So by their admission it appears the IRS has decided to pick who to pick on. Some, even the media, are outraged over such one-sided abuse but in my opinion most reporting the news have entirely missed the message. The back story here goes well beyond the IRS picking conservatively based groups to audit or postpone as a tax free worthy entity. The real message here is capital control and the price you will pay when you question the motive of an overreaching government who can no longer sustain itself within the constraints of our country’s constitution. Please add IRS overreach as yet one more reason to store your wealth in precious metal.

Storing wealth in physical precious metal is not 100% risk free. It is possible someone could steal what you’ve worked so hard to amass leaving you with no choice other than to start all over. But such a risk is very low and I say this only after countless hours researching the best methods to store silver and gold, both domestically and internationally. I cannot say the same for wealth stored within the reach of an overbearing IRS.

The ability to buy and physically own precious metal is one far too many fail to capitalize on considering the volatile age we live. Right now, a person in the United States can legally trade dollars for silver, or gold, without reporting this exchange to a governmental agency (a few exceptions exist so use due diligence). PM advocates often refer to this privilege as the last frontier of wealth storage. I know of no other asset with the same discretionary capability but this window of opportunity is closing as you read these words today.

To argue if metal prices will rise or fall, short-term speaking, is redundant in my opinion considering the discretionary benefits of physical PM.

While some view the latest PM price take down with frustration….. I view it differently. Paper silver at $22, and gold in the $1300ish, help preserve precious metal as an irrelevant asset even as the world disguises our silent depression with denial and printed currency. Think of this PM obscurity as a postponement with a short shelf life.

There is no chance the IRS will not target physical PM in days to come. In fact, no asset worthy of storing wealth has a snowball’s chance of not paying a “fair share” as determined by an ever-growing IRS. For the record, the fair share scale and the ability to print currency are the only reasons a government grows beyond the comfort of her people. The IRS is the monetary enforcer of such a time of governmental overreach.

As a precious metal advocate you have one huge advantage over the pinpoint overreach that fills our news today; your PM currency is not only irrelevant it’s also universally discrete.  But our digital age in a land of artificial currency will eventually pressure those trading physical silver or gold into a corner of regulation. At such time I see much less value in trading dollars for silver or gold.

So, where does this leave you as an individual willing to play by the rules as long as regulation and taxation stays within the parameter of reasonable? My advice is to not underestimate the power of the only governmental agency running a profit (how can the IRS not be profitable?). I’m also not an advocate of letting intimidation limit the one monetary step that will sustain not only a level of wealth but also a higher standard of personal independence. Keep discretely stacking physical silver and gold.

QUESTION:  I still don’t see it, sorry. Why buy silver or gold when precious metal prices are vulnerable to volatility far beyond a rising DOW, real estate, etc? Is this a fear thing that drives physical demand when real metal prices have dropped like a rock? I just don’t get it.

TPS Reply:  Thanks for expressing your view. You’re correct, the DJIA is up, year to date, somewhere around 16% while paper silver and gold are significantly down over the same time period. If we’re to judge asset worthiness using one spot in time then the DOW appears the winner. I, personally, refuse to place my wealth motivated by such shortsightedness; here is why.

The reason to trade dollars for precious metal has little to do with silver or gold. The disease is debt and the carrier of the disease is the US dollar, all while other currencies feverishly print themselves worthless, too. Hard assets, like PM, are nothing more than monetary lifeboats willing to transport the few who truly understand the significance of our age. Too many, maybe you, are focused on PM justification without recognizing the monetary epidemic at hand. Growing global debt combined with worldwide currency debasement will consume a large part of the world’s wealth.

I won’t argue with your fear observation. Folks are scared, and they’re growing reasons to be concerned. But I don’t recommend making monetary decisions based on fear, not during such important times like today. Fear can spark the flame but education and prudence is the reason demand for physical metal (not paper) has grown beyond silver and gold output. Thanks for the comment and questions.

QUESTION:  Want to read your books but I don’t have a Kindle reader. When will they be available in paper book form?

TPS Reply:  Thanks for asking. The plan is to combine both digital books into one paper version ASAP. The wheels turn slowly in the publishing world so I apologize for the delay, but will do whatever I can to speed things up. Until then, please remember some tablets will recognize digital books since the e-book industry is the most affordable way to read newly released books. Thanks to all readers for making both books included on Amazon’s #1 bestseller list.

QUESTION:  Will you agree that the secondary PM market carries far more risk than buying directly from a metal dealer? Why pay more for the risk, in my opinion? (TPS – several readers asked a similar question so I took the liberty to edit)

TPS Reply: Absolutely I agree. As long as an individual can buy from a reputable dealer then do so. But the problem is that such availability is very limited and worldwide PM demand is rapidly expanding (all while Americans enjoy the illusion of economic recovery yet question affordable silver and gold). Maybe I should take some space to better illustrate how limited today’s supply of physical silver and gold.

Silver and gold dealers (sources) are growing in numbers all across the world. Never in modern history have this many folks had the opportunity to own precious metal, this is good. But even as sources to buy PM grow output doesn’t. Mints can only process the metal after it’s clawed from the earth and this output is nowhere close to meeting our world’s growing demand for the one true universal worldwide currency. A million PM sources all buy from a handful of PM wholesalers.

Resurrecting scrap metal helps fill this growing supply-to-demand gap but it’s unrealistic to believe this will have a long-lasting impact. Combine India’s thirst for gold jewelry (they view gold as displayable wealth), and it’s easy to see why the world’s demand for PM goes far beyond bullion, bars, rounds, scrap, or junk metal – not to forget industrial usage too.

Back to your comment/question. The secondary market from here forward will become a dirty way to trade precious metal. To better illustrate, compare a reputable PM dealer to Costco and a growing secondary PM market to an outdoor flea market in Mexico City. Continue to buy from a local reputable coin shop or bullion dealer/broker as long as possible. Thanks for the great question.

BERNANKE WATCH:

The most powerful man on the earth’s surface is worried over inflation, but not from the same viewpoint you’re imagining. It appears inflation is too low for the FED and this is causing great concern (1.3%). But John Williams (ShadowStats) has inflation teetering around 8.7% leaving the other 99.99% of us asking who the heck is telling the truth.

