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THE ONLY PROTECTION LEFT…..SILVER & GOLD

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

Listening to Congress argue over increasing your taxes reminds me of trick I used to play on my boys many years ago. As they crawled into bed I would lean into their room all while hiding the light switch closest to their door. With my free hand I would raise it high in the air asking my boys if dad had the magic to cut the lights with nothing more than a snap of the finger. What they didn’t realize was my other hand, blocked by my body, could flip the switch off simultaneously. The trick worked many times before my oldest let reason supersede the magic of his father. Today, our elected officials play the same cute little trick on the masses as we fall for the same taxation dog and pony show over again.

I love the exposure power of precious metals. Regardless the deceit, regardless the monetary games, silver and gold continue to expose the obvious for those willing to accept that ones in power refuse to admit a failed fiat system will only continue to erode what you and I have worked hard to amass.

Some of you reading today are new to precious metal which means you’re new to TPS (The Prospector Site). First, thanks for joining us today but especially thanks for joining the minority that refuse to accept the word “recovery” at face value.

There is zero chance that record debt creation will create a long-term healthy economy and the only way to protect you and your family is to make a proactive approach by insulating your wealth from taxation and inflation.

The trick we must discuss today now plagues not only the USA but most countries worldwide. All of us living in the US must burden the lion’s share of responsibility since we are the only voters capable of stemming the trickery I wish to discuss today. We are the only nation capable of creating more of the world’s reserve currency (US Dollars); therefore, each citizen of this country is responsible in some capacity or another.

Think back, if you will, of my silly trickery shared with my little boys and the hidden switch. My left hand represented today’s argument for taxation by drawing our attention. The news over my shoulder, as I write this post, cackles with left and right leaning personalities arguing who should pay more taxes in order to resolve this “fiscal cliff” rhetoric that fills our news.

This is the same argument we heard last year, and the year before. What if I told you this argument is nothing more than an illusion, or distraction, while central banks around the world create more currency backed by nothing more than your continuation to accept paper as money!

The argument of taxation creates the smokescreen necessary to push the problem one more day down the road and only because we continue to watch a political version of my hand slowly rising to an attention grabbing position. Some of you might ask what the big deal is since we’ve had deficits as long as most reading lived. I’m glad you asked.

Those elected need not raise taxes as long as you accept printing more money. You see, the easiest taxation ever created is the power of inflation since inflation doesn’t appear on a W-2 or year-end tax returns. Those requesting your vote realize the danger of taxing you directly but relish in the ability to tax you by way of inflation.

Please don’t take this wrong but such political power derives from our monetary ignorance, sorry.

If you ask how high silver or gold will rise I have a simplified way to answer your question. Real money (metal) will rise as high as necessary to counterbalance real money with inflation. Will gold rise to $5000 an ounce, maybe silver to $500? Can you imagine what happens to PM prices when we dump fear, uncertainty, and a very limited supply of silver /gold into our bowl of inflation?

The evidence is all around us. It’s at your grocery store, gas station, local utility, everywhere. It’s most evident at your local coin shop who now charges around $24,000 for $1000 of face value legal tender coins made from silver. Folks, these coins…… not long ago I might add, traded dead even with dollars. Now it takes 24 times more dollars to buy the same amount of silver. Welcome to inflation 101.

Our silver example exposes inflation when we consider 95% of our dollar’s buying power disappeared over one generation. Folks, we borrowed more money as a country over the last 5 years than over the previous 200 years. How can anyone argue recovery over inflation?

This type of inflation is tolerable when a debt based / consumer based economy supported growing wages but these days no longer exist….at least not for most of us. Can your income keep par with the level of inflation I’m describing today? If not, my advice is to relocate some of your wealth to precious metal, SOON.

The trick that steals your money is this simple. One way or another we all pay for the monetary mismanagement described today, we pay more in taxes or we pay more thanks to inflation.

LAST WORD…..at least until we try to answer some of your questions. Since the presidential election TPS has received an extraordinarily number of comments and questions. Thank you. This tells me folks are very concerned and looking for real answers in a time of uncertainty but fortunately many of you are considering silver and gold. I encourage each reader to continue their quest to find monetary truths and congratulate each of you for your effort.

WORTH REPEATING:

 November 9, 2012: “The Fed’s paper money system is the major source of economic suffering today. It is the reason that Congress can’t control its spending. It’s why it can fund wars and the police state. The paper money monopoly distorts economic signals and causes booms and busts. It robs the American people with the insidious tax called inflation. We must never forget that the Fed has the massive power it does only because of paper money. If it were restrained by a gold standard or monetary competition, the Fed would be a menace, but not a mortal threat. As it is, the Fed, and, by extension, the government itself, holds our entire economic future hostage.”  Dr. Ron Paul

For those who believe taxing the rich is the answer I want to share the Youtube clip below. It is sobering to say the least.

 

QUESTION: Why does the price for gold have such a close relationship with the price of oil? It’s easy for me to understand the price of gold [PM] following the value of the fiat dollar, but how is that related to the price of oil?
I might note that I have dealt with Don Stott, coloradogold.com on six different purchases, and could not give a stronger recommendation. Everything goes exactly as they say, and you have nothing to worry about. Thanks for the help.

TPS Reply:  Great question so thanks for asking. Oil, since the early 1970s, is priced in USDs and this is why we often hear the term “petrodollars“. It makes sense that oil and gold appear in lockstep when we consider both expose today’s declining power of fiat dollars.

Something else parlays oil and gold together and it can be summed up in one word, volatility. The conflict building in the Middle East has the potential to send both commodities beyond the affordability of over 90% of the world. Think how our economy now depends on oil to make the economic circle complete. Many folks in the US rely on goods transported over 1000 miles yet never consider how $200 a barrel oil affects the household budget. We have a choice to buy silver or gold, or not, but all things oil dependent are a much different story.

