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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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CONQUERING THE “FEAR FACTOR” WITH SILVER

BUYING GOLD/SILVER, GOLD & REAL ESTATE, GOLD & SILVER, GOLD AND MONEY, SOCIAL UNREST, Uncategorized   No comments yet

If you find yourself anxiously searching for answers in a time of great complexity then today’s post is for you. I see two trends that lead me to believe many folks are reacting to an emotion that has consumed the soul of man for thousands of years. Yesterday’s news was no surprise, not to me at least. It seems gun sales are up nearly 20% this Black Friday over last. Why, because people are afraid? Maybe this is why gold and silver sales are up comparably, too. So, before you buy another ounce, or AK-47, please read the following closely.

“He who fears something gives it power over him.  Author: Moorish proverb

You are wise to investigate why silver and gold are so necessary in such an age like the one we live today. But your decision…or motivation must go beyond a fearful reaction to preserve and protect what you’ve worked hard for. I realize this is something easier said than done.

An opportunity to own silver and (or) gold must be part of an overall commitment to develop a life of independence.  For me this decision is one I made over a decade ago as I realized something wasn’t right with the way we send currency (you may call it money) to Wall Street and then pray someone we don’t know takes proper care of it.

The thought of endless currency creation didn’t make sense either. How is it that I work so hard – for something like dollars – when others can create more on a whim…..accountable to no one and then give this newly created cash to only a chosen few?

Like you, I receive many PM newsletters but lately nearly everything written is based on a fearful projection of our future. Tales of currency collapse, social unrest, war, riots and other terrible forms of crisis. Maybe it’s time we break down our worst fears and then compile a “what if” plan not calculated from fear but God given common sense.

Do you realize all the terrible fears described above already take place as you read this post? The USD has lost 95% since it unhinged from gold; I would have to describe this as a “currency collapse”.  Social unrest fills our inner city streets as millions live a gang related life few of us can imagine (over 7 million people are on probation, parole, jail or prison in the US). Spend an hour in the city of Compton and you will have no doubt “social unrest” is prevalent today. Wars are rampant, in fact our youth have yet to live a day when our country wasn’t at war. It seems each evening we hear of yet another riot as Europeans realize bigger government is not the answer.

Wealth stored in silver or gold is about creating opportunities, like the opportunity to establish your own monetary policy. The opportunity to serve others, worship, store supplies, afford a weapon of protection and most importantly, the opportunity to pick your family up and move them elsewhere. These opportunities I’m describing today have nothing to do with fear. Sure fear may spark the motivation necessary to re-direct but fear shouldn’t lead.

I recall an email we received here at TPS not long ago. This reader was very concerned that the banking system is close to collapse and ultimately destroy the wealth of millions. Folks, I have news for all who will listen. The banking system, as we know it, only stands because of the trillions of dollars “borrowed” from the Federal Reserve Bank. This fiat system based on fractional reserve currency creation is a short-term experiment soon to show it uselessness.

Eventually inflation will erode the wealth of those unprotected. Some of this wealth will disappear and some will transfer to the few who hold silver, gold, and other “real assets”. You may ask why our elected leaders fail to warn of such a destruction of wealth but the truth is Congressman Ron Paul has done so for years.

Our banking system will someday “correct” itself or risk becoming obsolete. This is why a savings in “real money” is so necessary. Please allow your common sense to override your perception of reality; fear has nothing to do with such prudence.

Most of you know I authored a book called “Why Silver & Gold Will Go Higher”. One of the reasons both metals will elevated is, unfortunately, because of fear as millions realize what you already know. Please don’t include yourself on the fear list. Seek out unbiased precious metal sources to educate and then let wisdom supersede fear.

QUESTION:  If you had to choose just one would it be to buy silver or gold? Love the site, thanks.

TPS Reply: Thanks for the question, and reading TPS. Right now I would have to pick silver over gold, no doubt about it and here is why. So many folks around the globe are realizing the banking system is rigged and their wealth is in jeopardy. They are, or soon will be, desperately searching for a safe haven and many can’t afford gold. But they can afford physical silver and will buy boatloads of it while they still can. I completely expect to see silver inventories depleted as the masses attempt to protect wealth and then store it outside of the banking system.

Personally, I would buy $100 an ounce silver today, if necessary. I would rather risk paying too much for silver than watch my wealth disappear on Wall Street or disappear through inflation. Remember, most of the world is free to own a very limited supply of physical silver. Silver is unlike gold, once silver is used as a commodity it rarely returns to a physical form. I recommend taking a hard look at silver bullion, rounds or bars soon.