No person buying their own groceries or filling the gas tank honestly believes the threat of “lower than expected inflationary numbers”. It appears that items of necessity are rising, rapidly I might add, while things not so necessary are stagnate or declining. This is a perfectly natural occurrence as households harness unnecessary spending by way of belt tightening.

Free thinkers really don’t need ShadowStats, the CPI, or Bernanke to tell us when costs are rising. The proof we need is as close as our most recent bank statement.

DC Carlton is founder of The Prospector Site and author of the Amazon Kindle #1 Bestseller 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.

Tags: gold, infaltion, IRS, physical gold, physical silver, precious metal, printing currency, silver or gold, storing silver, storing wealth

Not a day passes without a prognosticator preaching economic and financial ruin. Such a dire prediction stirs fear in the hearts of some yet supports a state of denial for others. Personally, I don’t believe in the school of economic collapse, at least not in the typical sense we so often read of. I believe the economy is and will continue a course of correction. Now, let me be perfectly clear. This correction could potentially feel like collapse since far too many are socially, spiritually, individually, and economically prepared for anything other than a stereotypical state of normal.

I blame a government that refuses to instill individual responsibility, promotes institutionalization, and….. in some cases – a cradle to grave dependency for such widespread inaction. Unfortunately, physical silver or gold isn’t even on the radar of our ill prepared.

The correction each must recognize affects us individually, and in many ways. Far too many have made the prudent step to buy physical PM (precious metal) but are at risk of becoming a short-term PM seller stemming from a lack of overall preparedness. In other words, they will sell their metal, to continue living a life of normalcy, just when they most need PM. This could come from desperation or it could come from monetary ignorance; it’s just too soon to tell .

The collapse (as most put it) is happening as you read this….. all in slow motion. Ask the man on the street and they will quickly point out a lack of good paying jobs. Ask a banker and they will say the problem is a lack of credit. Ask a politician and they will lay blame on the opposing party or a previous administration. The fact is all the above are 100% correct, but this does nothing to help our situation.

Nothing will stop today’s course of correction because too few are willing to acknowledge the destructive nature of overpopulating a currency. This neglect is building into a monetary civil war within the United States. The type of person willing to trade dollars for PM suffers great anxiety by living in a country that is no longer willing to address our economic challenges with rationality. This is why we’re reading about states proposing legislation in hopes of creating an alternative currency (Utah, Arizona, etc).

Our country has far more to lose from conflict than economic collapse. A divided nation is vulnerable from within, vulnerable from afar, and everything between. Why else is it so many folks like you view PM as the get-out-of-Dodge-card? Wealth stored within physical silver or gold provides an option, or luxury, most will never realize. In my opinion we are well beyond asking “if” our economy will collapse.

What now?

Without fail there is one common question asked when I consult with folks about buying and storing precious metal. They all ask if there is anything else they should be buying or doing other than whatever it is they are actively “doing”. These folks fail to recognize that they’re miles ahead of 99% of all other Americans, politicians, financial planners, economic advisers, accountants, etc. This is what a call the “what now” syndrome.

I’m convinced that a person willing to make the effort to buy physical PM has what it takes to answer the what now on an individual basis. Since you’re reading this post I congratulate you and your ability to actively pursue a personal stake of individuality in a day of complacency. Your next what now could be a career change or it could be relocating where your family calls home. Your next what now could be the start of a plan that includes internationalizing your wealth or it could lead to internationalizing where you live.

Four years ago, my what now led me to relocate my family from a high taxation state to a less populated  and more independently minded fly-over state. Over ten years ago my what now led me to trade dollars for physical gold. The what now inside you could lead to gardening, reloading, campaigning, prospecting, serving, fasting, start-up business, downsized business, who knows? Whatever your what now is please remember this. Owning precious metal should be the monetary foundation of a life commitment to self reliance so that compromise is never a word atop of your to do list.

Let everyone else worry about economic collapse while you focus on reality.

QUESTION:  DC, last week we found out some silver American Eagles circulating around the US and Canada is actually counterfeit reproductions made in China. What steps can a small silver investor like me do to safeguard against fake bullion? Thanks for your work at TPS.

TPS Reply:  Thanks for the worthwhile question. The silver counterfeiting you mention has me greatly concerned for many reasons. Far too many folks view silver with skepticism, this news will only compound the level of silver confusion. It’s easy to say the odds of buying fake silver are low but very real for the few who actually find themselves as the unlucky few.

As silver inventories shrink the benefits of counterfeiting will rise. If crooks are willing to counterfeit legal tender this leads me to believe counterfeit (silver) bars and rounds is a bigger problem than anyone would like to believe. I view this as even more reason to buy from reputable sources who will stand behind every single ounce sold.

The fake silver problem will worsen as the secondary silver market grows because the secondary market is much less regulated, not to mention limitless. As of May 2013, I see no reason to buy fake bullion since the majority of silver sold transfers directly from the mint to the end user (you). I will admit such an opportunity is growing short as demand for silver bullion outpaces output.

I encourage each silver buyer to educate themselves on the sounds and feel of real metal. Real silver bullion is impossible to replicate if a buyer takes the time to look beyond appearance. Feel free to contact TPS for a list of reliable silver sources if you have any doubt.

QUESTION:  Are you buying silver rounds too?

TPS Reply:  Thanks for the tiny question. No, I’m not buying rounds at this time but I will as soon as legal tender bullion supplies dwindle to the point of what I feel are reasonably priced. Silver rounds usually cost less than legal tender coins; this is because anyone can legally mint a silver round. Some private mints will accept your larger silver bars and then melt (mint) the large bars into one ounce bullion, very cool. The fee for this service is minimal compared to attempting to sell a huge hunk of silver.

I like to buy recognizable silver when possible. Also, legal tender bullion will not trigger an IRS notification when a buyer sells bullion back to a PM dealer (please use due diligence since tax laws change quickly).

This doesn’t mean I wouldn’t but silver rounds, just not at this time. Thanks again for the question.

DC Carlton is founder of The Prospector Site and author of the Amazon Kindle #1 Bestseller 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.