Today’s ratio (gold to oil) shows oil under priced so don’t be surprised to see oil rebound over the short term. The average ratio since 1970 is 14 – 15 oil barrels per gold ounce but today’s gold buys closer to 20 barrels. My bet is oil will rebound well before gold prices decline but who knows in such a volatile age of monetary manipulation.

Good call on the oil to gold relationship and thanks for validating Colorado Gold as a reliable source for physical silver and gold.

 

COMMENT:  Just found TPS.  After reading Aftershock (Wiedemers’ version) and Doug Eberhardt’s “Buying Gold and Silver Safely“, reading what I have here and seeing the same logic being applied to the world’s bubble economy and the realities of money printing, it is good to continue to find sources that agree with the Wiedemer’s and Doug in how to protect ourselves.

TPS Reply:  Yep, I agree and thanks for pointing out solid economic and PM information. Aftershock book is one often mentioned on this site since I’ve had long conversations with one of the three authors. It is impossible to not recognize economic bubbles after spending a couple hundred pages reading example after example why assets spike and then quickly lose value.

One event that helped me to truly understand PM comes from the 1980 gold era when metal spiked to just over $850 an ounce only to tumble in the months soon after. The gold bubble of 1979 to 1980 proves how the herd rushes into an asset late but just in time for the slaughter. Wise metal owners sold gold from the backdoor while the masses pushed and shoved trying to find the front door as coin shops struggled to meet demand.

I encourage each person new to PM to research how 2012 /2013 are different than the bubble days of 1980. Gold is off the radar of most investors /individuals considering it is estimated less than 2% own physical PM. Will gold’s relatively unknown status change someday? You bet it will and we’ll be right here to break down how current events affect today’s PM market.

Thanks for finding TPS!!

 

QUESTION:  Hi, I’ve recently become interested in buying gold and silver.  However, I am not thrilled about owning physical metals.  I would much prefer to own something like the SPDR Gold Trust.  I just wanted to get your opinion on owning gold via this method rather than the physical option and also if there is an equivalent silver trust that you like.  Thanks for the help.

TPS Reply:  Thanks for your questions. SPDR Gold Trust is one of many ETFs (exchange traded funds) that allow an investor to invest in metal without actually physically owning it. An investor sends cash to Wall Street and then hopes financial institutions promote your wealth in a favorable fashion. You are wise to show interest in silver and gold but I have reservations about anything owned but not held (allocated).

Owning silver and gold is part of a overall plan to shelter a family from uncontrollable economic conditions stemming from a fiat currency explosion.  The reason more and more search out assets like physical PM is to create an individual monetary system outside the financial establishment. PMs are the foundation to financial independence and have been for thousands of years, this will not change anytime soon.

The monies we hold in our bank accounts and wallets are no longer money, they are promissory. Too many have abused this fiat system we still call money and this is why TPS readers prefer real assets like silver and gold. I’m far more comfortable with you owning real physical metal first and then speculating on PM ETFs down the road.

By the way, if storing metal is not for you why not check out BullionVault or GoldMoney since both allow investors to buy real metal, close to spot (paper) price to boot, without the hassles of personal storage. Regardless, thanks for the questions and thanks for reading TPS.

 

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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RISING RISK OF HOME INVASION

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

We spend a great amount of time discussing PM (precious metal) security/storage. One glance at today’s headlines show why.  I will not approach today’s topic as an alarmist, this does little good. The objective is to provide several options making you as comfortable as possible storing PM at home. You are forewarned, we will provide disturbing examples of exactly how brazen home invasion is today.


We are long past the age of solely relying on a gun safe to protect in home valuables.  Although part of a plan, stand alone PM protection can no longer be viewed as one dimensional. Of course, the odds are you’ll not be victimized by home invasion, but do you really want to chance it?

The facts are home invasion crimes are a growing problem thus requires a progressive plan of protection.  Here are but just a few facts.

  1. Home invasion crimes are not limited to big cities.
  2. Home invasion crimes are not limited to elderly or single women.
  3. Home invasion crimes are not limited to evening hours.
  4. Home invasion crimes are on the rise.
  5. Worsening economy equals more risk.
  6. Rising PM values equals more risk.

ROMEOVILLE, Ill. (CBS) April 12, 2012 A 99-year-old woman was duct-taped in a chair and attacked in her own home in southwest suburban Romeoville on Wednesday (along with her son).

Ann Budzinski, who turned 99 on Saturday, talked to CBS 2’s Dana Kozlov on Thursday about what the three attackers did to her and her disabled son over the weekend.

She said one of the attackers grabbed her forearm and pushed her down.

“Then I noticed I was bleeding,” she said. “I figured I better not scream or nothing, because you don’t know what they’re gonna do.”

He said one of the attackers had come to their door around 1:30 p.m. Wednesday, claiming he needed to check the water pressure at their house. When he tried to shut the door on that man, two others helped the stranger barge into the house.

“I had a stick there with me that I use when I go out, and I was going to hit the guy with it,” Ann said. “That’s how he grabbed me, and he pulled me. Then I almost fell down, then he pushed me on the chair.”

James said the robbers threatened to kill them if they didn’t tell the trio where they kept their safe or jewelry.

“I said ‘We don’t have any, we’re on Social Security,’” he said.

“It scared me, but it didn’t hurt, and I guess I felt kind of numb,” his mother said.

The Budzinskis said the intruders were at the house for about 25 minutes, ransacking the home for valuables, stealing some plastic costume jewelry and cash from a recent garage sale.

Ann’s arm was cut in the attack, but – even at 99 years old – she said “I feel fine.” Morehere.

Below is one last example of home invasion risk. Please be warned this one is disturbing and some readers will find reading very uncomfortable.

Second Example:

Source: COIN CRIMES February, 2012Robbery of a gold coin collection worth an estimated half-million dollars was the apparent motive when intruders slit the throats of three people, killing two men and critically wounding a woman in their Gonzales home over the weekend, the Ascension Parish Sheriff said Sunday.

