HOME | THE PROSPECTOR SITE & YOU | BLOG | REGISTRATION | CONTACT

Posts Tagged ‘money’

WHO WANTS TO BE A MILLIONAIRE?

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

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: , , , , , , , , , ,


GOLD RUN

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

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: , , , , , , , , ,


The MONEY CURE

GOLD & SILVER, GOLD AND MONEY   No comments yet

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: , , , , , , , , ,


WHEN WILL GOLD GO HIGHER?

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

Agitation; this is the only word I can think of that accurately describes how the gold faithful feel today. I, honestly, have no precious metal worry. My lack of reservation…… while others try to find faith in falling gold prices, comes from a confidence that gold and silver will go higher, multiple times higher. It all has to do with a chosen course of action or, better put, CONFIDENCE. Not as much a confidence in gold but a lack of confidence in dollars. Please let me take the next few hundred words to thoroughly explain.

Thanks for joining TPS (The Prospector Site) today. I really appreciate your willingness to at least test nontraditional waters thus providing a true opportunity to preserve wealth in an age of economic uncertainty. If this is your first visit let me say I am not a pessimist by any stretch. My goal is to provide a sound money education for the few willing to no longer accept monetary misunderstanding.

It is also worth mentioning I’m not a gold bug. I own silver and gold (and have for over ten years) for one reason. They are the only source of money unprintable in a fiat currency age. Let me try that one another way. Gold and silver are money and everything else folks mistakenly call money are currency. Currency is a promise, a promise based on something without true intrinsic value.

Intrinsic value confuses some folks when its meaning is quite simple. The intrinsic value of a car is the grand total of all the components & effort to build/sell the vehicle. The intrinsic value of your home is the total of concrete, land, metal, wood and skill it takes to rebuild it (Yes, I realize this value can drop below intrinsic level but such an occurrence is very rare).

The dollars in your pocket have no intrinsic value (maybe $.06 worth of paper, ink, and effort). Gold and silver have true intrinsic value, their value is the cost and effort to extract, mint, and hopefully end up in your hands.

WHY?

Why do we trust something of no real intrinsic value with a potential of infinite creation? Gold will not rise to my point of prediction until the world truly understands the value of US dollars. To better illustrated this PM (precious metal) to dollar comparison think of an antique scale with brass trays on each end; now picture dollars on one side and PMs on the other. Gold will not rise until the dollar’s mass (confidence) declines.

If this is the only thing holding gold from $5000 or $10,000 or $75,000 an ounce we must ask what, why, and when. But to answer such questions we must first answer why so many still trust the dollar – and why so few don’t. By the way, at anytime feel free to substitute the word “silver” for gold; both are real money.

If you happen to be reading this at your local coffee hangout I want you to look around. You are the 1% if you’re a real money believer. The others comfortably sipping through their day have no clue of the messy divorce that occurred when dollars vs. gold split the sheets so many years ago. Honestly, most sharing your space don’t care as long as life resembles “normalcy”.

Folks, gold and silver’s relevance hinges here, please read closely. The US Dollar and gold were once the same. At any time a dollar holder could equally exchange paper for real intrinsic gold OF EQUAL VALUE (please take another look at the picture above. Notice what’s written clearly at the bottom of the bill, “In Gold Coin Payable to the Bearer On Demand”). At such a time, our dollars were money. Today’s dollars no longer mention payable in gold because they’re not worth anything of value.

Why so many still trust dollars is simple. Those trusting do so because they continue to view dollars as money, a secure source of wealth storage, and the best means to exchange effort (work) for money. The facts prove otherwise.

This gold and dollar disconnect, or divorce, is why economies around the world are under great economic duress. This is why folks in Europe have taken to the streets under protest, this is why currencies are fighting to devalue themselves, and this is why gold and silver will rise beyond the realm of what most view as possible.

Something detrimental happened before gold and dollars divorced in the year of 1971. Most major currencies connected (pegged) to the US dollar in hopes of stabilizing the world’s economy (Bretton Woods System). The dollar made for a perfect choice since it and gold were one and the same. This is why you commonly hear the dollar referenced as the world’s reserve currency, simple enough.

Now, here is the problem. The Gold vs. Dollar divorce set the dollar adrift no longer hinged to anything of real value. This is why the dollar went from an equal value of $35 per gold ounce to now just under $1600 per gold ounce. Most individuals out earning a living today fail to see the correlation of rising gold and decline dollars. They don’t think much of it.

This misunderstanding between gold and dollars is near breaking point, not just at home but across the globe. The world’s oil trades in dollars and has since the 1970′s (petrodollars), but only one country has the power to print more dollars as they see fit, no longer limited to gold or any other monetary standard . Is it any wonder other nations without this ability to print the world’s reserve currency (dollars) are conflicted?

Our society’s ignorance, or monetary misunderstanding, hides behind a printing press and a Federal Reserve unafraid to use it.

