightly over spot knowing they can resale at premium gold prices.  Some of you could be asking why sell metal at a discount if it’s worth more?  Security, I will give up 4% for quick cash and security.  This trade was clean with two parties 100% honest about intentions.

ONLINE DEALERS:

Online dealers will gladly buy back your metal. They, like coin shops, will buy slightly over spot asking you to give up some profit.  Two big differences when comparing online dealers with shops with one being time.  It takes time to ship gold to your dealer then wait for an evaluation.  But the other difference works in your favor.  Some online dealers will hold your gold up to a month allowing you to “lock in” your gold during a spike.  Of course gold could drop in price too but this option does give you control.  A check sent out or money can be applied to an escrow account within the brokerage (online dealer).  Certainly an option or two to think about on online dealers.

LAST WORD:

Having to discount (approx. 4%) will not sit well with some readers, I understand this and agree. Other options do exist like EBay, Craigslist, etc, and we will talk more about them soon.  We must realize gold is changing as market demands grow the direction of precious metals.  As demand grows sellers will see less discounting when trading metal.  The other point is that trading gold straight to other assets will increase too.  Gold is becoming a worldwide currency and this trend is expected to continue.

Thanks for reading www.theprospectorsite.com and sign up for our weekly recap emailed straight to you.


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WHY DEBT WILL MAKE HOLDERS OF GOLD RICH (PART 3)

GOLD & SILVER, GOLD AND MONEY   No comments yet

Wealth is a funny thing and the fact is most rich people are born that way.  Physical holders of gold are not born wealthy but if trends continue they certainly will be before it’s all over. Thanks for sticking with us for three parts ( this is unusual but we couldn’t fit it into one or two posts) and congrats for taking the time to fully understand importance of owning precious metal.  We have saved the best for last by proving how debt, even debt you aren’t personally liable, will spike metal to extraordinary highs.


Those who make a living selling gold only add confusion to those that don’t own gold. Majority of folks have no idea what a safe haven or intrinsic value mean or how gold can protect them.  Why should they?  For generations we’ve been told big government will take care of all our problems and the only thing asked in exchange is our support at the ballot box.  One needs to look no further on the debt debacle than power starved politicians and denial filled citizens.  There is no free lunch and never has been.  Life is about hard work and sacrifice and when someone fails they get up and try something else.


So many ask how high gold will go in dollars but the question to ask is how long will folks allow leaders to spend money we don’t have. Today debt makes up 40% of every dollar our government spends and most folks are so comfortable with this it never comes up in daily conversation.  Sure many act concerned about the ill effects of national debt but few take the time to look down the road seeing how this unsustainable lifestyle will affect them personally.  History paints us a picture of the end of our debt trail and for those unprotected it’s not pretty.

As you read this post politicians argue the debt ceiling, new taxes, and how much government spending should cut back.  Well let me help these guys out so they can enjoy the weekend with family.  A good start is to cut government spending 40% since this is how much of our budget is borrowed.  But politicians get (got) elected by promises and promises of cut backs and sacrifice are not popular.  If the majority don’t understand ill effects of debt why would they accept sacrifice?  Your nest egg of gold and silver will continue to grow until the majority of voters realize a life of debt is a life of uncertainty and reliance.  Only then will the value of your precious metal stabilize.


WHY MOST ECONOMIST ARE WRONG:

Majority of economists telling us what to expect in the future never saw the past coming. The ones that do understand how debased dollars spur inflation and rising gold value always forget one thing, emotion.  Economist, in theory, can predict mathematically what will happen “if” but they always leave out the fear factor.  Your gold and silver will react to inflation, really react to hyperinflation if this is the case, but another driving factor is old-fashioned fear driven demand.  When folks realize “fear” they historically have turned to precious metals.  Couple fear with natural inflation forces and the future could see days of 10% to 20%  spikes in gold and silver.

All above may sound crazy but let me say this before you formulate the opinion.  Never before has such a reserve currency, the U.S. Dollar, been as debased as right now.  Please take a hard look at hard money like gold and silver.  Thanks for reading The Prospector Site.

