If I gave you a new car would it sway you to support my opinion? What if I made it possible to park your new car on a driveway that leads to your new 3000 sq. ft. home? Let’s take it a step further. What if the only thing I ask in return is a personal obligation to borrow at near zero interest along with a promise to pay it back. What if we overlook the promise to pay it back and convince the bank it’s their fault you borrowed so much and then ask them to forgive part of the loan’s principle? If I offered all this would you overlook my failures as an elected official?

Citizens of the world are on the verge of angry but not for the right reasons. Are we angry over fiscal mismanagement? Are we angry because those elected promise to represent fiscal restraint but never do? Are we angry because hope and change ended as nothing more than a catchy campaign slogan? The answer to all, “Not really.”

The world is on the verge of bubbling anger because our lifestyle consisting of “more” and “new” is ending. Most of us aren’t angry over fiscal insanity, must are angry because we want to extend “normal” and mad as hell that we can’t.

Will heads roll? You bet they will, but only after a great awakening? Let me thoroughly explain before we introduce gold into our equation of the day.  Big Banks are soon to become public enemy number one, as they should. Politicians will deflect blame toward banks even though a few banking institutions control a politician’s future.

This redirect could keep some in power another term or two, at best. This blame leads the masses to ask why big banks can grow more profitable while the average person feels the ill effects of economic correction. But we weren’t angry the day the same bank handed us our new mortgage for the home we can no longer afford, right?

The same banks we are most angry with control around 60% of all U.S. wealth. I want you to connect the dots to really see why we accept fiscal insanity. Your retirement investment, at least most of it, depends on the big banks you have developed a hatred toward. The question is how could this have happened, I’m glad you asked?

Wall Street swims in decades of profit derived from bundled debt, YOUR DEBT. No one made us take on too much debt, we did it because we convinced ourselves we deserved it.  Think of it like a distribution system. The distributor (banking institutions on Wall Street) needed more product to sell and you are the grower of this product (the product is debt).

In return, you get a new Harley, car, house, vacation, Vegas weekend, college degree, useless business expansion, etc. In return, politicians receive one more term to live a life of celebrity. What you might not know is the bank wins twofold since the cash you borrowed cost them almost nothing to lend. Then, Wall Street bundles this debt and sells it back to investors as a worthy investment based on nothing real or tangible. The bummer is your future hinges on one more sucker willing to buy this bundle of defaulting debt!

Why, why does the most prosperous country in the history of the world allow this? Because every dollar you don’t borrow is one the Federal Reserve has to create just to keep this illusion of an economy standing!

I need you to do something before I introduce silver and gold today. Please email this to everyone you remotely care about. We must encourage others to no longer accept fiscal insanity.

Nope, in all honesty, every one short of the choir is only angry because the carousel built from debt is now in monetary failure (correction).  The next wave of anger is nothing close to the last wave of anger.

WHY GOLD & SILVER:

I wish I could say the scenario presented today is only true in the U.S. but this is not the case.  Debt based economies are now systemic, if not epidemic, and we can look no further than Europe, or California, as the next leg up.

The word “recovery” is one we hear often but the true definition of recovery, at least this recovery, is progressiveness to believe something we ultimately realize as unsustainable is obtainable. Fiat currencies will no longer allow what life long academics refuse to recognize. Eventually, something real must be created, sold, and then profit saved to sustain a healthy growing economy.

I’m sorry, by now some readers want to find a deep hole, crawl in and then drag a flat rock over the opening. I have a better idea. You can’t singularly control the sins we’ve mentioned today, you realize this. What you can do is isolate your wealth, regardless of size or quantity, therefor removing it from the spoils of bad economic behavior.

This will surprise some but I too view precious metals as a silly investment.

Folks, this is more about timing than investing. Silver and gold will expose themselves as a life raft in white-capped waters. Silver and gold will shake this fiat system out over time.

I have no idea how long it will take and honestly not one honest person does either. I do feel transferring wealth into something historically proven as “real” is our best hope to not only weather this storm but prosper too. As for me, I’ll pick monetary history over academia. Real physical silver and gold.

TO READ MORE POSTS LIKE THIS ONE FEEL FREE TO SIGN UP FOR OUR ONLINE NEWSLETTER. TO POST A COMMENT, REVIEW OR ANYTHING ELSE PM RELATED CONTACT ME HERE.

News Worthy:

EXAMINER –Peter Schiff: Next President Will Preside Over the Economic Collapse

On May 21st, Coast to Coast AM aired a special Financial Crisis show, with several different financial and economic analysts appearing during the four hour broadcast.  During the second hour, investment advisor Peter Schiff appeared as a guest and laid out the inevitable path of America’s financial future.

Focusing primarily on our country’s debt, and the sustainability of the dollar to hold back inflation, Shiff predicted that no matter who wins the Presidency in November, that individual will be presiding over an economic crash that will make 2008 pale in comparison.

