Posts Tagged ‘owning gold’



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.



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.

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Who is to blame for your gold or silver (hopefully both) going up to a point that most will soon find incomprehensible?  We often mention that the same forces sending PM (precious metal) skyward are the same forces wrecking our economy.  As things continue to tighten worldwide a movement to cast blame on the guilty grows.  After all, someone has to be causing this worldwide decline only kept afloat by borrowing more money, right?  Let’s take a look at who is to blame and why this blame only increases your gold’s worth.

An interesting article circulated around California last weekend. I only use California as example because this state is the closest to default of any I know.  If being honest, California is a snapshot of what most states; most countries in fact, have to look forward to over the next decade or so.  Nonetheless, the article describes a conflict between Tulare County (California) and California’s State Controller.  The state is trying to cut funding for a probation program that may cost the county 16 parole officer jobs.  In return, Tulare County is suing the state for nearly $700k to keep the program funded another year (trying to save the 16 jobs).

Let me take a second to explain to our new readers what a conflict in California has to do with owning gold. This site doesn’t sell gold or silver.  Our goal is to expose how current events confirm necessity of self-preservation by way of owning real money like gold/silver.  We also provide simple unbiased advice on when to buy, what to buy, where to store, and when to sell.  Most of this information is no cost to you but we do offer one on one consulting services for those committed to buying the safest PM possible (for the best price possible).  Now let’s move forward with today’s post.

This conflict in California is leading to an expensive blame fest. Tulare County will lawyer up and the state will do the same.  In the end, both sides will spend hundreds of thousands of dollars fighting over money that does not exist.  What we are now seeing, and will see much more of, is an assessment of blame that will eventually, regardless, lead to loss of jobs and programs.  No one can do anything about this.  Determination of blame is too far overdue to benefit anyone or any program.  We expect the same blaming process will lead to litigation across all government agencies both state and federal, all fighting over non-existent money.

The blame is not limited to government. Open any paper, turn on any news channel and watch the finger pointing continue. Main Street blames banks (Federal Reserve).  Politicians blame Wall Street.  Wall Street blames the Federal Government.  US Government blames China. All across the board someone blames the other but our question for you is who or what is really to blame?  Maybe we should look at who’s behind the wheel driving the most powerful force in human history.  All fighting over something that doesn’t exist.

The drivers we refer to today are economists and economic experts. You know them; they are the same who didn’t see the crash coming who now tell us recovery is at hand.  Put thirty in a room and the only thing agreed on is their own necessity.  But why do we continue to rely on “experts” who only continue to compound our economic problems?  Could it be to cast illusion of control?  You bet it is. Think about this for a second.  If you are dependent on others all you can do, right now at least, is cast blame hoping someone will divert the little money left your way!  This isn’t a life for me folks.

Here at the Prospector Site we have another idea. We choose to save blame casting for those pointing fingers all while their own net worth burns down.  We also believe, regardless of course, the end game is the same and much wealth will be lost or transferred to those willing to control their own financial destiny.  Yes gold & silver will play a significant role in this process. The blaming process is distraction from real issues at hand; we choose to not take part.  While the blaming process grows so will prices of real money like gold & silver.

Now this is our take on the blame game but we want to hear yours.  Should we sift through the blame like a referee after a fumble?  Tell us your thoughts right here.  Thanks for spending a few minutes with us today.


COMMENT:  I do agree that gold is the best investment considering today’s crazy world we live.  My husband and I have bought both metals for over a year but still have concerns.  Our primary concern is how will gold protect us if the economy worsens and we lose our jobs?  Even you have mentioned gold doesn’t provide income without selling it (this seems to defeat the purpose to me).  I guess nothing is certain in today’s world?

ANSWER: Thanks for the comment and question.  Almost everyone is asking this question even if they are not asking this question (hope that makes sense).  You are correct in believing gold does not provide passive income like a job or dividend.  Gold will not protect a person from losing a job either, you’re correct on this point as well.  Yes it is counter productive to sell gold to provide income if our focus is long term (once metal sells, you are now back in the inflation arena along with all other soft money owners).