NEWS WORTHY:

REAL CLEAR POLITICS:  Sen. Rubio: “We Don’t Need New Taxes, We Need New Taxpayers”

“And here’s the fact: the fact is it doesn’t solve the problem. First of all, if you taxed these people at 100 percent, basically next year you said, ‘Look, every penny you make next year the government’s going to take it from you,’ it still doesn’t solve the debt. Not only does that not solve the debt problem, but I looked at a host of other — a great publication that came out today from the Joint Economics Committee, our colleague Sen. DeMint chairs it. And it kind of outlines some of the tax increases being proposed by our colleagues in the Democratic Party and the president to solve the debt problem. And you add them all up, you add all of these things up — the jet airplanes, the oil companies, all of the other things they talk about — you put them all together in one big batch, and you know what it does? It basically deals with nine days and 23 hours worth of deficit spending.  Must read.

NEWS WORTHY:

SMART MONEY:  Gold for Your IRA?

The Internal Revenue Code allows IRAs to own certain gold, silver and platinum coins, as well as gold, silver, platinum and palladium bullion that meet applicable fineness standards. For example, an IRA can own American Gold Eagle coins, Canadian Gold Maple Leaf coins, American Silver Eagle coins, American Platinum Eagle coins and gold and silver bars (bullion) that are 99.9% pure or better. Some well-known gold coins, including the South African Krugerrand, are off limits, as are bullion bars that are not sufficiently pure. The coins or bullion must be held by the IRA trustee rather than the IRA owner. In other words, you can’t have your IRA buy coins or bullion and stash them in your safe deposit box or bury them in your backyard. These tax rules apply equally to traditional IRAs, Roth IRAs, simplified employee pension (SEP) accounts and Simple-IRAs. No problems so far.  Read it here.



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ARE PROOF COINS WORTH IT?

BUYING GOLD/SILVER, GOLD & SILVER, GOLD/SILVER COINS   2 comments

Spend anytime at all around gold/silver coins and the word proof comes up.  A “proof” graded coin is the best of any uncirculated lot of minted precious metal coins. The question is does a proof coin justify the added stress to your pocket-book?  I guess to answer this question you need to ask yourself if you want to invest in coins or precious metal?  We have certainly seen proof coins in gold and silver appreciate but are they worth the extra cost.

Most gold, and many silver, coins minted by the US Mint (or any other mint) will be uncirculated but not all uncirculated coins are proof worthy.  It would be an unwise person that would attempt to spend a gold coin stamped with a $50 dollar denomination  when the coins gold value is worth many times face value.  But even uncirculated coins are not perfect and many have small dings or marks from packing and transporting.  This distressing doesn’t affect the value of the coin since the coin’s value is in the silver/gold within it.

PROOF COINS:  Proof coins are minted by using a different die system when stamped.  The stamping process is double as typical uncirculated coins with the result leaving a proof coin clean and contoured.  The polish of a proof coin will look mirror like leaving no doubt these coins are as perfect as a piece of pressed metal can be. These proof coins are then certified/graded as the best of all uncirculated coins.  The price over uncirculated coins is what the market demands for proof coins.  Many times the mint will stamp a limited number of proof coins and this only drives up the value.

TRUE WORTH: Answering the question if a proof coin is worth the extra money can be difficult to answer.  Obviously if you are a new precious metal investor my advice would be to consider uncirculated(you are paying for the metal in the coin) over proof coins.  If you are an established metal investor then there is something to be said for a coin that is the best possible, limited in number, and made from gold or silver.

Precious metal like gold, and silver, have a limited supply available for mints to press into coins.  Even though the gold/silver market is ignored by most investors many new ones are coming into metals daily.  I completely expect someday soon the proverbial herd will discover gold’s true value and this will only dry up reserves of new coins.  As inventories diminish, all gold/silver coins will see huge market gains as desperate investors buy anything made of precious metals.

THE HERD ARRIVES: There is no question panicked investors will buy and push the proof coin market to new levels.  Just because an investor panics doesn’t mean he isn’t wealthy and the wealthy are used to being different then the herd.  These well to-dos will find attraction in proof coins that hold great gold and silver value.  I believe holding a percentage in proof coins will be of great value in the not so distant future.

QUESTION:  What do you think of buying coins from sites like Ebay?

ANSWER:  I like auction sites (from a buying aspect) as a source to add new coins to the arsenal.  Sites like Ebay identify sellers by rating past performance and service.  One thing to be aware of is many sellers charge slightly over market to off-set selling costs.  The best part of EBay is most coins are in stock and ready to ship (many times shipping included).