The power of printing dollars coordinately disguises real money (gold & silver) from fake pieces of paper. Education will eventually expose such monetary trickery. Today’s gold fluctuations mean absolutely nothing in the overall picture; this is why I pay no attention to short-term PM rises or declines.

The rising costs of food and fuel will be the breaking point here in the United States. The debasement of the dollar will be the breaking point for the rest of the world. At such time, silver & gold will go higher.

QUESTION:  Thanks DC for The Prospector Site. What is my first step?

TPS Reply:  Congrats, you’ve taken your first step. Education is the key to understanding PM’s relevance in today’s monetary age. Without education silver and gold are just another one of thousands of investment options. I don’t view silver and gold as investments. I view them as a store of wealth in a worldwide currency soon to experience a demand far exceeding potential output.

Your second step is actually the question….. so let’s start there. Your local bank doesn’t sell gold or silver (not the metal I recommend), this means you will have to do a little digging to find someone trustworthy AND willing to sell physical silver or gold. As of the last 9 -12 months this is the most common question I receive here at TPS.

The art to buying physical metal should be shrouded in discretion. The less who know you own PMs the easier it is to safely store. My advice is to make a trip to your local coin shop and ask to hold an American Eagle or Canadian Maple ounce of silver. Notice how it’s heavy, tangible, and expensive compared to the dollar number written on it. This is what real wealth feels like. It may feel odd in a day of fiat paper currency but trust me, this is real wealth.

Ask your local coin shop representative the spot silver price. Then ask how much more the price for real silver… like the one in your hand. The difference is the price between paper silver and physical silver AT A MOMENT IN TIME. This price could decline before driving away, or it could appreciate too. Neither scenario has anything to do with silver’s long-term justification. Now, the next steps I recommend is to find someplace safe to store and then continue this buying pattern each month, regardless the price.

Thanks for the great question.

 

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: , , , , , , , , , , , , , ,


FIGHTING OVER DIRTY DOLLARS

GOLD & SILVER, GOLD AND MONEY   No comments yet

Everywhere I turn folks are fighting for more dollars. Chicago teachers, Oakland police, city workers, retired workers, world leaders, even the private work force continues to believe a money misconception.  Never in our lifetime have we witnessed such local or global conflict over cash when the ironic part is more cash floats in circulation than ever before. Most of us truly believe the answer to our financial problems is to earn more money (currency), not true.

You and I cannot “out earn” what central bankers around the world can create in a monetary blink.

I hope you, too, believe PMs will rise over this decade and have made a commitment to own silver & gold. The reasons both metals will rise are numerous but the situation I write about today must be added to the growing list. I described many reasons why PMs will rise in my book Why Silver & Gold Will Go Higher and I appreciate those of you who made this September our best sales month yet, thank you.

The battle to earn more money is one most participants will lose. The fact is even the winners lose too. The average person doesn’t understand “making” more cash will not solve the financial hardships that now fall upon the world’s middle class. Today’s victims fail to understand too much cash creation only provides temporary help but long term pain. This realization will someday arrive and when it does folks worldwide will realize anger first, then a panicked search for wealth preservation.

Sooner or later we must ask why the need exists to earn more money this year over last. Why do the things we all need for survival cost more? Why is education, health care, groceries and fuel more costly today than not so long ago? If these costs double, again, is the answer higher wages? No way, won’t work – and not one economists will disagree.

But this realization comes slow for most, and a day is soon to arrive when even those oblivious will realize printing more cash decreases the buying power of yesterday’s money. This realization will drive remaining wealth to silver and gold. Why, because silver and gold have the power of floating value?

Loyal readers already know that I like to compare wealth to a more accurate benchmark than dollars, dollars are just too unpredictable. This is why a millionaire in the 1970s was worth multiple times more than a millionaire in 2012. Nevertheless, let’s compare the average wage earner from the 1992 era, in silver, to today’s declining wage earner.

Folks this must be a real eye opener. The average American worker twenty years ago earned around $23k per year. This equaled exactly 5750 silver ounces since silver’s value in 1992 averaged around $4 per ounce. Today, in 2012, the average American worker makes much more considering a yearly average around $50k. At first, this sounds like a reasonable salary increase and more than enough to offset the inflating costs of life’s necessities, right?

Well, not so quick because the average American worker in 2012 is no longer earning 5750 silver ounces per year. Nor do they earn 4000 ounces, or 3000 ounces, or 2000 ounces. The average American worker in 2012 earns around 1470 ounces of silver. Folks, this is why the world is fighting for a pay raise.

Now, let’s say bosses around the country decide an increase in pay is justified. How much of a raise would it take for the wage earner in 2012 to keep par with wages back in 1992, at least in silver terms? Well, you might want to sit down because your new raise must equal $146,000 ADDITIONAL DOLLARS making your total annual income around $196k, not bad.

Let’s all take a deep breath and think about this rationally before you and a group of coworkers dog pile your boss. Your boss can’t increase your wages, at least not in silver terms. The reason they cannot is because the entity you work for suffers from the same currency disease which affects profits, overhead, labor and overall costs of doing business. All compliments of your friendly central banker and politician.