Later in the program, Peter Schiff was asked by the host if our politicians had the stomach to do what was necessary to bring our economic ship back on course. The proposed solutions to accomplish this entailed 20 years of dedicated austerity for the American people, and a paying off of the nearly $16 trillion in debt obligations by the government.  His answer was a resounding no, as both politicians and the public are too bound by easy money, and the bureaucratic welfare state.  A prime example of this was made when the subject turned to jobs in America, and how a record number of unemployed men were now applying for disability benefits since they were unable to find work in the economy. Read more here.

News Worthy:

The Gold Standard Now:  The Coming of the Gold Standard

America and the world need monetary reform.  Indeed, they need a twenty-first century, international gold standard.  The gold standard — i.e. national currency convertibility to gold — is the simple, proven, global monetary standard by which to transmit reliable price information worldwide.  Unlike manipulated, floating, paper currencies, the true gold standard — a dollar defined in law as a specific weight of gold — exhibits the optimum, impartial, networking effects characteristic of the electronic age of reasonably transparent, global standards.

In an imperfect world, peopled by imperfect human beings, there can be no perfect monetary system.  Nor is the case for gold the case for investment in gold.  Based on a prudent consideration of monetary history, it is an argument from principle by which to establish the optimum monetary standard for a stable, growing economic and social order.

By the test of centuries, the true gold standard, without reserve currencies, is the least imperfect monetary system of history. Read it here.

News Worthy

Swiss America:  Bread Lines or Buffet Line?

World economics are upstaging politics in 2012. Governments worldwide are seeking to make citizens feel “safe” by expanding entitlement programs, which require an ever-expanding, taxable population to pay for these programs. That math does not work in Europe and it won’t work in the U.S. Our political leaders are making promises they cannot keep.

It boils down to this question: Will you rely on government promises or become more self reliant? When the next crisis hits, your choice now may determine whether you stand in a bread line or a buffet line. Worth reading.

Tags: gold standard, investment in gold, physical silver, precious metals, why gold & silver, your debt

You read it everyday but few connect the dots to a lift in precious metals. I see them, hopefully you do too, the problem is the masses do not. Today I want to include not only what I view as news worthy events but events soon to project silver and gold out of reach for most in the middle class. Once again, I don’t believe one particular event will send metal beyond what most view as unimaginable. Accumulation of multiple events will ultimately push, or influence, your PM (precious metal) higher.

The attraction to precious metal is NOT universal, let me explain. Indians buy gold stemming from tradition realizing gold jewelry is not only attractive but a great store of wealth. China buys gold to empower themselves into the next reserve currency. Americans buy gold either to hedge against uncertainty or grow rich. Canadians buy gold for the same reasons as Americans.

But Europeans buy gold for an entirely different reason, the same reason most will eventually own PM. Europe is trading currency, or other assets, for gold to preserve wealth lost otherwise. This reason, their reasoning, is a snapshot of our world’s future.

By the way, be sure to read the six plus reasons Why Silver & Gold Will Go Higher available right here.

NEWS WORTHY:

THE DAILY CALLER: “The US has 2-5 years before financial meltdown….it is dishonorable to lie to the American people….based on the debt we have now, it takes $650 billion annually just to pay its interest. I want people to see what’s coming, this is why I wrote The Debt Bomb.” U.S. SENATOR TOM COBURN.  You can watch a short video right here.

NEWS WORTHY

ZERO HEDGE: As US weak hands keep piling out of gold whether to make space for the Facebook IPO tomorrow, or just to load up on paper currencies in advance of central banks printing much more, two things have happened: China is now on its way to becoming the biggest source of gold demand, surpassing India, but more importantly as of hours ago, in a truly historic move, “Okayama Metal & Machinery has become the first Japanese pension fund to make public purchases of gold, in a sign of dwindling faith in paper currencies.” Not our words: the FT‘s. This is worth the time to read.

NEWS WORTHY

THE GOLD STANDARD: The Rising Price of the Falling Dollar by Charles Kadlec – Forbes:

The debauch of the dollar also erodes our prosperity and our security. Since the final link between the dollar and gold was severed in 1971, the paper-dollar system has produced slower growth, higher average unemployment, deeper recessions and more frequent financial crises.

• Chinese yuan, the price of oil today would be $78 and a gallon of regular gas would cost about $2.95;

• euro, the price of oil today would be $74 and regular gas about $2.80;

• Japanese yen, the price of oil today would be $67 and regular gas about $2.60;

• Swiss franc, the price of oil today would be $60 and regular gas about $2.40.

Very interesting read for those questioning the value of a gold standard, it’s right here.

NEWS WORTHY:

FOX BUSINESS:  Gold Fields Says Prices Need to Rise to Avoid Industry Cuts

JOHANNESBURG – Gold prices need to rise or mining companies may be forced to start cutting output and project financing, Gold Fields Ltd. (GFI) chief executive said Thursday.

In recent weeks the price of gold has fallen, with the metal trading around a four-and-a-half-month low in Europe this week.

“We need higher prices over the long term or we will see curtailment of projects,” Nick Holland said. “(The industry) could see output cut if we see gold go down to some of the forecasts.”