Tags: counterfeit silver, economic collapse, gold, physical silver, precious metal, storing gold, storing silver

Today’s title could sound odd considering gold just had its worst day in 30 years. As I write, and probably as you’re reading, economic prognosticators still relish in repeated “I told you so.”  We will keep this short today because I have what I want to say and nothing more. The last few days were draining for not only those willing to own PM but for the few willing to justify PMs in a published sense. For us, a PM shakedown is twofold when you add credibility into the equation. Nonetheless, let’s dive into why silver & gold are priceless.

Good day to all and thanks for joining TPS. If you’re new to PM (precious metal) then you picked a great day to join us, congratulations by the way. It appears the smoke is starting to clear from the PM arena and it’s looking like both silver and gold took a real beating, at least at first glance.

Every situation is a learning experience, do you agree? Personally, I have but one question left to answer. It’s not why PM prices fell so suddenly or quickly.  Nor is my primary question one that asks who is behind such PM brutality and volatility. The above questions will twist and turn themselves into history and certainly don’t need my help.

My only question is “Why?” Why did so many paper PM holders sell because of fear while the majority holding physical PM line up to buy more? The answer to this question is the very foundation of precious metal. A truer understanding to this question is the cornerstone.

Paper PM investors proved over the last few days their inability to think for themselves. If precious metals have taught me anything over the last decade it is the ability to tap into my own mind to make prudent monetary decisions for my family. We are nearing a point when this is the most valuable asset (ability to think for yourself) a person can claim.

TPS doesn’t sell PM, but we keep a close eye on those who do. All PM sources are reporting record sells of both gold and silver all while the paper PM market experiences the biggest paper liquidation in history, why?

How can two sides sharing the same asset be so far apart? How is one side, paper PM, so disconnected from the true benefit of PM while the other end stills view PM as the last asset to go?

This next statement will sound odd but I’m going to roll it out anyway. For me at least, PM has served its purpose and if both metals dropped to zero tomorrow they still provided this owner with a lifetime of knowldege. If I’ve learned anything from physical PM it is the ability to question what so many take as factual.

Precious metals have taught me the difference between money and currency, the difference between real wealth and the illusion of wealth, between fiscal restraint and a politically motivated smoke screen, and, most importantly……. the difference between building a life of independence over a compromise of freedom and liberty.

A person willing to make the effort to buy physical PM is the same person equipped with the ability to think on their own feet without input from an overreaching bureaucracy. If silver or gold dropped to worthlessness tomorrow this gift will sustain us forever. There is nothing more valuable than the combination of knowledge and effort.

SILVER & GOLD’S FUTURE:

Many of you are silently asking, “What’s next for PM?” First, I’m 100% convinced silver and gold will skyrocket beyond the belief of even the most skeptical. I’m also convinced that the last few days of volatility are nothing but a taste of the future, here is why.

Think how nerve racking it was to watch silver drop from $30ish to $20ish, like April 2013. Can you imagine the confusion when silver, valued in dollars, dips from $180ish to $150ish? What about a dip in gold from $3200ish to $2400ish? My point is each person breathing air should expect economic volatility from here forward as “normal”. Yes this includes, especially includes, precious metals.

I believe the paper PM market will separate from the physical market. In fact, we’re seeing this already but this doesn’t mean we should expect a steady incline. Our fiat currency age will not transform itself to real money without huge spikes, dips, valleys, and everything in between.

No one can accurately tell you when to buy more precious metal no more than when to sell it. Personally, I believe we’ll reach an age when it just makes sense (according to our ability to think for ourselves) to trade silver or gold for something else. I’m not so sure today’s dollar value perception will play part of such a day.

DC Carlton is founder of The Prospector Site and author of the Amazon Kindle #1 Bestseller Why Silver and Gold Will Go Higher. 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.

Tags: gold, gold's future, precious metal, priceless, silver

Actually, who doesn’t want to be a millionaire?  As founder of The Prospector Site I have the opportunity to work/consult with many hardworking millionaires. I’m guessing many of you reading today are on the millionaire list……. congratulations. If your name isn’t on the list, yet, then please read today’s post closely because many preconceived wealth notions are false. In fact, by post’s end you may rethink your wealth goal well beyond joining the elite list of millionaires. Welcome aboard and thanks for joining our precious metal discussion.

This could come as a surprise but I can say with 100% certainty that millionaires worry about money just like those living check to check, it’s true. Could this be why the same millionaire who worries while building wealth then worries how to keep it? Just as surprisingly, I’ve heard a few actually compare wealth to a ball and chain as they cautiously maneuver wealth away from taxation and into safe havens (some have actually said they enjoyed life best when worth less!).

Nearly all millionaires still live on a budget. I’m estimating over 50% are self employed and somewhere around 20% have a master’s degree. You would be shocked how many have nothing more than a high school diploma. Over 80% are self-made and fewer than 20% inherited the wealth that adds their name to the millionaire’s list.

The question must be asked, “Are today’s millionaires nothing but a bunch of whiners?” I personally have my doubts. My opinion is that today’s millionaires are scared, tired, and frustrated by the economic challenges of the day. Their (millionaires) despair only validates my belief in faith, self-fulfillment and independence (freedom) as the truest source of happiness.

What nearly all millionaires have in common, at least up to the point of trading dollars for PM (precious metal), is the mistake of building personal wealth in dollars or dollar related assets. Actually, it all comes down to a loss of confidence in the US dollar and the realization that those with exposed wealth will pay for their entrepreneurial sins.

Taxation, fees, penalties, and capital controls are words the wealthy will become all too familiar with, at least those not protected by PMs.

The problem actually goes beyond the aforementioned as millionaires realize, in their own time I should add, that dollar wealth is much different from “money” wealth. Wealth stored in dollars may appear to offer stability but recent asset bubbles, then bursts (i.e. Dot-com, real estate, DOW, and soon bond, dollar, ?), remind those invested in dollars how quickly this wealth can disappear.

It is at this time we must compare a dollar millionaire to a PM (precious metal) millionaire. I seriously doubt few traditional millionaires give the difference a second thought. This is most evident by how few actually own physical silver or gold even as currencies worldwide constantly spew warnings of a great fiat demise.