Businessman Robert Irwin Marchand, 74, and his stepson Douglas Dooley, 50, were killed in their home at 39122 Babin Road, said Ascension Parish Sheriff Jeff Wiley.

Marchand’s wife and Dooley’s mother, Shirley Marchand, 72, was “clinging to life” Sunday as she underwent emergency surgery at a local hospital, Wiley said.

The brutal slayings probably occurred between 12 a.m. and 10 a.m. Saturday, Wiley said.

 

Sheriff’s deputies went to the home about 10 p.m. Saturday to check on the Marchands after Dooley’s wife, who lives in Tennessee and speaks daily with Dooley, had been unable to reach him for more than 12 hours, Wiley said.

When deputies received no response at the door, they peered through the windows, Wiley said, noting nothing out of the ordinary — and no signs of a break-in — until they came to an office on the far left side of the house where they saw three bodies covered in blood.

Deputies forced open the door and realized Shirley Marchand was still alive, Wiley said. All three victims were fully clothed, and each had signs of trauma on their bodies, indicating the intruders used a “blunt object” as well as a knife, he said.

“This department is working non-stop to identify and capture the killers,” Wiley said.

Though Marchand’s critical condition prevented her from being able to speak with police, investigators are reviewing footage from three surveillance videos in the area, Wiley said.

“We’re not at a standstill by any means,” Wiley said of the investigation.

There are a few clues that lead police to think the intruders may have known the victims, he said.

One clue is that the house had no signs of forced entry, which could either indicate the door was left unlocked, or that the victims had willingly let the intruders in, Wiley said.

The sheriff said that detectives believe there was more than one attacker, particularly because Dooley was a large man and would not have been easily subdued.

But the primary clue, Wiley said, was that the intruders had known to take Robert Marchand’s safe, which contained hundreds of thousands of dollars’ worth of gold coins, while a desktop computer, laptops and cellphones in the house were left untouched.

Robert Marchand’s gold coin collection, which included coins that dated back to the 1800s, was divided into five “groups,” Wiley said. One of the groups was known to be worth $104,000, he said.

An outsider would have never known that the Marchands’ modest home contained an estimated $500,000 in gold coins, he said.

“It was clearly not random,” Wiley said. “We think it had to be planned.” Read more here.

YOUR PRECIOUS METAL DEFENSE PLAN:

DISCRETION:  Think about this for a moment. Someone else always knows when you store PM in home. This person, or persons, is usually trust worthy but an acquaintance, cousin, relative of a cousin, or friend, possibly not as reliable.  Your first step against home invasion begins with discretion when buying, storing, and selling.

Never buy face to face unless trading at a trusted coin shop or show. Never use social networks or sites like Craigslist to buy or sale PM.  Always use prudence before, during and after the sell.

STORING:  We are soon to release an e-book called STORING SILVER & GOLD (June 2012) here at The Prospector Site. The research invested in preparing for such a book release was nothing short of worthwhile.

Your storage plan must include multiple levels of safe storage practices including three or more storage options. We have no way of knowing for sure but our suspicions are over 75% of all physical silver and gold stores in owner’s homes.  If this includes you please read closely.

Thieves, home invaders if you will, all have a few things in common. They want to leave with something perceived precious as quickly as possible. Your storage plan must allow both if your home victimized. This means decoy metal stored in a decoy safe is recommended as a necessary part of your home storage plan.

Home security experts all agree around 70% of intruders do so by way of doors or windows. This includes everything from kicking in a door to impersonating a trusted professional. Doors and windows are easily secured with minimal cost (email us for more information). Knowing who to trust (at the door) is more challenging especially depending where you call home.

The truth is no one should expect 100% protection . Homes are where we live and raise our families. They are NOT security vaults or fortress like compounds. This requires each PM owner to have realistic expectations about home security. In my view, you must realize three or more storage options carry less risk by providing multiple levels of security that your home can’t.

Many of our readers are against storing PM anywhere outside their property (home). They feel the risk is just too great by trusting banks, vaults, or international storage. This is not necessarily true and certainly wasn’t the case for the victims we described above.

FIRST MINUTE OF A HOME INVASION:

I want to disclose that I’m not a security expert by any means. I have researched endlessly and can honestly say the first minute of a home invasion is critical. The time to prepare for such an unlikely occurrence is today.  Here is what my research reveals as prudent.

  • Assess their goal. Why are they in your home? Are they professional or drug addicts looking for something to turn into cash? Are they agitated or calculated? Do they know the home (floor plan, family, etc)? What is their goal RIGHT NOW!
  • What will it take to immediately get them to leave? We know their goal is to steal something of perceived value. Do they know you have PM in home? If not, they will accept decoy metal without question, at least in most cases.  You must decide if offering up decoy metal is wise UNDER YOUR SITUATION. This last point is most important. Silver and gold are replaceable (yes expensive but replaceable), family is not.
WE WANT TO HEAR YOUR OPINION AND VIEW. FEEL FREE TO COMMENT OR ASK QUESTIONS RIGHT HERE.

COMMENTS & QUESTIONS:

Comment (regarding last Friday’s post called Rivers of SilverThis question has already been answered – junk silver! Pre-1965 US minted coins, primarily dimes and quarters, but including half dollars, are 90% silver. Called “junk” silver (no numismatic quality), American silver coins are less than an ounce and readily available by the roll or the bag ($100, $250, $1,000).

Picking up a $100 bag of 90% junk silver quarters or dimes (71.5 oz, FDR or Mercury) is easy at most coin shows or shops. Look into junk silver!

PROSPECTOR REPLY:  Thanks for the comment. You make a great observation by mentioning how relevant junk silver will soon be. Junk silver coins are fractional silver and do offer small silver denominated trade. The problem arises when we consider only a limited amount of junk silver is available (they are not making more junk silver). This is great for those owning junk but not for the masses new to silver and gold. Great point, I think I’ll buy another bag of junk someday soon.