TIP OF THE DAY:  If you like the idea of buying proofs be sure to verify the certification of each proof coin.  Certification has come along way over the last ten years or so but do you own research.  Its your money being spent so trust but verify.

For your reference we have added “Fair Pricing of Gold & Silver”.  This should give you a general market price of gold & silver.  If you are being asked to pay much more please research alternative buying options.


FAIR PRICING OF GOLD & SILVER (11 am MST)

  • SILVER BULLION ONE OUNCE:                                $41.80

  • SILVER ROUNDS ONE OUNCE:                                  $39.46

  • GOLD BULLION ONE OUNCE:                                    $1512.45

  • GOLD BAR ONE OUNCE:                                              $1476.72

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BEST WAYS TO SELL YOUR GOLD

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One of the confusing things about gold/silver ownership is how to get rid of the stuff when its time to move on.  Sure your broker said they would gladly buy your metal back but is this the best way to sell?  After all aren’t they in the selling business so maybe we should look at a few other options to get you the most bang for your metal.  Make no mistake about it there will be a day when selling will be in your best interest so establishing a plan now makes sense.

Thanks for reading The Prospector Site.  Our goal is to provide unbiased information so you can formulate your own opinion and not rely on ours.  We are not brokers nor do we receive any commission if you buy precious metals.  We do recommend not taking our word, or anyone else’s for that matter, that gold and silver are great investments but do your own research.  I personally think metals are the best investment for my family and love the idea of deciding my own financial future.

SELLING YOUR GOLD: The best way to sell your metal is not one I recommend to many but it is the most profitable.  The most profitable way to sell your metal is to someone in your neighborhood or someone you personally know.  The only way this works is by letting folks around you know that you are sitting on valuable physical gold/silver and looking to sell.  I don’t like the idea of giving up discretion for profit and security.  If you do go this route be as cautious as possible.  Normal people do funny things when money is one the table.  Nevertheless, this is your most profitable way of selling by cutting out the middle man and going straight to the new buyer.

There are perfectly safe options to sell physical gold/silver and the best way for you depends on the amount you want to sell.  If you are looking for a little cash to take your family on vacation then selling just a few coins will work.  Selling the coin (s) to your local coin shop makes perfect sense if we are talking about a coin or two. If you are wanting to pay off an equity line the selling process is completely different.  Your selling broker, or any broker for that matter, may pay more but the cost to ship will be a factor.  Spreading this cost over several coins makes sense but not for one or two coins.

I recently sold several gold coins via my broker and used these proceeds to buy silver coins.  The broker paid me $17 over gold spot and gave me 30 days to commit to a lock in price.  This means I was able to buy my silver coins on a good dip but not have to lock in my gold coins that I was using to make the purchase of silver.  I shipped off my gold (your broker will email over shipping requirements) and then waited for the gold market to bounce up.  It worked out good for this situation but could just as easily dropped so understand there are no guarantees.

EBAY: EBay is another option and many gold/silver coins are sold on this site.  I like to use EBay to see movement of market value of rare coins since many brokerage sites don’t post these values.  One thing to understand about EBay is that they are an online auction and fees are stacked against the seller.  The fee breakdown is a little confusing but are around 10% but drop down to around 2% at a certain dollar amount.  The benefit is selling at market value all with protection of PayPal type pay systems.  This is helpful in eliminating crooks and scams but use caution regardless.

COIN SHOPS/PAWN SHOPS: We touched lightly on coins shops so let me expand.  Coin shop owners are a different breed for sure.  They enjoy the hobby aspect of collecting/dealing coins but are starting to see the profit potential in the investment side of gold/silver.  Don’t expect coin shop owners to be experts in precious metal investing.  They have the same business overhead as any business and turning inventory is just as necessary as any business.  What they do understand is gold/silver is moving up and their inventory of coins are loaded with these same metals.  If you are going to sell to your local coin shop educate your self on current trading value before you commit to sell.  Most coins shops make profit by buying at wholesale and selling at retail.  The money you leave on the table is the price for instantly liquidating metal to cash.  Many shop and pawn owners love to haggle so bring your negotiating game with you.

TIP OF DAY:  Much is written that shortly after 9/11 coin and pawn shops where open and ready for business when bank ATM’s where down.  Cash is king but only for those that have it.

QUESTION:  I don’t really understand how a broker works or why I should use one?

