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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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WHY NOW IS THE TIME TO BUY SILVER

BUY AMERICAN, BUYING GOLD/SILVER, GOLD & SILVER   No comments yet

I’m not sure who said it but it’s worth repeating. The best time to buy silver was ten years ago, the second best time is now. This week TPS (The Prospector Site) received our share of emails asking if now is a good time to buy or wait in hopes of a silver price dip. I understand the thinking but to me personally the risk doesn’t out way the return. Over the next few hundred words I’ll explain why I feel now is the time to buy silver.

Few will disagree when I say the world is changing before our very eyes. Germany has asked the US to return all physical gold stored in the United States. The rumor is this gold, German gold that is, is no where to be found. Domestically, this administration is “all in” as they ask Congress to erase the debt ceiling even to the point of warning anyone standing in the way of such fiscal irresponsibility as a obstructionist.

This week alone President Obama warned those opposed to raising the debt ceiling, increasing the national debt, as “responsible if our economy falters”. Never before has this author heard such a political admission of bankruptcy as when the President of the United States admits the only choice is diving deeper in debt. The USA has reached the monetary point of no return from the lips of our own president.

Let me be perfectly clear here. I hold no political bias; my objective is nothing more than to compare facts of the day to PM (precious metal) relevance. I have my political opinions, like you do too, but they shouldn’t play into your decision to buy or not buy silver.

When a country reaches such a point of borrow or bust it matters little the price of silver or gold. The only issues are how much one can afford, where you will buy it, where will it store. Maybe at this point I should share an email we received this week to better clarify my point.

QUESTION:  I am looking into purchasing a few thousand dollars of silver coins (junk) from a reputable local coin shop here.  Do you recommend I wait for awhile to see if the price drops (like sometime this summer)?  I am in my mid 50′s,  Please advise.  Thanks.

TPS:  I love this question for many reasons. It proves Americans are waking up and taking control of their financial future. This reader, proved by their wording, has taken the time to research silver (by the mention of “junk”), check out a local silver source (by mention of a reputable local coin shop), and now timing their silver action (aware of the benefits of buying on a “dip”).

This “think for myself” mentality is exactly what it will take to sludge through 2013 and beyond.

TPS exchanged an email or two with this reader and I’m willing to bet a bullion ounce of silver they will soon buy some, if not already. We can look at today’s mania around the gun and ammo craze as a perfect example of future PM demand. A combination of fear and reality has nearly emptied gun store shelves. The run to silver will soon follow the same type of mania. The reason I know this rests in the paragraph below.

The United States Mint has temporarily sold out of 2013 American Eagle Silver Bullion coins.  As a result, sales are suspended until we can build up an inventory of these coins.  Sales will resume on or about the week of January 28, 2013, via the allocation process. GOLDSILVER.COM

Any event can trigger a run to silver that leads to an “allocation process“. This is something we’ve written about many times on TPS and completely expect to soon witness. My gut tells me silver allocations will become spotty and then turn into a common part of the PM marketplace.

My advice, for those who choose to own silver, is to build your stack before silver allocation rules the silver market. This demand will affect silver prices both positively and negatively depending on what side of silver ownership you’re sitting.

 

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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SILVER RESOLUTIONS FOR 2013

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

Resolutions in general are very predictable in our age. January is a month we commit to losing weight, increased family time, paying down the balance on credit cards, you get it. But this January I’ve noticed a new resolution unlike any year prior as silver offers the affordability few PM (precious metal) experts predicted.  Silver bullion sales are through the roof as we kick off the New Year and I’ve personally made a commitment to add to my silver stack each month in 2013. Maybe it’s time you make the same silver resolution too?

I’ll admit it. Over the 2012 Holiday Season I blew a gasket during an informal PM consultation. After nearly two years of debate, this acquaintance still owns zero ounces of silver or gold. We’ve discussed the importance of wealth preservation in an age of over reaching government (he agrees), we’ve discussed dollar debasement thanks to endless printing (he agrees), and we’ve discussed how this administration, like ones before, bailout the chosen few while all the rest pay for it (he agrees, too).

Now, for those who’ve worked with me know that I’m a very patient person. My goal is to simply explain the options including how to buy, who to trust, where to store (internationally and at home), and then let you, the client, make the final decision. I don’t sell PMs so a conflict of interest is never an issue.