It is only because of a false faith in the USD that folks continue to work for less and less each year. Is this why moms across America had to enter the work force just to make ends meet? Is this why so many couples these days fight over money? My guess is yes, and yes.

I’m sure as you read this post that the masses haven’t connected why they need to earn more. Maybe you haven’t completely wrapped your mind around it either. Mr. Gresham’s law of money (currency) is all we really need to know, especially in odd economic times like today.

Gresham’s Law The tendency of the inferior of two forms of currency to circulate more freely than, or to the exclusion of, the superior, because of the hoarding of the latter. Source – Dictionary.com.

So what is Mr. Gresham trying to tell us about precious metals? His law of value means folks will save (or hoard) the currency of true value, eventually, when given the choice. This is why folks are soon to flock to silver and gold – simultaneously giving up on a pay raise – as they realize income is only beneficial if the money is real.

My fear is most will not come to such an understanding until all individual wealth is lost. Please make sure your name is not on the loser list.

 

 

 

 

Tags: , , , , , ,


INNER CITIES & STACKS OF SILVER

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

Sometimes one “REALITY” so grabs our attention it awakens us from a state of denial. My wake-up call came during the aftermath of Katrina while watching desperate citizens of New Orleans cope with the unthinkable. Katrina exposed two things I want to share with you today and both should keep everyone dependent on entitlement up at night (yes it has everything to do with owning silver & gold). I’m not sure what surprised me most, watching helpless folks stranded on rooftops plea for help while streets turned into rivers or multiple layers of bureaucracy so large, so inept it couldn’t simply react to an emergency without first establishing blame and protocol.

The incident I’m discussing today is a prime example of what happens when an ideology transforms a society to a point of inability.

The fact is our overall economic condition is much worse than perceived; this is why food stamp participation has doubled over the last three years. This means many once in the middle class are now part of the dependent poor. They are, if you will, future roof top dwellers holding signs for help.

Katrina was my wake up call because it proved to me we really have few safety nets in life. We can expand social programs but in the end they only create a lethargic economy, new taxation, and unsustainable deficits. What happens when a tax base can no longer support under funded food centers, housing subsidies, school lunch programs, farm subsidies, and the million other programs that can no longer fill the gap of a real economy?

I have great concerns for inner city America. I see plenty of anger and blame when someday soon entitlement programs admit they can no longer fulfill obligations. This massive and publicized outcry will not go unnoticed and this will lead to more money (currency) printing as governments desperately try to literally feed the giant they created. The alternative is to watch cities burn.

Most folks receiving government aid don’t consider themselves among the poor. They fail to recognize a lifestyle or condition without the help of programs.

I doubt most gold/silver holders truly recognize the layer of protection they’ve provided for their families. The benefits of owning PM continue to grow each time we allow central bankers and governments to print currency in order to fill budget shortfalls. It is very important you recognize the two primary benefits of physical silver and gold well before buying it. The first benefit, real money provides sustainability and keeps its participants from sliding from middle class to dependent poor.

The second benefit is both protective and highly profitable for the few willing to trust silver and gold.  This benefit allows those holding physical PM to expand wealth while the rest of the world realizes fiat currencies can no longer print themselves out of fiscal mistakes or promises. This is why an ounce of silver or gold will soon be worth ten times its value today.

Right now each of us has choices. We can accept dependency – like most of us eventually will – or we can begin to provide for our families a layer of INDEPENDENCE one ounce at a time. Yes, it really is this simple.

QUESTIONS & COMMENTS:

COMMENT: Here is how I see it so please tell me if you disagree. I too believe ones who still hold wealth will frustratingly turn to physical PM when the “realization” you often discuss becomes reality. But who’s to say the same folks buying silver at say $100 an ounce, or gold at $3500 an ounce, won’t eventually have to sell the one wealth-holding investment just to feed a family or put a roof over their heads.  To me, it seems most who buy silver or gold now will end up having to resell when things get tight.

TPS Reply: Great comment and thanks for sharing it with us today. Yes, you’re probably correct, many who buy silver and gold today will have to sell, barter or trade it down the road as our economy continues to correct, I won’t argue this probability. Precious metals are the ultimate savings account – the reason we save is so we have options when the unexpected enters our lives. To not save is to rely on a failing ideology, the same ideology that left Katrina folks on roof tops, for our family’s well being.

You make valid points but miss the true benefits of owning physical PM. I have great concerns over the short term and bigger concerns over the longer term. I feel budget strapped cities and states will reduce the same social programs many now depend on to survive. This will cause a backlash so disturbing – burning cars and looted buildings – eventually leading to more entitlement only supported by digital currency creation and taxation (remember, our country is broke – just like many other countries around the world).

Okay, stay with me here. When we print too much money the buying power of our currency declines, this is why a box of cereal is twice the price it was not so long ago. This is why a box of cereal and other necessaries someday soon will cost far too much for the average family budget to afford. At such a point, the only option is to forgo a healthy diet or rely on government assistance that is only available by borrowing (printing) more currency.