QUESTION:  Thank you for providing useful PM info for those of use new to silver and gold investing. My question today pertains to our wealth in real estate, particularly our home we live in. You mentioned the danger of wealth disappearing in our homes as values decline but lately we have seen the opposite. Our community has experienced an increase in sales that resulted in an increase in home values. Do you feel this trend will continue? We are seriously considering selling our home and renting but hesitant to sale while values are trending upward. Thanks.

TPS Reply: Great question so thanks for asking. I agree with your assessment that values in residential property are increasing after losing around 40% from peak bubble. You are wise to question the return of equity so congrats. We must ask why housing has turned around to answer if this trend will continue. The fact is most of today’s buyers are investors looking to take advantage of perceived bargains and low interest rates. These historically low rates are compliments of a federal government willing to backstop a housing market (low rates also allow our government to borrow trillions at historically low rates).

Our government will do everything possible to support real estate values because every new mortgage is the creation of currency the Feds don’t have to print. Our economy depends on consumption and new mortgages are great for a debt-based economy. Now, it’s my turn to ask you a few questions. What do you think will happen when the only lender in the land (US Government) realizes it cannot backstop mortgages forever? Do you realize no other banking institution can or will take the risk that our government provides today? Do you realize taxpayers are on the hook for every foreclosed property the gov’t insures?

This is why I view today’s real estate market as the housing meltdown 2.0 considering this is not a real market built on unassisted economic forces. Having said that, no two markets are alike and your home could sustain or grow in value. It is possible this administration will beg, borrow and steal to support housing for the next four years, who knows.

For the record, I still own my home because it is part of an overall plan of self reliance and my cost of ownership is far less than my local rates to rent. Hope this helps because I realize you are facing a very tough decision.

 

 

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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BUYING PLASTIC GOLD!!

BUYING GOLD/SILVER, Uncategorized   1 comment

Are you ready to buy gold but don’t have the money?  One of the fun parts of writing for The Prospector Site is digging up new tools helping good folks like yourself own gold and silver.  The very reason we named ourselves The Prospector Site is because we are modern-day prospectors looking to unearth the best bargain around.  One tool I often use to stay current with gold/silver pricing is Gold Shark. What I have noticed lately, on Gold Shark, is they list not only physical metal prices but also list the additional fee if I use my credit card.  Today we see if buying plastic gold is for you.


On June, 2011 we discussed the risk of buying metal on a card with a post called Before You Buy Precious Metal on Credit. Please read it if you have questions on risk. I won’t spend time on risk today but will say if you struggle with credit card debt please skip this post.  I understand these are tough times and many folks use credit to cover monthly budget shortfall.  Now is not the time to use credit to buy metal for these folks.

If you bought physical gold one year ago today congrats because each ounce is worth over $500 more than paid. More than dollar value your gold’s buying power is up even more as gold relates to other assets.  But what if one year ago today you couldn’t afford to buy yellow metal without short-term credit card help?  No doubt today is much better for those owning gold, regardless how bought, than ones who don’t.  In this case credit card use was a gold buying tool necessary to aid in securing your financial future.  Few will argue this fact.

Not all precious metal brokers accept credit cards and some limit the amount of purchase far below your credit limit. The ones that do take plastic will pass the card fee to the buyer (you) because gold margins are thin with most competitive precious metal brokers.  Should this extra fee discourage you from buying on the next dip?  I would say no if you can swing the debt as a short-term loan with plans to pay off in less than 6 months.  Please keep in mind, gold is volatile so my advice is wait for a dip to offset credit card fees.  The most important point is the need to physically own metal, regardless how or how much paid, to protect your families assets as we approach this modern-day economic depression.

CREDIT CARD QUESTIONS:

The founder of Gold Shark, Trent Henkaline, took time to answer a few common question regarding using plastic to buy metal.  Thanks Trent and keep up the good work at Gold Shark.

QUESTION:  Why is it only some precious metal brokers accept credit cards?

ANSWER: When a broker accepts credit cards they are taking a risk of charge backs.  Larger dealers have many full-time employees monitoring every purchase, for a smaller dealer the risk and cost is simple too high.

QUESTION:  How big is the fee for using a credit card to buy precious metal?

ANSWER: Credit card fee is set by each dealer, fee’s range from 2.5% to 4.25%.

QUESTION:  Will using a card speed up my order?