The promising production target comes despite mining companies in South Africa experiencing bigger-than-normal drops in output due to more frequent labor disruptions and Department of Mineral Resources-mandated safety stoppages. Read more right here.

NEWS WORTHY:

L.A. TIMES:  “Grexit”: Are Greece’s Euro Fears Causing a $1-Billion Bank Run?

Greek officials were busy today cobbling together an emergency plan after talks to form a coalition government disintegrated Tuesday. In the meantime, Greeks have withdrawn $900 million from local banks.

So said President Karolos Papoulias, according to minutes of a government meeting procured by Reuters. Papoulias, in turn, was quoting George Provopoulos, governor of the Greek Central Bank, who said depositors took out 700 million euros earlier this week and will likely withdraw at least 100 million more.

Greeks have withdrawn 72 billion euros since January 2010, leaving bank deposits with 165 billion euros in March, according to the central bank. Social media users were buzzing Wednesday about rumors that Greek banks had set a withdrawal limit of 50 euros on accounts. Read it here.

PROSPECTOR: It is hard for me to say which article above concerns me most. I wrote about all the above in Why Silver & Gold Will Go Higher so I’m certainly not surprised. Senator Coburn’s book The Debt Bomb intrigues me and sounds like my weekend read, you might consider it too.

Gold Field’s honesty as it relates to mining challenges is something I see as a sign of times to come. The likelihood of environmental concerns complicating an already complex mining industry is something all metal owners should expect, and plan for. Gold and silver are already in short supply at least compared to demand. How can this not affect metal prices of both silver and gold?

Japanese pension funds investing in physical gold could be the purest example of today’s flight to all things real. Folks, this is only the tip and you and I both know it. All the reasons above are why I’m not concerned when gold metal drops $50 or $350 over short term!

Affordable Gold:

Miles Franklin sent over an offer (5-17-12) selling 1/4 ounce fractional gold bullion at a very good price. Supplies limited and will not last considering the offering at 5.5 % over spot. You can find them here if interested.

FEEL FREE TO SEND OVER ALL COMMENTS OR QUESTIONS RIGHT HERE. THANKS FOR READING TPS TODAY!

Tags: buy gold, gold, gold demand, gold standard, physical gold, precious metals, preserve wealth, reserve currency, silver, Why Silver & Gold Will Go Higher

Every four years something amazing takes place for the entire world to see. This event dates back to ancient Greece and by now you may have guessed it as the Olympic Games. On July 27, 2012 athletes will begin competition to find out who is first, second, and third best in their particular event. Once determined, the best will step onto a platform while their country’s flag backdrops into a period in time no athlete will forget. Now, I want you to imagine something weird at this point. Imagine not metals of gold, silver, or bronze. Imagine ribbon like awards made from the dollar, yuan, and euro.

Doesn’t it sound silly to imagine a proud Olympic champion sporting around a dollar ribbon as first prize? Can you imagine a champion’s homecoming as they parade by a cheering crowd so proud of their winner’s feat, all while wearing a reward made of fiat currency?

If this scenario sounds silly then I want to ask each reader one question. Is this as silly as a society saving, working, or investing for the same fiat reward?

The inevitable return to gold will happen by choice or natural monetary forces. We will look back at the last few decades of credit expansion (borrowed or created currency) and see all wealth derived from such a period as futile.

But like a 4-year-old being told the party must end, we too must accept a lifestyle and society built on easy credit must also come to a sobering end. This is not easy for some, in fact, this is unimaginable for most.

In a moment I will offer a dialogue from the world’s most significant power on this universe. Mr. Bernanke recently went on a movie premiere type campaign attempting to trump the dollar and down play gold. To me, this academic appears misinformed if he truly believes central banks have the power to control the inevitable return to gold.

NEW YORK TIMES: WASHINGTON March 20, 2012 — The Federal Reserve’s chairman, Ben S. Bernanke, spent the better part of an hour Tuesday afternoon carefully explaining to a class of college students why the United States abandoned the gold standard in the 1930s.

Tying the supply of money to the supply of a precious metal limits a government’s ability to address economic problems, Mr. Bernanke explained.

The problem with such a standard, Mr. Bernanke explained, is that it limits the ability of government to address economic problems by adjusting the amount of money circulating in the economy. Proponents see this as an advantage, because they believe that policy makers will do more harm than good, in part by making decisions that prioritize short-term benefits over longer-term costs.

“It’s a once-in-a-lifetime opportunity to hear lectures from him,” said Noah Wiviott, 21, of New Jersey. “He clearly knows what he’s talking about.” Here.

PROSPECTOR: I, like many of you, have been in private business my adult life. I can honestly say central bankers crawl from Federal Reserve holes only when things are dire. The fact Bernanke spoke to 30 future academics validates his need to promote monetary control. He is not in control, not when more Americans than ever before live off federal food stamp programs and not in control as 12 million homeowners face some form of mortgage distress.

If you are part of the tiny few invested in physical silver or gold please think about this. You are now part of an individual gold standard. Even though you can’t control central bankers, even though you can’t control leaders still steadfast to “invest” more currency, you can take monetary control on an individual level.

