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GOLD & SILVER PRICES FOR 2012

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

Boy, have you noticed how misinformation is the new media normal? Not a day passes without some Talking Head leveraging a month or three of economic improvement as a road to recovery.  No wonder the masses find themselves confused, confused with gold, confused with stocks, confused politically, and more importantly, confused who to believe.  I have no way of knowing the percentage but willing to bet 80% of all economic predictions as inaccurate.  Why? Because most promoting recovery have a vested interest in folks like you reacting by borrowing, spending, and buying what most don’t need. Don’t get me wrong, I’m all about strong stable economies but only when free market based and not deficit driven.  Nevertheless, this type of inconsistency encourages many to a relatively unknown asset like PM (precious metals).


I want to lead off with a very brave PM statement on my part. I have no idea how high (in USDs) gold or silver will rise in 2012. If both metals follow ten-year averages, gold should finish 2012 around $1845 (oz) and silver around $34 (oz), respectively.  If things become volatile in Iran, and if oil exports decline, these PM numbers could be low, very low.  A cool feature of gold and silver is  how each performs, or reacts, to oil and inflation. I can’t predict PM values since I can’t predict inflationary influences or oil volatility.  Gold will do what it must to form equilibrium of value, regardless of dollar value. This confuses most savers today, most want to hear a sharp-dressed expert analyze percentages with confidence and trust. After all, like real estate of the past, most ballooning assets grew vertically unabated. 

But gold and now silver too, are not typical investment assets. Both metals are now worldwide currencies. As currencies, both metals are beginning to find favor just as all fiat currencies print themselves worthless. This is why your stash of gold/silver’s buying power grows; this has little to do with investment demand.  Many of us new to PM fret over how much to buy or how much to pay not realizing today’s prices are relatively insignificant over longer term. Sure, each should take advantage of PM dips but ultimately the goal is to own real money in a time of massive monetary execution.  We can debate junk silver to legal tender, gold bullion to Pre 1933 coins, but at day’s end it’s all about ownership!

I want to go back to today’s economic inaccuracies for a moment.  Just last week the media repeated a wheelbarrow full of misrepresentations that I want to rebut.

(Reuters) – Federal Reserve Chairman Ben Bernanke on Tuesday took aim at proponents of the gold standard, saying that such a system handicaps the government’s ability to address economic conditions. More.

PROSPECTOR REBUTTAL: This is true. This is also the primary reason to anchor monetary actions to something like gold. This is  the only thing “real” offering those elected fiscal restraint. But very few media minded question such fact, very alarming.

WASHINGTON (Reuters) – The battered housing market looks to be on the mend as buyers make a tentative return and house prices stabilize. More

PROSPECTOR REBUTTAL: I wish we each had an ounce of gold for each time our media projects another housing recovery. The facts, our mortgage industry are 90% dependent on Fannie/Freddie along with artificially low-interest rates. The problem arises when we expose the billions Fannie/Freddie bleeds all while taxpayers remain indebted to an industry unwilling to allow our housing industry to bottom. Housing is no where close to “on the mend” or about to “stabilize”. Please don’t get me wrong here, I’m a huge fan of residential real estate and would much rather own a condo next to the beach than a stack of silver coins, but.

This is more important than some realize, here is why. Whether we realize or not, we make financial decisions according to how optimistically we view or future.  We scale back personal spending if things look dire and the opposite if things look promising, this is the American way. We re-elect politicians if our future looks promising and we vote out politicians if it doesn’t.  One party portrays gloom while the other promotes opportunity and recovery. Not sure which represents fact?

WHAT DO YOU THINK? PASS YOUR COMMENTS & QUESTIONS ALONG RIGHT HERE.

COMMENTS & QUESTIONS:

COMMENT:

Buying gold coins right now could be the smartest decision you ever make during this economic crisis. There is a huge economic storm that is coming to a head, and people holding on to dollar related assets are going to suffer the most. There is a lot of hype out there about a recovery in the stock market. Let me just say one thing for sure. There is NO recovery! You can not have a jobless recovery.

PROSPECTOR: Thanks, I couldn’t have said it better. The recovery bandwagon is politically motivated and here is how I know this as fact. Not one promoting recovery warned prior to the economic collapse of 2008. Why? Because focus is more about appeasement than what is best for our children’s future.  You’re also correct in recommending gold coins and let me take it one step further, if I may. Why not buy gold coins as close to spot all while paying as low a premium as possible? Remember, we are not collectors, not most of us at least, and our primary interest is within the metal itself.  Your point about dollar related assets is also “spot on”. Thanks for the insight, and comment.

COMMENT:

The gold price Australia is high at the moment. It will be a great time to sell your gold on the market!

