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What will it take for Precious Metal to Rise?

GOLD & SILVER, GOLD AND MONEY   No comments yet

When David Logan (name changed in respect for family) drove himself to the ER on a spring day of 2012, he complained of shortness of breath and discomfort spreading to his back, jaw, and throat. Although these symptoms are often related to a heart attack, the ER doctor found it unlikely a healthy-looking male in his early thirties fit such a diagnosis.  The medical staff admitted Mr. Logan and soon after the doctor on duty put a plan in place that included looking deeper into why a young fit person was in such agonizing pain.  No one would have guessed that this afternoon would be Mr. Logan’s last.

Pain and discomfort is the #1 reason people visit their primary care provider. Their motivation to invest effort, time, and cash stems from an uncomfortable state that reaches a point of “doing something” in hope of relief. The same type of pain is what it will take for PMs (precious metals) to rise far beyond what most of you can imagine.

As most know I live in the United States. I also live in a flyover state that has seen more winter than any sane person should see in a lifetime. But other than a few winter annoyances life here in the US is pretty darn good. In fact, it’s so good that most individuals never consider the monetary “pain” that will eventually grip even the most wealthy of all countries.

The fact you’re making the effort to explore physical silver or gold amazes me. I have no idea what motivated you to make such a decision but I commend your insight, congratulations.  You are, medically speaking, the person who practices routine checkups to eliminate a painful problem before it develops.

But most folks living life are too busy to live like you. They assume all is economically well because everyone else does. They see a steady paycheck paying monthly bills and they still have enough left over for pizza and adult beverages at week’s end. These same individuals also assume a rising DOW, and housing market, are signs of a stable economy. Buying physical gold or silver is at the list bottom for the aforementioned.

The folks too busy to invest in PMs fail to understand why things appear normal in 2014. Honestly, this may sound harsh but most folks don’t care what it takes to maintain normalcy. They suffer from a term call normalcy bias which enables them from accepting the fact that someday a situation nearly unimaginable will happen if we continue to defy economic law.

The monetary reckoning we’re describing should not be interpreted as “dooms-dayish”. It should be viewed more as imminent than unusual. so let me explain.  It would be unusual that a society, or economy, continue along as normal while simultaneously compiling mountains of debt and deficit in order to do so. Your neighbors on each side accept this normalcy because this form of “mortgaging the future for a better life today” has lasted their entire lifetime.

Why can’t perpetual borrowing lead to never-ending economic normalcy?

Most of you reading this are not happy with today’s governmental  leadership. You often ask why it is that the majority continue to elect leadership that allows the government to expand, not to mention infringe, into the very freedoms this country is founded. The answer is describable with one easy word, APPEASEMENT.

The same reason your hunk of gold or silver hasn’t risen is the same reason failed leadership is reelected. Politicians have figured out that a simulated state of economic normalcy will appease the people just to the point of complacency. This is why our national debt rises to historic highs and the same reason why we as a people allow a congress to borrow $.43 of every dollar allocated and spent.

The world is aligning into a new age, and this tension is growing obvious. A global economy based on a USD (US Dollar) reserve currency has never been in question as it is as you read this. The tension stems from countries heavily invested in our currency, thanks to decades of buying revolving debt, yet angry that only one country can print USD. The tension increases when we consider the economic instability of the same debt-holding countries that rely on a strong US economy.

Today’s tension will eventually lead to economic pain. Again, it would be unusual if it didn’t. As countries around this spinning globe retract from a USD acceptance, so will a US life of normalcy. Ordinary folks will question failed leadership and monetary over indulgence and this will not bode well for the political status quo. The pain will cause nearly all to question “why” on every level of what not long ago was normal, both politically and economically speaking.

This awakening is imminent but timing such an era is impossible. Until this day the value of silver or gold will elude most and rising prices shouldn’t be expected. The true reward for your prudence will come only after the world awakens from normalcy bias, and they will!

QUESTION: DC, are you okay? Haven’t heard much from TPS in awhile!!!

TPS Reply: I’m fine…… but thanks for asking. Like most of you, I’m, too, very busy with raising a family and running business. I one day looked at TPS and realized precious metal was on hiatus and honestly this site now has the unbiased information someone needs to make an informed decision when it’s time to buy physical metal.

I have plans to update TPS more often but until PMs break from hiatus neither will I. Thanks for asking, and the concern of many readers.

QUESTION: I am very appreciative of TPS and the information you provide, thank you. My husband and I often discuss how things have changed in our lifetime (both good and not so good) wondering how life for our grandchildren will be influenced by today’s misgivings? We both vividly recall our parents describing the pains of the Great Depression and worry that society has forgotten how quickly wealth can disappear. We own physical PM and have for years. We don’t own PM to get rich but in hopes of providing economic stability for our family long after we’re gone. Just wanted to share this with you and your readers.

TPS Reply: Thank you for sharing, and you’re welcome. I love to hear from our readers, like you, who share great concern for this great country. You mentioned something that made me really think with how quickly wealth can disappear and how today’s society has forgotten the pain, both monetarily and socially. It’s sobering how quickly paper wealth can vanish and it’s unfortunate how few understand the benefit of owning, or storing, some wealth in physical PM.

I also agree with your motivation to preserve family wealth over riches. It is important that each of us educate our youth on the difference between real money and fiat currency. As you know, what most call money today is intrinsically valueless and only holds value thanks to other people’s faith. As the faith diminishes so will a currency’s value and worth. At such time physical metal will shine as a safe store of value and this will lead to a PM scramble.

By the way, I hope you and all readers are following the recent news event of found gold treasure. It appears some lucky soul in Northern California unearthed several million dollars in gold bullion and rare coins. The value is speculative, but my research shows a melt value over $2 million and a collector value nearly $10 million. Now, here is what interests me. The backstory has gone completely missed by today’s overzealous media.

At the time this stack of gold was buried our monetary system was on a gold standard. This meant a twenty-dollar bill, or any bill, was exchangeable for the same dollar value in physical gold (twenty-dollar bill for a $20 gold piece). These days are long gone and we all know that a twenty-dollar gold coin is worth many times more than face value. But here is where it gets interesting. What if the party who hid this treasure would have put dollars into the cans, not gold coins? It is estimated that the value of the gold at time of burial was around $27,000. If in dollars, the unearthed value today of $27,000 is only a fraction of the long-term value of gold. Think of it, $2,000,000 in gold compared to $27,000 in USD?