Not one realistic minded person will believe an economy 70% based on consumerism is sustainable. This sustainability really takes a downward turn when we consider how credit expansion has tightened like a 1965 Cleveland Brown lineman.

Mr. Bernanke knows the return to gold has nothing to do with world gold inventories. Bernanke knows the return to gold not only proves his job as much less needed but less relevant. Academics always stumble when theory gets clubbed over the head with reality.

Trillions of borrowed dollars from now, all will see the inevitable return to gold.

COMMENTS & QUESTIONS:

Question: Forgive me since I am new to precious metals yet beginning to see the necessity of protecting myself from out of control spending. Two questions if I may. Which metal (silver or gold) has the most long-term potential? Secondly, do you see investment benefits in buying from one country over another?

PROSPECTOR REPLY: Thanks for the questions and welcome to the protective world of PM. Your first question is one we hear often from those testing PM waters. Picking the “best” metal isn’t the question as much as picking the best form of metal. Let me explain. I believe both silver and gold should be part of everyone’s wealth program.

Starting with silver allows “Newbies” to make a soft entry into the world of PM without spending too much currency. I encourage folks to work their way into gold as they become confident and comfortable moving into higher priced metal.

Regardless of metal, if your plan is to sustain wealth through PM then buy low premium silver and gold most typically found in bullion coins, bars, and rounds. One reader not long ago reminded me of bags of junk silver as a good low premium silver source.

Now to your second question, I don’t view silver or gold as an investment. I view silver and gold as a savings in real money by using PM as a hedge against the recklessness you alluded to. Most investors judge wealth by growth in currency, I don’t. I judge value by comparing an asset to gold. Traditional assets like housing, stocks, etc have greatly declined when compared to gold (even though some have grown in currency value).

We hear from readers all across the world and all have the same concerns as you. Gold and silver are just that regardless where you live or invest. This is why we refer to PM as the one universal currency. Soon the entire world will view PM as necessary; this will test the resolve of a very limited supply of real money, regardless where you call home.

FEEL FREE TO CONTACT ME HERE IF YOU HAVE A QUESTION OR COMMENT. THANKS FOR READING TODAY.

Tags: bronze, economic problems, fiat currency, gold bars, gold rounds, gold standard, investing, junk silver, physical silver, return to gold, savings

The precious metal world is changing at an alarming rate. One benefit of founding a site like the one you’re reading is the ability to see a worldwide stage, not just my neck of the woods. My goal is to provide clear concise PM (precious metals) information and then justify its worthiness backed up by today’s current events.

In my opinion, never before has silver and gold been so significant.

Most readers still wake up each morning looking for validation to buy some, or more, silver and gold. This validation is usually based on PM’s moment in time. Today we will provide several world events providing such validation with hopes more take notice how only real assets, like silver and gold of course, will hold necessary value during a time of worldwide fiat debasement.

I realize many are new to PM thus my goal is to simplify metal as much as possible.

Everything should be made as simple as possible, but not one bit simpler. Albert Einstein

SPAIN BANS CASH TRANSACTIONS:

THE DAILY BELL: Spain Bans Cash Transactions Over 2,500 Euros … Spain has outlawed the use of cash in business transactions in excess 2,500 euros in order to crack down on the black market and tax evaders. The motivations behind the push for digital currencies is exposed as Spain heads down the road of the Greeks in combating their sovereign debt crisis. As the government scrambles for every tax dollar it can get its hands on, even though they already gave every Spaniard $23,000 Euros in debt last year alone (approximately $32,500), they are now banning all large cash business transactions. Why? So they can track the transactions and make sure that people and business are paying taxes. Being able to track the transactions is also aimed to combat the growing black market in Spain. – Alexander Higgins’ blog. Read more here.

PROSPECTOR:  It is no wonder that folks in Spain have turned to a black market economy considering the level of taxation needed to support sovereign debt. Spain and Greece are nothing more than a snapshot of America’s tomorrow. In fact, they are a worldwide snapshot as governments fix debt problems with more borrowing and government overreach. Does anyone honestly believe more taxes on a global scale are anything but likely?

Folks, these economic corrections we’re discussing today are all caused from too much spending and excluding something restraining like a gold standard. This news is sad for the folks in Europe and, soon, very sad for the rest of us.

GREEKS TURN TO BARTER:

BBC NEWS EUROPE: A few months ago, an alternative currency was introduced in the Greek port city of Volos. It was a grass-roots initiative that has since grown into a network of more than 800 members, in a community struggling to afford items in euros during a deepening financial crisis.

“We have reached the bottom of our lives and we now have to think in a different way,” says Tasos, a vegetable-seller. Read more here.

PROSPECTOR: This article is nothing short of fascinating since it validates what we have written over the last 14 months. People do not collapse even though a currency does. They find meaningful ways to trade, regardless of euros, dollars, yen, yuan, etc.

We’ve said it before but it deserves mentioning again. Silver and gold are real money. They both will return to a worldwide currency but not before governments fight taxpayers to the end. The people will win and governments will reduce themselves to a realistic portion of our society and economy.

