Posts Tagged ‘silver market’



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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At first I thought the retail clerk was joking when he hesitantly accepted the $100 bill from my hand. This is when his reply validated his hesitancy, “Great, a hundred-dollar bill, second one this week.” I must have looked surprised when I asked if there was a problem with the bill. He said, “No, they ($100 bills) create a problem making change and guarding against counterfeiting, no problem sir I’ll have your change shortly”.

The world is changing quickly if you haven’t noticed. My dresser top empty change jar proves this each morning when I put my hat on. Our money went to a currency in 1970 (paper/coins) to now digital. Few of our youth carry cash these days, not in a debt card world.

One of the many benefits of founding a business like The Prospector Site is the ability to see behind the monetary curtain. This provides a peek into our future by tracking the path of silver and gold. In an odd way, one ounce silver bullion coins are soon to travel the same path as our paper dollars. Unlike paper dollars, silver won’t be replaced but unaffordable.

Someday soon traditional one ounce silver coins will be too expensive for the majority to own. This seems hard to imagine today since physical silver ounces cost less than $40.

I know this to be true because I understand silver and gold’s ability to keep par with currency values. This rise is nothing more than accumulation of currency devaluation and demand for a very limited source of real money (PM).

Each reader must at least consider importance of owning fractional silver sometime soon. By the way, fractional metal consists of coins, rounds or bars broken into denominations less than one ounce form. Fractional coins are common in today’s gold market but uncommon in our silver market. This is soon to change.

There are two good reasons why we expect to see this change in physical silver.

  1. Affordability (more can afford things when priced less).
  2. Trade value.

Think back to my $100 bill introduction. What if the store clerk couldn’t make change for me? What if I didn’t have a credit or debit card backup?  The answer, the store would’ve lost my business.

Let’s talk about fractional silver affordability first with a brief history on gold. Readers are quick to mention how today’s gold market continues to price them out. I will not argue that gold seems pricey especially when compared to prices I paid many years ago. But fractional gold still provides an option (1/10 ounce to 1/2 ounce) for buyers reluctant to pay full ounce prices.

Just because gold is available in fractional coinage doesn’t sooth the sting of expensive PM, it does provide an opportunity for those on limited budgets.

But silver’s move to fractional coinage is different. Silver (and gold) are soon to be realized not only as real money but necessary. This time, or era, will come only after illusionist winds of economic recovery subside. Such silver demand will justify the cost and trouble to mint fractional silver making 1/2 silver coins, bars, and rounds as common as one once bullion today.

Now, this brings up silver’s future trade value.  Few who follow the PM market argue the fact both silver and gold is transitioning into a currency. This is nothing new seeing both metals started out as money many centuries ago (history repeating).

But this time is different. No longer do families grow or raise things of necessity, they buy them. This means currency plays a larger part of our economy than ever before. I doubt that folks living on the 5th floor will find space to grow or raise things anytime soon, if so, this means they must buy from someone who does.

This takes money, currency, or an asset of equal value (barter).  But we already know currencies worldwide are progressing toward printing themselves more worthless each day. Again, the chart below proves this better than I can describe it.

Please notice how the chart line turns vertical as of late. This means we must earn more dollars to buy what less used to. But this is not the same for silver. The same amount (grams/ounces) buys equal or more.

Now here is the problem if you don’t own silver.  The same “weight” of silver buys equal but will cost those not owning silver much more to buy. This is why it’s very important to investigate silver ASAP.

Please stay with me here. Fractional silver will soon buy the things we all need regardless of size/weight.

Think how a fractional 1/10 ounce gold coin now buys one week worth of groceries. Look closely at the 1/10 ounce coin below noticing the $5 denomination. This means $5 used to buy a week worth of groceries but barely buys a sandwich today. Silver will follow the same fractional path if our dollars continue today’s course!

Does this mean we could someday need fractional coins of silver just to buy everyday necessities? YES, especially when we consider the possibility one ounce silver could be too valuable for most items!



Good day…….how are you doing today ??
MAPLE LEAF, 1oz Silver Eagles, Krugerrand. ANY OTHER GOLD COIN  that are Numismatic in Nature. Kindly get back to me with your availabilities and Prices. Awaits reading back from you soon.


PROSPECTOR REPLY: Sorry but The Prospector Site doesn’t sell silver or gold. I recommend visiting www.GoldShark.com to find competitive pricing on all your PM needs.