But this time was different. This time I couldn’t take another conversation ending with inaction. Maybe this is why I blurted something I should mention but never have said. “Look, one day you will buy PM. Right now it’s by choice and controlled. But someday it will be from desperation as you watch other assets and wealth sources quickly declining. Don’t wait until the mania arrives to attempt to buy silver, or gold, because both at such a time will have few sellers and those willing to sell will only do so when offered a great premium.”

In case you’re asking this person still doesn’t own PM (they can afford a boatload). Their resolve to preserve wealth is low. Therefore, a silver resolution is not at hand. I only bring this up today since it’s possible many of you are sitting on the PM fence. Maybe your inaction stems from confusion but it’s hard to say without knowing the situation. I encourage you to strongly consider a plan like the following if nothing else.

 

A Silver Resolution for You:

I often hear from those new to PM that they don’t know where to start. If this is your question today I urge you to read closely. First, you’ve made the first step by reading TPS or other educational sources relating to PM….congrats. Next we must turn this education to action so let’s look at the best way to accomplish such a PM action plan.

Step 1:  This action must land a few ounces of silver, or gold, into your possession. Don’t get hung up on the monetary challenge of buying cases of silver when just starting out. Buy what you can afford, for now. I recommend buying low premium silver bullion, rounds, bars, or “junk silver” from your local coin shop when getting started. Part of this plan must include a safe method to store it. A proper storage plan must grow as your stack of silver or gold grows (more in a moment).

Step 2: Next, I recommend committing to a number of ounces each month regardless what comes up (it can be 2 or 20 ounces – the number is relative to your budget). If you are like me something monetarily always comes up but this “something” must take a backseat to the commitment to save. Like I mentioned earlier, the time to comfortably buy PM is closing and one hour researching current economic events proves this as fact.

Step 3: Be discrete. There is no need to convince your office or peers how relevant PMs are in 2013. Remember, when you promote silver and gold you are exposing yourself as a target of wealth in an age of war on wealth. The fact is 99% of your friends and relatives see no relevance in personally owning silver or gold. Most, if truth were known, still believe economic recovery is only a couple trillion borrowed dollars away. If they ask tell them, if they don’t…don’t.

Step 4: The cost (currency) of PM moves up and down throughout the day, week, month and year. Don’t use “dollars” to validate silver or gold. Don’t celebrate when metals rise and don’t worry when they dip. Owning silver and gold must be viewed as a long-term tool of wealth preservation in an age of long-term economic challenges.

Step 5: Eventually establish a plan that includes storing PM over two… three is best, different locations. This can include home storage (if done correctly), bank box (if short term and proactive), passive storage (with someone or a vault company trusted and accountable), and international storage (outside the banking system, outside your country of residency).

 

QUESTIONS & COMMENTS:

Question:  Hi, I’ve been reading all your blogs recently…thank you for the great tips! I want to ask you if it is necessary to protect my silver coins/bars with Air tight cases to prevent them from tarnish? These cases are expensive and add cost to my investment. Thank you so much for your advise.
Regards

TPS Reply:  Thank you for reading TPS, and the great question.  I don’t use air tight cases since I care nothing about the collective value of silver or gold.  Tarnished bullion, round, bar or junk carries the same relative metal value. You’re correct when you mentioned the extra expense of air tight cases and I believe this cost is money that could be spent on more PM.

The exception to this is rare or numismatic coins that derive value from the coin’s condition. These coins are not the ones TPS recommends for those trying to protect wealth in 2013. Rare coins will in all probability appreciate along with rising PM but the premium side is subjective.

We will soon witness a period where all silver is in high demand regardless the condition, age, design, or weight. Any hunk of silver works and will do in such an age. Thanks for the question.

 

Question:  My house sits over a crawl space not a concrete slab. What is the best way to anchor a standing safe (I use it to store gold) to my home’s foundation? Thanks and enjoy the site.

TPS Reply:  Thanks for the question. My last house had the same problem so I can relate to your security challenge.  Attaching something heavy, like a gun safe, to a wood floor is easy but not nearly as effective as attaching it to concrete. Try adding additional wood support to the underside of your home’s subflooring and then bolt through the safe, subflooring and new wood support.