Now let’s tie this all together. Let’s say a family sells the camper trailer today and then buys physical silver at $30 an ounce (300 ounces of physical silver). You mention $100 silver in your comment above so let’s use this number since I feel $100 silver is not only possible but a fraction of tomorrow’s offerings.

By trading a declining asset (camper trailer) for a growing asset we leveraged the power of wealth relocation. Wealth relocation is something I wrote about extensively in Why Silver & Gold Will Go Higher, probably the most powerful weapon for wealth expansion and independence. Now that we own physical silver, or gold, we have the luxury of watching all things priced in dollars rise but stay relative in terms of PM. By example, an ounce of silver buys around 8 boxes of my favorite cereal today. When cereal prices rise so will silver making it possible to buy the same number of boxes regardless of price.

The power of PM is beyond questioning since history shows all fiat currencies eventually print themselves worthless (we are witnessing this right now) proving only one true source of money – gold & silver.

 

 

Tags: , , , , , , ,


GOLD, SILVER & Facebook

GOLD & REAL ESTATE, GOLD & SILVER, GOLD AND MONEY, GOLD OR SILVER BUBBLE, GOLD/SILVER COINS, STOCKS AND GOLD/SILVER   No comments yet

Two weeks ago the buzz on Wall Street was Facebook’s IPO (initial public offering). As I write, Facebook stock is down nearly 23% from the original offering leaving many investors questioning such a sure thing. This leads me to ask how comfortable you are with your investment portfolio? From your emails, most are still on board with silver, gold too, but will we feel the same if gold drops below $1400? My bet is $1400 gold would make for nervous investors even though true metal owners know the best days for PM (precious metals) are still to come.


It is easy for me say the recent drop in gold is nothing to worry over since I bought most of my physical gold years ago, some of you cannot say the same. I won’t attempt to justify why gold is down lately since the answer is trivial compared to what motivates gold over long term.

Some of you are thinking of jumping from gold all while I’m timing when to add more. The only difference between “us” is perspective. You perceive gold as risky and I perceive gold as the only protection against fiat supported governments unwilling to go down without a fight. I perceive the crises of 2008 as a monetary siren and you perceive the economy as in recovery.

The type of investor willing to buy Facebook stock is the same one willing to accept forty years of a fiat based economy as sustainable, it is not. Facebook stock is declining because more folks around the world are beginning to dispute today’s fiat Ponzi scheme.

A few weeks ago, most investors perceived Facebook a wiser investment than physical gold/silver? We must realize the one thing Facebook and today’s gold/silver prices have in common is volatility. Putting a value on Facebook is nearly impossible just like putting a value on silver and gold is too (for two completely opposite reasons). With that said, here are the differences between PM and Facebook.

  • Facebook is socially popular, gold is not.
  • Facebook is a very young company, gold is the oldest form of money.
  • Facebook is moving toward global status, gold is a global currency.
  • Facebook’s future value is in question, gold’s future value is in demand.
  • Facebook unites the internet world, gold unites the wealth of the world.

It is no secret that I feel social sites, like Facebook & Twitter, will play a major role in PM prices extending beyond what most view as expectant or realistic. Nothing will transport the news of another bank holiday, Lehman collapse, or government bankruptcy like social networks can.

To be fair let’s talk about the long-term projections of a giant like Facebook. After all, Facebook stock should offer promise since this is a young company founded by some of the sharpest minds in our tech world, right? Maybe not. Will economic instability help influence Facebook stock upward? Will social unrest, the S & P in retreat, worldwide housing declines, or market volatility in general help elevate Facebook stock over long term?

No, aforementioned forces will not help Facebook’s stock value. Just because Facebook itself will find popularity around the world doesn’t necessarily justify it as a worthy investment, at least not as priced.

To find comfort in silver and gold requires a realization more than anything else. This realization must include the need for nontraditional monetary decisions during nontraditional times.

This “realization” must include a basic understanding how not one fiat currency has experienced long-term success, not one! On the other hand, gold has never experienced monetary failure. Now, with that said, who wants to buy some Facebook?

News Worthy:

REUTERS:  Biggest Greek Bank Warns of Dire Euro Exit Fallout

If Greece left the euro, living standards would plummet, incomes would be slashed by more than half, and inflation and unemployment would skyrocket, the National Bank of Greece warned on Tuesday.

The bank said per capita income would collapse by at least 55 percent, the new national currency would depreciate by 65 percent against the euro and a recession, now in its fifth year, would deepen by 22 percent. Read more here. TPS (The Prospector Site) adds, what is not reported is how US political forces are now pressuring European countries to PRINT stability into Europe’s economy.  This should be painfully obvious that those elected are willing to destroy currencies before facing political defeat.