The few who do “own” PM only own a few ounces of gold or, worse yet, own paper precious metal; paper silver or gold may appear protective but realistically are nothing more than speculative. Even our country’s millionaires suffer from monetary normalcy bias as their wealth falls under attack or, at least, subject to historic debasement.

I like to compare dollar to gold wealth with today’s spirited world of innovation. Innovation has forever touched our lives by making information the new industrial revolution. Anyone living within 200 miles of California’s Silicon Valley will attest our age of technology has only reached the tip of the iceberg. If not for the decline of the US dollar, I would have to compare today’s age of technological innovation to the implementation of fire, penicillin, telephone, or the combustion engine.

The problem isn’t innovation; the problem is our means of monetary exchange. The US dollar is the only component that will stifle our growing age of innovation. The reason I believe this is because all new innovations are built around capital and the availability to invest dollars in R & D. Today’s disruption of capital (dollars) will eventually devastate, or at least disrupt, the wealth of those investing in tomorrow’s innovation.

Now, please give the next sentence or two your full attention. The same folks at the tip of innovation are also the same folks invested in an outdated source of wealth storage and saving! Saving in dollars is no different than attempting to forward an email through a manual typewriter. Even our wealthy fail to compare old innovations to a dying currency; ironic isn’t it?

One reader recently asked why I’m so convinced the dollar is on its deathbed. My opinion; why else is it we have to inject perpetual transfusions of blood, QE1, QE2, QE3, QE?, if not for a terminally ill currency? This is not about economic recovery; this is nothing more than not letting the dying die. This, my friends, is why each person walking God’s green earth must understand the difference between dollar wealth and PM wealth.

QUESTION:  Precious metal prices have fallen far below the expectations of nearly all PM experts. Have we reached a bottom in your opinion? I’ll never hear the end of it from my family if I buy now and the PM market dumps lower!

TPS Reply: Thank you for asking such a timely question and congrats for at least considering PM. Let me put your mind at rest by mentioning the one fact all PM owners must grasp. Precious metals will rise/ fall and not one person, expert or otherwise, has a clue when either will happen next.

Most “experts” get paid when you spend your cash on their offering of precious metal. I’m not insinuating that today’s PM experts don’t know what they’re talking about, I’m only exposing fact. Truthfully, it really doesn’t matter how PMs perform over the short term since it’s only short-term minded PM investors who worry over volatility.

Please keep your eye on the larger picture by not over thinking physical silver or gold. Here is what I do for what it’s worth. I buy silver or gold each month, store them over three locations and sources, and then look forward to my next monetary chess move. Why would I worry about something I did yesterday when yesterday is already in the books?

Oh, by the way, you’ll never live up to all family expectations…… so quit trying.

QUESTION: Okay DC, you know my situation and you know I store my gold in a local bank. Cyprus has me worried sick and I’m not sure what the heck to do. What if a bank holiday traps my PM and I can’t get them when I need them? Sorry to be a weekly burden but I’m worried. As always, thanks for being patient.

TPS Reply: Man, no softballs today. I understand your situation and, honestly, there is no easy answer. Living in a large city complicates in-home PM storage. The risk of being burglarized must be compared to the risk of storing PM in a bank box. The question is not what the safest way to store PM is; the question is what the best way is considering your situation.

As you know, I’m not against using bank boxes for short-term storage that includes traveling or winter escape. I’m far more hesitant to recommend such storage options as part of a permanent storage plan. Regardless, you must diversify your storage in such a manner that includes keeping at least 1/3 within arm’s reach (this could be in home or with someone trusted).

I hate to say this but it must be mentioned. There is not, to my knowledge, a 100% safe way to store/own physical silver or gold. In fact, there is nothing in this world 100% secure or safe. This is a challenge we must accept and then move forward with the best plan possible.

With the risk of sounding commercial like; Storing Silver & Gold will hit Amazon.com the week of April 8th, in digital format. The book does offer a source, affordable source to boot, who will insure all PM stored at home OR in a bank box. I highly recommend taking the extra effort to insure all PM, especially in your situation.

COMMENT:  A friend recommended your book and I want pass along how much I enjoyed reading it. The simple manner in which you explain silver and gold to our current economic plight was just the motivation I needed to make a monetary change. Record levels of debt will not fix our economy and it angers me that more educated individuals can’t see the overall picture. Anyway, we started our plan by committing to buy silver bullion at the first of each month. Thank you for what you do.

TPS Reply: You made my day, thank you.

BERNANKE WATCH:

FED chair Ben Bernanke is the most powerful man on earth but other central bankers are quickly becoming powerful in their own right. The Bank of Japan just doubled down on its latest version of QE by devaluing the yen and, unfortunately, punishing currency savers. Once again, the banks win, exclusively, as Japan outpaces Mr. Bernanke with a fresh commitment to print currency.

The world is awash in printed currency and today’s video only proves the level of desperation among today’s central bankers. This fact cannot be overstressed when we compare a rising supply of currency to precious metal. Please add worldwide quantitative easing to the growing list of reasons to own real money like silver or gold.

DC Carlton is the founder of The Prospector Site and author of Why Silver and Gold Will Go Higher. 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.

Tags: bank holiday, dollars, gold, money, physical silver, precious metal, real money, storage plan, storing gold, storing silver, wealth storage

On an otherwise uneventful February day in 2009, Criss Angel walked on water…kind of. Millions watched this event dumbfounded even though Criss explained it was all an illusion. My youngest son bribed me into viewing this televised miracle with hot buttered popcorn but I must admit this illusion looked as real as the nose on your face. But even walking on water fails to compare to the monetary illusions soon to shift untold wealth into precious metal. Today I’ll do everything in my power to expose the greatest wealth transference on earth. Thanks for joining TPS (The Prospector Site).

A run to gold or silver is NOT a natural occurrence. It is a reactionary result derived from a separation between you and your wealth. Nothing will cause monetary panic faster than a separation of wealth. Below is a must read paragraph that truly describes my point better than I can depict.