ANSWER: A credit card would not be faster than a bank wire.  A check would be the slowest form of payment.  On small orders a card would be the best method (as the fee is minor and a bank wire cost around $15 to send).  On orders over $4000 I would recommend a bank wire (at 3% credit card fee you save $105, this is defiantly worth going to the bank and paying the $15 wiring fee).  Also wire payments are sent within 24 business hours.  Bank wire payments would be faster shipping in my opinion.

QUESTION:  Will using a credit card provide another level of security to my order?

ANSWER: I would recommend using a credit card with an unknown dealer or Paypal when purchasing on Ebay.  I see no risk with reputable dealers.

Thanks for reading www.theprospectorsite.com and feel free to sign up for our online newsletter here.


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GOLD IS NOT TOO EXPENSIVE!!

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

Bar none the biggest reason folks give for not buying gold is it’s now too expensive.  The runner-up is it might fall in price shortly after buying but if we take a close look neither are very likely reasons to not own gold.  I will agree gold is much more expensive than just a year or three ago but few are holding breath waiting for prices of old to return anytime soon.  If you are one of many believing gold is too expensive please read closely as we break down two simple factors proving this untrue.


Individuals who believe gold is too expensive must also believe gold will not increase over current value. As a lifelong businessman I have learned to not judge an investment on cost but on income or appreciation potential.  We must make an argument that gold increases in dollar cost because dollars are not as valuable as in the past.  It is very important to realize gold is somewhat stationary but our dollar’s buying power is declining at an alarming rate.  But most of you have heard all this before, right.

What you haven’t heard is if gold is too expensive then you must also believe government debt and borrowing  will stop soon. The same folks must also believe worldwide deficits will cease and governments are determined to live off what income comes in.  They also must believe entitlement commitments will decline and those dependent on government income will find a new way to survive.  Fiscal sanity prevailed, borrowing is a thing of the past, and deficits will shrink faster than $2 tee shirts made in Honduras.

But history shows something can reverse the gold engine and us old guys watched it happen back in 1980. As inflation threatened to turn the US into another third world country leaders decided to raise interest rates.  As fast as interest rates climbed gold plummeted and the result reversed the inflation trend.  So why is it governments aren’t raising rates today like back in 1980?  The reason is our entire economy is dependent on cheap money.

Our economy is dependent on consumers like you to spend new money.  Manufacturing and production is now outsourced to countries with cheap labor and all that remains are government jobs and consumers spending.  Consumer debt, your spending, is dependent on low interest or cheap money to keep you spending.  If rates rise you stop spending and so does your neighbor.  This turns the economy in the direction of deep depression, devalues real estate even more, and sends stocks downward. I see no scenario where leaders choose this option anytime soon so artificially low rates and more printed money should be the norm.  All while gold, and silver, grow in dollars and buying power.

READER’S QUESTION:

I enjoy reading TPS but it angers me you call our economy an economic depression when my mother lived through the Great Depression.  Today is nothing like the days of the Great Depression.  Can you stop comparing the two?


ANSWER: Sorry but no.  The fact remains the difference now compared to the Great Depression is trillions in unfunded entitlements and debt.  If governments around the world stopped borrowing the curtain of depression would drop exposing exactly how bad things are.  Sorry but I must state fact even if it’s not what you want to hear but thanks for reading regardless.

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A PEEK INTO THE FUTURE OF MONEY

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

The movie industry has a term for feature films called movie trailers.  These trailers, or previews, give us just a peek into a future movie but not long enough to give it a way.  Of course the idea is to build market interest and eventually get your family back into the theater.  Lately, current events have allowed us to look into our future and to be honest it isn’t pretty for those invested in fiat currency or living off entitlement.  Indicators point to the safety of gold but my concern is few are listening.  Today we take a long peek into the future of your $.


PEEK #1:  GOLD & SILVER

On July 18th of this year we titled a post “What $1600 Gold is Trying To Tell Us”. Just last week gold surpassed $1800 if only for a short time.    Huge swings in gold and silver are to be expected as demand grows for one of the only true safe havens for saving/investing.  Fear brings out some buyers but realization brings out most.  Realization of no recovery, realization of too much debt, realization of too much government, too many bailed out, too many unemployed, and too many fooled by dishonest leaders.

Yes gold will climb and silver will follow suit but the unfortunate fact is so will other commodities that we all need to survive.  Just like Jeff Clark with Big Gold said gold is turning into a world-wide currency before our eyes.  Folks that don’t understand this will feel devastating effects of this historical monetary exchange.

WHAT YOU CAN DO: Gold may be out of reach for most but silver certainly isn’t.  Think of buying precious metal as an insurance policy if nothing else.  Find a way to make metal part of your life and if experts are wrong and things aren’t that bad then so be it.  If the trend continues you certainly won’t be sorry.