News Worthy:

Congressman Ron Paul: Capital Controls Have No Place in a Free Society

The characteristic mark of a tyrannical regime is that it eventually finds it necessary to erect walls to keep people from leaving.  This is why we should be troubled by the “Ex-PATRIOT Act,” an egregiously offensive bill recently introduced in the Senate.  Following a long line of recent legislation and regulations attempting to expropriate more and more wealth from hard-working Americans, this new bill spits in the face of overburdened taxpayers and tramples on the Constitution.

If they wish to escape the Federal Reserve’s inflation by emigrating to lower-cost countries so their dollars will go farther, as many Baby Boomers are starting to do, the federal government will penalize them, and continue to penalize them for the rest of their lives as long as they hold any money in the United States.

No wonder increasing numbers of Americans feel this government is engaged in outright warfare against its own citizens. Every day the noose grows tighter, yet anyone who sees the writing on the wall and seeks to leave must pay exorbitant taxes just for the privilege of leaving, and increasingly the possibility looms of never fully breaking away from the government’s tentacles no matter where they go. Read more here. TPS adds, several international sites are now committed to provide accurate information to those interested in international dual citizenship or relocation. I’ll be the first to admit that this is not for everyone, but. Remember, life can change on a dime so don’t rule anything completely out. Check out International Man for more information.

News Worthy:

Financial Sense:  So You Think You Own Gold?

One of the most common reasons investors cite for buying gold or silver bullion is that they are losing confidence in fiat (paper) money systems and the over-indebted governments behind them. Many investors prefer to own “physical” gold rather than “paper gold”, meaning they want to own the real thing as opposed to a paper promise – a contractual commitment to deliver gold at a later date, or in other cases a contractual commitment to pay the equivalent of a future gold price to the investor.

But there is an alarming deficit of understanding among investors relative to how the precious metals markets actually function. In fact, I would go so far as to opine that most investors who believe they own gold really don’t! Read more here. TPS adds, Mike Maloney says it best, “If you can’t hold it then you don’t own it!!”

QUESTIONS & COMMENTS:

Question: This whole precious metal thing is confusing considering each so-called expert has a different opinion than the last. How do I know what is safe haven silver or gold? Two, who is trustworthy within the PM community? I don’t want to buy only to lose money like many others have over the last few months.  Please help since I’m not having much luck !

TPS Reply: Wow, you are loaded for bear but thanks for the questions. Let me start by taking some pressure off, ready? Don’t buy silver or gold, at least not yet, since first comes education (PM understanding) long before the steps in question.Don’t worry about prices going up since the risk of buying “wrong metal” far outweighs the risk of prices zooming.

Part of becoming comfortable with gold involves a basic knowledge of a fiat based economy now driven from consumerism. This understanding provides a solid foundation built from confidence that sustains a physical metal holder during times like today (this is why I pay no attention to media misinformation, dips or bubble talk).

Next, realize you’re not a coin collector and have no interest in rare coins. The goal is to trade currency for real money AS CHEAPLY AS POSSIBLE!! This is why we encourage readers to buy bullion coins, rounds, bars, or junk.

Now, as far as the who to trust question. TPS often interviews small family operated bullion dealers who have strong long-lasting reputations. Dig into our achieves to find one you are most comfortable with or visit a local coin shop asking to see their lowest premium silver or gold. Leave if they attempt to redirect you toward rare metal.

You mentioned a fear of losing money but this is far from the case. We can’t compare PM with typical investments of the past, i.e., real estate, stocks, etc. Precious metals are money. A wealth transport of sorts happens the minute you convert currency (what you called money is actually a currency) into PM.

Like all transportation the path to protection and prosperity is not a straight-line destination. Hills, valleys, dips, rises, are all part of this journey. No educated PM owner will sell physical silver or gold during a paper dip like the one we see today.  Thanks for reading The Prospector Site.

SEND OVER YOUR COMMENTS OR QUESTIONS SO WE CAN SHARE THEM WITH OTHER  READERS. FEEL FREE TO SIGN UP FOR OUR ONLINE NEWSLETTER TOO.

Tags: , , , , , , , , , , , , , ,


WHEN YOUR $ DISAPPEARS

BUYING GOLD/SILVER, GOLD & SILVER   No comments yet

Several years ago my 8-year-old son misplaced his wallet and was visibly upset. We went through the gamut of where did you leave it, when is the last time you saw it, you know. Days turned into weeks until one day he came into my home office to explain his lost wallet held all the money he owned, $27.50.  I felt the little guy’s pain and was thankful one day when he found it in the mess resting under his bed.  Unfortunately, the wealth disappearing today is not “findable” like my son’s small fortune.


I hold not one penny in Wall Street investments. The story featured today will explain why I own physical silver and gold no longer willing to trust “traditional” sources of investing. It makes me sick to see so many still entrusting what history will soon describe as “crooks” but, unknowingly, trusting types will have to learn by example.

The Wall Street Journal recently ran an article describing how J.P.Morgan lost a few investor dollars, actually the number is around $2.3 billion but no need to split hairs.  J.P.Morgan’s mouthpiece describes the incident as controlled or calculated but I see it entirely differently. Let’s skim the highlights of the article for when you find yourself doubting physical silver or gold.