Let me see if we can cast some light here because this is a heavy question and comment.  We hear from all kinds of readers and all are at different points in their lives.  Some are preparing to retire and want to work gold into their plan.  Some our struggling with debt and income loss and looking to gold to help anyway it can.  One fellow said he lived in a cave like structure sounding like he is waiting for a complete societal break down (not sure what his plans are for gold).  As you can see the motivations vary from one end to the other.

Maybe I can explain it this way.  I found interest in gold & silver over ten years ago while looking to diversify a few bucks.  As I dug into importance of gold/silver I discovered other things along the way.  I discovered how one aspect of our economy affects another.  How some debt works in my favor and other debt robs my future.  I listened to what experts and economist voice as certainty only to see it not pass the test of time.  You are where I was not long ago.  You mentioned an interest to a point of buying metal a year ago but obviously you didn’t stop there because you still read this site.  You are searching for more ingredients in the recipe of overall protection; you are wise to do so.

What we are talking about here is positioning.  Our hopes are that readers like you will find the same forces leading us to gold/silver will trigger an urgency to make other changes as well.  For example, one change I made several years ago was to downsize big.  I felt the need to pick between what I wanted and what my family needed.  Did I take some heat?  YES, but decision makers always take heat.  Did I want to stay comfortable and not make career, relocation, and everything in between type changes?  YES, of course.  But I also didn’t want to rely on others for my future, independence, freedom, self-reliance, etc, either.  Precious metal is the foundation for a new infrastructure you may need to rebuild.

The next couple of years are critical for those feeling the same.  Many jobs and businesses will continue to go away.  Necessity industries will continue to fare better than other jobs sectors.  I’m not going to sugarcoat this next statement.  Jobs and businesses will evaporate if the current trend continues, millions of them. If job loss is a great concern take the next few months to research what sector (according to where you live) will hold up best.  If you believe home’s equity will continue to diminish then give serious thought to how you can trap it and roll proceeds into something powerful like gold or silver.  Critical times require critical choices; nothing will change this anytime soon.  Your last question is the most important of all.  Yes, you’re correct by saying nothing is certain in today’s world. Uncertainty is the lifeblood of both gold & silver.  This uncertainty will only drive precious metal prices higher over long term.

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There is a professor who begins each new class by asking students to take ten minutes and write down their three major weaknesses.  Most answers are typical college age weaknesses like staying out too late, unorganized, not calling home enough, and not taking school serious enough.  Only after each student verbally confesses one weakness does the professor explain the assignment.  The professor explains most weakness are actually misuses.  He gives examples of what some perceive as unorganized as simply a misuse of time.  When some neglect to take eduction seriously it’s really a misuse of opportunity. The professor takes the entire first class to explain the value of misuse, from marriage, faith, to volunteering, using the lesson to challenge his class.  Today we look at the misuses of gold & silver.

I see gold related misuses daily. Some confuse misuses for mistakes but the majority I see misuse by calculation more than mishap.  One common example I see is a confusion (misuse) between opportunity and greed.  Greed and gold usually end with a catastrophic collision.  Have we entered a time when do-overs are soon to be extinct and misuse will be very costly?  I certainly believe this time is close at hand.  Maybe before we look at common gold related misuses we should ask you a question.  Are you misusing an opportunity to protect your family’s future?

I remember the conversation like it was yesterday when actually it was years ago. Over coffee, a gentleman explained his position to capitalize (by way of borrowing on his personal residence) a sure investment in tech stocks.  His plan was to make a fortune, by way of leverage, but unfortunately his greed outpaced commonsense.  The great bubble burst of the Dot-com industry wiped out his plans, dreams, and home.  If you have quick plans for gold or silver I want you to read this next sentence closely.  Owning gold & silver for short-term opportunities is more risky than not owning at all.

The bubble generation, us, were mislead by non-sustainable earnings all derived from asset bubbles. Do you recall the run to real estate just before the crash of 2006? Millions used leverage to the point of nearly collapsing the banking system.  The true victims of the housing crisis rarely are identified.  They’re our elderly, our savers, and our frugal. The principals that built our economy, heck our country, now penalized for being responsible.  They are now asked to not whine and pay their fare share.