PEEK #2:  INFLATION

Not one restaurant or grocery store will disagree that things are going up. Inflation finds our middle class at the most vulnerable time possible as incomes decline.  This same income class used credit dependency to fill the household income gap but this option is disappearing for many.  As currencies around the world devalue consumers need more to buy the same.  The problem is most of us don’t have more ($) so making do with less becomes the norm.  Americans will find themselves getting off easy compared to super poor countries around the world.  Look no further than Somalia and its current famine as proof of drought and inflation taking lives of the poor.

WHAT YOU CAN DO: Until inflation runs its course plan on a life of needs over wants.  Trading out of dollars and into real assets, commodities, and of course gold/silver.  Educate yourself on what causes inflation and understand inflation should continue as long as governments try to solve a debt problem with more borrowed money.

PEEK #3:  VIOLENCE

Social unrest happens as you read this somewhere in the world.  Most Americans watch it happen in far away places not realizing the near future is another story. Riots and violence stemming from economic decline is at hand and those living in entitlement leaning states will fill the most pain.  Mix fear, pour in anger, add a little greed, and then watch the recipe for disaster boil over into a street near you.  Our youth are now armed with the most powerful tool and very skilled in its use.  Social networking organizes the masses to meet at one time and one place allowing frustration to take over.  Anger over unemployment, anger from rising costs of education, and anger over your wealth.

WHAT YOU CAN DO: Awareness is the best defense against violence at least if you’re not skilled with a weapon.  I refuse to live my life in hiding or on a mountaintop but I did move my family to a fly over state where folks enjoy self-reliance.  I can’t tell you what is best in your situation but a lot of thought and a little prayer might give you the answers you need.

PEEK #4:  MARKET SWINGS

The last few days of stock sales are nothing short of crazy even volatile. Billions of dollars flowing from stocks into bonds only to reverse the next day with money flowing into gold and precious metal stocks.  Panic by many will be the new normal as millions realize retirement money is not as secure as believed.  Not trying to be a bummer but stating facts as I see them.  If your future rests in mutual funds, bonds, or cash please research other options like precious metal.

Old days of panicked people waiting for their banking institution to open are over.  Silent run is a growing term relating to modern technology allowing depositors to transfer money day or night.  The 07/08 credit crisis proved folks are willing and able to react on fear causing great stress to our banking industry.

WHAT YOU CAN DO: You are on the road to understanding if your reading sites like this one.  Your best financial adviser is you since no one will look after your money like you will. Don’t leave yourself vulnerable and don’t worry what professional advisers, friends, and family say.  Moving money into a safe haven is prudent.  If the economy turns for the better well that’s great and we can all move on with life.

Thanks for reading The Prospector Site.  Feel free to sign up for our weekly online newsletter here.

NEWS WORTHY:

Since the 2008 crash, and our ongoing failure to pull out of it, most people should have a pretty clear idea about where gold is headed and why. I don’t have to tell you it’s going to be worth $2,000, $3,000, $5,000 or ultimately, two giant truckloads of canned food and ammunition, at the rate we’re going. But perhaps you’ve been distracted by naysayers along the way.  MARKET WATCH.  This is a must read.

NEWS WORTHY:

Tracking the money from stocks to gold.  CNN Money.  Watch it here.

NEWS WORTHY:

“When people are coming down to the question, ‘Do they want to have cash in the bank or gold in their hands?’ the answer is they’d rather have gold or silver,” said Jacob Chandler, CEO of Great Southern Coins, the largest seller of precious metals on eBay.

Gold and silver sales on eBay had already been rising steadily over the past several years — so much so that eBay Inc. created a special area in May to make it easier for buyers to find sellers. CNBC  Read it here.


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WHAT GOLD CAN LEARN FROM A REAL ESTATE BUST

BUYING GOLD/SILVER, GOLD & REAL ESTATE, GOLD & SILVER, Uncategorized   No comments yet

My recent trip through Nevada & California left a somber impression on the future of real estate.  Sprinkled among manicured lawns was yards of tall weeds and broken dreams.  Banks and politicians continue the charade of better news but waves of distressed properties tell another story.  The truth always shows its hand and unfortunately despite what we’re told the future of real estate is more devastation at least in many regions.  We could spend hours talking why but the fact is despite billions in mortgage-backed securities and artificially low interest rates decline is still the trend.  All while gold and silver sprint from the pack.