The idea is to make the prospect of stealing the safe difficult. Difficulty adds time and most thieves hate the idea of sticking around any longer than necessary. The only way I know a thief can steal a bolted safe is to cut it away from the subflooring, this usually means the 600 lbs safe is now resting at the crawlspace bottom or at least a part of it is.

Here is a suggestion. Pick up a cheap big box store gun safe and leave it unattached to the subflooring (throw some decoy metal or rocks inside just to make it sound like the mother lode as it exits your home) yet somewhere easily found. In conjunction, pick up a good floor safe and concrete it into your crawlspace’s dirt floor area below the home. Make sure the floor safe sits below grade well hidden from anyone servicing the home or looking to part you and your metal. This will take some effort but the peace of mind is well worth it.

Think like a thief to someday live like a king.

 

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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SHOULD WE “CELEBRATE” AMERICA?

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

It is 3 am and less than 72 hours after the 2012 election outcome…… and I can’t sleep. My sleeplessness doesn’t come from a celebratory nature, nor does it come from a disappointment over who was elected. The fact is over 50% in the US are joyful because President Obama found far more than enough electoral numbers to serve this country another four years.  Now I realize many of our readers are not happy about this and some of you are not shy about voicing such disappointment. Regardless your joy – regardless your disappointment, the fact is both silver/ gold will rise and the reasons why greatly concern me.

Maybe my uneasiness comes from a conversation my wife and I had after dinner last night. My wife shared the struggle of an acquaintance that raises three children, while working full time, and without consistent support from their father. This person makes, I’m guessing, around $16 per hour but mentioned to my wife she has $47 in her bank account and seven days until her next paycheck. This person is the face of Middle America.

Something happened election night that still turns my stomach at the thought. My repulsiveness has nothing to do with red or blue, nothing to do with democrat or republican. What makes me spitting mad is the celebration that took place in Chicago that included thousands dancing and singing like something great was accomplished.

Somewhere behind the confetti and the balloons sits a realization that little over the last few years justifies celebration.

This administration is quick to point out our current economic plight as one they inherited but improving. Few mention the level of debt necessary to create such a monetary illusion. I’m guessing there is some truth to this but inherited or not the pain that spreads across America is not one deserving of celebration, certainly not while a silent economic depression grips our country.

Are we celebrating the unconscionable levels of debt soon to be strapped to the backs of our unborn children? Are we celebrating the record numbers on food stamps or disability? Never before are so many dependent on such safety nets and never before are so many willing to question those using such programs.

When the costs of necessities inflate ( because of excessive currency printing) it provides the excuse or necessity for more Americans to join the ranks of the million plus others who rely on the government to get by. I see nothing worth celebrating as more lose the independent nature this great country was built on.

Are we celebrating the fact our middle class is declining at a record pace with most falling toward the poverty abyss or are we celebrating the struggle of millions like the aforementioned mother of three trying to stretch $47 to next payday?

A celebration like the one we witnessed only proves a lack of respect and monetary awareness….in my opinion. Folks, this celebratory nature is not limited to politics, unfortunately. Even professional athletes now celebrate mediocre accomplishments on the field almost like they didn’t expect achievement. Isn’t this what they’re paid to do after all?

Creating such a spectacle makes me long for the humbleness of yesterday…..and I’m not just talking athletics.  Isn’t it time leadership in America returns to a respectful level of leadership and less individualism?

Some of us have reason to celebrate but do not. The fact is gold has doubled in dollar value while Mr. Obama served his first term in office. Should I celebrate in my front yard by spinning my coin of gold on my sidewalk all while thrusting my arms up high?

It sickens me that my stash of gold doubled in value over such a short time because each time PMs rise the plight of young mothers, elderly, poor, and now our middle class, WORSENS. Of course each PM owners should be proud of such prudence but public celebration? I don’t think so. I find nothing worth celebrating when millions of Americans battle for independence while millions more compromise to a government feed bag.

Maybe it’s time we hold the celebration until something truly good happens across America.

QUESTION:  Keeping your PM in a bank security box is good or bad?

TPS Reply: Thanks for the tiny question and the answer is “yes”. Long-term storage carries far more risk than those who use a bank box for short-term storage while temporarily away. TPS has many snowbird readers who aren’t comfortable storing metal at home so they move it to a bank box while the home is empty. TPS also has readers uncomfortable with home storage, in general, who would rather risk bank box storage than home storage.