SHOULD WE RETURN TO A GOLD STANDARD?:

USA TODAY: SHOULD WE RETURN TO A GOLD STANDARD–But returning to the gold standard also has myriad problems. On a practical level, there’s not enough gold in the world to return to a gold standard — and no one else in the world is on the gold standard. By tying the value of the dollar to gold, the government cedes control of monetary policy, making it unable to increase the money supply in times of economic crisis.

The growing U.S. debt — $15.6 trillion, if you throw in Social Security and Medicare — is one reason people fear inflation and think that the monetary system is out of control. “Never in history have we run debts and deficits to this magnitude,” says Lance Roberts, chief economist at StreetTalk Advisors. “We’ve never been here before.” More here.

PROSPECTOR:  This article is worth reading two times if you ask me.  Why, because it validates how far removed we have drifted from individual economic independence? The article above mentions, “By tying the value of the dollar to gold, the government cedes control of monetary policy, making it unable to increase the money supply in times of economic crisis.”

Yes, absolutely correct. This is why it is so important to remove aggressive monetary capabilities from government. The choice is always to borrow and spend as long as borrowing is an option. Our worlds will not fall apart if government can’t expand the money supply.

Comments & Questions:

Question: Love the site but need some help here. My wife is convinced that spending our savings for gold is a form of investing. I say it is no different from a savings account outside typical banking institutions. We both agree gold is the best hedge for inflation but less agreeable where the money should come from.

It seems our world is hell-bent on printing money until it is as worthless as post WWII Germany.  Am I correct in believing a cash savings is far more at risk than a real asset like gold? She is having a hard time letting loose of our cash savings.

PROSPECTOR REPLY: Thanks for the question, and reading our site. Boy, regardless what I say at least one of you will not totally agree, sorry in advance. Here we go. She is correct that cash today is king. You are correct that over the longer term cash will continue to lose buying power (not sure if it will go into hyperinflation as you mentioned, it certainly could).

I suspect we will hear this same question many times over the next few months as families try to decide what the best protection for assets is, including a savings. I personally view money invested in silver in gold as a savings. This is the beauty of international storage facilities like Bullion Vault or GoldMoney. This new age savings account offers physical silver and gold at near spot prices. Fees to resale are non-existent too. The only real fee is a monthly storage charge (not much different from some banking accounts).

This type of gold savings (international storage facilities) offers the best of both worlds. Trading metal back into cash is as easy as selling some, or all, as and when you decide. The money is then wired back into the banking account of your choice. Trading gold back into cash is easily exchanged online.

One final thought. You both will know when the time is right to protect hard-earned savings with PM. Trust me, it will be soon, and she’ll need little convincing.

Just a reminder:

BE ONE OF THE FIRST TO READ MY NEW eBOOK ENTIRELY FREE!!  Why Silver & Gold Will Go Higher is almost available on Amazon, Barnes & Noble, and Apple but we are looking for book reviews/comments before it hits market. If you like to read, (150 pages) and want to learn more about why PM will rise, then send me an email here. Don’t be shy; we want to hear from folks like you.

Tags: cash, fiat debasement, financial crisis, gold, gold standard, international storage, money invested, real money, silver, spot prices, storage

I want to jump in head first today but not turn this into a dollar history lesson. The issue today is more than our dollar’s decline since August 1971, the issue is the trend. Most of you already know these important related dollar events.

• No gold standard today.  Up until 1971 our dollars were literally good as gold.
• One USD was equal to 1/35 an ounce of gold prior to 1971. Today it is worth 1/1640.
• Today’s dollars are not money but a currency of money or Federal Reserve Notes.
• The USD now considered the world’s reserve currency, but!

Let me be clear, my only interest in the USD is how it relates to silver, gold, commodities, and other hard assets. I don’t own large sums of dollars, one hour on my website will explain why. My motivation behind today’s post is to urge all interested, or invested, to grasp the long-term dangers in owning dollars.

Lately, the internet is buzzing causing some silver and gold holders to question inventories, value, etc of both metals. This is what I refer to as a short-term focus with long-term consequences.  A true understanding of the dollar experiment offers PM holders the peace of mind to sustain belief and continue their PM course.

USD Misinformation:

Taxpayers spend 8 to 10 hours per day working to earn dollars (or your currency). The plan is to earn enough, after taxes, to pay bills, buy food and necessities, and hopefully save a few dimes for a rainy day. Now, here is the problem.

Just over these few minutes it takes to read this post our US Treasury will print (borrow/monetize) $30,000,000 in currency. This means it is highly unlikely you will earn enough dollars to keep up with those willing to print it into a state of worthlessness.

Borrowing too much currency always devalues the wealth held in currency. But wealth devaluation is a meaningless term for most of us so I want to expand by offering examples. Remember, these are real families just like yours.