Dr. Housing Bubble posted more concern just in time to ruin my morning coffee.  California sold 38,000 homes in June but added 43,000 foreclosure filings. Even though housing costs have dropped over 50% from the peak.  Not even cheap homes can bring back buyers willing to stand in line for days not so long ago.  To say correction is taking place is understated.  The real estate pendulum has swung far beyond a normal correction and evidence of decade long decline stares homeowners right in the face.  If you are new to The Prospector Site you might be asking what this has to do with gold or silver.  Maybe more than you can imagine.

The fix for real estate appears complex but is simple.  Until jobs return, higher wages, and your dollar’s value stabilize more decline should be expected. But like gold and silver witness today real estate had a heck of a run.  The next couple of years will be interesting for gold and silver holders.  Just like real estate new gold holders will see nothing but stars as gold continues to spike breaking new highs with the latest bad economic news.  Sure we will see dip days or weeks but overall the trend for gold is straight up.

The real estate bust caught many off guard but all runs end and R.E. is not above typical asset cycles.  Gold and silver will be no different and the same ones caught by surprise will curse gold as it declines from over speculation and greed.  Like real estate, finding new buyers to unload pricey metal will be difficult but unlike real estate government help is unlikely.  Don’t get me wrong I’m not saying don’t buy gold or silver what I’m saying is realize all bull runs come to an end and locating an exit is wise.  I also feel a time to exit from gold is far down the road. Until then I’m buying just like I have over the last ten years.

NEWS WORTHY:

BLOOMBERG:  U.S. Homeownership Falls to Lowest Since 1998 on Tight Lending

“Tight underwriting standards and the lack of a down payment are keeping a big chunk of buyers out of the market and other people are being displaced by foreclosures,” Yamano said in an interview before the report. The ownership rate may tumble to about 62 percent by 2015, he said.  Read it here.

NEWS WORTHY:

MARKET WATCH:  The U.S. Treasury will not default

Debt is a symptom; overspending is the disease

Though the debt ceiling is getting all the attention, the real issue is the rapid growth of government debt. I believe the increase in the debt ceiling should be passed, but I also believe we have to address the more important issue, growth in government indebtedness. The Federal government is borrowing roughly 44% of what it spends. That is why we keep running into the debt ceiling. The debt ceiling is really just a technicality. The long-term issue is the size and scope of government and growing debt is just a symptom of that.

Take a look at how much Federal spending has increased in just the past few years. If you think there is any form of math in which this kind of increase is sustainable, think again.  Read it here.


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HOW THE MAINSTEAM MEDIA HELPED DESTROY THE DOLLAR

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Some of you remember sitting in front of a boring television watching Walter Cronkite tell us the day’s news.  Seldom did America miss evening news and less doubted what we heard as fact.  If someone would have said the mainstream media would play a major role in bringing down the dollar I would have laughed. The news back then was “reported” and most in journalism left opinion to viewers.  But somewhere along the way something changed within our media and I for one don’t like it.  Mainstream media turned news into an agenda supporting big government and left leaning policy causing conservative and independent types to wonder what happened.  Today we prove how the mainstream media is helping destroy the dollar.


The majority of journalism is left leaning politically and this is not my opinion but their admission. My guess is this left leaning nature started during college days and only tilted more as journalism careers blossomed.  But this left leaning nature of journalism is costing you and I money and most don’t even realize it.  Ask the person on the street about liberalism and they will mention issues like redefining marriage, global warming, political correctness, and Palin assassination.  Little do they realize the newest victim folds in their back pocket.

Few understand a foundation for liberalism is big government and social programs. Compassion makes so many feel warm and fuzzy causing programs to grow out of control and now to the point unaffordable.  Yep programs grow so large advertising is needed to bring in new recruits and guarantee more funding for the next fiscal year.  It would be unthinkable to pull the rug on these programs and those asking for downsize obviously dislike children and the needy.  No one wants to be branded unsympathetic toward the less fortunate so we ignore the constant humming of freshly printed money.

But the times they are a changing and now jobless, homeless, and soon to be hungry are questioning all this generational entitlement wondering what it will take to right the ship. 2010 was the first year to see 50% of Americans paying no taxes.  This means the other 50% are pulling the entitlement wagon asking how long can this go on?  There are only two choices to keep the entitlement party going,  generate more revenue ( taxes ) or continue to print money. I bet you can guess the choice of a liberal and bias media.

NOT SO FAST:

A renaissance is forming across America as independent free thinkers question bias nonsense of yesterday.  Look no further than the decline of major newspapers and networks replaced by online blogs and websites. The internet gives a voice to all and many are now finding untainted news refreshing.  This silent majority is realizing there are plenty more like themselves and I’m sure the result will be conflict on several levels.  No doubt how your money is spent will come up.