The run to precious metals is no where close to full speed. I caution buyers to not get caught up in the frenzy and confusion soon to hit both gold & silver.  The first step to owning gold/silver is to first educate yourself on what to buy, how much to pay, and where to store it.  The second step is realizing this is a long-term plan that needs very little attention.  The next step is developing an exit strategy.   Yes demand will push gold well beyond its true worth requiring owners to sell before the metal bubble bursts. Until then enjoy the ride, and profit.

Our primary fear here at The Prospector Site might surprise you. We are not afraid of being discredited or afraid of advising folks to buy only to watch metal drop like a rock.  Our primary fear is folks will become so attached to gold’s wealth preservation and profit they’ll refuse to turn loose down the road (years down the road).  There will be a time to release interest in PM and begin buying other severely discounted assets.  Failure to recognize this as fact will be a misuse of gold.

This is our take so tell us yours.  Send questions or comments here.


QUESTION:  Enjoy reading this site very much but something makes little sense to me.  Why spend so much time encouraging readers like me to own gold only to preach selling it soon after?  Maybe I’m missing something but this seems more like a card game than investing?  Do enjoy and agree with most of what you say, thx.

ANSWER: Thanks for the reading our site and thanks for the great question.  This question falls lock step with today’s post (hopefully today’s post answers part of your question).  We must view the economic world around us differently if we want to preserve and prosper.  We have little control of the rules but, unfortunately, the rules are changing.  Think of owning gold like a storm shelter in turbulent times.  A shelter’s purpose is to provide protection until life-threatening weather passes by.  Without this shelter we are vulnerable and unprotected against unknown forces.  But once we enter a shelter we don’t make plans to spend the rest of our lives there, do we?

Gold and silver’s run is no different than a shelter during  vulnerable times.  Substitute inflation and fear for rain and wind.  Like everything else, this too will pass leaving gold/silver overbought and other assets (stocks, real estate, etc) undervalued.  Hope this helps and thanks for asking.

Worth Repeating:

Many of our readers ask how will 2012 affect gold & silver prices. Predictions are difficult to time and our opinion is long-term gold opportunities are all around us.  We ran across an interesting article this morning and it’s a must read for those interested in PM prices for the near future.  Please take a few minutes to read it here (JIM RICKARDS- War with Iran has begun, Gold to break $2000).

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Is the USA slipping toward third world status?  It almost sounds too far-fetched to even ask.  This very question came up over the holiday season and, to be honest, I hardly gave it a thought, at first.  But something I read recently brought me to question direction of this great country.  It was a poll asking voters their biggest fear with several options provided.  The results are nothing short of remarkable, no concerning, and I want to share the number one fear of folks living in the USA today.  According to EcoHealth Alliance (Oct/2011), your number one fear, at least 63% of us, is the fear of economic collapse.

You owning gold today is all about calculated risk as much as anything. Ask yourself if possibility of severe destabilization is probable enough to implement something as drastic as buying gold & silver.  I wish I could say we are overreacting and the need to protect is overblown.  I wish I could recommend all metal holders to sell their stash of security and use the proceeds to knock an item or two off their own bucket list.  But as hard as I wish, as hard it is to imagine, the facts clearly show a downshift of economic status even for a superpower like the USA.

Day after day, week after week, I find myself wanting to write about what, when, and how much metal to buy, but I can’t. For some reason I find myself spending more time justifying gold ownership than anything else.  I argue for gold because I understand the protective powers of something as simple as physical gold & silver; real money.  Today is no different as we look at examples of countrywide decline then ask ourselves the question few want to, “Is the USA turning “Third-World”?  Please don’t mistake today’s post as a dig against the American spirit.  We believe in America as much or more than the next guy but realize all things have limitations.