One day your family will be very appreciative of your insightful thoughtfulness. Thanks for sharing.

 

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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WHY IT’S NEARLY TIME TO BUY MORE SILVER & GOLD!!

GOLD & SILVER, GOLD AND MONEY, SECURING GOLD & SILVER, STOCKS AND GOLD/SILVER, Uncategorized   No comments yet

As we prepare to put the final wrap on 2013 – there is one thing I know for certain. Neither gold or silver shined this year. In fact, neither metal has shown promise for several years, respectively. But the winds of change have me rethinking my nearly year-long resistance of adding more metal to my personal stash. For what it’s worth, I’ll pass along my opinion and then the decision to buy, or not, is all yours. Since this site, nor I, sale PMs (precious metals)…… I see no reason to “cheerleader” the unbiased facts.

Precious metal is testing the faith of even the most devote PM holder all while other asset classes confidentially climb. The DOW is on fire by rewarding her faithful nearly 30% year-to-date. Some parts of the country’s real estate market are feeling the same positive appreciation as historically low interest rates support rising home values. So, what the heck happened to PMs?

It took only a couple of years to undo gold’s decade long reputation as a steadily climbing safe haven. Folks today view gold, especially silver, as a high-risk asset with expectations of more decline. This expected decline is based on recent performance more than commonsense or an economic mindset.

The next rise in PM is imminent in nature but the unknown is how low will both metals fall before the next great rebound. We can argue short-term expectations (gold or silver) but long-term speaking leaves little room for discussion.  Not even the most economically optimistic person can name one growing asset unsupported by central bank intervention.

The ability to support an economy with fiat currency can not last forever, but it can outlast the faith of many folks entrusting silver and gold.

The 60%, or so, Americans still willing to trade effort for a paycheck are divided into two wealth classes. The first class is working to pay monthly bills all while attempting to build wealth (capital). The second class has wealth and is now trying to preserve it or, maybe better put, not lose it. The option to own physical silver or gold is reserved primarily for this second wealth class, but not exclusively (ones living check-to-check most often end up selling physical PMs soon as times get tough).

Now here is where things get interesting. Citizens of America are beginning to realize the biggest threat to their wealth is political. New laws like the Affordable Care Act are less about providing healthcare and more geared toward political control and wealth distribution. Think of it more like a well camouflaged form of modern-day taxation (penalty). The hook is now set and the wealth of America is ready to reel in thanks to unaffordable premiums or fines for opting out.

A rising DOW is nothing more than the distracting hand of an illusionist. Controlling political power is only possible by controlling the wealth of the people. When the majority depend on social programs then those in charge, politically, will stop at nothing to find creative ways to transfer your wealth in order to sustain their political power.

Why it’s nearly time to buy more gold.

The political climate we’re facing is more than just a loss of freedoms. We now live in an age of inherit confiscation meaning all exposed wealth is in jeopardy of some kind or another. This realization, or awakening, bodes well for physical precious metal and the soon-to-be-seen rising values of both silver and gold. In other words, the PM bottom rests in the faith of the masses.

Today’s dollar value assigned to each ounce of silver or gold is a byproduct of PM faith.

Precious metal has lost its illustrious shine as of December 2013, don’t even mention silver. By example, CNBC recently led with an article entitled “I wouldn’t buy gold with my worst enemy’s cash”: Strategist

The article mentions how, “gold doesn’t have many friends”. I agree, but articles like this are partial proof  why the time to stack more PMs is close at hand. Since 1970ish, the economic rule of thumb proves one downtrodden asset will climb soon after one faith-filled asset begins to tumble. I know of no crowds lined up to buy physical silver or gold. In fact, PMs are as far off the radar as they’ve been in decades or, as the article’s author puts it, “friendless“.

Sure the reduction in mining due to lower than expected prices in 2013-2014 plays into our “buy or not buy” scenario but not nearly as much the geopolitical & economical climate we’re living. A reduction in mining is only but one of many forces leading to the perfect storm of metal prices rising.

Is all this proof enough to run out and buy physical silver or gold? No, it’s not, at least not for those already protected and looking for the right time to add more. But this does mean the time is nearing. Until then we should live life and be thankful for what we’ve been blessed with.

QUESTION:  Do you have plans to buy more silver in 2014?

TPS Reply: Thanks for the great question. As you know, I bought little PM in 2013. The PM market was too unstable therefor I held my wealth in cash all while patiently waiting for metal prices to stabilize. But those already holding physical metal have this option. If you’re new to PMs I strongly encourage you to consider taking a hard look at trading dollars for PM.

Honestly, I have no plans to buy or not buy in 2014. I don’t use a calendar to determine my next purchase. I’ll base my decision on the political climate as much as anything else. It could be hard to deny the temptation of $18 to $20ish an ounce physical bullion, I’ll admit. By the way, I view my PM holding in terms of ounces over dollar value. Dollar values of physical silver, and gold, fluctuate along with the paper PM market and can be misleading (one event is all it could take to send PM prices soaring).

My opinion is we will soon see a great separation between paper and physical PM. Until then- more of the same should be expected.

COMMENT: My identity was stolen this year, you can’t believe the never-ending hassle it has caused. My bank keeps reminding me they will stand behind my losses but I can’t help but wonder if this is a sign of the times.  You often mention the safety of storing wealth in precious metal but I can’t help but wonder if the same theft risk is possible. At least my bank is willing to replace what’s lost.

TPS Reply: I’m sorry for the trouble you mention. I’ve heard from at least six other readers this year alone who’ve had their identity stolen, same as you. Cyber crime is the newest threat to our banking and financial system. This crime is unlike any form of thievery before since technology only recently offered such an opportunity to transfer digitized wealth from owner to thief. Online security measures are nowhere near par with today’s cyber threats, this is concerning as you know.

The threat of cyber crime is nonexistent with wealth stored in physical silver or gold. This is one of the benefits of storing physical metal in a safe/secure location over storing wealth in a traditional savings account at your local bank (dollars). You’re right, most banks are doing what they can to resolve bank related cyber crime but online security experts claim this will not always be the case. Some banks will only stand behind depositors who can prove they are doing a depositor’s part of securing online activity.