Wealth Devaluation:

• 50% of all Americans now live in poverty or considered low income.
• Half of those are children.
• Our middle class has declined by 35% since the USD gold standard.
• The USD has lost 85% of its buying power since the USD gold standard.
• The wealthiest 1% own over half of all US wealth.
• The US buys over 60% of its own bonds to create more currency.
• Gold has risen nearly 5000% since the USD gold standard.
• Silver has risen nearly 1800% since the USD gold standard.
• Nearly 50 million are on food stamps as you read this.
• Student loan debt topped $1 trillion dollars this year.
• Mortgages in jeopardy topped 12 million this year.
• Wealth in real estate holdings lost $15 trillion worldwide.
• Average household credit card debt is over $15,000.
• Five of Wall Street’s largest banks now control over 50% of US wealth.
• The US national deficit is just under $16 trillion US Dollars.

We must put the above information into perspective. A family relying on dollars will watch wealth decline until reaching a level of poverty. This is not my opinion. These are the facts as proven above. Wealth moved to gold has grown by nearly 5000% and wealth stored in dollars has declined by nearly 85% (over same time).

This tells all who will listen that the great fiat dollar experiment failed. The only way to continue the facade is by printing and borrowing more debt to pay on old debt. Again, percentages and numbers can be misleading so let’s put this into real context.

We know the USD has declined around 85% since the gold standard days. This means the same amount of money able to pay cash for a new 1970 car is now nothing more than a new car’s down payment. But, the same amount of 1970 gold will buy nearly 8 new cars today.

THE GREAT WORLDWIDE AWAKENING:

For those still pondering a failed dollar experiment I would like to pass along this fact. Storage services offered from GoldMoney, Bullion Vault, GoldRepublic, Global Gold, Gold Bullion International, Everbank, etc validate a transition from dollars (currency) to real money like silver and gold.

Let me explain it like this. A loss of fiat faith (currency) feeds the growing numbers using a vault service just like a savings account. Make no mistake, international vault services back up all wealth in real silver and gold. This allows each investor to hold wealth in metal until it’s time to exchange wealth back into a currency.

Investors, aka saver, from all walks of life can store wealth in Zurich, London, Hong Kong, and New York regardless where they call home. Better yet, savers can store wealth outside of government and banking establishments too.

We know the dollar experiment failed by the billions in wealth relocating into international vault systems like our examples above. What do you think will happen to a debt based economy (depending on a fiat currency) as more realize services like above exist?

If you would like more information explaining how to relocated wealth, or trade currency for silver or gold, contact me  right here to further discuss. I do not represent anyone selling or storing silver and gold.  I represent only one person, you the client.

Tags: debt, devaluation, gold standard, good as gold, hard assets, international gold storage, poverty, real money, silver or gold, storage services, trade currency for silver or gold, vault systems, wealth decline, wealth devaluation, wealth in silver

Does today’s economic mess confuse you, it certainly does me?  Is it possible we over complicate some issues when a simple understanding is the most obvious?  The internet is full of economists explaining inflation, explaining deficits, justifying gold, even ridiculing gold.  Majority of Americans are in search of whatever it takes to return to “normal” but you and I know this is no longer rational thinking. We can’t wish back a strong consumer based economy based on more debt, just not possible.  It angers us few with political power refuse to accept this but the truth is political leaders only react to political forces.  My question for you today is why not creating your own gold standard?

I have no idea what motivates you to read a site like this or own gold. I do know, regardless of reason, you will benefit by participating in a mini version of a monetary structure backed by something real like PM.  For the record, any reference to “gold” assumes silver included because sometimes I condense both metals in one word, GOLD.  Several readers have asked so I’m clearing the air right here.  Yes I own and still buying both metals but what I’m doing is of no value to you unless you’re buying as well! Since this site doesn’t sell PM I can safely say my only interest is to give information and council to those who choose to no longer accept the status quo.

Maybe we should define a few common terms before I launch into this personal gold standard thought. For the record, when a political force promotes “investing” they actually mean “spend (usually by borrowing)”.  When political forces mention “fair share” they actually mean you paying “more taxes”.  It is now common to rephrase terms that sour us which somehow allows us to stomach the same nastiness as before.  The end is the same and this brings me right back to gold and silver.  Most political forces dislike gold because of its “spin” resistance (gold is the one constant for over 5000 years…..real money), since PM debasement is impossible it must be removed from the table of trickery and finally was in 1971 (last nail for the gold standard).

This time, 1971, was the most pivotal point in our monetary history. Individuals who adopted gold set a course for prosperity while the rest involuntarily agreed to a life of devaluation while relinquishing control along the way. Actually the end to the gold standard alone had little to do with our mess of today since without a lack of fiscal restraint even a fiat currency can flutter along.  This is no different from blaming credit card misuse on the card company when actually the card user is the root, cause, and abuser.  The point, by nature we will borrow (we as in the masses or political forces) if borrowing is an option and this often leads to bankruptcy.