Some walk around in a financially comfortable delusion about our current system (banking) even though we all realize that we will never payback our $16 trillion in national debt.  You also have a banking system backing $7.4 trillion in insured deposits with $32 billion (that is, 0.43 percent).  Yet in our current system the Fed is digitally inflating away our currency and limiting available banking options.  Are we simply ignoring the too big to fail? Source: Budget 360.

Let me put the above information in proper light since this financial writer is spot on. If all depositors simultaneously demand physical proof of individual wealth the banking intuitions of America don’t have it. What banks do have is less than 1% of real tangible money deposits on hand. This means a $100,000 depositor is entitled to a whopping $430 withdrawal (thanks to today’s fractional reserve banking system).

We often describe an age of capital controls but few actually connect the dots back to themselves. The banking system in parts of Europe is under stifling capital controls. They cannot, and will not, allow depositors to withdrawal tangible currency because the money doesn’t exist. The banking world has replaced real currency with digits (now two degrees separated from gold for those still counting).

Now we both know that here in the U.S. Bernanke can print the 99.57% necessary to make up the difference between a bank’s cash on hand and digits; and is more than willing to do so. But this Criss Angel like magic comes with a price at least if you’re one of the millions storing wealth in today’s banking system.

Controlling the capital (wealth, cash, money, currency, asset, etc.) is an overgrown government’s dream. Capital control corrals the wealth of a society and then allows the money divvied out in only small portions according to the controlling party’s timing. At such a time, technically your wealth still exists; you just no longer have any control over it.

We only have to look at Cyprus as a perfect example of how the world’s depositors should expect to be treated in the very near future. Capital controls use captured wealth as a tool of taxation and sustainability. They don’t call it theft because the word theft sounds too much like stealing; hence the modern-day term haircut.

Picture your bank account as a car in a parking structure with the entrance and exit blocked by capital controls. Your car is still safely stored but you no longer have control over it. This means the controlling party can decide all red cars are needed to say physically block city hall; then removed no longer within owner’s control. All trucks are to be crushed and then used to stabilize nearby creek banks; then removed…..and then crushed, no longer within owner’s control.

Capitally controlling your wealth allows the powers to be to tumble and recycle your financial future through the taxation machine over and over again. It is now reported that Cyprus bank depositors will lose upwards of 40% from this haircut round. Who knows what the next recycling round will take from depositors as they irritatingly watch wealth dissipate without another option.

Physical silver or gold is the only world currency NOT SUBJECT TO TODAY’S RISK OF CAPITAL CONTROLS. I’ve mentioned before that we are beyond arguing the “should we or shouldn’t we” of physical precious metal. If you’re looking for a safe way to store wealth beyond the reach of capital controls I strongly advise each reader to look beyond the doubt; while this option still exists.

 QUESTION:  Today I read that Arizona is considering accepting silver and gold coins as legal tender. However the article stated that only coins minted by the government would qualify. Further, that since they would be considered legal tender, they couldn’t be taxed as property. So now I wonder about my silver rounds which I bought as a result of this site. Will I be able to sell them in the future and avoid taxes on any gain in their value? Also, is your book available yet in paper format? Thank you.

TPS Reply:  Thank you for the comment and questions. I agree, it is exciting to see a handful of states pushing back by implementing a competing currency. Will Arizona follow Utah’s precious metal footsteps; it’s too soon to tell? Here is how I see this playing out for what’s worth.

A few readers have emailed with the same sort of legal tender questions so I would like to clear the air. Individual states could view silver and gold as legal tender and possibly exempt from state capital gains, but I have my doubts the IRS will view silver or gold with the same tax exempt status. I’m not a CPA but I would use due diligence, and the help of a good accountant, before assuming a tax avoidance.

Like I mentioned by direct email; I have no plans to sell my rounds in order to buy more government minted silver bullion.  But then again I have no plans to sell or spend silver regardless. Rumors spread quickly and this only proves the volatility of today’s monetary world. Thanks again for the questions and good job keeping your ear to the ground.

As for the book, I’m seriously considering combining two digital books into one paper formatted book. This will give readers twice the bang for their buck. I’ll keep you posted.

QUESTION:  It just seems unpatriotic to abandon the dollar for silver and gold. My family fought wars and spilled blood for this great country.  I would like to believe the US dollar is strong enough to lead us out of this recession and into a thriving economy. Maybe I’m just old fashion?

TPS Reply:  Thanks for the comment. Boy, where do I start. It is no coincidence most paper currencies appear patriotic, regardless the country issuing the fiat money. This purposely instills  pride, patriotism, and generational confidence while central banks spur inflation taxation among her people. Inflation is the one tax virtually unavoidable for most.

Your family did not spill blood for the US dollar; most likely they fought for freedom. A country who willingly debases her currency is not promoting freedom, not by a long shot. I truly admire your patriotic passion but please don’t misinterpret a fiat dollar as this country’s foundation of freedom.

I realize it can be frightening to let go of something we’ve worked hard to amass. Frankly, this anxiety is what keeps most from the protectiveness of PMs. They just can’t get past the dollar’s vulnerability in our fiat implosive age. Please look past this misconception while an alternate currency is still available. Thanks again for the comment.

BERNANKE WATCH:

FED chief Ben Bernanke is the most powerful man on earth. For this reason alone we must pay close attention to the FED’s actions as they relate to your financial independence. Below is an intriguing short video of Bernanke responding to the likelihood of bank runs here in the United States.

In other words, as long as you ignore today’s banking volatility and don’t “lose confidence” or allow fear to become “contagious” the most powerful man on earth will not have to implement capital controls. I find it interesting how Bernanke rolls out the FDIC as a source of protection for depositors. The FDIC’s primary goal in not to insure your bank deposits, its primary goal is to protect banks from Cyprus type bank runs.

DC Carlton is the founder of The Prospector Site and author of Why Silver and Gold Will Go Higher. 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.

Tags: bank run, capital controls, currency, gold, gold coins, inflation, legal tender, money, precious metal, silver rounds

It’s unlikely you’ve heard of John Snow or the millions of lives he continues to save long after his death. Before I introduce Dr. Snow I would like to paint a picture. The year is 1848, London, and we’re living in the midst of one of the worst epidemics in human history. The only emotion left is fear as thousands lay dead, or dying, from an outbreak we now call cholera disease. Both wealthy and poor wait to die while the only hope remaining racks his brain by candlelight deep in the darkness of night. His approach to a deadly problem literally redirects the fate of every human living on earth thereafter. Finally, hope.