Just wanted to drop an email letting you know how much I enjoy each article. I’m new to PM but realizing importance of silver and gold especially in today’s world. Wanted to pass this along and say “hi”.

Prospector Reply: Awesome, thanks for passing nice words along. You have no idea how nice it is to receive several emails (like yours) now and again. I urge you to continue to study PM until fully confident they are the right choice for you. You will develop a new-found confidence that will last a lifetime.

The goal is to provide unbiased PM information and then let folks like you decide if silver or gold is the right choice. Silver makes a perfect gentle entry into the PM arena so please keep this in mind. Feel free to email us and be sure to register for our free online newsletter recapping recent posts and note worthy PM news. Thanks again.

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When I was around four years old my father and grandfather invested a full day in me and fishing. I can’t recall how many fish we coached to shore but I vividly recall asking far more questions than any father with a much-needed day off should endure.  Finally my father resorted to a generic reply of, “because that is simply the way it works” to each unanswerable question that only a four-year old mind can create.  Unfortunately, explaining the purpose of PM is far too important for a generic reply. Many of you are sending questions to The Prospector Site and we appreciate each question and comment, thank you. The value within each question goes beyond an answer so let me explain.  Gold and silver dialogue, or questions, create further discussion and interest in the one nontraditional asset each person should now own.  Not every question is answerable but each question is worthy of a reply. Today I want to share a couple of what I call common questions from a reader willing to invest time and money to preserve financial wealth via silver and gold, congrats.

By the way, don’t forget to sign up for The Prospector Site online newsletter emailed straight to you once a week. It’s free and available by registering here.


Hello, I am an European reader and I am very fond of your site ( found about it while reading dailyreckoning.com ). I have read your website from the beginning, started last month and only now got to March. It has been very enlightening but I never said anything up until now. I wanted to read the whole site so that I could have a grasp on what the global scene was month after month, since March last year, basically reading the gold/silver economy trend, trough your posts. I have now stepped up and registered at Bullionvault.com buying small amounts of silver.

I would like to ask you 2 questions:

1. What will happen to the silver market if the copper is “the” next silver, will silver drop in prices?

2. Why if there is a gold dip, there is a silver dip at approximately the same proportion?

Thank you very much
Regards from Europe

PROSPECTOR REPLY:  Always great to hear from our European readers so thanks for the comment and questions.  I’m not sure if you know or not but you guys are in the news a bit lately?  You mentioned something that really grabbed my attention with an interest in the global scene as part of your decision-making process to buy silver.  I’m flattered our site is part of this decision so thank you for using us as a PM resource.  Starting with small amounts of silver is exactly how I advise clients to begin a soft entry into PM (precious metals). Silver is relatively cheap to own and easier to buy allowing newbies time to develop confidence in PM without spending boatloads of money in the process.  I do recommend owning both metals ONLY AS YOU FEEL COMFORTABLE in doing so.

Now, to question #1. I see no long-term drop for silver considering all worldwide currencies committing to printing themselves out of economic trouble.  Injecting fiat currency into world markets will drive up value and demand for real money, like silver, and copper rising is no more a factor than two ships rising from the tide, simultaneously.  My opinion is most metals in limited supply will find monetary attraction but nothing like silver or gold. Copper and nickel could easily be included in future monetary attraction but they will not suppress or replace silver, not in my opinion.

I see slim odds of silver doing anything but putting smiles on silver holding faces; this comes from a guy not selling silver or gold. Please stay in contact by letting other readers know how Bullionvault.com is working out (I’m assuming you’re using their vault in Zürich?).  Some PM advisers are hesitant to recommend passive storage but each person must judge risk accordingly depending on local volatility and government overreach. Diversifying storage is as important as diversifying wealth in general (hope this makes sense).

Now, to question #2. You are correct by noticing both silver and gold follow lockstep to monetary demand, kind of. Silver has one over gold and this one thing is a very big thing.  Silver is now the second most used commodity, we can thank modern-age technology for this.  Silver is a great conductor and technology now contributes to silver’s demand.  This means silver has monetary value (money) and industrial value simultaneously.  This is why PM experts feel silver undervalued and will close the silver to gold ratio very soon.  Paper silver suppression obviously is a major factor in today’s cheap silver prices (I hope all are taking advantage of discounted physical silver).