This battle will be fought on many fronts over several years but in the meantime a good protection is gold and silver. The Titanic didn’t stop, or turn, on a devalued dime and this conflict will take some time to play itself out.  Dollars will continue to be debased even as programs shrink.  Accounting games should be expected as more watchdog organizations demand accountability.  As for me, I’m enjoying the freshness of unbiased information as more truths point straight toward gold and silver.  Thanks for taking the time to read The Prospector Site.

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FINDING YOUR POT OF GOLD

BUYING GOLD/SILVER, GOLD & REAL ESTATE, GOLD & SILVER, Uncategorized   No comments yet

Just over 150 years ago a small group of Northern California prospectors picked up their tools, cursed an unproductive river, and then headed north in search of  better gold.  What they also left behind, certainly not by choice, is one of the largest gold nuggets ever found weighing 100 ounces.  The lucky owner who recently found this nugget cashed in one of the largest hunks of gold with very little work on his part.  Your probably not going to be as lucky with gold or silver.  Today we look into finding your pot of gold.


Most of our readers, probably you too, are not wealthy enough to simply trade gobs of cash for gold/silver. Most of us scrape up a little cash then buy some precious metal.  Sell something for cash and then buy some more precious metal.  I understand how this works because this is exactly how I did it.  I can’t tell you the exact date but one day I realized my little stash was growing into a respectable size of precious metal.  This savings in real money motivated me in a new direction chasing my “want” list away and replacing it with “need” only.  Here is what I mean.

I found discipline in other aspects of my life as I saved hard to buy gold and silver. Suddenly a new truck or costly trips seemed less necessary.  I began to look at all things in gold cost not dollar cost realizing if I didn’t buy the new “want”, whatever the want was, I could take the same amount of money and buy more gold.  This created a twofold benefit for saving since my gold was going up at the same time.  I guess what I’m saying is that your pot of gold may end up being several cups full eventually adding up to a substantial amount of gold.  Each tiny cupful is a huge helping of freedom and independence that few others will ever realize.

This will sound strange to some but the price paid for silver or gold is tiny in the overall picture. If economic issues continue the direction headed you will find little reason to worry over what you paid for physical metal.  Let me take silver as an example.  Let’s say you had bought $5600 in silver (800 ounces) not long ago.  We recently posted how this same 800 ounces can now buy a newer home in Arizona that sold for nearly 200k not so long ago.  Our example, of your silver, shows how one asset kept its buying power as another asset lost it.  This cycle of assets is historical and the trend is heading toward more of the same with gold and silver on top.  Now, go out and find your pot of gold even if it’s one small cup at a time.  Thanks for reading The Prospector Site.

NEWS WORTHY:

BLOOMBERG:  U.S. Consumers Relying on Credit

“Consumers, particularly in the lower-income end, are being forced to use their credit cards for everyday spending like gas and food,” said Tavares, who’s based in Atlanta. “That’s because there’s been no other positive catalyst, like an increase in wages, to offset higher prices. It’s a cash-flow problem.”

The swings in purchases of fuel and food have been “dramatic,” Tavares said. The volume of gasoline purchases placed on credit cards jumped 39 percent last month from a year earlier, compared with a 21 percent increase in June 2010, he said. Food shopping increased 5 percent after falling 7 percent last year.  Read it here.

PROSPECTOR: This is very concerning but not unexpected.  As prices of everyday necessities increase so will the dependency on credit, government, and aid.  Excessive money printing always leads to inflation.

NEWS WORTHY:

COMMODITY ONLINE:  After silver, Copper is next in line to be gold

Another seemingly less sophisticated means of investing in copper but my no means less effective is to collect pre 1982 pennies. Many people may not be aware of this but pennies made prior to 1982 are made from pure copper whereas pennies made after 1982 are only coated in copper.

Another interesting thing to consider about copper is that it may play a significant role in future purchasing as the US dollar and other currencies continue to lose value. Many experts agree that fiat currencies (basically paper currencies) all lose value over time but a commodity such as a base metal or precious metal do not.  Read it here.

NEWS WORTHY:

CYPRUS MAIL:  Couple attempt to rebuild lives after coin theft

This, of course, is no consolation to the victims, Caroline and Barrie Carter, who lost their life savings and retirement fund – 200,000 euros worth of gold coins – when they went for a rare night out earlier this month.

They were proved terribly wrong on the evening of Friday, 10 June. The robbers struck at sometime between 9.15 and 9.45 pm. Michelle had just popped out to pick up a takeaway. It is likely the thieves had been watching the house to ensure no-one was at home.  Read it here.