My guess is banks will soon impose a “cyber protection fee” to depositors and credit card holders. This fee could  fluctuate according to cyber threats and a bank’s losses. Please add cyber crime threat as yet one more reason to consider owning physical silver/gold AND physical dollars. HAPPY NEW YEAR TO ALL.

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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Safely Storing Precious Metal

SECURING GOLD & SILVER, STOCKS AND GOLD/SILVER   No comments yet

Coeur d’Alene is a majestic city nestled within Idaho’s panoramic Panhandle. Lakes, national forest, golfing – you name it and Coeur d’Alene has it. According to Wikipedia, this Idaho city has a population of nearly 50,000 with nearly 93% of them white and the remaining 7% a blend of African American, Asian, American Indian, and Hispanic descent. Not exactly your typical inner-city demographics, respectively.

But Coeur d’Alene has at least two residents, or at least visitors, they can do without as of August 5, 2013. Because this summer morning was the day over $250k worth of silver and gold coins were carted away right in front of a PM (precious metal) owner who assumed their stash was safe. Unfortunately, this type of crime only indorses today’s need to secure and diversify your storage plan.

 

COEUR D’ALENE, Idaho — Several hundred thousand dollars worth of rare silver and gold coins were stolen in a burglary early Sunday in Coeur d’Alene.

It happened around 12:55 a.m. when the 54-year-old homeowner returned home to find an unknown man standing in her doorway and a car parked in her driveway.  When she asked him what he was doing in her home, a second man emerged from the car, according to police.

The second man yelled at her before hopping in her car and driving away from the car at a high rate of speed.  The man who was in the home then jumped into the truck in the driveway and fled the scene.

The victim went into her home and found her disabled father was unharmed and in his bed.
Police said the thieves took two safes filled with rare coins valued at a total of $250,000.  The suspects also took prescription medication belonging to the victim’s father. KTVP.com

I don’t want to read anything into this article other than what’s reported, so let’s focus on the facts. The most relevant point I see after reading this article is that no one was hurt or killed defending something that is replaceable. The second most relevant point is how quickly something so valuable can disappear, even in a relatively small city in Idaho’s Panhandle.

The aforementioned article proves the importance of protecting your stash regardless your neighborhood’s zip code. I have no way of knowing if these victims lost all their PM stash; my bet is they did. I doubt storage diversification ever entered the mind of a family securing silver/gold coins at home and in a safe.

A theft like today’s dissection is rarely random. While researching for my book on storing PM it became painfully obvious that folks who own PM, yet fall victim to theft, unknowingly participate in the crime. They participate by not taking a proactive approach to PM storage. Well over 90% of all stolen PM is never returned to its rightful owner.

Before we unfold three protective suggestions I would like to share one other opinion. My opinion is that far over half of all PM theft is never reported. Most folks who store wealth in PM are far too discrete to share anything that will expose themselves as PM prudent. Now, with that, let’s dive in.

INSURANCE:

The most common question TPS (The Prospector Site) receives is in regard to PM insurance. Most readers are surprised to hear that PM stored at home is insurable but they’re most surprised to hear it’s reasonably affordable, as well. Insuring your PM in-home stash is not for everyone. I’ve witnessed several phone consultations where the folks shot down PM insurance before I could get the entire suggestion from my mouth.

You’re right, the steps to insure in-home PM will produce a paper trail AND expose you as a PM owner……. at least to the company writing the policy. There is no way around this other than using a trusted friend or family member (to store and insure), and I’m not sure I want to go on the record endorsing such a suggestion.Exposure is the price a person will pay to insure PM stored at home, sorry.

Expect to answer a number of questions before settling into the peace of mind that comes with being insurable.  Questions like proof of PM purchase, history of burglary, your home’s exterior, etc. should all be expected. Expect to pay somewhere in the neighborhood of a $500 premium per $100,000 insured. I’m sure the premium varies so email me for more information or for an insurance source.

LAYERS:

The best in-home storage plan has little to do with the size of a gun safe or how powerful the weaponry protecting your abode. It is far more beneficial to have a multilayered storage plan than the best safe in town.

The foundation of a good storage plan is discretion at time of purchase…… and every moment thereafter.

Discretion is a hard gift to wrap. Once word spreads that you own physical silver or gold it’s hard to reverse course and nearly always assumed the metal is kept inside your home. This is why so many PM thefts end with the family sitting side by side at gunpoint before someone finally divulges the hiding place. It should never come down to risking the well being of your family, never!

STORAGE:

Never store all your PM at home. In fact, never store all your metal in any one place. Although I do recommend storing at least 1/3 within arm’s reach, I don’t recommend taking such responsibility if you’re not comfortable defending an in-home stash. Also, for those who frequently travel, in-home PM storage should be carefully considered before formulating your PM plan. A vacant home carries far more risk than one inhabited.

This could sound strange but most PM theft originates from someone close to the family. It could be someone from the remodeling crew, or it could be the nephew battling addiction of some kind. The only antidote for this risk, other than discretion, is storage diversification.

There are more reputable places to vault today’s PM than I can list. Some are domestic and some are international. Nearly all are outside of today’s banking system and this benefit will grow as world governments look for creative ways to tax her citizens. This opportunity to stash wealth outside of a country of residency is a closing window.

The internet blazes with bank box horror stories, and I’m sure a few are true. But the truth is, as of November 2013, storing SOME metal in a locally owned bank is far safer than the storage plan implemented by most folks. Storing some metal in a bank box is far safer than leaving it at home while snow birding for the winter.

It really comes down to the most practical storage method in relationship to your situation. 

Well, as you can see there can be plenty to consider before bringing home the next monster box full of silver. The first step is taking the mental effort to educate yourself before anything else. Protecting the metal that will someday protect your financial future is always worth the effort.

QUESTION:  What do you think of today’s PM market? (several similar questions & versions).

TPS Reply:  Thanks to all who’ve called and emailed with similar questions. To answer the question in one word, ugly. I’m not a good cheerleader and I’m guessing you don’t read this site for anything other than unbiased PM fact. Physical silver and gold have underperformed for sometime now. You don’t need me to spell out the obvious.