ANSWER:  Precious metal brokers deal with huge volumes of gold and silver and work off small commission percentages.  These same brokers work in real-time value and like the stock market this value changes constantly when markets are open.  This is why your local bank doesn’t sell gold/silver at least in large amounts.  Spend a little time online visiting multiple precious metal brokerage sites to familiarize yourself with the buying and selling process.  Some have inventory on hand some don’t.


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GETTING STARTED WITH GOLD & SILVER

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Welcome to The Prospector Site and thanks for reading.  Since you’re reading you must have realized something is amiss in today’s economy.  Well you are at the right place because this site will do nothing but provide solid unbiased information on precious metals like gold/silver.  It wasn’t that long ago I was sitting in your shoes asking questions like what to buy, how to buy, how to sell, where to sell, etc?  These are all good questions and ones that should be answered before you get to far down the golden road of precious metals.

So many articles have been written making a good argument why to invest in gold/silver but few go into specifics on how to get started.  We feel this is the best place to get started so starting is what we will cover first.  Let me also start with the fact that we are not brokers of any kind so if you do or don’t buy it doesn’t benefit us at all.  What we do provide is solid resources that you can use at your leisure to make sure you are getting the most bang for your buck.

There are many ways to enter the precious metal market but for today let’s be specific and look at ways to enter the physical precious metal market. This simply means you will have a chuck of gold and silver in your possession shortly after you decide to pull the trigger.  Since you are most likely new to investing in gold/silver I do recommend holding your own metal.  Down the road you may feel comfortable with paper gold but for now lets get physical.

Rare coins are very popular for metal investors and I’m betting that you could drive downtown and find a local coin shop to sell you a boat load.  Before you wonder off let me say something about this type of metal investing.  Watch out because rare coins can be profitable but the problem is the one receiving the profit is usually the same guy selling them.  The reason for this is hobby investors are as much a part of this investment type as precious metal investors.  I’m not saying there isn’t money to be made it’s just very difficult to track the value of rare coins.  My suggestion is to keep rare coins rare but keep in mind that someday you might add some to your metal portfolio.

Rounds are simply hunks of gold or silver that have been melted and then weighed to create a uniform mass of precious metal.  Individual mints will sell rounds to investors who simply want to invest in physical gold/silver and don’t care about pretty coins or bullion.  The fact is investing in rounds will give you the most bang for your buck because they usually sell for slightly over spot (spot is the paper value of gold and anything over is to cover minting, mining, and selling costs).  Be sure to research rounds for a stamp showing grade and weight on each round before buying. Don’t be afraid of investing in rounds because they will be the next big thing in metal investment.

Gold/Silver Bullion is a solid way to enter the metal market and is exactly how I did years ago.  A common example  is coins from the US Mint called Eagles that are made from both gold and silver.  These coins have a dollar value like the coins in your pocket but their real value is in the metal within each coin.  These coins are easily traded in fact so common that shortages are common especially in times like these.  You should expect to pay a premium over spot but they will be easy for you to track.  Selling gold and silver will be saved for another post or two but Gold/Silver Eagles seem to be easy to move when the time comes to move into another asset or cash out.

Well this is metal investing 101 so let me know what your thinking.  Congrats for finding a safe haven for your family’s future.

QUESTION OF THE DAY:  I’m concerned that I have missed the boat by coming in late to gold and silver?

ANSWER:  This is a great question and one that is asked frequently.  What you are referring to is a “bubble” just like we have seen with the Dot.com market and more recently the real estate market.  If we can use the two examples above lets look at what caused the bubble and the burst.  Dot.com was driven on pure speculation with everyone and their brother-in-law jumping in head first.  The real estate bubble was dependent on cheap and available borrowed money and when this money dried up so did inflated values.  As with the Dot.com, the herd came in late but was just in time for the slaughter.  Now for gold/silver.  Less that 4% of the worlds wealth is in precious metals so we can safely say the herd is no where close at this point.  How about easy money available to leverage gold?  None existent as far as I know.  The fact is someday gold/silver will be in a bubble and we will know it by the sound of the herd (media, friends, relatives, and experts) all beating the drum.

TIP OF THE DAY:  Gold and silver have been vertical as of late.  The higher they go the bigger the dips because no investment goes straight up.  Watch for a good dip if you are in the market for physical gold/silver.

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