THE WALL STREET JOURNAL: A massive trading bet boomeranged on J.P. Morgan Chase JPM -9.54% & Co., leaving the bank with at least $2 billion in trading losses and its chief executive, James Dimon, with a rare black eye following a long run as what some called the “King of Wall Street.”

Jamie Dimon has been one of the U.S.’s most successful and outspoken bank executives since the financial crisis. On Thursday, he took the blame for a $2 billion trading blunder. David Reilly has details on The News Hub. Photo: Getty Images.

The losses stemmed from wagers gone wrong in the bank’s Chief Investment Office, which manages risk for the New York company. The Wall Street Journal reported early last month that large positions taken in that office by a trader nicknamed “the London whale” had roiled a sector of the debt markets.

The trading loss “plays right into the hands of a whole bunch of pundits out there,” Mr. Dimon said. “We will have to deal with that—that’s life.”

Asked about the Volcker rule, he said, “This doesn’t violate the Volcker rule, but it violates the Dimon principle.”

On Thursday he admitted the bank acted “defensively” when news reports surfaced. “With hindsight we should have been paying more attention to it,” he said. “This not how we want to run a business.”

“This is yet another example of the need for the more than $700 trillion derivatives market to be brought into the light of financial regulation,” said Dennis Kelleher, president of Better Markets, a liberal nonprofit focused on financial reform. More here.

PROSPECTOR: Some of you doubt silver, maybe doubting gold too. I want to be perfectly clear today when I describe one of the many major factors soon to push PM (precious metal) prices forward. Wall Street is no longer trust worthy. Articles like the one above prove either incompetence or as untrustworthy, you can decide which one.

Is it possible one of the world’s largest banks took such risk because they know a bailout awaits if their Vegas like actions backfire?  Of course, and the sad part is debt derived derivatives will implode and not one rationally minded individual can argue counter.

But today’s post is not to argue if $700 trillion in derivatives is sustainable. Today’s post is to ask what will happen to real assets like silver and gold after $700 trillion of your wealth disappears?

Wall Street banks may be suspect but they aren’t stupid by any means. My prediction is Wall Street will soon recognize the house of derivative cards for what it is and this will eventually leave wealth looking for a safer landing. Who could possibly doubt a large percentage of this wealth will land on silver and gold (this includes both paper and physical metal)?

Andy Hoffman was correct last Friday when he mentioned 99% of all Americans don’t have precious metals on the radar. If true, this means they still believe in banks that lose $2.3 billion dollars by betting on risk and debt. This story is eerily similar to MF Global’s multibillion dollar disappearance which leaves me to ask how much longer will the pack accept excuses from guys still receiving multimillion dollar bonuses, win or lose?

So many of us are quick to judge silver or gold right now. We all know both metals have done well over the last decade but we aren’t sure how they will fair in the future. I understand this and personally feel it is wise to question what is real from not.

We are soon to enter a period when all assets are suspect, especially ones who lose billions overnight. I have little doubt stories like the one today will eventually drive remaining wealth into history’s safest long-term asset, gold.

IF YOU HAVE SOMETHING TO SHARE PLEASE SEND OVER COMMENTS AND QUESTIONS HERE.

Comments & Questions:

Question: I still don’t understand how gold will keep up with inflation? Even if it does (keep up with inflation) how will this benefit those holding gold, will they trade it back into currency vulnerable to inflation? Just confusing to me!

Prospector Reply: Thanks for the questions. Maybe a simple explanation will help since I admit things like inflation and debasement can be confusing. Let’s start with the facts. Fact one, inflation is a hidden loss of buying power and wealth. I said hidden because the numbers printed on our currency stay the same even though they buy less. Fact two, inflation is now to the point of being perpetual since currencies worldwide are printed then injected into economies replacing $ you no longer have to spend.

Okay, let’s recap this. Inflation is a hidden loss of buying power. Two, baseless currencies are now flooding markets worldwide trying to prop up economies.

Now, here is the kicker. If you save, or store, your wealth in currency (dollars, euros, yuan, yen, etc) then you are vulnerable to ride the inflation train to wherever those printing the currency decide to take you. The only way to depart from this inflation is to trade from currency and into something that benefit from inflation, like silver and gold.

So how does this help you ask? Because the same amount of silver or gold usually buys the same amount or more of a product, service, or asset regardless of dollar cost.  By example, a few ounces of silver could fill a car’s tank two decades ago and still fills up a car today (FYI, gas was $.95 per gallon two decades ago). Precious metals seem to “go up” when they actually maintain the power to buy or trade at a constant. Can you imagine your local gas station today selling gas for $.95 per gallon?

Let’s tackle your second question since this confuses plenty. When to trade metal back to cash is always the question but this is only because we let currency (dollars) dictate what we perceive as money, cash is not money. If our current trend continues, and I certainly believe it will, less will trust cash and more will prefer real money, like silver and gold.

