Last Friday was nothing short of the purest example of a typical day for future gold. When fear and uncertainty grip millions, maybe I should say billions, the results are a monetary flight to all things real.  We are living history and the world is soon to realize paper assets cannot compare to the real protection within silver and gold. How many days like last Friday will it take before the masses line up to pay 2 or 3 times today’s physical gold offering? Let last Friday go down as a sign of the times.

I wasn’t alive during the Great Depression to witness shuttered banks wipe out the wealth of good honest folks. I wasn’t around to watch folks in Germany push carts of currency necessary to buy hyper-inflated groceries during the days in Weimar Germany. But I will be around to witness the greatest wealth transfer in the history of mankind, this is all but certain.

It takes a loss of faith to push something like PM (precious metals) to the point of last Friday. I want you to think back making a mental list of who and how many predicated such a gold advancement like one witnessed last Friday. My list is empty. My point is we have entered a period of perpetual volatility on a massive level and anyone willing to make short-term predictions are unwise or arrogant.

The average person doesn’t realize how quickly wealth can transfer in our age of instant money movement.  Are we on the verge of such a wealth transfer into silver and gold, I think so? The great rush into 10-year treasuries paying under 1.5% could be such a sign of the times described today. Eventually, the result is a flight to PM but no one said the flight is direct.

The few still hanging onto recovery also anxiously wait for the next bailout. Who honestly believes a life of endless bailouts can continue?

Last Friday’s amazing, soon to be typical, gain attributes to a worse than expected jobs report and continued trouble in Europe. Yes, this news lit the fuse but the winds fanning the flames comes from a giant media base willing to sensationalize anything from collapse to celebrity addiction.

This is why I believe gold’s next bull run is an accumulation of multiple factors sensationalized into the greatest flight to safety in our lifetime. Think of it like a person shouting “fire” in a smoky room not to save others but to create a profitable scene of chaos. Nevertheless, the results are the same.

Like most weekends, this one was no different when an individual asked the one question I hear so often, “Why is gold the best choice right now?” See the question below. I’m willing to bet this same individual didn’t have gold on the radar until recently.

Can you imagine a week of multiple days of 5% or better gold gains and how the media will sensationalize gold as the hurry-and-jump-on-metal? You can bet that we’ll be right here to sort it out by making factual silver and gold observations.


Question: What makes precious metals the best choice considering the volatility around the world? Second question, silver or gold? (verbal question during consultation)

Answer: Thanks for the questions. Just to make sure we’re all on the same page here let me start by saying we are talking physical metal. Also, we recommend low premium bullion, rounds, bars, and junk over rare or numismatic coins.

As said in Why Silver & Gold Will Go Higher, precious metals are the safest store of wealth today. We have to realize the ill economic effects we’re feeling now started many years ago (actually decades ago). Up until recently we papered over the problems with borrowed money but this appears to no longer work.  A life of credit allowed a lifestyle that should have never existed in the first place.  A consumer based economy driven from credit allowed us to invest in assets that appeared solid or trustworthy but are not.

More of us realize with each passing day that traditional investment or savings sources are in huge trouble, this realization drives more in search of solid trustworthy assets. Nothing has a history like silver and gold, nothing ever will. Think of it like the perfect storm driving masses to the one cove of shelter but on a global scale.

As per your second question, I see little chance silver will not benefit from gold’s draft and I personally own both (80%/20% gold over silver). But I do recommend using silver as a segue into PM since it’s easy and cheap to buy. Hope this helps.

Question: I love reading TPS and enjoy your realistic view of precious metals (I bought gold many years ago). I’m thinking about taking advantage of cheap mortgages and discounted real estate by exchanging some metal for income property. I recall something you wrote last year mentioning this is wise under certain situations, this leads me to ask two questions. Should I offer gold as part of a down payment or completely “cash out” the properties?

Answer: Thanks for the nice words and reading TPS. I hear your questions and I’m making the same decisions myself. Like you, many of us bought gold for hundreds of dollars and now tempted to buy discounted real estate. I will devote an entire post to real estate this Wednesday and I have no doubt your questions and more answered. Thanks for asking and be sure to catch us on Wednesday.

News Worthy:

CBS DENVER: Embalmer Pleads Guilty to Stealing Gold Teeth from Dead

LONGMONT, Colo. (CBS4)- A man who was working as an embalmer says he stole from the dead in order to support his family. Adrian Kline, 43, of Brighton, pleaded guilty Thursday to removing gold crowns from the teeth of dead people and then selling them.

Kline received a deferred sentence, probation and community service after pleading guilty to two counts of providing false information. Police believe Kline may have recovered or extracted hundreds of teeth from the deceased or the deceased’s remains.

After a body is cremated, any metal — including dental work — is usually removed from the remains to be recycled. Kline claims he only took the gold crowns that were going to be thrown away at the funeral homes, but one funeral home manager in Brighton said Kline was fired after jewelry belonging to a deceased man went missing. Creepy, but readable right here.

News Worthy:

KSEE 24 NEWS: Increase in Thieves Snatching Gold Necklaces of Necks

Gold theft is on the rise in Fresno. Fresno Police Sgt. Mark Hudson explained, “They’re coming up behind the victim or somewhere beside them, running by, snatching the chains right off of their necks and then taking off that way.”

One of the most recent thefts happened at the Git N Go Market on Tulare and Peach. Gerald Kane was arrested after he was caught on surveillance video snatching the cashier’s necklace. This past month alone, there have been ten of these types of thefts in Southeast Fresno. Most of the victims have been women. Police suspect the increase in this crime is due to the increase in the price of gold. Read it here.

TPS adds, we expect to see more of this type of crime as metal prices rise and the economy continues to correct. The problem complicates when we reason states like California no longer have the revenue to incarcerate at the level necessary to clean trash like this off the street.

News Worthy:

AMMOLAND: Firearms Industry Numbers Reflect Record Pace of Gun Sales

NEWTOWN, Conn --(Ammoland.com)- Following the eleventh straight month-over-month increase in consumer firearms purchases, firearms and ammunition manufactures are reporting strong sales even with the down economy.


Sturm, Ruger & Co. (NYSE:RGR) reported that first quarter sales increased 10.5 percent compared to the same period last year. Read more here.

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