It really comes down to your situation and how comfortable a person is with their local bank. I do recommend using a local community bank if using a bank storage system. I might add, there is no need to tell the bank what you’re storing (the less who know about your stash of yellow or white metal the better).

Oh, FYI. Both home stored metal and bank stored metal are insurable so email me if this is something of interest and I’ll point readers the right direction. Thanks for the question and reading TPS.

QUESTION:  Do you believe we will someday see a day of silver or gold barter? I read one of your posts where you recommended “junk silver” and then mentioned the value of silver in a day of barter economics. Care to expand?

TPS Reply: Absolutely and thanks for the great question. “Yes” I expect we will soon enter a day when those selling stuff will much prefer silver over dollars (or any other currency). I’m a little surprised PM barter is not happening more but this only shows how few truly understand today’s economic conditions (the gov’t does a good job at hiding the truth in order to stay in power).

I don’t see gold as a tool for barter as much as silver. Gold is soon to reach a point of mostly wealth storage and this will continue especially when gold surges above $3000 per ounce. Remember, inflation causes funny things to happen in economies and things unneeded decline in value while things necessary skyrocket. This is why toys like snowmobiles and travel trailers will soon rapidly decline but things like food, energy and gold will do the opposite.

Junk silver makes the perfect tool for barter because pre 1965 coins come in small packages. A good example is how a pre65 dime can buy a gallon of gas today (a one ounce gold coin can buy 500 gallons of today’s petro). All precious metal owners should hold some junk silver in my opinion especially when we factor the low premium added to junk silver. Silver is silver folks and it doesn’t have to look shiny and new to preserve wealth.

 

 

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

 

 

 

 

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WHEN TODAY’S EMPIRES FALL

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

History tells of no other time or place as promising as the Roman Empire. We often refer to the fall of Rome but actually the fall was more like a long decline ending in a very poor dwindled down version of itself deeply divided into two parts. I can’t help but watch the United States (actually the entire world) follow the same mistakes that buried Ancient Rome and like the Roman Empire history will divide the blame according to wealth and social status. My goal is not to argue why Rome fell but simply compare its fall with ours today. Some readers continue to question gold’s worthiness but fail to connect historical dots proving why real money sustains monetary mistakes, like Ancient Rome and like America 2012.


Nero and other emperors debased the currency in order to supply a demand for more coins. By debasing the currency is meant that instead of a coin having its own intrinsic value+, it was now only representative of the silver or gold it had once contained. By the time of Claudius II Gothicus (268-270 A.D.) the amount of silver in a supposedly (100%) silver denarius was only .02%. ABOUT.COM

To prove why your silver and gold are soon to skyrocket in value we must first systematically compare our currency debasement to Romes. Unlike today, Rome used coins of silver as currency but soon realized the Empire’s wealth couldn’t sustain, or appease, a overgrown government providing too many entitlements.  As you can see by reading the paragraph above the answer to fulfilling entitlement was decreasing the amount of silver (denarius) from 100% to .02%.

Money debasement in days of Ancient Rome is no different than our version of printed or digitized currency. The reasons to print, or in Rome’s case the reason to decrease the amount of silver in each coin, are the same too. The world is flush in currency only because folks refuse to give up such a comfortable way of life and refuse to hold central banks or elected officials accountable.

Roman emperors gave the people what they cried for and our world’s leaders today do the same. For you to fully grasp why an ounce of silver or gold will rise in value you must first understand this monetary repetitiveness of misfortune. I guess if truth be known misfortune is limited to those NOT holding real money (precious metals) since real money always rises to the surface in the times like we’re describing.

Your silver and gold coins safely stored away are minted with a number representing a currency worth, like the coins of Ancient Rome. Some of my gold coins represent $50 but no one in right mind will trade an ounce of gold for fifty bucks. Today this $50 gold coin is worth around $1675 even though the coins say otherwise.

The world no longer uses gold or silver coins as common currency but if we did I can guarantee you my $50 gold coin would be worth around $50, not $1675 like it is today. Please hang with me here because it is very important each of us understand how our wealth dwindles away by debasement.