The moment one trades currency for gold a personal version of a gold standard begins. Actually two major accomplishments begin and both benefit you as the gold owner greatly.  Once your currency leaves the monetary status quo a point is made by you joining the masses who no longer accept fiscal irresponsibility.  Of course, at least right now, the Fed pumps $180,000,000.00 per hour into our money supply so this pumping more than compensates for your bucks traded to gold.  But even Mr. Bernanke admits this can not go on forever but if it does you are protected, and wealthy.  Creating your personal gold standard is nothing more than refusing to accept fiscal recklessness and proving it by owning gold.  We really need only understand this one point about gold, at least in 2012.

THANKS FOR JOINING US TODAY.  I WANT TO HEAR FROM YOU SO LET US KNOW YOUR THOUGHTS ON TODAY’S ISSUE OR WHATEVER IS ON YOUR MIND.  YOU CAN REACH ME HERE.

WORTH MENTIONING:

It’s easy to be caught up in today’s political rhetoric and I have to admit it can be entertaining.  From my prospective very little content from either party is in real discussion on what it will take to fix major cracks in our monetary system.  Most issues are irrelevant if we can’t improve or debt dependency and secure our USD simultaneously.  Front runners only argue trivial issues because the masses have not caught on to how dire today’s economic situation is.  This will change over time but for now I see very little attention on the one true snowball of not stop debt.

We often hear from our readers asking why fiscal insanity hasn’t grasped attention of more in leadership roles. My opinion is we are so far removed from “real money” that few grasp the long-term effects of a huge government dependent on never-ending debt.  In other words, we have to stop the leak before we can fix the damages from flooding and this will take time and gold will grow until then.  One other point, have we stopped to consider that a debt declaration as #1 priority is an admission to a 40 year fiat failure.  Political power doesn’t go away that easily, and it won’t.  Please consider PM soon.

Tags: debasement, gold owner, gold standard, justifying gold, never-ending debt, owning gold, silver

What if I told you the path to your financial future was set in motion years ago possible before your birth?  I recently had dinner with a buddy who voiced great concern over putting this debt ceiling issue to rest. His fear was something bad could happen if a compromise isn’t found soon. He is correct but his fear is misdirected regardless how this debt ceiling plays out. Your gold and silver will grow just as our dollars decline, all because of a day back in 1971.

Thanks for reading The Prospector Site. If you are new to our site let me say congrats for taking control of your financial future. If you’re looking for pinpoint gold buying advice I’m sorry but you won’t find it here. What you will find is proof how current events justify trading dollars for gold and silver. The information comes from fact without bias from someone not selling a thing. We provide knowledge and understanding of a real money source few understand, gold & silver..

Not many understand how the 1971 gold standard reversal sent dollars into a decline still felt today. We recently posted an example of a twenty-dollar bill and a twenty-dollar gold coin and how they once held the exact same buying power. Boy have things changed because today the same gold coin has 82 times the buying power of a twenty-dollar bill. I doubt President Nixon could have known how damaging this gold reversal would be to our monetary system.  For the record a gold standard system means each dollar in circulation has a small measure of gold as security. Printing money out of thin air isn’t possible under a gold standard.  If access to a bottomless bank account is fun then our government is having a ball.  No gold standard to rein in the weak means serious trouble for the rest of us.

As tax revenues continue to decline the money needed to feed the government machine will come from borrowing. To honestly believe political leaders will decrease spending, borrowing, is misguided at best.   So in the end what will this pumping of worthless money cost taxpayers?  We know gold sold at $41 per ounce back in 1971 as gold and the dollar parted ways.  The question is what will yellow metal be worth someday when they reunite?  Who could possibly guess but if spending continues as it has $20,000 to $40,000 gold (per ounce) is not out of the question. I guess $1700 physical gold doesn’t sound so bad.

The day the dollar died robbed Americans more than most realize. The debasing of dollars is gradual and this time release of inflation is sneaky.  But the true travesty is the exchange of freedom for debt most folks gladly saddled upon themselves as dollars slowly declined.  Each day more wake up to a life of financial slavery unsure what it takes to break the chains of debt and despair.  Little do they realize gold has been there all along waiting for those willing to see the worthlessness of dollars and value of real money like precious metal.

Tags: dollars declince, gold standard, physical gold, silver, your gold

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

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

SO WHAT’S THE PROBLEM?

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

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

NEWS WORTHY:

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

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

NEWS WORTHY:

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

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

Tags: $1000 silver, $5000 gold, America, debt, gold, gold standard, silver, Wall Street

Years ago I was part of a small real estate development well before the real estate bust.  It was amazing what big equipment with GPS guidance could do in a day.  As I watched what had to be millions of dollars of equipment working I noticed the general contractor himself working at the wrong end of a round point shovel.  Later that day I joked with this contractor about how small he looked working close to giant equipment when he said something I will never forget.  He explained no matter how complex tools or equipment become it still comes down to a man and a shovel to complete most jobs.  As I write this physical gold sits at $1571 and silver at $40 all while electronic currencies flood nearly every country world-wide.

The Bible tells a great story of a battle between David and Goliath where a boy battled a giant warrior.  This reminds me of what gold and silver represents today against billions of electronic dollars not worth anything more than a digital number.  What amazes me more is through thousands of years and numerous societies gold and silver still stand as real money.  As leaders world-wide do everything possible to create the illusion of economic stability, gold and silver still stand.