COMMENT:

I pity the poor/rich people who bought Gold & Silver off TV ads and the internet. They should have known that the government will order the names, addresses and the amount of gold or silver they purchased / and then go to their doors and demand it or go to JAIL.Just like all those dummies who registered their firearms / they too will be tracked down and their guns taken or go to JAIL.

PROSPECTOR REPLY: Thanks for the comment. I agree most forms of government are to the point of overreaching but doubt silver and gold is atop the list, as you mention. Why, because silver and gold are far less relevant today? Let me explain, gold once was the anchor of most currencies. This “gold anchor” (gold standard) limited reckless spending and fiscal insanity. But this is no longer the case and hasn’t been since 1971.

The overreach you mention is likely but far more likely via taxation of more common assets (compared to confiscating PM). It is much easier to raise property taxes, capital gains taxes, etc, than go door to door looking for ounces of silver or gold. This doesn’t mean PM holders should expect exclusion because I’m sure some “creative” means to levy your PM is possible, maybe probable.

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HOW SAFE IS YOUR SILVER & GOLD?

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

Okay, after months of thinking, reading, and watching you have decided to buy the one asset no government can print into worthlessness. It’s nerve racking, I know, and this is why you’ve put off trading dollars for silver or gold until now. Part of you is angry. Angry you didn’t buy two years ago with gold at $1100 per ounce or silver at $16.90 (oz). Angry each time another too big to fail finds billions of dollars in favor while you work double time to make ends meet. It is a big decision but a necessary one, this is why you’re reading this site and this post. Now, I have one last question before you head off to your local coin shop or make a call to an online bullion dealer. How safe is your silver & gold?


Congratulations on committing to an asset few others understand or find worthy. You are now part of the 1% protected from fiscal insanity and on the path to monetary self-reliance. I know what you’re thinking because I hear it nearly everyday; you are thinking how little metal comes from such a huge dollar price. I thought the same thing 10 years ago as I bought my first coins of gold. Want to hear something kind of funny?  The guy down your street will pay three times what you paid all while thinking the same thing.  Silver and gold values will rise, they have to. The only way this trend reverses is if economic growth surpasses spending or those in monetary control reverse spending. What is your bet?

Buying physical silver or gold is similar to bringing a baby home for the first time. Nothing can prepare us for the challenges, insecurities, or confusion that comes with either. Like a child, others have faced the same PM (precious metals) obstacles for thousands of years, and survived.  Develop a plan for storage as soon as possible, silver or gold cannot protect you if you don’t protect it. Bullion coins, bars, or rounds can be nearly impossible to locate once they walk away. My goal, to make sure you establish a comfortable method to store this new bundle of metal.

My recommendation is to personally store at least 1/3 of all silver or gold held. This means you or someone trusted finds a safe but non-passive means for PM storage. This should be no different from the plan you established, and then implemented, when buying physical silver or gold.  Developing a storage plan to safeguard silver and gold need not be clumsy or nerve racking. Like buying, you first educated yourself, developed a plan, and then implemented the plan according to your budget and taste.

It is often said that 90% of all physical metal stores within the owner’s home.

This is very possible but my bet is less than half storing at home are adequately protecting something as valuable as silver and gold. I just don’t feel securing PM is at the level of gold’s popularity or demand, this is concerning.  It is no longer adequate to toss twenty ounces of gold into a wall safe or gun safe. This type of singular protection worked with prices 50% of today’s value but rising prices must include multilayered protection. The alternative could be devastating for those less prepared.  So what does a multilayered plan include? Multilayered PM protection includes more than a free-standing safe. Multilayered security includes everything from outdoor lighting to wireless alarms. Multilayered security includes tapping into professional security advice if in doubt. Multilayered security includes a proactive mindset and then a proactive plan of implementation.

FIVE LAYERS OF PROTECTION:

  1. Discretion before, during, and after the purchase.
  2. Diversifying storage options including passive and personal storage.
  3. State of the art in-home security system consistently armed.
  4. Decoy safe with decoy metal along with well hidden, well attached, PM safe.
  5. Perpetual storage plan adapting to changing times.

TIPS:

  1. Never allow (use) social networking to promote travel plans or vacations away from home.
  2. Inform all family members of strict discretion.
  3. Never buy from Craigslist type sellers.
  4. Buy from reputable shops or bullion dealers.
  5. Use caution when trading at local coin shows.
  6. Use caution when entering & exiting home or apartment.

Below is a website I recommend all readers not 100% comfortable with this home security issue. If you take one thing from today’s post it must include a proactive security plan. Implementing such a plan greatly reduces your odds of silver or gold theft, there are just too many easier victims. The website I recommend is www.GlobalSecurityExperts.com. This site offers free tips on securing a home but also provides a personal home evaluation/recommendation for those willing to invest a few hundred dollars in such peace of mind.

TELL US YOUR TAKE ON HOME STORAGE. REACH ME RIGHT HERE.

COMMENTS & QUESTIONS:

Question: Can I ask which online bullion brokers you recommend?

PROSPECTOR REPLY:  Thanks for the short question. Yep, it can be a little confusing but many good bullion dealers are available to provide reliable silver and gold options. As you know, I don’t sell silver or gold on The Prospector Site. I buy from three online bullion dealers and have found all great and reliable, I can’t speak for the others. Visit our friends at www.GoldShark.com for the most competitive bullion pricing (posted prices include shipping too). I buy from Blanchard Inc, Gainesville Coins, and Miles Franklin. I also trade at a local coin shop, hope this helps. Oh, one last thing. Make a plan including what you’re buying, how much, and where to store BEFORE calling. Stick to the plan regardless (email me if something doesn’t sound right). Good luck and congrats.

COMMENT:

Something you mentioned in Silver Ponzi Warning stopped me dead in my tracks. It is so true that “Silver and gold are only as reliable as the sources selling each metal”. My fear is many will find this out first hand considering the number willing to say or sell anything to make a buck. Just this week I read about tungsten filled gold bars (not the big ones either). Keep up the good work and don’t be afraid to call-out the bad ones.