PROSPECTOR: Okay, I’m willing to pass on a shameless plug for our friends Down Under. My question, why sell gold just because the market is high?  I understand this as good for your business but scrap gold is just as valuable as any, relatively speaking.  We often hear readers ask about selling scrap metal to buy bullion but I don’t necessarily see the benefit. Gold is gold, even scrap gold. Thanks for commenting and you’re welcome for the plug.


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THE JOBLESS RECOVERY AND OTHER LIES

GOLD & SILVER   1 comment

Few things strike me as more unfair than a person wanting to work and support their family but can’t find a job.  For nearly three years we have heard about this jobless recovery and if you think the job market is getting better than you are still working.  Yesterday Yahoo News featured an article called Out Of Work Long, read it here, asking the jobless to comment explaining why and how they became unemployed.  Today we look at some of the comments and then answer why so many are jobless and what it will take to bring jobs back.  For the record there is no recovery without jobs, thanks for reading The Prospector Site.


Yes we write about all things related to gold and silver but lately there are many issues affecting the value of precious metal and we can’t keep them all straight.  Like an algebra problem these issues connect by a common thread all affecting the true value of your precious metal.  But today we must look deeper into this jobless recovery so let’s get it started.

JOBLESS COMMENTS:

Here is what Jack has to say: “Been out of work since Nov. 2009 when my job (and 23 other IT workers at my company) was outsourced to India. All of us were highly skilled, degreed employees. There are too few jobs to go around now, some have found temporary jobs at skill levels way below what they previously held, most are still out of work. Instead of paying taxes, we now rely on unemployment or welfare. And the company we worked for sends US money to India.”

PROSPECTOR:  This gentleman nailed it on the head because outsourcing jobs out of America is almost as bad as not selling American made products in America.  If citizens of the U.S. would immediately start buying local, and American made, we would instantly see signs of improvement in our job market.

HERE IS WHAT JEANNE HAD TO SAY“I made the mistake of going back to college full time in 2006 at the end of my last job. I looked for work, but not seriously. When I graduated in 2008, I looked seriously for work but couldn’t find anything so I went back to college to work on a Master’s. I’ve worked off and on since 2008 but nothing near what I was making at the height of my career. I’ve spent the 2005 equity in my home and am slowly working through my savings. It seems like the longer I stay out of work, the harder it is to find a job. I’ve got to learn how to make my own money instead of depending on an employer. I’ve got at least another year before full disaster. Hoping and praying it doesn’t come to that.”

PROSPECTOR:  We also will be hoping and praying it doesn’t come down to full disaster.  Jeanne points out what the NIA (National Inflation Association) has proved in that the price of college is no longer worth going into debt.  Consider the added debt most graduates are leaving with and it certainly puts many behind the eight ball.  It is bad enough to be jobless but tack on debt and it is easy to see why the illusion of education leads to employment is false.

ROBERT SAID THIS:  “Got out of the Marine Corps 2 years ago and still haven’t found work. i get the same 2 answers for all jobs i go to. I don’t speak SPANISH and I was a Marine so i am too dangerous to work here. tell me the USA isn’t screwed up to Vets.”

PROSPECTOR:  Robert thanks for your service and we are hoping the best for you.  Robert makes a great point that gets little attention and the point is many of our vets are coming home to few jobs.  We recently posted The Biggest Conflict in America and part of this conflict will include the number of illegals taking jobs away from the unemployed.  When times were good few cared about labor jobs taken by illegals but now any job is a good job and this will only continue to cause conflict.

BLAME IT ON DEBT TOO:

Other comments were quick to blame government for job losses but the truth is government doesn’t create business.  Government is only the size the people allow it to grow so to blame politically motivated leaders for unemployment is overlooking the root of the problem.

Most have little idea how debt steals jobs right out from under willing workers by driving businesses to survival mode.  Plenty show anger at bailed out banks unwilling to lend money to small business but the fact is most small businesses don’t want the money if it must be paid back.  Up until 2008 our debt driven economy seemed strong and our working class content but living off revolving debt, equity lines, and credit cards could only sustain for so long.  What we are realizing now is all a result of uncontrolled debt, world-wide, showing symptoms in real estate, jobs, banking, currencies, cities, states, in all countries.

BUT WHAT ABOUT GOLD & SILVER:

We must understand that gold and silver are reactionary by nature.  No analogy, no thinking it over, precious metals just move upward by reacting to fear (jobless possibility), greed, mistrust, debt, deficit, and war.  For those that question if metal will hold present value I ask you.  Do you believe there is a quick fix to the above sentences?  If not, please consider the power of precious metal ownership.

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