A death by cholera is horrid. The body literally dies from dehydration by not allowing the digestion of water. Without water our only solution is death. Today we can only imagine the anguish, of both patient and caregiver, as someone loved loses life’s battle to such a horrible disease.

I apologize for today’s morbidity but the correlation between 1848 London and today is one we cannot take lightly. Like the cholera outbreak, today’s approach to solving our monetary disease only worsens the problem.  The course taken spreads both fear and poverty because the problem solvers refuse to approach today’s monetary outbreak with John Snow insight.

Dr. Snow didn’t solve the world’s cholera problem. What this amazing doctor accomplished was the ability to disconnect a human life from the tiny bacteria carrying this infectious disease. His abstract approach, certainly abstract to the medical world of 1848, proves why knowledge is a better cure than more medicine.

Today’s monetary leaders try to fix our economic disease with more medicine, and it’s not working, In fact, like the cholera treatment circa 1848, it’s compounding the devastation. Dr. Snow realized the water source was the problem. The cholera disease found its way into humans through tainted water sources. Caregivers unknowingly worsened the dehydration problem by administering more tainted water into a cholera stricken person.

Up until Dr. Snow’s discover, the medicine was literally killing the patient.

Dr. Snow’s sewer tainted water discovery harnessed a killer, but only after a willingness to accept the medicine and disease as the same. It’s no secret today’s fiat money system spreads impoverishment across the globe. The wealthy, and elected, are the only ones truly benefiting from such fiscal insanity. All others are living in denial.

If not for Dr. Snow’s brilliance this disease would have turned London into a morgue (hundreds of thousands died as is).  Like Dr. Snow, we must immediately change our mindset, and then approach, to what most call money. No amount of dollar printing will stabilize monetary imbalance, just like no amount of tainted water could cure cholera devastation.

INDIVIDUALLY:

Each person is accountable and responsible for their own financial situation. This requires each of us to become educated, and then empowered, to redirect our monetary position in today’s money world. It is no longer enough to entrust your family’s future in traditional investment streams DOLLAR DEPENDENT.

We have entered an age of instantaneous change. Technology has forever connected the influences of the world and without the ability to adapt we are left behind. The ability to see things from tomorrow’s perspective are far more important than today’s vista. Everyone from financial planners to stock brokers have failed to change perspective, they still view “wealth stability” through yesterday’s eyes.

The good news is this leaves you. There is a money cure but like Dr. Snow’s cholera approach it is not monetarily acceptable, not yet at least. Up to this point the words silver or gold are purposely not mentioned in this article. Precious metals cannot fix the currency outbreak that engulfs us. But like Dr. Snow’s discovery….precious metals can separate our wealth from this infectious monetary disease.

DC Carlton is the founder of The Prospector Site and author of Why Silver and Gold Will Go Higher. 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.

Tags: affordable precious metal, currency, dollar, financial planner, gold, money, precious metal, precious metal consulting, sell silver, silver

Few indicators validate physical silver and gold like today’s topic. Not that I need more convincing but a little reassurance never hurts, especially in today’s world.  Gold and silver are defying the economic law of supply and demand. This isn’t really a law but guys with bad bow ties like the legalistic sound of economic “law of demand”, so be it. Nevertheless, this anomaly, or oddity, is well worth space on TPS (The Prospector Site) and proves silver/gold are cheap compared to days ahead. With that said, I’m so very glad you’re sharing your precious time with us….thanks.

Below is an interesting chart provided by Zero Hedge (click link to view full article). As of February 2013, demand for gold has soared all while declining in price.

As you can see below the same odd correlation is taking place with silver, too.

TPS readers already know that I pay little attention to short-term silver and gold fluctuation. I only mention it today for those sitting on the PM fence looking for a soft entry or add more metal to a growing stack. The charts above clearly speak for themselves, at least for those living within a realistic mind.

It’s fair to compare early 2013 PM demand to guns and ammo. The same level of demand that leaves gun shelves empty also increases the price of firearms and ammo. But guns and ammo have one huge advantage over silver or gold. Gun makers can hire more hands, lease more space and eventually increase output. The same goes for ammunition as well.

Physical silver or gold are different. No one wants to see increased metal output more than PM brokers or dealers. My conversations with folks in the PM field lead me to believe that most making a nice living selling metal act unworried…. but I have my doubts. Precious metal rationing and interruption should be expected; charts like the two above only validate my opinion.

Does this alone justify dropping everything life related to buy silver or gold? No, not by a long shot. Trading dollars for PM must be part of an overall life-changing decision of self reliance. The decision to buy PM must include how much, from whom, and where to store. The decision to buy is only the first step, regardless the price of today’s silver or gold.

QUESTION:  I own my home, cars, and owe no one a penny. A friend turned me on to your site and I have to say your precious metal information is intriguing – but still not convinced buying gold is as beneficial as some believe. Please explain how a holding of gold will help after an economic collapse.

TPS Reply: Thanks for the great question, and reading TPS. Your question is one more and more ask as the word “recovery” sounds less promising with each passing day. The truth is we are not in recovery, we are in economic denial. This denial is what separates so many from the protective nature of silver and gold. Take trillions of borrowed dollars from the equation and watch how fast economic volatility becomes the norm.

First, economic collapse is a misleading term. The collapse you speak of affects those unprepared far more than those living within means and holding wealth stored in safe havens (see video below). Don’t take this as uncaring but a “collapse” will only strengthen the wealth of most holding silver and gold. Honestly, I would enjoy nothing more than watching gold decline to $500 an ounce (this means our economy is recovering, truly recovering), but this will not happen anytime soon.

The word I use is correction. I feel the ill effects of a declining economy will only become obvious to most when it affects them personally. Think back to September/October 2008 as the DOW declined from 14,000 to just over 6000. Those today celebrating the recent DOW high have short memories, you agree? Think back to the housing correction just prior to the DOW correction, too.