Regardless if (when) silver closes the gold gap; both historically parallel each other in true relevance and value.  This is because both metals are real money and no amount of fiat printing will change monetary balance.  Both metals float along inflationary rivers willing to rise to whatever point necessary to equal true value and worth.  This is why I started trading currency for metal ten years ago to the month.  I’m guessing this is why you are too.  Thanks for the great questions and welcome to The Prospector Site.


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Isn’t it great to invest a couple of hours watching an old movie you’ve seen several times before?  Even though you know the ending, even though you know the progression, an epic movie always seems to entertain us over and over again.  Watching today’s gold (and silver) market reminds me of an old classic film of yesterday.  For those of us who follow gold closely, gold’s progression is not only obvious but predictable.  Many disagree on timing but, in all honesty, timing is impossible to pinpoint and attempting the impossible comes down to luck more than anything. Today we’ll explain why stage is set for PM to go mainstream.

Do you own physical gold or silver? If you don’t you will and in all likelihood compete against some heavy hitters to do so.  I say this with confidence because in my mind I have a few criteria that must be met before gold does what I know it will do, someday.  One big criteria is for gold/silver to find mainstream populace during a time of currency debasement.  We already live with global economic uncertainty and anyone doubting this as fact is not living reality.  So the question is when will mainstream gold ownership collide with current uncertainty?  We think the moment may be at hand.  There is no chance mainstream investing will stand idle while gold and silver climb, especially when other investment types destabilize.

The reason we feel the moment is at hand is because three things must happen to trigger the mainstream toward precious metal ownership. One, an overall lack of confidence in recovery.  No matter the country, state, or city, folks worldwide are losing confidence in recovery whether they are willing to admit it or not. Two, Fed commitment to never-ending quantitative easing (Fed announced last week the need to keep near zero interest rates till 2014). There soon will be twice the debt as when President Obama took office.  Three, a run toward protection by mainstream investment, pensions, insurance, health plans, and private capital.  Even those in power don’t want the game to end, they can no longer ignore the power of real money like PM (especially considering an age of imaginary money).

Can I hear a BINGO? The big question is what will a mainstream run do for your stash of gold and silver? I can describe the future of PM in one word, pressure.  PRESSURE; urgent claim or demand….,a burdensome condition that is hard to bear. The kicker is gold and silver value is not containable, they are compelling.  They are compelling because a limited supply of each exists without the opportunity to create much more.  Combine this limited supply with an urgent claim or demand and it’s easy to predict gold/silver’s outcome.  This is a perfect description of long-term gold and silver!

I urge readers to not take my word but look to current events as proof the above information is factual. Why does the Fed really need to keep interest rates near zero?  Is this the only way to pay on record levels of borrowed money?  Why are countries around the world (central banks too) buying gold at record levels?  Is this a signal of self acknowledgment that reckless printing is ruining currencies?  Is this acknowledging gold as the only true source of money and wealth preservation? Why does gold and silver continue to rise year after year?  All signs how events of the day will influence gold and silver into a urgent claim or demand.

What is your take, is gold going mainstream or do prospective PM owners have plenty of time?  Tell us your thoughts here.


Really enjoy the site and especially enjoy reading what others have to say.  I do own some PM but probably not as much as I should.  To me it seems the gold and silver market is in a state of volatility far over other forms of savings.  I see no reason to pull money from a money market (guaranteed) then buy something that could drop in price (gold or silver)?  At least I know my money will be there when I need it.

PROSPECTOR REPLY: Thanks for following our site (I also enjoy comments and questions most).  You make a valid point concerning the safety of money market accounts but the long-term trend for such a source of saving is not good.  Since 1971 to now, we punish the savers of the world.  We know this by how little savers earn from deposits of hard-earned cash.  The Fed just announced this punishment to savers will continue but disguised it well with trying to stimulate the overall economy (just looking after your best interest right?).

I have no concern if the goal is to keep savings in cash over short-term.  One benefit of this site is providing several options but ultimately the decision is yours alone (I also keep a bank savings in cash, small savings). But the long-term benefits of cash will be devastating to say the least and it’s important that you realize this.  Eventually interest rates will rise and eventually the buying power of your cash will decline.  To be honest, it is already because interest earned is less than real inflation.  It only appears the same amount of money because you’re comparing dollars to dollars and not dollar value to gold value.  To me holding too much cash is similar to the ground splitting open in front and toward you but you doing nothing. To do nothing is certain destruction but moving left or right offers hope.  My point; being proactive is necessary and my money is on PM. We are living history while watching a monetary collapse fueled by too much debt and invisible currencies.