PROSPECTOR REPLY: Thanks for the comment, and reading our site. I too have the same concerns and truly believe stories like this one will only increase as gold/silver do. The best defense consumers have is education and the internet. The article you mentioned about tungsten is very concerning and we wrote about it several months ago. I feel tungsten risk is limited and excludes gold bullion coins and smaller bars, keep that in mind next time you add to your gold stash. Thanks again for the comment.

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ARE WE LOSING “IT”?

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

For those that don’t know him Gerald Celente is an entertaining man that just happens to be one of the most accurate trends forecasters of our time.  I’ve had the pleasure of following Mr. Celente for years and to be honest have made a little money by heeding his trend warnings.  If you have the chance to hear this energetic forecaster interviewed it won’t be long before he says something like, “When People Lose Everything, and They Have Nothing Left To Lose, They Lose It”.  Is it possible Mr. Celente is trying to enlighten readers with a glance into our future?  Even bigger, what does “it” have to do with owning gold & silver?


The New York Times bestselling book Aftershock devotes an entire chapter on How Not to Lose Money. One could assume these authors must feel we are losing it or they wouldn’t devote a chapter on losing money. I have to admit it’s one of my favorite chapters of the book. Unlike other typical economic books this one does more than point out today’s problems.  I recently heard a real estate expert say trillions of the world’s equity wealth has disappeared.  Does this mean we lost this wealth and it’s never coming back?  It appears we are still losing it if “it” is equity in our homes.

Our society has been fighting several domestic battles over the last decade. The war on drugs,  the war on poverty, and the war on no child left behind.  Are we winning any of these wars?  We must be losing it when we talk of poverty because the news of late is full of record numbers on food stamp assistance.  The news also said not since the Great Depression has so many children been homeless.  I guess you can say we are losing it when it comes to poverty and children. I haven’t seen the numbers but my gut says the war on drugs is not looking so good either.  What about inflation, are we winning “it” by printing our way to prosperity?

Our administration said JOBS is priority number one.  This was back in 2008/09 and two million jobs have disappeared since jobs became top priority. With millions more unemployed, millions underemployed, and millions giving up, I guess we can safely say we are losing the battle to create new jobs. We’re not trying to depress anyone here but simply taking a realistic look at today’s situation.  Remember, we can’t make wise choices if we don’t have the facts straight.  The fact is we along with most other countries are losing what ever “it” is.

But not everyone feels the way the facts show. They must not because I’ve noticed more new cars over the last month than over the last two years when driving around.  My radio said today there is no better time to buy a new home (interest rates are historically low).  My television said recovery, although slow, is growing our economy toward prosperity.  With all this good news we certainly can’t be losing it, can we?  Is it possible so many see our plight opposite of the facts?  Can the facts be wrong this time?

There is one more indicator for those still willing to test our theory of losing it. This last indicator is a beacon of truth even it the truth is something we don’t want to hear.  The same indicator carries no bias, no distortion between good or bad, and no opinion one way or another.  Yep, you guessed it right if you said gold & silver.  The reason I know we are losing it (whatever it is for you) is because gold is an issue.  If we were truly winning “it” we wouldn’t be discussing gold or silver.  Thousands wouldn’t read this site asking for more unbiased information.  We could sell our stash of gold and then do something fun with it.  The only reason to hold PM is to hedge against “it”.

This is our take so tell us yours.  Have you noticed others losing it or are we blowing the situation out of proportion?  Reach us here with your comments.

Thanks for reading The Prospector Site today and feel free to sign up for our weekly newsletter here.

YOUR COMMENTS & QUESTIONS:

QUESTION:  When I stop by our coin shop to buy the type of metal you recommend (gold & silver bullion) they never seem to have any in stock.  If the do it’s only an ounce or two.  Should I have them place an order for me since they said they will?  Not sure what to do at this point.

ANSWER: Thanks for the question and thanks for reading too.  Since the year-end dip coin shops are struggled to keep inventories on shelves.  The reason is most folks are like you, buyers, and few are selling.  As my shop owner said,  “90% of the metal goes out the door, not coming in.”  It might not be a bad idea to have your local shop place an order for you but it comes down to what they will charge for this service.  I would check with www.goldshark.com to compare online prices with shop prices.  If close, pick your local coin shop, you may need quick cash someday.  Thanks again.

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TAPPING A GOLD & SILVER DIP

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

When was the last time you visited your local coin shop?  You might be surprised when you do, I was.  It wasn’t until after the holidays before I realized a busy schedule has kept me away from one of my favorite places.  It didn’t take long to realize something was missing soon after entering my local shop; the usual stash of bullion gold and silver was missing.  The place looked as if bullion gold and silver was on sale the day before I arrived.  Know why?  My local coin shop looked barren because gold and silver have been on sale.  Are you tapping into the gold & silver dip?


Ask ten metal buyers the benefit of buying gold/silver on a dip and nine will say it’s all about the savings. This is not exactly accurate, not exactly.  The benefit of buying on a dip is amassing more metal for the same money.  You see, owning gold and silver is all about volume, not price.  This sounds odd from today’s perspective but someday soon it’ll make perfect sense.  This is why it is very important for folks of medium wealth and below to see and react to good dips.  But the question remains how do we know a good dip when we see one?  Glad you asked.

A good dip is hard to spot. I hear plenty of stories, thanks guys, of folks buying what they perceive as discounted metal only to see the next month offer cheaper metal.  No one, I mean no one, is happy when this happens.  The overall picture makes a great rebuttal for those disappointed.  I recommend bookmarking a 10-year  gold or silver graph for days when dips are in question. My point is this.  No one can pinpoint a dip’s bottom.  I talk and write about gold and silver all day and I’m no closer than you are to timing the precious metal market.  Another thing, this doesn’t bother me and it shouldn’t you.