People pay attention when wealth disappears and hungry.  Then, and only then, will PMs reveal themselves as a true safe haven in an age of great economic uncertainty.

It sounds like you’ve worked hard for what you own. I can tell by your comment that a life of prudence and independence is something you value. Assets like cars, houses, retirement plans, etc could rapidly decline in value as the masses liquidate traditional assets, and toys, to pay for life’s necessities. Wealth stored in silver or gold traditionally benefit in such times of monetary correction.

This is why it’s so important to incorporate PM into an overall plan of self reliance. Not the end of the world but certainly a reshuffle of worldwide wealth. Why not invest in the one asset capable of transporting personal wealth beyond this time of correction? Thanks again for the comment.

WORTH NOTING: Folks, we must keep eye on the overall economic picture here. Rising home values and a rising DOW have nothing to do with recovery. Remember, both significantly corrected soon after Mr. Bernanke and our Congress pronounced both markets safe & sound (2007/08). This illusion of recovery is nothing more than an economy supported by nonstop currency creation and unsustainable over long term. The dollar number next to physical metal is irrelevant. My advice is to step up your plan of protection, soon.

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.

Tags: buying gold, cheap, gold, physical gold, physical silver, precious metal, safe havens, spot gold

By now I’m hoping my readers understand gold and silver’s relevancy according to the age we live. The benefit of such understanding extends beyond the typical layman’s confusion during PM (precious metal) decline, like lately. I pay little attention to the dollar number next to gold or silver. It means nothing when it rises and means less when it declines. I view both metals as necessary according to our real-time economic climate and will only change my opinion of PM relevance when fiscal sanity improves. Until then words like disorder, disturbance, disarrangement and decline mean nothing as others use these descriptions to label PM volatility. I pray you feel as I do.

Even more ironic – while the world views hard assets as risky a growing minority are feverishly adding new stacks of both silver and gold simultaneously.  Metal buyers realize the dollar lid is no longer in jeopardy of blowing off, it’s blowing off. This is why over 7 million ounces of Silver Eagles found new homes in January 2013 alone. The time to buy physical silver or gold is upon us.

Political leaders are on the offensive. This means they will say anything to keep law abiding individuals from pouring into the streets under protest over record deficits with no plan to scale back the size and power of government.

Their offense (government) creates a defensive nature in most Americans. Look how quickly this administration rolled from PPACA (Obama Care) to gun control to immigration reform to who knows what’s next. Folks, it’s only February and the arrows out of Washington have every taxpayer, every business person thinking of nothing but self preservation.

This offensive role is no accident. You can’t ignite revolt, monetarily or otherwise, while circling the wagons. The gold disorder of today is part of such assault.  Keep PM volatile and less differentiate real money from promissory notes, aka dollars. There is no gold disorder, there is only fiat disorder. You must know and accept the difference in order to trust the same protective instincts that drove you to PMs in the first place!!!

We often hear economic experts try to explain wealth distribution. This means nothing more than the rich getting richer and the middleclass & poor growing poorer. I don’t see it this way, at least not exactly. I see it more like a power shift built around vulnerability, wealth distribution is only a byproduct of a society less interested in real socio-political & monetary issues and more enthralled with modern entertainment & entitlement.

We only accept the proposal of something unconstitutional – like gun control – because we feel vulnerable, or unsafe. We only accept governmental overreach because we feel vulnerable to economic correction. We only allow massive currency printing and dollar debasement because we desperately desire normalcy in exchange for vulnerability.

This feeling of vulnerability eludes those that control their own wealth. The governmental infringements aforementioned are inconvenient, yes, but nothing close to a level of dictating. I see little disorder among those prudent enough to store wealth within physical silver and gold AND living a life of self reliance. Again, the dollar sign attached to today’s gold and silver has nothing to do with it.

QUESTION:  What is happening to physical gold and silver? Why is it not going higher?

TPS Reply:  Thanks for the short question. Not only is gold not going higher but it’s down around 5% year-to-date. Your question is worth asking but unfortunately no one can honestly offer an answer. Gold has appreciated, on average, around 17% per year over the last decade; I expect this trend to continue over long term.

Most gold experts will answer a question like yours by trying to explain PM suppression. I rarely mention metal suppression because to me it’s wasted energy and discussion. We can’t control naked shorting, nor can we control Wall Street’s finest who are more interested in their own interest over trading with integrity. I refuse to be a part of such monetary recklessness.

No one thinking realistically will question gold’s relativity in such an age as we’re living today. The fact gold is suppressed is the good news since this offers readers like you an extended opportunity to add more silver and gold to your growing stack. I recommend we stay the course, regardless how gold performs in the short term. Thanks for the question.

QUESTION:  Love the Prospector Site and really enjoyed your book.  I have a question relating to reportable PMs at time of sale. Can you explain why some silver and gold sales are reported to the IRS and some aren’t (when sold). Is it that important to buy PM excluded from notification at time of sale? Thanks again for what you do.

TPS Reply: Thanks for the kind words. You are correct; some PM transactions will trigger IRS 1099-B. As of right now some won’t, the determining factor lies within how, what, and to whom you sell. Selling metal back to a PM dealer will trigger an IRS notification IF THE PM SOLD FALLS WITHIN REPORTABLE SILVER & GOLD.

Is it that important to buy PMs excluded from such income notification? Probably….. here is why. I have little doubt that a government so large and in debt will eventually demand notification of most reportable income. Silver and gold held in American Eagles, by example, are excluded and do not require an IRS notification after sale, at least for now. This means declaring such income is voluntary (of course you could face stiff penalties if hiding income).

The difference between amount paid and amount sold is income. This income…to my understanding falls under capital gain and is subject to taxation. This taxation INCLUDES all gold and silver sales, nothing excluded. Now back to your question, some forms of bullion, bars and rounds will not trigger an IRS notification. This doesn’t exclude the metal holder from a tax obligation but will exclude a seller from receiving IRS 1099-B form.

I’m not here to preach tax obligations or obstruction. Each person holding PM is accountable as they choose. I provide the facts as I see them and the choice, as always, is yours. Feel free to set up a personal consultation since buying the right silver and gold is something we’ll completely cover. Thanks for the questions.