Every person in charge will agree the first step to solving a problem is to agree on facts. The fact is inflation and entitlements, funded by growing deficits, are collapsing the support legs of this country, most countries in fact.  The results are simulation of a third-world existence.  But most folks don’t realize this as a problem.  They must not or they certainly would hold physical gold or silver as a form of self-protection.  Let’s take a look at an example of how this is happening even today.

We can use health care or education as prime examples. Since a college education is most inflated let’s use education this time.  The cost of a college education is as expensive as ever in history.  College education costs have outpaced gold’s growth, health care, oil, and everything else.  Now one would think, in a free market society, that colleges would compete with each other therefore driving prices in line with income, right.  Nope, the rise in costs to attend college is a direct result of government grants and loans over anything else.  Disagree?  Well check this out; the total of all college debt now surpasses all credit card debt (USAToday.com), all because taxpayer money supports a collegiate bubble.

If college talk doesn’t excite you then let’s substitute something that does. You can easily switch the word college for housing, college for health-care, college for food, college for unemployment, college for retirement, etc.  The fact is prices of things we all use and need are supported by debt (deficits) and the cost of each grows not by free market forces but intervention (government inspired inflation).  This intervention appears to have our best interest in mind but actually only drives up costs of what you and I consider necessary.  This intervention, inflation, chips away at our middle class like nothing else can.

If dealing in facts, let’s take a look at one more. The fact is you cannot change government intervention, inflation, anytime soon.  You and I have one vote but we do have multiple choices.  We can pack up our sh…  sorry, stuff and move to a state less government dependent.  We can take control of inflation by rinsing dollars into precious metals.  We can take control of what we can control and then work on the other stuff each November.  Until then, we must pray our country’s name doesn’t make it to a growing list of Third World countries.

Sometime between unwrapping gifts and popping Champagne something monumental occurred we all should be aware of. U.S. debt now equals our countries GDP for the first time.  What does this mean for the guy on the street?  We now work to pay debts of our past as much as goals of our future.  Like real estate, our country is underwater, debt speaking. We have accepted the only option is to increase debt to support a diminishing way of life.  Sound ridiculous?  Look at cities like Detroit, San José, and hundreds of others.  The best these cities can hope for is federal bailout, via more national debt, to patrol streets, fix roads, and keep up simple law and order.  The only thing standing between our definition of USA and “Third World” is growing debt.

This is how I see it so tell us your take.  Have we exaggerated the problem, is your city faring better than most?  Does gold/silver fit into your plan for protection and prosperity?  Let us know your thoughts here. As always, thanks for spending part of your day with The Prospector Site.


Comment relating to “Something Strange is Happening with Gold”

A few coins/bars are nice to have ‘just in case’ but, for me it’s a better idea to have beans, bullets and bandages to add to the coins. Look for March to come roaring in like a lion; the can was only kicked down the road for a couple of months…

THE PROSPECTOR SITE REPLY:  Thanks for the comment, and your opinion.  We do agree that preparation mixed with self reliance is best.  Not sure about March’s prediction to  be truthful.  We see a tipping point not so much related to one event or a debt dollar amount.  We see a tipping point more based on emotion than anything else.  Emotions are hard to predict but when enough have had enough then, and only then, will we see a change. We recommend owning gold/silver prior to the awakening of the masses. Thanks for your comment.

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We can tell by the flow of questions many seem confused about where and how to own physical gold/silver.  Our hope is to make the buying process as simple yet profitable as possible.  If you’re one of the many still trying to answer questions like what to buy, how  much, and from whom, maybe the next few paragraphs will help.  If one reader is asking then our guess is several more are too so here we go.


No stores in my area sell the type of gold you recommend for new buyers.  I feel more comfortable buying gold in person than on the internet so do you have a suggestion?  Thank you.


We do recommend buying in person when possible but realize this is easier for some than others. The idea is for you to become comfortable with gold regardless how you end up buying it.  As you know, the first step is to become familiar with low premium physical gold choices (it sounds like you have done this so well done).  The next is to decide your metal of choice, gold or silver, bullion or rounds.  The third step is how much to buy and fair market value.  The last step is determining where to store your physical gold or silver.  If you are still shaking your head “yes” then let’s move on by answering the question.