Several experts have attempted to guess when metals will rise, and all have ended up looking unprofessional. My guess is that most PM experts have underestimated the power of printing currency in order to appease the masses. Remember, the purchasing power of PM should be the focus far over the dollar value. The ability to print money has supported an economy that otherwise would be in major economic correction.

Today it takes nearly 12 physical gold ounces to equal one DOW (16,000 +-), or a 12-1 gold to DOW ratio. As you know, the DOW is made up of 30 major industrial corporations who benefit from a print-based economy. One market benefits from printing (DOW) while one market (precious metal) stumbles along sideways.

The fact physical silver or gold is not rising depresses most of my readers but the reality is we should appreciate this temporary state of economic calm while it lasts. The ability for world currencies to monetize themselves is a closing window. Once this window closes I have little doubt asset-to-asset comparisons will swing in silver/gold’s favor. Until then, more of the same should be expected.

The only indicator we have is history. History has not supported economies that overproduced currencies, not without major inflation, deflation, or even stagflation. Where we are now is somewhere in the economic digestive tract as currencies around the world continue to blur real money value (gold) with nonstop paperless printing.

For what it’s worth, my plan is to stay the PM course while simultaneously using this era of temporary stability to create additional income. Thanks again!

 

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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Signs of a REAL RECOVERY

BUYING GOLD/SILVER, GOLD & SILVER, GOLD AND MONEY, SOCIAL UNREST, STOCKS AND GOLD/SILVER   No comments yet

Signs are a forewarning that something important is soon to happen. Arm numbness could be a sign of a heart attack. Night sweats could be an early sign of diabetes. Lately I’ve been searching for signs of a real economic recovery. How else can we explain the latest gold/silver decline, all while the DOW posts another new high, other than a true recovery, right? After all, the great metal sell-off of 2013 can only be attributed to a new found level of economic faith.

Is the city of Detroit a sign of economic recovery? Detroit dropped from a circa 1950ish population of just under two million to less than 700k today. No one counting can be surprised by the bankruptcy of a city when it loses over half of its middle class and industry all while simultaneously growing the state’s pension obligations. Detroit is certainly not a sign of recovery as we watch poverty overtake what was once declared the city of great opportunity.

Nearly half of the wealth of American is stored in real estate. The lion’s share of this wealth rests in single-family homes known as a principal residence. But just as we’re led to believe the great housing recovery is unstoppable (housing bubble 2.0) news of a recent major decline in new mortgage applications say otherwise. Is it possible our great housing recovery could be upended by a 1% increase in mortgage rates?

The signs of a housing recovery are few and far between when the three denominators holding RE values together are cheap money, faith, and leverage.

What is a house worth, in municipalities like Detroit, after stigmatized by bankruptcy? The value of your home is directly affected by the health, and obligation, of your state and local economy.

The anti-recovery list grows longer. The new-found affordability of the Affordable Care Act has to be a sign of recovery, yes? Cities collapsing under the strain of long-term debt and unfunded liabilities have to be a sign of recovery, too. The fact we’ve reached the point of unbridled QE must be the truest sign of real economic recovery.

Why Silver & Gold will rise!!

The positive signs of economic recovery presented by today’s media are nothing more than a monetary distraction. Most individuals have reached a point of no longer willing to think for themselves, not to mention the ability to question those who put motive over principle. If the media or internet says so then it must be true.

I know my stack of PMs will take care of my family’s future for one reason only; what most folks view as financially stable is supported by the ability to create (borrow, print, or tax) currency. Everything from social programs, pensions, real estate values, stocks, banks, etc have reached the point of fiat dependency. This recovery is as real as any structure built upon a foundation of debt leaving no other choice but print of die.

Only the minority now buck this trend of nonstop quantitative easing. The rest, the majority, only argue over how to spend it. Think about this for a moment, please. Can you imagine the Detroit inferno if the evening news reported a significant reduction in social services, section 8 housing, food stamps, disability, etc.? What if a politician announced a monetary commitment to stop deficit spending altogether? The clip below answers it best.

Not only would city streets in every major city burn but the outcry from those invested in paper assets would be so great that the very life of the one proposing such a foolish plan would be in jeopardy.

This “jeopardy” is why your stack of physical silver and gold must rise just to keep a natural order of monetary balance and buying power. The United States, most countries too, have reached the point of no other option than print to appease, both politically and economically speaking.

I know TPS has mentioned this before but we are long past the point of arguing if metal will rise. It must rise, and will rise, as our nation accepts we are to the point of print or burn.  TPS recently posted how debt has become a threat to our national security. I’ll go as far to say the domestic threat outweighs the foreign threat when we calculate the growing number of our entitled.

COMMENT:  I personally believe the gold bugs are about to be squashed – maybe less than $1000 an ounce!!

TPS Reply:  Thanks for the comment. If every prudent person sitting on physical gold had to sell now then “yes”, the gold bugs are soon to be squashed, at least the most recent buyers. But your theory has one giant hole in it when we consider that few bugs are sellers. In fact, many are out buying discounted precious metal.

Let me guess, the DOW is your suggested new opportunity of safe haven? If so, what happens to the value of today’s DJIA if not for perpetual QE? What happens when the DOW has to stand on its own monetary merit? Will the 2008 DOW meltdown pale in comparison when those with wealth realize it’s nothing more than a paper promise?

Bernanke’s pile of printed money supports Wall Street because the lion’s share of this fiat rests on Wall Street. Of course investors in return support WS because they have little choice other than follow the next bubble; can’t you see this? I, for one, will side with the gold bugs by taking my chances with sound money (according to our US Constitution & 5000 years of history).

QUESTION:  In your last post, Fake Money Threatens our National Security, you mention the word “printing” but this is inaccurate. The money is nothing more than a digit, not only is it fiat but it doesn’t exist at all…. literally. Your point is noted but you should clarify. Thanks for what you do!!

TPS Reply:  Great point, thanks. You’re correct, less than 1/2% of cash deposited actually exists. This number can vary but never anywhere close to a percentage that would make most depositors comfortable. This is why the banking world is deathly afraid of a bank run similar to what happened in Cyprus.

This is also why I recommend keeping most liquidity in cash, silver, or gold form. In my opinion, at least 1/3 of this wealth should be within arm’s reach safely stored in-house or with someone trusted. I wish more folks understood the fragile nature of today’s banking world, fractional reserve lending (banking), fiat currency, and, of course, real money.