This is nothing new and I’ll go so far to say this is history repeating itself. The problem with what to do with future silver or gold is one that deserves little worries or concern. Silver and gold have and always are real money. At any time in the future your stash of PM is exchangeable for all currencies worldwide (if you chose to do so), or most assets. Thanks for the questions and thanks for reading TPS.

Tags: , , , , , ,


RIVERS OF SILVER

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

At first I thought the retail clerk was joking when he hesitantly accepted the $100 bill from my hand. This is when his reply validated his hesitancy, “Great, a hundred-dollar bill, second one this week.” I must have looked surprised when I asked if there was a problem with the bill. He said, “No, they ($100 bills) create a problem making change and guarding against counterfeiting, no problem sir I’ll have your change shortly”.

The world is changing quickly if you haven’t noticed. My dresser top empty change jar proves this each morning when I put my hat on. Our money went to a currency in 1970 (paper/coins) to now digital. Few of our youth carry cash these days, not in a debt card world.


One of the many benefits of founding a business like The Prospector Site is the ability to see behind the monetary curtain. This provides a peek into our future by tracking the path of silver and gold. In an odd way, one ounce silver bullion coins are soon to travel the same path as our paper dollars. Unlike paper dollars, silver won’t be replaced but unaffordable.

Someday soon traditional one ounce silver coins will be too expensive for the majority to own. This seems hard to imagine today since physical silver ounces cost less than $40.

I know this to be true because I understand silver and gold’s ability to keep par with currency values. This rise is nothing more than accumulation of currency devaluation and demand for a very limited source of real money (PM).

Each reader must at least consider importance of owning fractional silver sometime soon. By the way, fractional metal consists of coins, rounds or bars broken into denominations less than one ounce form. Fractional coins are common in today’s gold market but uncommon in our silver market. This is soon to change.

There are two good reasons why we expect to see this change in physical silver.

  1. Affordability (more can afford things when priced less).
  2. Trade value.

Think back to my $100 bill introduction. What if the store clerk couldn’t make change for me? What if I didn’t have a credit or debit card backup?  The answer, the store would’ve lost my business.

Let’s talk about fractional silver affordability first with a brief history on gold. Readers are quick to mention how today’s gold market continues to price them out. I will not argue that gold seems pricey especially when compared to prices I paid many years ago. But fractional gold still provides an option (1/10 ounce to 1/2 ounce) for buyers reluctant to pay full ounce prices.

Just because gold is available in fractional coinage doesn’t sooth the sting of expensive PM, it does provide an opportunity for those on limited budgets.

But silver’s move to fractional coinage is different. Silver (and gold) are soon to be realized not only as real money but necessary. This time, or era, will come only after illusionist winds of economic recovery subside. Such silver demand will justify the cost and trouble to mint fractional silver making 1/2 silver coins, bars, and rounds as common as one once bullion today.

Now, this brings up silver’s future trade value.  Few who follow the PM market argue the fact both silver and gold is transitioning into a currency. This is nothing new seeing both metals started out as money many centuries ago (history repeating).

But this time is different. No longer do families grow or raise things of necessity, they buy them. This means currency plays a larger part of our economy than ever before. I doubt that folks living on the 5th floor will find space to grow or raise things anytime soon, if so, this means they must buy from someone who does.

This takes money, currency, or an asset of equal value (barter).  But we already know currencies worldwide are progressing toward printing themselves more worthless each day. Again, the chart below proves this better than I can describe it.

Please notice how the chart line turns vertical as of late. This means we must earn more dollars to buy what less used to. But this is not the same for silver. The same amount (grams/ounces) buys equal or more.

Now here is the problem if you don’t own silver.  The same “weight” of silver buys equal but will cost those not owning silver much more to buy. This is why it’s very important to investigate silver ASAP.

Please stay with me here. Fractional silver will soon buy the things we all need regardless of size/weight.

Think how a fractional 1/10 ounce gold coin now buys one week worth of groceries. Look closely at the 1/10 ounce coin below noticing the $5 denomination. This means $5 used to buy a week worth of groceries but barely buys a sandwich today. Silver will follow the same fractional path if our dollars continue today’s course!

Does this mean we could someday need fractional coins of silver just to buy everyday necessities? YES, especially when we consider the possibility one ounce silver could be too valuable for most items!

COMMENTS & QUESTIONS:

QUESTION:

Good day…….how are you doing today ??
…I AM LOOKING TO BUY 100 OUNCE SILVER BAR,Like
MAPLE LEAF, 1oz Silver Eagles, Krugerrand. ANY OTHER GOLD COIN  that are Numismatic in Nature. Kindly get back to me with your availabilities and Prices. Awaits reading back from you soon.

Sincerely

PROSPECTOR REPLY: Sorry but The Prospector Site doesn’t sell silver or gold. I recommend visiting www.GoldShark.com to find competitive pricing on all your PM needs.