Let’s take a look at a real life example from one of our readers. This person bought silver twice last year ;250 ounces at $30 (physical of course) and 250 ounces at $50.  For a total of 500 ounces of silver this buyer paid $20k.  Our buyer used a dollar-cost averaging approach and basically paid, on average, $40 per ounce for American Silver Eagles.  The benefit of a dip is this.  The same $20k right now will put somewhere around 613 ounces in this buyer’s safe place.  Now let’s take it one step further if we may.  When silver climbs to $60 an ounce, and it will in our opinion, the extra bullion derived from a dip will add nearly $7000 of true worth to this buyer’s bottom line.

Remember, dips are all about volume, not necessarily savings.  This is our take so let us hear yours.  Are you taking advantage of dips?  Do you buy when it’s time to buy not worrying about dips or spikes?  Let us know right here.

Please remember to pass along The Prospector Site to your friends and family.  Feel free to add our no cost email newsletter here.

QUESTION:

QUESTION:  I’m soon to order a box of silver bullion but not sure where it should be delivered.  My work is the best option since I’m rarely home during delivery time and don’t want it sitting on my porch.  Maybe I can have a neighbor watch for it.  Not sure what is best?

ANSWER:  Thanks for your question and congrats on making a wise move into silver.  We hear questions like yours more often than you would think so let us throw in our two cents.  First, USPS (or whoever is delivering your metal) will not leave something as insured as a box of silver (I am assuming you mean 500 oz box?) on your porch.  They will leave a “pickup slip” in your mailbox if not home.  Hope this helps.  Thanks again for the question.  Oh, by the way, leave the neighbor out of this for discretionary reasons.

QUESTION:

QUESTION:  We have found a coin that has silver rim of about 5mm and gold center that is 15mm wide.  One side has a man’s head with glasses and the other side has a building that is similar in shape as the Eiffel Tower and it has smaller towers in front side of the larger one.  It also has a 10 on it but the letters are not English alphabet.  Can you help?

ANSWER:  Thanks for the question, I wish I could help.  Take the coin to a local coin shop to help identify value and identity.  I bet the answers you’re looking for are easy to find but unfortunately we don’t deal with buying, selling, or appraising coins.  Does sound like a cool coin.  Thanks again for the question.

COMMENT RELATED TO “Is USA Turning “Third World”

Ross Perot saw this coming. That big sucking sound was jobs flowing out of the US to countries with less costly regulatory and taxation rates.

When Jimmy Carter made it untenable to drill and refine oil in the US, we knew all our money for gasoline would be enriching Arab nations. Well, some of us knew, at least NOW all of us know!

Who knew the arabs would fund terrorist groups with all that cash. We know now!

Now we have a “war on terror”, where we’re spending billions of dollars on Chinese made military toys to go chase “terror”. Ok, in all fairness, they’re not all made in China, but even the ones made here cost tax dollars, taxes on us, our children and our grandchildren since we’re borrowing the money!

With the added benefit of “Patriot” laws adding to the terrorizing of American citizens, not by muslims, but by our own fricken government!

And who does Iowa pick? “More of the same Romney”.

America is in the predicament we are because of the leadership we’ve chosen. Jimmy Carter, Bill Clinton, George Bush, Obama and now Romney.

OMG are we really that stupid.

Yes, America REALLY is that stupid. TYVM for nothing.

THE PROSPECTOR SITE REPLY: We can hear passion in your words.  Thanks for the comment.  You are correct about jobs playing a major part of our current decline.  But should we blame other countries for not regulating or blame ourselves for allowing over regulation (bigger government)?  After spending my adult life in a free enterprise world, I can tell you someone will fill a gap when there is need.  The USA is no longer as competitive because of inflation, regulation, and failed policies.  Of course no one wants a third world lifestyle but we also don’t want to inflate ourselves into poverty either.

You mention failed politics.  Politicians are as reactionary as gold and silver.  Politicians will develop the flavor of constituents in most cases.  Until folks tire of fixing everyone that fails, until folks are willing to live within means, and until folks are willing to make necessary sacrifice.  Not until then will politicians do the same.  Until we have leadership that promotes self-reliance over dependency, frugality over greed, failing as a necessary part of success, and then resells each citizen on the qualities that built this country, only then will we see true leadership.  Until then I’ll keep my gold & silver.


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BUY GOLD/SILVER LOCAL THIS CHRISTMAS SEASON

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

This Christmas season is panning out to be a boon for online shopping.  Holiday season shopping numbers are showing yet another huge increase in online shopping year over year. E-commerce has created a perfect shopping situation all without leaving the comfort of home, but.  What might surprise you is even with this trend we don’t recommend strictly buying gold or silver online, especially if new to gold and silver.  Today we’ll look at a good reason to buy gold and silver locally.


Last month we ran a post how buying gold & silver will change in the year 2012 and beyond (read it here). We mentioned a worldwide trend of jewelry stores slowly transitioning from selling artistic creations of metal to bars, rounds, and coins of value.  Foreseeing this gold/silver trend is easy considering many jewelry stores today now offer cash for scrap gold.  Progressing to selling investment type gold and silver, low premium gold/silver, seems natural and resourceful to this writer.  This should be good news to most readers since online shopping for gold/silver does have its disadvantages (I personally use both online and brick & mortar).

IS YOUR NEXT BANK A COIN SHOP?

You don’t need me tell you the banking industry is slowly becoming another extension of government. For those shaking heads in disagreement, imagine how many of today’s banks still financially strong, even solvent, if unsupported by bailout or Federal Reserve Bank loans.  Boarded up banks would be as common as boarded up businesses if not for government help by way of more debt & deficits.  The strength of your bank is as strong as the one supporting it.  The one supporting it is doing so by using new borrowed money to pay interest on old debt.  Does this sound like strong economic principles for long-term prosperity to you?