Good for you and thanks for the reminder!!  By the way to all readers, if this sounds like an overreaction just research the words “bail-in” as it relates to today’s banking institutions. Why not take a proactive stance while this option still exists?

 

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 SILVER PRICE MYSTERY

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

Most folks completely misunderstand today’s silver market. Even more are unaware of the disconnect between physical metal and the highly leveraged paper promises, most commonly traded, thanks to large investment banks and bullion dealers. Oh sure, they believe silver’s spot offering (price) is relatively close to the physical silver market…… but they are mistaken (today we will prove just how unfortunate this is playing out to be). The PM crash in April of 2013 disrupted, maybe added is a better description, an alternative buying option, but this new option does come with a hefty price. If you’re one of the many silver hopefuls, and looking for immediate silver possession, please read today’s post closely. With that, welcome to the mysterious world of secondhand silver.

Lake Tahoe is one of the most unique lakes in North America. With 72 miles of shoreline and a depth of over 1600 feet, Lake Tahoe also has one other very unique characteristic. Although invisible to the eye, a state boundary runs through the middle of Lake Tahoe. Both California and Nevada lay claim to the pride of the Sierra Nevada mountain range.

Today’s silver market reminds this writer of Lake Tahoe because it too has an invisible barrier. The line between online physical silver for sale compared to cash-n-carry physical silver is now obvious. Let me explain it like this. A silver order placed today could take a month or longer to reach a nervous silver buyer; but an in-person silver transaction is immediate. The latter option is one our industry often calls the secondhand PM (precious metal) market.

Over 90% of the world’s investors view the price of silver in a paper dimension, as aforementioned. They see silver’s recent decline and say, “Thank goodness I didn’t invest in silver”, but not realizing paper silver is running a distant third in the great PM race of 2013. To expand this racing analogy, online physical silver (silver available to purchase but weeks or months until deliverable) is running a respectable second position.

Our silver runner in first place is our focus today. This, of course, includes all physical silver available in real time AND held by some entity willing to sell. The list shown below illustrates the mysterious three silver options of ownership priced in one ounce bullion.

1.  Paper silver. $24.00
2.  Online physical silver (back-ordered). $30.00
3.  On-demand secondhand physical silver. $34 – $37

No one knows when but it’s almost a sure bet that someday very soon silver buyers will have no other option than secondhand silver (most costly of all silver offerings) or speculate within the paper PM market. Sure some buyers will win the silver lottery with a limited opportunity to buy rationed online silver (Blanchard, Miles Franklin, Colorado Gold, etc) but this certainly will not be the norm. What will be normal is the realization of paying what the few willing to sell will accept.

It’s impossible to accurately estimate the additional premium for future secondhand silver. If I must, I would guess the secondhand silver market will soon escalate to a 100% premium over spot (or paper value) and then eventually reach a constant somewhere around 500% to 1000%, over silver’s spot offering, just as our economy reaches the epicenter of economic correction. I only base this estimation on the similarity between 2008s silver market to today’s – realizing the world’s fiat currencies then are nowhere close to today’s level of printing.

Please take one more glance at the three options listed above because 99% of the folks contemplating silver, but yet to own any, STILL BELIEVE THEY CAN PURCHASE AN UNLIMITED AMOUNT OF PHYSICAL SILVER FOR $24 PER OUNCE. This miscalculation will become more costly from here forward.

Precious metals are an unsolvable mystery. Today’s economic and political actions affect tomorrow’s silver availability. Then, a limited availability affects, or drives up, the price of physical silver. What affects the price of physical silver the least is paper silver. If you’re relatively new to silver please pay particularly close attention to the next sentence or two. The price of secondhand silver is worth it ESPECIALLY if new to physical silver. After some accumulation it is perfectly okay to purchase online physical metal (back ordered as I write this) while patiently waiting for its arrival.

QUESTION:  A large standup style safe will not work under my PM storage situation. Do you recommend using a bank box or passive method of storage in such a case? Thanks.

TPS Reply:  Not exactly but thanks for the question. My view of a secure PM storage plan includes using up to three storage options. I believe in taking a proactive approach to PM storage by thinking like a thief who is willing to part you from your metal. Most individuals storing silver and gold think in one dimension and this greatly concerns me. The right PM storage plan really does come down to each individual’s situation.

I recommend storing at least 1/3 of your PM within arm’s reach. This 1/3 can be stored many ways and a standup safe is one of but several options I recommend in Storing Silver & Gold. For less than $200 a security minded individual can purchase, and install, a compact safe perfect for securing what you’ve worked hard to amass (please check out Costco.com).

Bank boxes serve a limited purpose and I only recommend this storage option during extended travel or for the elderly uncomfortable with personally securing something like PMs within the home. BTW, don’t forget to insure all of your PM regardless how or where it’s stored. Thanks for the question and reading TPS.

COMMENT: Continuing to read and enjoy the straightforward approach at TPS.  I’m recommending TPS to anyone waking up to reality and wondering what is going on economically and how to protect themselves.

TPS Reply: Great, thanks for the recommendation. You mentioned something that caught my eye regarding protection. This really is about protection in an age when preservation is so important. So many complain about today’s fiscal insanity and all the economic and social volatility that accompanies such an age but few actually make a personal attempt to insulate themselves when possible.

I see the option to protect by way of PM as a closing window; even silver will soon become either too expensive for most or flat out unavailable. This is why I’m beating the PM drum ever so loudly while we still have choices to transfer our personal wealth beyond traditional avenues exposed to heavy taxation and capital controls.

Looking back……. I made a few PM mistakes by not knowing the best metal to buy and from whom. But each miscue led me to a new monetary understanding that now allows me to think for myself. My hope is each reader spending precious time with TPS develops this same understanding as well. Thanks for the comment.

BERNANKE WATCH:

The world’s most powerful man continues to tease our media with hints of slowing the printing pace, but those trusting PM know this is only lip service.  Unfortunately, our press repeats such nonsense without verification (see the quote below). Central bankers now realize economies worldwide depend on currency counterfeiting just to sustain today’s level of a failed economy AND support the millions who depend on some form of government assistance to live. There is zero chance quantitative easing will end anytime soon.