The process of taking your wealth and then giving it to others (banks, politicians, entitled, etc) happens by printing more currency. Rome couldn’t sustain itself so it raised taxes and minted more coins each time lessening the amount of silver in each coin. This was and is no different than the massive currency printing happening as you read this. You can’t control central banks handing out worthless cash (to only the select few) but you can buy silver and gold, at least for the time being.

Our world today has chosen to follow Ancient Rome’s footsteps even though the outcome is clearly defined. Bailouts and fascism are now the norm and fiscal restraint is viewed as hurtful and irresponsible. The best you can do is grasping the protectiveness of PM and then stand clear of flying debris as this thing unravels.

I receive email after email with readers asking if I’m sure PM (precious metal) will rise like I write about in Why Silver & Gold Will Go Higher. Each reader holds a level of skepticism but only because they have yet to grasp our economic plight. We are Rome; if we stay the course our outcome will simulate the decline of the Roman Empire.

History also paints a disturbing picture of Romans waiting for a return to normal much like we see today. Nothing is normal about all currencies of the world in full print and borrow mode. To patiently wait for a return in housing values or a strengthening stock market is no different from expecting a return of the Roman Empire of 2000 years ago.

If you are still skeptical I have a suggestion to prove precious metal’s worthiness. Watch and see how often restraint supersedes printing more currency, or new taxation, to appease those crying in the streets. At the same time, keep in mind each dollar printed, and backed by nothing but a promise, reduces your wealth stored in savings and soft assets.

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SILVER CONFISCATION

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

Little puts more fear into the hearts of PM (precious metal) holders than the word “confiscation”.  Since silver is the hot metal of the decade I would like to continue our discussion on all things silver related.  We often associate gold with confiscation and unbeknown to most silver fell victim to gov’t confiscation as well. My goal for today is provide proof silver confiscation happened, yes in the US, but unlikely to happen anytime soon.  Since I don’t sell silver I feel comfortable describing silver’s good, bad, and ugly side.  If you’re new to silver please don’t interpret this post as anything but a lesson why silver ownership is wise.  Nothing once confiscated is valueless, silver certainly isn’t.  Let’s dive in.

Franklin D. Roosevelt convinced constituents to elect him four times; only because of his death did American citizens realize a new president.  Below is a currency in circulation graph (USD) beginning shortly before Mr. Roosevelt’s era to today.  One glance at this currency graph (compliments of the Federal Reserve Bank in St. Louis) provides proof why PM had to be confiscated to allow a fiat currency room to create a debt based system and then continue to monetize debt. What does this mean to the guy who works for a living? It means the only way to legally print your currency into worthlessness is to control real money (gold & silver) at least until paper currency became the new normal. It’s worth noting gold & silver graph similarly to the currency graph below all rising along the way.

Please notice how the amount of currency in circulation stayed flat until early 1940s.  This only shows the level of fiscal constraint our US dollar held while hinged to PM.  Confiscating gold first and then silver were the missing link government needed to spend at will without the restraint of pesky gold or silver.  Since this era, and up until the second you read this post, it’s impossible to define an accurate value of our USD; this is why both gold and silver continue to climb.  The most recent activity on our graph is not for the faint of fiscal heart but it is relevant to those holding PM (probable most relevant for those not holding PM).

For anyone interested here is a link to Executive Order 6814 – Requiring the Delivery of All Silver to the United States for Coinage, confiscation of August 9, 1934.  It is interesting reading exclusions for industrial, commercial, professional, artistic, and monetary use.  I’m not sure how receptive silver holders were to 50 cents per oz exchange or the immediate tax on silver sold prior to the 90 day confiscation exchange period.

It helps to broaden our view of something like confiscation to keep future confiscation in perspective.  Unlike Pre 1930s, PM today has no limiting effect on digitally printed money.  Unlike 1930s most folks on the street see nothing monetarily relevant with gold or silver coins.  This is why our Federal Reserve can simply increase the currency, monetizing debt and funding programs, as it pleases and the amount of gold on hand is meaningless.  This certainly was not the case before the dollar gold standard, but is today.  This is why I honestly feel private metal ownership has little odds of modern-day confiscation. Combine this with the trace amounts of both metals compared to trillion of dollars in circulation and you can see my point.