COMMENT:

Just wanted to drop an email letting you know how much I enjoy each article. I’m new to PM but realizing importance of silver and gold especially in today’s world. Wanted to pass this along and say “hi”.

Prospector Reply: Awesome, thanks for passing nice words along. You have no idea how nice it is to receive several emails (like yours) now and again. I urge you to continue to study PM until fully confident they are the right choice for you. You will develop a new-found confidence that will last a lifetime.

The goal is to provide unbiased PM information and then let folks like you decide if silver or gold is the right choice. Silver makes a perfect gentle entry into the PM arena so please keep this in mind. Feel free to email us and be sure to register for our free online newsletter recapping recent posts and note worthy PM news. Thanks again.

Tags: , , , , , , , , , , ,


MY ADDICTION AND YOUR GOLD

BUYING GOLD/SILVER, GOLD & SILVER   No comments yet

 

It pains me to admit this but I have a personal debt problem.  The founder of The Prospector Site is man enough to admit he has a serious spending problem and my problem affects your gold and silver value.  Since I’m confessing like a two-year old elbow deep in a cookie jar, let me also admit I have a drug problem too.  I’ve heard the first step to correcting problems like such is admit and confess a problem exists, I guess this is what I’m doing now? But as I look deeper I’m realizing the same addictive type problems I have you have too, so let me explain.


Up to this point, neither of us have done a good job controlling personal problems alluded to just a moment ago. Even though I don’t use illegal drugs my drug problem is worse now than ever before, I know this because overall drug use is as rampant as ever before.  Like my debt problem, our addictions are to a point where authorities claim it’s almost non containable.  This could be the point where you argue back, “Listen Doug, I don’t use drugs and I have little debt.  There is no way I should be included on the list of major addiction, not me.”

 

If ever there was a case of guilt by association it is now. I, like you, have a drug problem because others on my street have drug addiction.  I, like you, have a debt problem because our entire economy requires new borrowing just to continue this destructive course.  It is virtual impossible to separate ourselves from a society, no culture, as addicted as us.  To falsely believe you’re excluded will eventually play out costly even as this denial becomes the norm.  From your Main Street to the halls of DC, we can easily see the ill effects continue to erode our economy and, worse yet, our American way of life.  To our readers abroad, your way of life is as affected, and in the same way, as my drug and debt association.

 

It shocks me how few can connect dots of today with increasing prices of precious metal. We don’t “get it” because we refuse to accept problems mentioned are to a point of disruption and control.  We still hear leaders say if only a few will pay a lot more, if only some will bring jobs back, if only you and your spouse will pretend all is okay by spending more.  We are willing to lie, blame, confuse, and contradict, before admitting our path is not the road to prosperity.  The world watches and grows increasing less willing to play the game like nothing is wrong.  Why is the rest of the world concerned with our domestic addictions?  Because the world trades in US Dollars and we are the only one who can legally print them.

My point is this and I want all readers to fully understand. You can do everything as you perceive right and still drug down by societal ills.  I often hear readers say they are debt free or own their home outright but this isn’t true on either account.  Each of us must understand debt dependency now controls all economic aspects regardless of your personal financial position.  The rising tide of inflation water will not bypass your home, job, or lifestyle.  Of course protecting with gold and silver will help but it will not change our overall economic climate.  Eventually this economy must grow, must profit, to improve decades of fiscal insanity.

 

A crushing rumor circulated earlier this week (1-24-2012) how India and Iran negotiated oil trade not in Petrodollars but GOLD. This isn’t the first time rumor like this has surfaced and expert economists agree it won’t be the last.  Adversities stemming from debasement, never-ending debt, and a failure to correct both will have worldwide complications.   All while gold turns from a tool to a weapon.

So what is your take on this?  Have we reached a point of no return as it relates to debt and gold?  Tell us your thoughts right here.

Feel free to sign up for our online newsletter sent straight to your email.


COMMENTS & QUESTIONS:

COMMENT (REGARDING “ARE WE LOSING “IT”)  I have owned both silver and gold for several years and still can’t believe how many people refuse to admit things are not getting better.  My family fails to see the signs of despair even while they struggle to pay credit card and house payments.  I don’t know one person still making the same money as a few years ago but it amazes me others don’t realize our past is finally catching up with all of us.  I think more should be “losing it”!!  Great article and keep them coming.

Prospector Reply: Thanks for commenting and thanks for the encouragement.  Being honest, I thought we would hear from more readers about this post, but we haven’t.  You said it best with your point how our past is finally catching up with all of us because never before has this been as true.  I still believe PM remains a mystery to most even though more search for something real and protective like gold or silver.  Who knows what it will take for Americans to snap from a state of denial?  Glad to hear you have a realistic understanding and congrats to you for making the effort to do so, good job.


 

Tags: , , , , ,













Home | The Prospector Blog | The Prospector Site & You | Registration | Contact


Copyright 2011 The Prospector Site | All Rights Reserved | Terms of Use | Privacy Policy


Design & Development by Vantage Technology Development

Powered by WordPress Entries RSS Comments RSS