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It’s painful to write a post like the one you are about to read.  The sad truth is many of our parents and grandparents are losing a budget battle that in all likelihood is worsening.   Work hard your whole life, check, raise a family, check, pay Social Security entire working life, check, then end up living your golden years out by living off worthless dollars.  The part of this that haunts me is a small savings in gold could have prevented the anguish many of our seniors are living with.  Today we look at the not so golden years for some seniors.

Bring up the word COLA and watch many elderly on fixed incomes just shake their heads. For those unfamiliar COLA stands for Social Security Cost of Living Adjustment but the problem is while COLA has risen 31% the cost of senior expenses has jumped 73%.  The last two years has seen no increase, or COLA,  just as food, medicine, and housing costs jump an average of 32%.  The fact is senior’s buying power is decreasing at an alarming rate.  Many of these folks no longer have an option to earn extra income thus reliant on declining dollars as the sole source of survival.

Many middle-aged and still part of the work force have questioned if Social Security will be there for them during retirement years. My opinion is it will but have so little value few will make trying to rely on it as a viable source of income.  Debased dollars will simply not stretch far enough to make ends meet for most.  The Prospector Site will continue to provide proof why trading dollars for gold and silver can create a life of self-reliance and financial freedom.  For most, the goal is not to amass a fortune but keep enough wealth to sustain quality of life and independence.

The lesson learned is that a life of government dependence is a future in doubt. One of the many benefits of gold ownership is the freedom, peace of mind, and self-reliance that comes from a true savings of real money.  Many of our seniors are realizing this the hard way but the fact is you don’t have to.  Please take a hard look at trading dollars for gold or silver while they are still affordably priced.  Below is an example of how those reliant on monthly social security checks are finding how inflation is robbing many of the basic necessities needed to survive.

WASHINGTON, May 19, 2011 /PRNewswire/“2011 Annual Survey of Senior Costs Finds Expenses Have Increased More Than Twice as Fast as Social Security COLA”

“For many years, seniors have watched helplessly as the value of their benefits has eroded. Those losses have added up, and millions of seniors – among our most vulnerable citizens – are barely able to scrape by today,” said Larry Hyland, chairman of The Senior Citizens League. “To put it in perspective, for every $100 worth of expenses seniors could afford in 2000, they can afford just $68 today.”

“A majority of the 37 million Americans aged 65 and over who receive a Social Security check depend on it for at least 50 percent of their total income, and one in three beneficiaries rely on it for 90 percent or more of their total income.”


“Real-estate nightmare looms for retirees” By Robert Powell, MarketWatch

BOSTON (MarketWatch) — Five short years ago, many learned men and women warned Americans against thinking that rising home prices would eliminate or lessen the need for them to save for retirement. Institutions and advisers alike advised people against relying on the equity in their homes to finance part or even all of their consumption needs in retirement.

Today, that’s no longer the case. In fact, we now have almost the opposite situation. With home prices falling for nearly five years, many Americans must consider what to do with their homes should prices continue to collapse and the equity in their homes — if they are still lucky enough to have any — disappears completely.  Please read the rest here.


Getting Gold, Alternatives Into 401(k) Plans

April 12, 2011

Most 401(k) investors don’t have access to gold, commodities and other alternative investments, according to John Ameriks, principal at mutual-fund giant Vanguard Group. Still, he says employees can push for these options. Jonathan Burton reports.  Watch it here.


Why does explosive silver behave so differently from far steadier gold?

The silver market is still reeling from its fall from $50 to $34 over a very short time. The move was driven by at least one investor selling around 1,000 tonnes of silver over a two week period. Silver had climbed quickly from around $25. The charts supported a rise to $29, but as silver went higher, it climbed out of technical range into new territory. All the time thereafter it was vulnerable to a selloff back to support around that level. Many felt it could easily fall to $20 before recovering, but it bounced off $32 and has been consolidating above $34 since then. The selling then stopped and buying started, but the consolidation at this level indicates that the market has to get used to these prices for a while before they establish a ‘floor’ that permits cautious buyers to re-enter the market again.  Read the rest here.


  • ONE OUNCE SILVER BULLION:                    $41.97

  • ONE OUNCE SILVER ROUND:                        $39.32

  • ONE OUNCE GOLD BULLION:                        $1597

  • ONE OUNCE GOLD BAR:                                  $1558

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