Everyday more folks realize that trillions in unsecured debt and deficits, it really is unsecured, is causing major economic concerns world-wide.  The only cure is fiscal responsibility and the only restraint is a gold standard.  If you have yet to buy your insurance policy of gold please understand no fiat currency has every sustained a true value and most end up worthless.  Gold, and silver, stand strong every time.

A person, maybe you, can work their lives scraping a savings together in hopes of someday retiring.  At the same time someone can click a computer button creating a million times your hard-earned savings all out of thin air.  Based on nothing, accountable to no one, and worth nothing.  If your idea of security is dollar based assets please reread this last paragraph to fully understand how manipulated US Dollars can be.  Gold and silver are impossible to duplicate, replicate, or fabricate and this is why they are real money.

WORTH READING:

This is short article but does a great job explaining how gold is real and dollars are on the road to worthlessness.   Read “Gold is Money” right here.

Tags: electronic dollars, gold is money, gold standard, physical gold, silver, The Bible

For those that don’t know Dave he is a leading authority on motivating folks to break the chains of debt in order to live a life of financial freedom.  The only place I disagree with Mr. Ramsey is his trust in the financial markets over the value of gold and silver. Dave is exactly correct in saying gold, or silver, are historically horrible investments but what he isn’t saying is they are great insurances against fiscal mismanagement.  The reason for this post is to give our readers a look at both sides of gold from obviously a man who has helped, or motivated, thousands to taste the freedom of a debt free life.  Watch a short clip of Dave’s stand on gold here.

If you watch this short video of Dave you will see that he makes a good point about investing in goods of necessity over services by way of mutual funds.  He also gives a good example of a failed economy realizing more value in water or gasoline compared to gold.  Where his point falls off is his example of the Dow showing more return than gold historically and this is where we differ.  Since early 1900′s gold was not an investment but a “standard” to keep dollars in circulation in check and it did a great job of it until irresponsible leaders scrapped the gold standard.  What Dave fails to also mention is for years American citizens couldn’t own physical gold so how can it be fair to compare gold to a free market like the Dow or inflation?

There is no doubt some will email me asking why I posted a counter argument to gold when the premise of The Prospector Site is clearing confusion over precious metals.  Well this may blow you away but I have no attachment to gold, or silver, other than right now they are one of the safest forms of trading dollars for security that I know of.  If blue chip stock were down I would be sending some of my money that direction too.  As real estate corrects I will be sending money that way.  My money stays in gold and silver because this is the asset that now provides the most safety and return on my money in these days of fiscal irresponsibility.  This is the only reason.

The cold truth is the gold and silver bus will someday run out of gas and it will be time to move money into another asset.  Some of you will have a hard time letting loose of the golden life raft but this day will come when fiscal sanity returns or mania drives gold off a cliff.  Until then gold will increase not only to keep check with inflation but by masses jumping on the gold and silver bandwagon.  Each day this site  looks at examples of not only how to buy or sell but how current events are shaping gold and silver.

Dave Ramsey misses the most important function of gold and congrats to you for understanding the most relevant aspect of yellow metal.  The #1 benefit of gold is its anchor by way of a gold standard to keep governments from printing trillions of dollars backed by nothing.  Mr. Ramsey speaks sternly about inflation and how gold doesn’t hedge against it but over the last ten years gold has certainly proved him wrong.  Time will tell but owning an insurance of gold, silver, or both can’t hurt as I see it.  I’m sure you, me, and Dave will all survive this economic calamity able to compare how we would do it differently next time.

QUESTION:  This all confuses me and I’m not sure to buy gold, silver, stocks, or save money in cash.  I don’t really have a question but it seems everyone has a different opinion.

ANSWER:  This is a great non question.  You are in good company because lots of folks are confused with what is happening and what is the best way to save (survive).  Let’s look at the facts first.  Fact #1 is record high debt is eroding the buying power of our dollars because more borrowed money is thrown at old borrowed money.  The result is you pay more than you used to not so long ago.  Gold is reactionary so it is going up to keep up with soaring prices and now so is silver.  When we trade dollars for gold or silver it allows us to ride the inflation train for free and then get off later when things stabilize.  Your confusion comes from relying on others to understand basic economic principles so my advice is to read sites like this and others until you understand before investing anything.  There are no guarantees since we are historically in uncharted waters but I hope this helps.

TIP OF THE DAY:  Gold is starting to run along side silver so take a look at fractional gold ownership if full ounces of gold are too expensive for your budget.  Fractionals (1/10, 1/4/, 1/2 ounces) carry a slightly higher premium but can be passed on someday when you sell, at least that is the plan.

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

• ONE OUNCE SILVER BULLION:                 $53.57

• ONE OUNCE SILVER ROUND:                     $51.23

• ONE OUNCE GOLD BULLION:                     $1623

• ONE OUNCE GOLD BAR:                               $1583

Tags: fiscal irresponsibility, gold standard, value of gold and silver