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SILVER, GOLD, & THE MAN IN THE MIRROR

GOLD & REAL ESTATE, GOLD & SILVER, Uncategorized   No comments yet

As gold and silver splash around in prosperity the rest of the country places blame everywhere from Wall Street, mortgage brokers, to politicians.  The truth is gold and silver are just warming up for a main event yet to be determined sometime soon.  Another truth, if we want to place blame, I mean really place blame, all we need is a mirror and stiff upper lip.  Today we put honesty in the spotlight for those willing to look into the mirror of truth.



Dr. Housing Bubble Blog posted something yesterday that made my stomach turn. This graph broke down foreclose odds according to down payment.   Now Dr. Housing Bubble writes from Southern California but the city and state could easily be switched with the one you call home.  Nevertheless, do you want to guess what percentage of mortgages become delinquent with only 5% down?  Try over 16% ( and growing) compared to less than 5% of those putting 20% to 25% down.  My point, buying expensive assets with a low down payment and little skin in the game makes it easy for the struggling to walk away leaving the responsible folks picking up the pieces.  Our economy now craves the same debt drug we used to cause economic dependency.

SO WHAT’S THE PROBLEM?

Let me make full disclosure right here, I have been guilty of impulse buying by way of easy credit too. So what is the problem?  Living on the edge is catching up with citizens, cities, states, and governments from shore to shore.  That new swimming pool, travel trailer, ATV, living room set, hot tub, Cancun vacation on borrowed money with easy low payments is dragging Americans down like never before.  Main Street to Wall Street relies on you and your debt to keep the economic engines running but you’re not spending like you used to.  Even 72 month financing can’t keep payments low enough for the those with shrinking incomes and growing debt. Toys disappear one by one causing masses to ask what the heck happened to the good life.  All this while gold and silver stand strong waiting for fiscal responsibility to sprout from the ashes.  The liquidation of America has started and those still holding cash or gold/silver are in for bargains of a lifetime.

Yep Big Macs on credit, vacations on the Visa, and no down mortgages kept the dream alive when actually pigs get fat and hogs get slaughtered. Is it possible the politicians we now dislike actually kept our party going by ignoring deficit and inflation warnings?  After all, who is actually that naive to believe trillions in debt could last forever.  Maybe politicians and bankers took it a little far but in reality the little strings from their shoulders are tied to my fingers and yours.  We can kick and cuss all morning but the leaders of this great country are a reflection of us and quite frankly I’m ashamed of what I’m seeing.  Thanks for letting me rant and thank you for reading The Prospector Site.

NEWS WORTHY:

THE TELEGRAPH:  Return of the Gold Standard as world order unravels

“One of the big US banks texted me today to say that if QE3 actually happens, we could see gold at $5,000 and silver at $1,000. I feel terribly sorry for anybody on fixed incomes tied to a fiat currency because they are not going to be able to buy things with that paper money.  Must read.

NEWS WORTHY:

BLOOMBERG:  Gold Falls in New York Trading as Rally to a Record Spurs Investor Sales

With gold above $1,580 an ounce, physical sales are the strongest in more than 13 months, Standard Bank Plc said today in a report. Physical buying when the metal was close to $1,500 was the strongest in more than 15 months, it said.  Read more here.

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WHY THE NEXT "GOLD RUSH" WILL GROW FROM THE GROUND

Uncategorized   1 comment

If I had to name my top two money-making trends the first would be silver but the second would surprise most readers.  The obvious second choice, one would think it to be gold but lately I’m thinking there is something running neck and neck with gold, in fact, maybe this next trend is in slight lead over gold.

A long criticism of gold has been you cannot eat it and gold haters are quick to point out in times of crisis, real crisis, gold was discarded over basic necessities like food and water.  I guess I can’t argue this point since I, nor they, have witnessed a crisis like this but there is some truth to what the gold naysayers say.  Today we look at three reasons why the next gold rush will grow from the ground.

As more folks see incomes decline the common question becomes what can a person do to add fresh income during this “soft patch” economic era?  As much of an advocate for gold and silver The Prospector Site is the fact remains precious metals offer no passive income nor give life-preserving nourishment.  But small farms certainly do and if you are looking for the next profitable trend please read closely.  We often mention the next profitable trends will be based on need, self-reliance, and frugality.  Growing your own food as well as providing food to your local market fits into the above criteria as well as anything I know.  Three reasons as promised.