“A bigger-than-expected rise in tax receipts to Washington has improved the U.S. fiscal outlook, and the Treasury and private analysts have been taken by surprise by how quickly the deficit is shrinking. Belt tightening in the wake of the series of mandatory budget cuts worth $85 billion – known as the “sequester” – could further reduce federal borrowing needs if it doesn’t inflict lasting damage to the economy”.  Reuters May 2, 2013.

A bigger-than-expected rise in tax receipts is only beneficial under fiscal restraint. The latest housing boom, and then bust, provided both record levels of tax receipts and a continuance of record deficit borrowing. This means in good times or bad, the size of government grows regardless. Does anyone really believe a reduction in government spending will happen voluntarily or redirect government to live within their means?

Everything from funding pensions to printing food stamps now depends on the next level of debt creation to sustain itself. The thought of reducing debt, or a reduction in currency printing, is no longer an option. This fact alone will continue to create adverse economic conditions and cause PM prices to rise beyond what even the PM faithful can imagine.

 

DC Carlton is founder of The Prospector Site and author of the Amazon Kindle #1 Bestseller 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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WHY SILVER & GOLD ARE PRICELESS

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

Today’s title could sound odd considering gold just had its worst day in 30 years. As I write, and probably as you’re reading, economic prognosticators still relish in repeated “I told you so.”  We will keep this short today because I have what I want to say and nothing more. The last few days were draining for not only those willing to own PM but for the few willing to justify PMs in a published sense. For us, a PM shakedown is twofold when you add credibility into the equation. Nonetheless, let’s dive into why silver & gold are priceless.

Good day to all and thanks for joining TPS. If you’re new to PM (precious metal) then you picked a great day to join us, congratulations by the way. It appears the smoke is starting to clear from the PM arena and it’s looking like both silver and gold took a real beating, at least at first glance.

Every situation is a learning experience, do you agree? Personally, I have but one question left to answer. It’s not why PM prices fell so suddenly or quickly.  Nor is my primary question one that asks who is behind such PM brutality and volatility. The above questions will twist and turn themselves into history and certainly don’t need my help.

My only question is “Why?” Why did so many paper PM holders sell because of fear while the majority holding physical PM line up to buy more? The answer to this question is the very foundation of precious metal. A truer understanding to this question is the cornerstone.

Paper PM investors proved over the last few days their inability to think for themselves. If precious metals have taught me anything over the last decade it is the ability to tap into my own mind to make prudent monetary decisions for my family. We are nearing a point when this is the most valuable asset (ability to think for yourself) a person can claim.

TPS doesn’t sell PM, but we keep a close eye on those who do. All PM sources are reporting record sells of both gold and silver all while the paper PM market experiences the biggest paper liquidation in history, why?

How can two sides sharing the same asset be so far apart? How is one side, paper PM, so disconnected from the true benefit of PM while the other end stills view PM as the last asset to go?

This next statement will sound odd but I’m going to roll it out anyway. For me at least, PM has served its purpose and if both metals dropped to zero tomorrow they still provided this owner with a lifetime of knowldege. If I’ve learned anything from physical PM it is the ability to question what so many take as factual.

Precious metals have taught me the difference between money and currency, the difference between real wealth and the illusion of wealth, between fiscal restraint and a politically motivated smoke screen, and, most importantly……. the difference between building a life of independence over a compromise of freedom and liberty.

A person willing to make the effort to buy physical PM is the same person equipped with the ability to think on their own feet without input from an overreaching bureaucracy. If silver or gold dropped to worthlessness tomorrow this gift will sustain us forever. There is nothing more valuable than the combination of knowledge and effort.

SILVER & GOLD’S FUTURE:

Many of you are silently asking, “What’s next for PM?” First, I’m 100% convinced silver and gold will skyrocket beyond the belief of even the most skeptical. I’m also convinced that the last few days of volatility are nothing but a taste of the future, here is why.

Think how nerve racking it was to watch silver drop from $30ish to $20ish, like April 2013. Can you imagine the confusion when silver, valued in dollars, dips from $180ish to $150ish? What about a dip in gold from $3200ish to $2400ish? My point is each person breathing air should expect economic volatility from here forward as “normal”. Yes this includes, especially includes, precious metals.

I believe the paper PM market will separate from the physical market. In fact, we’re seeing this already but this doesn’t mean we should expect a steady incline. Our fiat currency age will not transform itself to real money without huge spikes, dips, valleys, and everything in between.

No one can accurately tell you when to buy more precious metal no more than when to sell it. Personally, I believe we’ll reach an age when it just makes sense (according to our ability to think for ourselves) to trade silver or gold for something else. I’m not so sure today’s dollar value perception will play part of such a day.

 

DC Carlton is founder of The Prospector Site and author of the Amazon Kindle #1 Bestseller 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.

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WHY I RECOMMEND BOTH SILVER & CASH

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

In all likelihood your home or apartment has an inconspicuous looking device attached to the ceiling, probably more than one. This device has saved untold lives and is a priceless addition to your family; by law each new home or new renovation must include this device. By now you realize the item I’m describing today is a smoke detector.  The primary goal of a smoke detector is not to detect smoke; it is to sound alarm of eminent danger. Unfortunately, few can hear the harmonic sound of an economy in correction, even less realize where there’s smoke there’s usually fire.

Not a day passes without a reader emailing, or calling, TPS to ask what PM I’m buying. The answer is “silver” and the reason is nothing more than the primal desire to survive and preserve. Why so few Americans fail to react to this internal beacon is beyond me. I’m so very glad you’re excluded from this clueless trend sweeping our nation but what if I said physical silver alone is not enough?

Bells and whistles are blaring all around us even as your read these words. Few hear the ringing because most folks view danger based on the reaction of others. It is a proven fact that if enough folks take flight others will follow without knowing why. Unfortunately, the opposite is true too. On a 1-10 scale, I would gauge the flight to precious metals slightly above 1, as of April 2013.

This lack of urgency spawns inaction by business owners, college students, wage earners and retirees. All the above are on the cusps of no longer controlling their monetary future because they fail to recognize how quickly technology can separate our wealth from our control; the video below is but one real-time example.

Economists often compare the Great Depression with today even though this is impossible. The Great Depression was a slow burn that consumed untold wealth over several years. The US economy was primarily “local” in nature unlike today’s global age we’re living. At such time, silver, gold, and the US dollar were all real money.