COMMENT:  I was stunned to find this site.  These are my sentiments exactly.  It has taken me awhile to get myself together and begin the process of purchasing pm.  I would more than welcome info on where to purchase safely.

TPS Reply:  Fantastic, another one joins the growing minority of PM holders….good for you. The process of safely buying silver and gold need not be complex. The “right” PM is all metal offered as close to spot price as possible. Finding the right source is crucial in order to have the peace of mind that only comes from PM authenticity.  You can’t go wrong with new bullion American Eagles, gold or silver.

I recommend contacting Colorado Gold or Miles Franklin if searching for a reliable PM source.  Congrats for making the most influential monetary decision of your life.

 Worth Watching:

The video below features Paul Harvey. For those unfamiliar, Paul Harvey was a radio broadcaster very concerned with the economic and social decay of America. We lost Mr. Harvey in 2009 but his words ring loud as ever thanks to modern-day technology. Please take a few minutes to watch, or re watch, If I Were the Devil by none other than Mr. Paul Harvey. Oh, did I mention the message below was recorded over 47 years ago, amazing.

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.

Tags: bullion, gold, physical silver, precious metal, Silver Eagles

It’s hard to explain the value of physical silver and gold to someone clueless. I often hear people ask, “Why is it so important to buy PM (precious metal)” or “why do you buy silver?” The very fact a person asks such a question tells me they’re not ready for PM, not personally at least. This is okay. Each person first has to come to terms that our economic recovery is an illusion before giving an ounce of thought to gold. I find myself comparing it to a gravely ill loved one who is imminently facing death. Like a life ending, the transition of currency back to sound money (hard assets) is a natural occurrence often repeated throughout history.

It usually takes on hour with a client – by phone -to match the right metal, where to buy it, and how to store it. This assumes the person is really interested in buying PMs in the first place. Some folks aren’t ready for the party to end. They’re still holding out for “normal” to return and, honestly, suffering from a self-centered perspective.

Buying silver or gold is a timing thing. My decision to own PM developed along with an overall life plan for independence. Growing wealth by way of PMs is a byproduct of self reliance. Sure I like the fact my savings grows each year but I like being a spectator during times of economic calamity most. I’m not sure what others think when I compare PM to monetary insulation.

Some have emailed asking how to convince a spouse or adviser of PM’s relevancy in this age we live.  I’ve even had some clients ask me to speak with a spouse which, by the way, is rarely enjoyable for either party. It’s not uncommon for one spouse to eventually buy silver or gold behind the other one’s back. I don’t recommend this in most situations.

I personally don’t believe in convincing people to own PMs. I’ve seen this turn into a blame fest the first time gold dips or silver turns volatile. It is much more productive to establish signals of relevance; below are but a few examples.

1.  Keep track of food costs; even to the point of writing costs down (rising costs are signs of inflation).

2.  Watch how often Washington solves fiscal problems by borrowing and taxation, never cutting.

3.  Begin to track values not in dollars but gold grams.

4.  Pay close attention to your local economy (a local economy is far more relevant than a national or global one).

5.  Make yourself aware how often elected leaders blame others or an event for a bad job’s report, growth, etc.

6.  Be aware how often the media distracts viewers in regard to “real” economic events.

7. Make note the ways the US simulates the failing path of Greece and Spain.

8. Research and track where the money comes from (who backstops the mortgage industry?).

Well over 90% of those sitting on PM sidelines are waiting for metal prices to rise. They gauge silver and gold’s relevance on rising metal values. The last couple of bubble decades have ruined too many small investors. They fail to ask themselves “why” an asset rises. This is why so many lost a fortune in the last housing bust. This is why others will lose a fortune in the next housing bust. We used to be “buy low” investors and good money stewards. Now, we’re “buy based on demand and a rising price” investors.

I began my gold voyage when it sold in the high 300s. I viewed gold’s protectiveness first and potential wealth gain secondly. The fact so few have the same view only proves far too many folks today underestimate the gravity of today’s economic situation. They are, in all actuality, still looking for the quick buck and care less about protecting their assets.

Dare to guess the number one reason folks aren’t buying precious metal? It is because precious metal hasn’t experienced a big price jump in the last year or so. This inaction leads to complacency. The one thing this writer can just about guarantee is this next point.  We will reach a time, in the near future, when everyone with a dime to spare will long to own PMs….. without convincing.

 Question: Thanks for TPS. I’m struggling with a safe way to protect my PMs from confiscation and theft. I’ll get to my point quickly since I’m sure you receive many emails. If I decide to store some of my gold internationally will these depositories notify the IRS when I sell? Any ideas how to discretely buy and sell?

TPS Reply: Thank you for reading TPS, and asking such great questions. As you know, today’s administration is adamant with everyone paying their fair share. This means your PM profit has a big bull’s eye on it. I would expect to receive a 1099 when you decide to sell, and this includes all assets…..not just PM. I recommend keeping record of price paid, price sold of all reportable gold.  To answer your question I would expect a 1099 form regardless where the metal is located.

Here is my plan, for what’s worth. I’m a long-term PM owner. I believe I can outlast our overreaching government. This means I have no plans to sell my gold anytime soon. Things change quickly and my plan may have to adapt along with this change. At some point precious metal values could get ahead of themselves (bubble).

I believe silver and gold will eventually back a new or existing currency. How can this not be good for those of us holding physical PM? If my choices are to chance paying high PM taxes or losing my wealth in dollars, I’ll pick gold seven days a week. The “Golden Rule” always works in favor of those holding real money.

Now, your last question about discretion is good. We still have choices as of February 2013. This means you can legally buy physical silver and gold with no records attached. I strongly advise each person reading to consider exercising this freedom. Thanks for the questions and send new ones over anytime.

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

Tags: buy silver, dollars, gold, gold grams, hard assets, inflation, precious metal

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

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

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

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

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

A Silver Resolution for You:

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

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

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

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

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

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

QUESTIONS & COMMENTS:

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

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

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

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

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

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

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

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

Think like a thief to someday live like a king.

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

Tags: gold, investment, precious metal, precious metal consultation, rare coins, silver bullions, silver coins, silver rounds, storing silver, wealth preservation