We can disagree on gold or silver, rounds or bullion, but we must agree the old way of saving or storing money is in serious jeopardy. Gold is and silver is becoming a great source for saving but must convert to cash if we need to pay a bill or buy something.  Sure a growing trend is to barter gold to another asset but not all commerce will work this way anytime soon.  I’m not sure what my bank would say if I pulled a gold coin from one of their deposit boxes and asked to trade it for cash?  I’m guessing they would have no idea what it’s worth but my local coin shop sure does.

You need, we all need, local coin shops or brick & mortar stores to trade precious metal to cash. The only way for these businesses to develop and prosper is for those trading gold and silver trading local.  There is something to be said for a trading situation that allows a gold holder to walk out with cash/check in less than five minutes.  We truly believe coin shops and other brick and mortar stores will become financial institutions in and of themselves. We must continue to support local gold/silver trade especially in times like today.

WHAT ABOUT YOU?

The news is full of jobless recovery talk and unemployment. If this describes you please listen closely.  Your community will need a place to trade physical gold and silver if the precious metal trend continues.  The only way it won’t continue is if metal regulation or an economic correction hit the scene first (we doubt the later will happen anytime soon).  This leaves us asking if you’re a good candidate for running a gold/silver brick and mortar store.  Several things should be part of your decision long before.  Security, cash reserves, inventory, and local market, should all be considered.  Make no mistake about it, coin shops are prospering and we feel they will continue to do so.

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THE TITANIC COURSE FOR SOME GOLD HOLDERS

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

I can only imagine the horror aboard an unsinkable ship that took the lives of 68% of its passengers.  I wonder how many passengers boarded paying little attention to an inadequate number of lifeboats?  Do you want to really know why so many perished in the frigid water this dreadful night?   From passenger to captain, from shipbuilder to designer, they all assumed everything was fine and failed to prepare for uncertainty.  History makes it obvious to us but only because of hindsight.  How many of you are sitting on the sidelines wondering if the economy is as bad as it is? How many of you are counting lifeboats?


Something very odd happened during my recent visit to the US Mint in Denver. As most watched dimes, nickels, and quarters pressed into legal tender I noticed a very concerned look on the face of our armed guard as he stared out a window. I joined my guard noticing a late-model car with its windshield completely smashed and several armed guards standing beside it.  I asked my guard what happened when he explained a roofing crew was working atop our building and must have thrown old roofing off the roof top and straight down on top of this new car.  The roofer assumed it was OK to toss debris from a three-story building without looking, maybe this is why they were the lowest bid?

How many of us assumed a good college education would equal a prosperous career?  How many of us assumed our homes would always be a safe store of value? How many assumed 401(k), stocks, bonds, and savings would provide more than enough income as we prepare for retirement?  How many assume buying gold is all they need to protect in times of economic collapse?  It concerns me how many jump into a lifeboat of gold only to soon realize even their lifeboat has a hole in the bottom.  It amazes me, even in this day of economic calamity, how many willingly buy gold from experts (advertisers) without fully understanding why they should.

I have received several emails complaining www.theprospectorsite is not defining enough with our information on purchasing gold and silver.  Some feel spending a few minutes in front of their computer should provide enough knowledge to make lifelong financial decisions.  I’m sorry but it’s not this cut and dry, not by a long shot.  I have spent over ten years trying to grasp the power of gold and silver only to realize I know so little about it.  Gold and silver can help stabilize ominous times but personal effort is needed to not be taken advantage of.  Education (knowledge) is the first and most important step to stabilize these economic waters.

The faint yet growing sound in the distance is no doubt the herd working its way toward gold and silver. Some in the herd will buy worthwhile metal finding protection there.  But most will follow salespeople’s recommendations trading dollars for high premium rare coins, numismatics, risky gold stock, and fake metal.  All will truly believe they’re protected finding false satisfaction in their prudence when actually most are taken advantage of.  Just like useless educations, just like homes that aren’t really assets, and just like trusting misguided financial planners.  Just to be clear I’m not saying rare coins are unwise I’m saying rare coins are unwise for the uneducated metal investor.

So where are you standing during what history will write as the greatest wealth transfer of our lifetime? I’m guessing since you are 600 words invested into this article you’re searching for the safest path to financial independence.  Congrats for taking the time to do this.  If you are searching for gold/silver buying advice let me say just this.  Buy gold and silver from someone trusted yet buy as close to spot price as possible.  Gold and silver bullion and rounds are a perfect start and a quick visit to our friends over at Gold Shark will provide competitive online buying options.  Your local coin shop will be slightly higher but possession is immediate in most cases.  Know what you’re looking for and what market value is BEFORE buying.

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RIP NEW HOME CONSTRUCTION

GOLD & REAL ESTATE, GOLD & SILVER, GOLD AND MONEY   1 comment

New readers could mistake articles like this as irrelevant to gold and silver but this is the furthest from the truth.  So many economic indicators point to importance of metal ownership and residential real estate is certainly a key indicator.  As trillions in real estate wealth disappears savers turn to real money like metal.  I will be the first to admit the gravity of our economic condition in the US is understated but, in reality, there are trillions in dollars of wealth sitting on asset sidelines willing to push precious metal prices higher. Today we mourn a big part of the American dream, new home construction.


I had only two stops during my trip to town last Friday.  One stop was at my local coin shop and the second to a local lumberyard. The number of customers, respectively, in both sums up my point better than I can.  My lumberyard sat empty of customers but full of flatbed delivery trucks ready for even the smallest of deliveries.  The counter help tried to act busy but after a few minutes of visiting I realized busy is no longer the norm.  The store manager informed me a stabilizing in the stock market is what it will take to get buyers buying again.  I think the problems go much deeper than a volatile stock market.  Millions in inventory, building costs, manpower, and equipment welcomed the only customer on a Friday morning, me.

My visit to the local coin shop looked entirely different from the lumberyard.  The shop itself is less than 1400 sq. ft. and only person works there most of the time.  I made the fourth customer when I walked in and patiently watched to see what my local market was trading.  As I waited I couldn’t help but think how the store I left (lumberyard) had so much invested with so few customers and this store thrived with an inventory of less than $100k or so.  My Friday trip to town left little doubt where the money flow is flowing at least for this fly over community.