This could, and hopefully will, change someday if our monetary system reenters a PM standard but this could be a distance down the road.  Owning some metal in Canada, or other international vault programs, is worth exploring just in case of the worst case scenario. No doubt interesting times we live.  Oh, one last point for those asking if silver poised to increase in dollars.  The silver supply is proportionally only a small fraction of the currency supply shown above and in our graph.  This means while silver/gold rise lockstep with dollar printing, metal supplies are not.  Few interpret such fact as anything but favorable for PM holders.

FEEL FREE TO COMMENT LETTING US KNOW IF CONFISCATION CROSSES YOUR MIND.  REACH ME HERE.

COMMENTS & QUESTIONS:

COMMENT:   Thank you for pointing out the TRUTH about the dollar. You have pointed out something that should be so obvious, but I didn’t see until you brought it up. Where the dollar has lost much of its value over the past 80 years, gold’s value has increased 100 fold! Amazing and crazy! It would be wise to consider the value of investing in hands-on gold.

PROSPECTOR REPLY: Thank you for reading.  You make a good point with investing hands on and I always recommend newbies own physical gold/silver first before anything else.  This is also why we recommend making the effort to understand PM before spending one dime. Silver and gold can be a little confusing and the only remedy for this confusion is spending the time to self educate, having said that, I have no problem with mining stock or paper metal as long as we’re comfortably protected with physical first.  We have many readers who own pounds of both metals leading them to venture, or speculate, on other PM sources.  Thanks for the comment.

QUESTION:  We took advantage of the last drop in silver by ordering 500 one oz  Canadian Maple coins.   Our goal is to add another 500 over this year and this where the confusion comes in.  Are we better off to buy some each month or wait for a dip like the last one?

PROSPECTOR SITE: Thanks for the question.  To be honest we have readers using both buying methods.  One is commonly called dollar averaging and the goal is to average high and low into a comfortable medium.  The problem with this system is timing, let me explain.  The silver market is volatile and this will not change anytime soon.  Understanding this volatility and using it in your favor (buying the dips) can be the difference between tens of thousands of dollars someday soon, no kidding.  Buying on dips does require patients and confidence.  Regardless, the most important point is to own precious metal, congrats!!

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TWO REASONS WHY THE FEDS HATE GOLD!!

BUYING GOLD/SILVER   No comments yet

The fact is the Federal Reserve Bank doesn’t want you to buy gold.  These are the same guys who recently admitted using your tax dollars to bailout foreign lenders with sweet heart low-interest loans back in 2007/08.  Money even went to countries we are at war with.  Congressman Ron Paul put it best by saying, “We dropped bombs and cash on the same country.”  The big question is why do the feds not want you to buy gold?

REASON #1 SAVINGS: There is no better way to “save” money than to trade dollars for gold or silver.  Now I realize most gold buyers are looking at gold prices to grow therefore looking at gold as an investment.  This has been the case but the primary intent of turning dollars into real money like gold is to create a store of wealth.  I guess you can say gold is a time out in the inflation game.  When you pull dollars out of circulation, the economy, then invest it into metals you are working counter to what the federal reserve is doing.  They need spenders not savers because savers only show that debt is to blame for a failing economy.  This is why billions of borrowed dollars are flowing from the Federal Reserve and then into circulation.  The Federal Reserve Chief, Bernanke, even threatened to drop cash from a helicopter if needed.  You and I buying gold certainly doesn’t bode well for his plan.  Debt brings us to reason two why the feds hate gold.

REASON #2 DEBT: If the world stops borrowing money the entire economic system as we know it will collapse.  Those that hold gold and silver will prosper beyond belief but the masses will live a life a lot like camping.  Our government borrowers 40% of each dollar of its day-to-day budget just to keep the “illusion” of a strong economy.  Experts say this debt is “passed on” to our grandchildren but this is not exactly true.  It is “passed on” to everyone that uses dollars to buy anything even as we speak.  Your breakfast doughnut cost has a percentage of debt built into every delicious bite.  This will become more clear if you keep reading our daily post because economics is the easiest thing to understand as long as we don’t listen to experts.

Gold and silver is rarely purchased with borrowed money and this is part of the reason the feds dislike.  I doubt your local banker will lend you $40k to buy a stash of gold or silver, I know mine won’t.  Gold brokers don’t usually accept credit card payments so most metal is bought with cash.  Not only do we pull money out of the economy when buying gold ( by saving) we fail to create new debt as well.  Our economy will decline, or worse fail, if enough fiscally responsible people say enough is enough.  We must ask how we got to a place like this to not repeat it.