REASON #1:  LACK OF WATER

The San Joaquin Valley sits in the heart of California between the hippies to the north and the starving actors to the south.  As much as California likes to believe the arts provide the life blood of the state this is not the case.  I grew up in the San Joaquin Valley but never grew to realize its power until I became a business man myself.  The truth is the fertile ground of the San Joaquin Valley along with Salinas, Sacramento, and Imperial Valleys provide a major part of our countries nourishment in one way or another.  But the land of milk and honey is drying up and to say what has worked before will work again is foolish.  The first problem of three is one simple resource we call water.

The valleys of California are very hot and the growing seasons are long.  Without water profitable farming turns into bankruptcy and the days of letting subsidized fields lie fallow are ending.  You may be led to believe drought is the villain but the truth is California has had one of its wettest springs in years.  The problem is the water sails right by thirsty fields into the blue Pacific with little disregard to hungry mouths or profit starved farms.  The reason, politics and environmental concerns.  The compromise, years of litigation all while your grocery budget swells.

REASON #2:  LACK OF CREDIT

You would think generational farms could survive without bridge style financing but the fact is most farmers don’t have the millions in liquidity to last from plant to profit.  The old days of farm banks throwing wads of cash to farmers with a simple drive by inspection are as over as dime stores.  California’s dairies, farms, and everything related are as dependent to debt as any business U.S.A. and without fresh capital fertile ground will dry up and blow away, yes literally blow away.   If you don’t think this little disruption of California fallow ground will affect your food bill think again.  Commodities across the globe are rising at an alarming rate and soon other countries of farm fresh will be less likely to supply it to foreign markets.  If they do it will come with a hefty price.

Next time you run into your local banker watch their face with the subject of lending money comes up.  As much as our media likes to question why banks don’t trickle out federal money the truth is most banks are in survival mode unwilling to risk lending money to teetering businesses or mortgages.  The only thing drying faster than California farm land is traditional credit.

REASON #3:  ENVIRONMENTAL CONCERNS

California’s coastline is full of naturalist who truly believe backyard gardens can feed the world, I hope they’re right.  This utopia is clouded by medicinal marijuana because the facts show less American farmers exist today than ever in modern times and worst yet they are getting old.  Suddenly saving a three-inch long fish supersedes jobs, food, tradition, and humans.  Compromise is a ten letter word nonexistent to ones that truly feel life will be best when large farms and diaries no longer call California home.  The bottom line, California may be home to fertile fields but it’s headquarters to one of the most powerful armies of environmentalist ever to exist.   This battle will go on for a long time.

BOTTOM LINE:

The Prospector Site is not intended to be a political opinion but simple provide facts as we see them.  The facts show, regardless of your side, American farms are in decline right at the worst possible time.  For those willing to see this trend and react the potential  has multiple benefitsModern day irrigation, green housing, and other technology has opened doors like never before.  Small lots of ground can produce huge yields of high quality fresh food.  One thing is certain, there are many vacant lots of land waiting for someone willing to think outside the typical box.

NEWS WORTHY:

NEW GEOGRAPHY:  How Elite Environmentalists Impoverish Blue-Collar Americans

However, the depression conditions in the great valley reflect more than a mere water shortage. They are the direct result of conscious actions by environmental activists to usher in a new era of scarcity.

In some towns, unemployment is now running close to 40%. Overall, the water-related farming cutbacks could affect up to 300,000 acres and could cost up to 80,000 jobs.  Read it here.

NEWS WORTHY:

CFBF:  As water prices rise, farmers face the ‘tipping point’

“If we want to keep food local, keep it in this country, then we have to look at what it takes to do that,” Kister said. “But, with the state budget and the economy, education and everything else, this issue has been drowned out. While everyone is fiddling, farmers are slowly disappearing.  Read it here.

NEWS WORTHY:

BEFORE IT’S NEWS:  Why Silver Price Crashed From $50 To $32

He said in the interview: “In my heart of hearts I believe it was a manipulation. There was no market, it was a setup. They’ve just pushed it down. It’s ridiculous.”

“Our position in silver did not change,” said Sprott. “If I can buy the silver back at a 20 percent discount from the value, then I can buy back 20 percent more ounces of silver in the physical market. One hundred percent of the proceeds of those transactions went either in the physical silver or into silver equities.”  Read it here.

PROSPECTOR:  We were a little bummed when we heard our story BUYING GOLD AND SILVER ON A $500 BUDGET got bumped from one of the top stories of the day until we heard the one that bumped us featured Eric Sprott.  Eric is one of the most respected silver experts and if we’re knocked down a step I’m glad it’s from someone like Mr. Sprott.



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