A monetary life in 2013 is much different. Almost instantly our financial world can be contained by a banking lockout, this usually happens on a Friday afternoon. The video above accurately describes the challenges of every individual who still trusts, therefor stores, personal wealth within a banking system. The powers in control realize the best way to control your wealth…..not to mention preserve their power, is to quickly lock the exits before you can transfer personal capital (savings).

NOTE:  Cyprus bank depositors are allowed to withdraw no more than a few hundred euros per day; this came after an eight day bank holiday.

The political machine realizes the best way to keep the village distracted is to pipe in the soothing sounds of recovery, stability, and economic opportunity. It matters little if true, it only matters that you believe it because if you don’t the powers in control will enforce control. Reminds this writer of an abusive spouse who punishes but only because the victim deserves it.

I’ll say it loud and clear, I’m not a good victim. Since you’re reading today I’m guessing neither are you. The thought of an overreaching bureaucracy divvying out my wealth byway of an ATM ration doesn’t resonate well. I refuse to allow a bank to control how much I spend, where I spend, and on what I spend. This reason alone is why I recommend storing cash as well as physical PM.

Precious metals are in my opinion the best long-term store of wealth. The problem is the only way PM can convert to cash is by selling. We don’t want to sell our silver, or gold; this is why it’s important to understand a world accustom to trading in dollars, a.k.a. cash, will confuse real money with physical dollars, especially in times of banking volatility or unsuspected bank holidays. A Cyprus glimpse proves my point better than I can.

This is why cold hard cash is king, short-term speaking, as shown at the 3:00 minute segment in the above video. A loss of faith within the banking industry will lead to a run on cash.

The play of the day is twofold. I strongly encourage each reader to consider physical silver, while still available, along with a couple thousand dollars in cash and, as always, 1/3 STORED WITHIN ARM’S REACH. If you’re finding this confusing please email or call TPS for assistance in formulating a personal plan that best fits your need.

QUESTION:  I made my first gold purchase a few months ago and ever since it has done nothing but decline. I realize this is all part of the risk but it is a little discouraging. Any words of encouragement?

TPS Reply:  Thanks for reading TPS and taking the time to send over your question. It is always somewhat disheartening when metal prices decline like they have over the last few weeks. For what it’s worth……I too bought physical gold only to watch it decline 23%. The only difference is this was back in 2008 when I paid somewhere around $980 per gold ounce. I recall feeling a little foolish with my “investment” but today my only regret is that I didn’t buy more at the time.

The key word just mentioned is time. We can’t ignore the great economic or monetary challenges of our day. A rising, and soon to bubble over, DJIA is not a sign of an improving economy, neither is a low interest rate infused housing market. Both the DOW and housing are responding to the benefits of currency creation, the cash must go somewhere, right?

Since you’re taking the time to read unbiased PM sources then you must also realize precious metal is a long-term play. Don’t confuse month to month PM movements with validation. Safe havens and real assets are still the best options for realistically minded individuals; regardless how they measure up in dollars (by the way, gold is rising in other currencies. This is why it’s impossible to validate PM gauged in just one currency OR over one moment in time).

I’m not a good gambler; this is why I continue to invest my dollars into PM while watching other investment foolishness from the sidelines. Your decision to buy gold cannot be validated by a rise no more than vilified by a decline soon after (purchasing). My advice is to keep an eye on the long-term goal of wealth preservation realizing what is “real” is real and what is “not” isn’t.

If the price of gold drops to $1300 an ounce tomorrow, so be it. If it jumps to $2200 next week, so be it too. The dollar (number) next to gold means nothing since all markets are affected, either positively or negatively, by forces well beyond our control. Historically speaking, such market interventions rarely last longer than a season. This is why I view my PM as a long-term safe haven.

COMMENT:  Couldn’t agree more with your book’s chapter on real estate. Thanks for keeping it real in an age of confusion.

TPS Reply:  Thank you for taking the time to self-educate. It really comes down to knowledge, doesn’t it? Too many are rushing back to real estate with an improper mindset. Housing is a place to raise families and extinguish birthday candles. It’s always great when it appreciates but the primary goal of home ownership is not an avenue of saving or wealth building.

Here is the question each potential home buyer must ask PRIOR to inking an offer. How much of the home’s value derives from nothing more than the ability to borrow currency at a low rate of interest. This portion, or percentage, of the home’s value is susceptible to market volatility beyond the realm of short-term fluctuations.

It is only because of those who benefit from lending, building, or selling real estate that so many have a false belief in real estate as a good investment. The cheap money used to buy today’s real estate is nothing more than a byproduct of a government in perpetual money creation mode. Cheap interest rates only punish the savers of the world and blur true housing values.

My opinion is we’ll see a day when 20 ounces of gold will buy more homes than not.

QUESTION:  What is causing gold and silver to drop so suddenly today?

TPS Reply:  Great question. The only words I can think of to describe such PM brutality are manipulation, intervention, greed, fear, and corruption. It is impossible to believe a free unrestricted market is the cause of our recent PM correction.  The games happening within the PM market are nothing short of criminal and here’s why.

Gold or silver are nowhere near bubble territory, the charts below clearly show how quickly an asset, like housing, will climb just before correcting or bursting. It is understood that when a particular asset raises too quickly that eventually it will become prone to correct.

Now, let’s look at the bigger picture here since it’s becoming extremely obvious that PMs are under full assault. With the threat of war (both militarily and monetarily), economic uncertainty, and perpetual currency printing, precious metals priced in dollars should be steadily climbing. But this is not the case.

What is not declining is the demand for physical metal. This demand is quickly depleting metal inventories as buyers like you, I hope, take advantage of cheap silver or gold. Such a demand will continue to disconnect physical metal prices from paper price manipulation. At such a time no one selling physical PM will give an ounce of attention to the paper PM market.

Speaking of a gold bubble, it could help to show what a true asset bubble bursting looks like. Below is a chart showing how quickly housing values rose just before the housing bubble burst back in 2005-06. Then compare the next chart showing the Dot-com build and bust back in 2000-01.

 

And now, does the last six months in gold look anything close to a bubble?