CHOICES: The choice is yours but you must pick between only two.  Either personally protect with assets like gold/silver creating a life of self-reliance or bank on a debt derived economy for the rest of your life.  The difference could be a house on the hill compared to a life just like camping.

QUESTION:  Have your heard anything about a half ounce silver coin being minted?

ANSWER:  It does exist but I can’t remember the mint issuing them.  You are correct in that they are 1/2 ounce silver coins better known as fractionals.  If I remember right they sell for a slightly higher premium than one ounce bullion.  I will pass along info as it comes in because this will be popular considering how high silver prices are.

TIP OF THE DAY:  Dollar cost averaging means to allocate a predetermined dollar amount, usually monthly, for metal purchases.  This is opposite of buying on the “dip” but has worked well for folks on a budget.  Don’t be afraid to use dollar cost averaging.

FAIR PRICES FOR GOLD & SILVER (12:00 pm MST)

  • ONE OUNCE SILVER BULLION:                           $45.47

  • ONE OUNCE SILVER ROUND:                               $43.17

  • ONE OUNCE GOLD BULLION:                               $1549

  • ONE OUNCE GOLD BAR:                                         $1512

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WHAT SHOULD YOU DO RIGHT NOW?

BUYING GOLD/SILVER, GOLD & SILVER   No comments yet

Not a day goes by without my email looking back at me with the question“what should I do right now?” This confusion is creating a state of economic disorientation stemmed from once solid sources of income drying faster than a Polar Bear dipper on New Years Day.  The premise of The Prospector Site is not about advising folks how to invest but to offer an informative resource that assists you in making smart, and independent, decisions with your money.  We could easily talk one day about silver rounds then the next about rare gold coins ( and certainly will) but these are features of metal ownership when benefits are what we are after.

Acceptance of old retirement and investment ideas as dead is the first step to taking control of your personal financial independence.  The days of sending off a percentage of your paycheck and then praying it grows is as outdated as the typewriter.  We saw just how volatile 401(k) accounts are back in 2007/08 when the stock market crashed to half of its high in a matter of days.  The odds of this happening again are as high as the ever-increasing national debt.  Another concerning fact is underfunded pension plans from state to state.  I completely expect many pension contracts to be restructured before this is all done.  My question is why chance it if you have a choice.  The choice for many is to add gold and silver to help give a source of savings for your families future.  The days of one single form of retirement are over.

The second thing I would do right now is empower myself on how to trade dollars for gold or silver.  I will go as far to say silver would be first choice.  I would go online or call at least one major precious metal broker like Kitco.com or Blanchard.com to see current prices for one ounce silver coins, rounds, or bars.  I would then go to my local coin shop to see what they sell the same silver for.  If I could buy local and close to what I could buy online for then local it would be.  What I wouldn’t do is be talked into buying rare coins that I know nothing about.  What I wouldn’t do is rush into something without due diligence. Let me recap in list form.

  1. Research all aspects of gold or silver ownership including risk.
  2. Check with online silver or gold brokers for current prices of physical metal.
  3. Check with local coin shop(s) to compare pricing.
  4. Not accept advice to buy rare coins as first purchase.
  5. Buy as much as comfortable realizing this is part of the learning process.
  6. Not watch over my new silver or gold like a new-born baby.
  7. Make a long-term plan including how often to buy and how much.

WAYS TO PURCHASE GOLD OR SILVER:

  1. Local purchases can be with cash, check, or credit card depending on your shop.
  2. Online purchases can be made by check, wire transfer, money order, cashier check, etc.
  3. Most gold & silver purchase are not subject to sales tax.  Check with your state or shop.
  4. EBay auction houses will accept PayPal type pay services.

QUESTION:  Say I decide to buy silver coins from a silver broker.  Are the coins new, do I actually receive the coins, and how do I use the coins?

ANSWER:  Good questions from a new metal investor and congrats on taking the plunge.  It depends on the silver you decide to buy.  For instance American Silver Eagles are new (uncirculated) regardless of the date on the coin.  No one would use a minted $1.00 coin that is worth many times face value because of the silver within it.  If you decide to buy junk silver or rare coins than “yes” the coins within are pre-1965 circulated coins that attribute value not by the number on the coin but the silver content of each coin.  The last part of your question about how to use the coins can be answered by one word, “don’t.”  Find a safe place and store them.