CEO’s from large corporate home builders argue temporary declines in new home construction ( some regions are seeing a 70% decline in new home permits) are only temporary.  They anxiously assure stock holders single family homes are severely under inventoried but this is not true. The fact is most homes built over the last twenty years are underutilized by proof of families not long ago raising children, more children in fact, in homes half the size of new homes today.  More new homes is not the trend now and won’t be for some time as credit tightens, more do with less, and inflation steals wealth from the mouths of families worldwide.

But something always replaces a dying market and new construction is no different. Many have asked what is a good business considering our current economic decline.  If you are one of the millions looking for ways to make a living in the construction industry please read closely.  The trend replacing new construction is space utilization and energy efficiency.  Think more folks in the same footprint of an existing residence.  College kids come back home waiting for job prospects to improve.  Loved ones looking for shelter as banks realize sitting on shadow inventory only leads to a bigger loss.  Contractors offering affordable ways to convert wasted space into functional living areas will prosper more than new home builders waiting for a return not coming soon.

Yes so many indicators point to gold and silver as our economy built on credit and consumption replaces itself with self-reliance and small government.  Thanks for reading The Prospector Site and feel free to sign up for our free online newsletter here.

NEWS WORTHY:

There is a strong indication that home builders have almost ceased activity in several states as demand for newly built homes has dwindled. The slowdown in new home permits is particularly stark when compared to the total number of existing homes in each state. 24/7 Wall St. examined the number of building permits to find the states where no one wants to buy a new home. 24/7 WALL STREET NEWS.  Read it here.

NEWS WORTHY:

“Gold has become the portfolio antidote for the global financial crisis,” James McDonald, chief investment strategist at Northern Trust Corp., the Chicago-based custody bank and money manager, said in an interview.

The metal is up more than 32 percent in 2011, which would be its 11th straight year of gains, while the S&P 500 Index (SPX), a benchmark of the biggest U.S. stocks, has lost 9.5 percent including dividends. Investors have accelerated the retreat from equities on concerns that European countries will struggle to repay their debts and that the U.S. economy is weakening under the strain of unemployment above 9 percent, falling home values and a decline in consumer confidence.  BLOOMBERG.  Read it here.

NEWS WORTHY:

“That ratio may repeat under the present scenario, indicating gold could hit about $4,000 over the next few years,” Wang said.

Central banks from South Korea, Mexico and Russia to Thailand have been adding gold to their reserves in a sign of waning faith in the West’s benchmark bonds and currencies like the dollar and the euro.  REUTERS.  Read it here.

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WHAT IF GOLD OR SILVER GOES DOWN?

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

The higher gold and silver creeps the more people ask if the metal more are falling in love with has peaked.  I understand because most people who buy into precious metal are in metal to make profit.  What if I told you profit is just a byproduct of the best reason of all to own yellow and white metals?  Hey, I’m all about being paid for risk but to me it is far riskier to not own silver/gold than to own them.  Here is why I’m not afraid of metal going down.

Thank to our new readers, and old ones too,  that have joined The Prospector Site to bring order back to a confusing economy like today’s.  By you trading dollars for silver, or gold, you are personally taking control of your families future by relying on no one else.  As you move forward there will be times doubt will creep in questioning your solid investment in metals, this is normal.  Today we look at why gold and silver rising in price is not the only reason to own it.

There is a chance next years gold or silver could cost half as much as metal cost today and this is something every investor must realize is possible.  Why this is not a concern to me is because the price of gold is not as relevant as what it can buy. History shows gold/silver floats with inflation so other commodities will be half what they are today which means discounted gold will buy the same amount of other things discounted.  Please reread the last sentence until you fully understand it. If gold dropped 50% logic would tell us oil would do the same.  Historical charts prove these commodities, gold against almost all commodities, rise and fall in unison so if the price of gold/silver retreats you still keep up the same dollar buying power.

Another cause of metal declining could be the dollar regaining its world dominance most likely through a sobering by the Feds.  This will only be accomplished with fewer dollars in circulation by proof of a fiscally responsible administration thus restoring world-wide confidence in our dollars.  Quite simply, the return to days of buying more things with less dollars.  I personally would much rather live in a life of low gold/silver prices which surely would mean a solid economy and better over all way of life.  Your guess is as good as mine when this will happen so until then I buy metal.

WILD CARDS: If there is one thing we have all learned in the last four years is anything is possible.  If you would have told me big corporations would receive billions of tax dollars being propped up like the movie Weekend at Bernie’s I would think you were crazy.  When outside influence monkeys with market corrections the results are unpredictable to say the least.  Every precious metal investor must realize all forms of saving and investing are risky under the above scenario.  My thinking is gold and silver are the least risky so my dollars trade to metals.

QUESTION:  I want to buy silver from my local coin shop but I’m not sure what to buy?  This whole thing confuses me the more I read.

ANSWER:  Sorry for the confusion and let me see if we can put your mind at ease.  You may be confused not only from a possible silver purchase but from overall media crisis overload.  I want you to take time to understand the value of turning dollars to silver before stepping one foot into your local store.  If silver prices increase in the mean time so be it.  Think of silver ownership like an insurance policy.  We buy insurance to protect assets for when something bad happens in our lives.  Most insurance is never needed but we don’t know when it will be and this is just like owning silver or gold.  Keep reading until you feel more comfortable before buying anything.

TIP OF THE DAY:  You maybe deeper invested in silver than you realize.  Dig out old forgotten coins to see how current silver prices have increase the value of all pre 1965 coins.  You may be worth more than thought.

FAIR PRICES OF GOLD & SILVER (9:30 am MST)

  • ONE OUNCE SILVER BULLION:                    $47.61

  • ONE OUNCE SILVER ROUND:                        $45.27

  • ONE OUNCE GOLD BULLION:                        $1561

  • ONE OUNCE GOLD BAR:                                  $1523

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