 

Below is one last chart I want to add just before posting. It shows the virtual currency Bitcoin just days before it recently corrected. If gold were as vertical as this last chart then “yes” I would have to say PMs have reached a dangerous level in need of correction, but not the case.

 

BERNANKE WATCH:

FED chief Bernanke is the most powerful man on earth. Unfortunately, his ability to accurately gauge how money printing and market manipulations lead to asset bubble’s bursting should be of great concern. Dr. Paul Craig Roberts offered a commonsense approach to why precious metals are under FED assault.

“The exchange value of the dollar is threatened, and if that collapses the FED loses control over interest rates. Then the bond market blows up, the stock market blows up, and the banks that are too big to fail, fail. So it’s an act of desperation because they’ve got to establish in people’s minds that the dollar is the only safe place, it is the only safe haven, not gold, not silver, and not other currencies.” -Dr. Paul Craig Roberts.

 

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.

 

 

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SECOND HAND SILVER

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

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.

 

 

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The MONEY CURE

GOLD & SILVER, GOLD AND MONEY   No comments yet

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.

INDIVIDUALLY:

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.

 


 

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THE BUSINESS OF GOLD

BUYING GOLD/SILVER, GOLD & SILVER, GOLD AND MONEY, SELLING GOLD/SILVER   1 comment

Have you wondered how a person can profit from gold/silver beyond ownership? Our world is changing at a pace most cannot envision. This change is disruptive for most folks who have now grown accustom to normalcy. Like it or not economic imbalance is the new normal. But today I’m here to say that a new normal offers opportunity for those willing to embrace change and then feed the growing industry soon described. This potential comes thanks to the blooming business of gold.

It is no secret we are living in a global age. Technology has forever changed the way goods and information connects obscurity with opportunity. But even in such a global age something radical is about to change within your local economy. This change is compliments of a society unaware of how quickly incomes will diminish or fall under capital control. Let’s look at diminishing income first.

A sobering chart hangs in my office titled Production Worker’s Hourly Wages in Gold. It begins with my birth year (1965) showing the average American hourly wage earner making around 2.3 gold grams per hour. The chart ends in 2012 with the same wage earner making around .40 gold grams (over 5 times less). This vital tale of earning decline eludes those who do not understand gold and silver. Most view a better wage gauged in dollars, not grams of gold. They don’t factor the shrinking value of currency.

Now let’s address capital control. Capital control is a term you should expect to hear more of in the near future. Capital control is just another way a government controls the wealth and positioning of her people. It should be obvious that governments around the world are growing and have no intention of changing course. Growth takes revenue. This revenue comes from printing more currency or redirecting the wealth of the taxpayer, saver, investor, and eventually, the impoverished.

As more folks rely on government for a paycheck…. and their very existence, this offers more opportunity for price controls. This is something I’ve realized for many years and why I refuse to compromise my wealth to such tyranny.  The more people dependent on government the easier it becomes to justify the need for price control measures. After all, it is unpatriotic to not pay “your fair share“. Rarely are patriotism, impoverishment, and currency debasement mentioned in the same sentence.

The bad news is you cannot fight the trend just described…..not toe to toe at least. But you can alienate your wealth and future into a position that benefits from such a disturbing trend. Starting a small business is the next economic safe haven for those who refuse to pay one dime more (in taxes) than necessary. Patriotism has nothing to do with it. We will discuss many more small business opportunities here on TPS in the future.

Today’s opportunity is all about gold. Not just owning gold, or silver, but building a business around gold. Everyone reading today already views gold as real money. This will only become more obvious as currencies around the world grow increasing worthless. This will lead everyday folks searching for real assets. The intent, or trend, is finding something of value and turning it into cash….. not realizing too much cash is the problem. It will take time to bypass the misconception of dollars as money but this monetary fact will reveal itself.

This misconception is an opportunity to grow wealth and increase cash flow. The opportunity described today is not a cash for gold type business. It is a gold for dollars business; let me explain. Most Americans are sitting on more silver and gold than they realize. They will eventually realize the potential of this wealth and look for ways to turn jewelry and old coins into a currency. This currency will pay the electric bill, buy a gallon of milk, and so on.

Entrepreneurs will capitalize on such a demand and need. How, by offering their local economy a source to leverage silver and gold for dollars? Typically, today’s cash for gold industry buy scrap PM (precious metal) for a discount. Once the exchange is complete the metal is gone forever leaving the seller with nothing more than a temporary fix for a long-term problem.

The trend; or business opportunity I’m describing today goes beyond a typical cash for gold scenario. The new trend will resemble something similar to a small banking institution. As the value of gold and silver becomes more obvious, fewer are willing to participate in discount selling. This will lead to leveraging unlike anything we’ve seen before, at least with PM. Picture a modern-day “quick cash” business that holds scrap, jewelery, bullion or rounds in exchange for a short-term loan. The lender holds the metal and the PM is the collateral.

Let’s take a look at the benefits for both the lender (new business) and borrower. The lender, or person that accepts PM in exchange for a short-term loan, is repaid plus paid above market interest each month. If the borrower fails to repay the loan then the small business keeps the PM. The borrower benefits by temporarily leveraging a valuable asset, silver and gold, for liquidity (cash) all without forfeiting PM ownership.  Picture a modern-day pawn business that services the low, middle, and upper income classes.

I expect this new business opportunity to simulate a pawn shop but without the racks of power drills and golf clubs. This venture could be a stand alone business or fit nicely into an existing brick-n-mortar establishment. Today’s technology will simplify the accounting side by taking advantage of today’s online pay systems. If you’re in the market to profit beyond PM buy and hold, I strongly encourage a closer look at the new business of gold.

 LOOKING FOR GOLD?

Are you a prospector? If so, I’ve been contacted by a television production company interested in casting real prospectors for a new TV show. They are currently working through the show’s casting process so send me over an email if you’re interested and I’ll forward it to the decision makers.

It sounds like the new show will require international travel so keep this in mind. Their client list includes shows on Discovery, History, National Geographic, CMT, TLC, Lifetime, and others. The Prospector Site is not connected with this new program, only passing along this opportunity to my readers.

 

DC Carlton is the founder of The Prospector Site and author of Why Silver and Gold Will Go Higher. Feel free to register here for his free online newsletter that provides precious metal insight rarely mentioned from mainstream media sources

 

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