FAIR PRICES OF NEW GOLD OR SILVER

  • ONE OUNCE SILVER BULLION:                     $44.32

  • ONE OUNCE SILVER ROUND:                         $41.98

  • ONE OUNCE GOLD BULLION:                         $1535

  • ONE OUNCE  GOLD BAR:                                  $1498

TIP OF THE DAY:  You cannot go wrong with new silver or gold coins.  These coins usually come with a low premium(compared to proof or rare coins) and their value is easy to track.

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IS A BIG DIP COMING SOON?

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

One thing I can tell you after several years of metal investing is the higher gold & silver go the bigger the dips.  But should this scare investors away from buying in times like now?  If you are seriously considering buying gold or silver, or both, don’t miss this post because we are going to break down the ups and downs of physical metal investing.

WHAT MAKES GOLD/SILVER TICK: To comfortably invest in precious metal requires a slight understanding to what motivates movements in metal.  Gold, such as, has seen something like ten plus years of gains but is this rally done?  Silver is at record highs so why month over month does it keeps going up?  Why do both metals move up one day only to fall off the next?

New investors are constantly boarding the gold train and maybe you are one of them.  If so, congrats on being one out of a hundred that realize the best method of wealth storage is in precious metals.  Let me also say thanks for reading The Prospector Site and let us know what you think.  Many metal investors bought when prices were much lower than they are now.  Some of these same investors set a ceiling or trigger to sell realizing cash profits.  When enough of these sellers hit the market simultaneously it drops the price of metal.  New folks see this drop and like pelicans to anchovies dive into the market better known as a “dip”.

This cycle of selling and then buying repeats itself over and over but each time the number of buyers increases ever so slightly.  This makes for a higher gold/silver price at the end of each cycle.  As metal prices increase the dips or cycles become deeper and possibly longer.  But are we due for a deep dip in metal?

THE BIG DIP: I have no way of knowing for sure but my gut says a big dip is coming and here is why.  My thought is plenty of new buyers are moving to gold but really don’t trust the metal yet.  I guess you can say they are nervous investors.  Nervous investors have a way of keeping a finger close to the sell button and every 3% or better dip sends them into a panic.  If they truly understood what drives metal they would relax and take peace in the most solid investment since man kind.  But this is easy for me to say because I have faith in metal.

I think silver shows the highest chance of showing us it’s back side between the two metals.  Silver has not only investor appeal but its one heck of an industrial metal as well.  Several things could knock silver back, only for temporary, like maybe consumers buying less phones, electronics, and automotive products.  But who knows, this world is very big even in the age of instant communication.   Should you sell silver if it dumps say 15% next week?  I won’t because I believe silver is the most affordable metal and potentially the biggest number of buyers.  I guess you can say it is priced to where everyone can afford to invest.

PANIC SELL OFF!! I think a panic sell off is possible for gold or maybe silver.  I believe there is a better chance of gold/silver being the beneficiary of a major stock sell off compared to the reverse.  My reasoning is that many corporations are becoming addicted to bailout money and we all know this spending will not last forever.  One of the many things I like about metals is that they are big boy investments that stand on their own merit.  When was the last time you heard of a bailout, tax deferment or credit, government take-over,  or cash for clunkers program for gold?  Gold continues to be the dirty little secret that insiders and economist ignore.  Unfortunately for these folks, gold and silver will soon see their deserving spot light.

QUESTION:  I want to buy silver on the next big dip but I’m growing anxious to do so.  Should I wait or buy now?

ANSWER:  This is the million dollar question and to be honest I constantly ask myself the same question.  I’m leaning toward waiting for the dip.  Many new investors feel pressured to buy once they make up their mind gold/silver is right for them.  Some of these same investors buy slightly higher than true market from lack of patience.  Dips are important but they are only a light shove of momentum into a long life of metal investing.

TIP OF THE DAY:  Take a close look at silver rounds if your only concerned with buying a storage of silver.  Unlike silver coins, these rounds are simply masses of silver but easy to buy and sell.  Rounds will have less buying fees associated with them which means you can buy for less.

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