Since your town doesn’t have a coin shop we need to get creative. Plan a day trip to the nearest city within your area understanding the cost of travel will add another cost to the metal of choice.  It is best to spend a little time online researching location,  store hours, and inventory.  You don’t want to waste a trip just to find out a particular shop doesn’t stock what you’re looking for.  Seeing you live out of town, a personal check might not be an option so ask about payment options prior. If this store has your metal, and priced appropriately, then follow through with your plan just like you would in your hometown.  Do use discretion when leaving the shop and traveling home (it’s always best to have someone go with you).

For what it is worth I personally know of several long time gold holders that only buy from out of town sources. They understand miles and distance only improve discretion.  Who knows, maybe you will feel the same way.  Good luck and let us know how it turns out.


I have a question about storing gold. My home safe bolts to our concrete foundation but several family members have the combination (we have a home business that requires us to often lock documents away).  I doubt anyone else would notice a few gold coins but wondered if you have a suggestion how to secure the coins within the safe?


If I understand the question (thanks for asking it by the way), you are looking for a way to lock up your gold in something then lock this something inside your home safe. I’ll be honest in saying I don’t feel comfortable with this.  Gold is like any other form of money and once it’s gone, well, it’s gone.  I see no reason to tempt those otherwise honest so my recommendation is to buy a separate safe (unused by anyone but you and your spouse) or rent a bank box.

Intent of owning gold is to develop piece of mind and independence. Worrying about someone, even a relative, borrowing your stash of gold coins will not help in developing piece of mind.


A buddy of mine forwarded The Prospector Site to me last month.  Nothing personal but I don’t see the benefit of paying a couple grand for an ounce of gold.  This doesn’t make sense at least in my world.  I’m more apt to buy silver because it is much cheaper and I can get so much more for my money.  An observation from someone who will admit they know nothing about either metal.


Thanks for reading and asking a kind of question. You are correct when you say gold doesn’t make sense so let me clear up a few points.  Gold is real money and has been for over 5000 years.  The only reason gold was chose so long ago is because it’s rare, durable, and divisible.  Somewhere down the line we went away from gold as money by developing paper currency.  This paper currency is now printed on a whim to fill budget shortfalls and bailouts. Politicians have learned, like children I’ll add, that the best way to silence screaming citizens is to toss a couple billion (dollars) at the problem.

I like your point about silver since it is the meat and potatoes metal. Start off buying a couple of ounces of silver just to get a feel for precious metal.  You obviously have an interest or you wouldn’t follow our site or ask questions.  You are wise to consider gold/silver as insurance in case we’re correct.  Thanks again for reading.

Send over your questions too.  Who knows maybe we’ll answer them right here (we understand discretion too so no names posted).  Send over questions or comments here.

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Pat Hill is an amazing college football coach.  His fifteen years with Fresno State Bulldogs unmatched considering his multiple accomplishments both athletically and academically.  He put a small program on a national playing field all while improving the percentage of players that graduate from 20% to over 80%.  The other thing I want you to know about Coach Hill is he’s unemployed as of last Sunday and it has nothing to do with wins or losses (although some like to believe so).  Please add Pat Hill’s name to the growing list of fallen economic soldiers of 2011.

I didn’t watch ESPN’s take on why Coach Hill was fired earlier this week, I didn’t need to. I know enough about California’s economy to decipher fact from anger.  There is a lesson here and everyone should understand many community leaders, supervisors, small business owners, teachers, etc, will soon face what Pat Hill is facing this week.  Asset bubbles popping, and the decline of revenue because of, are leading to cutbacks, downsizing, and anger.  Pat Hill is no longer coach of Fresno State football because there is not enough money to sustain a powerhouse program.  This is the same reason why police officers and firefighters are being let go, same reason why your local park looks unkept, and same reason why your net worth is less today than ten years ago.

So many misunderstand gold not realizing its primary benefit is allowing you to be a spectator while watching currencies around the world fight to the death. We have been candid about Wall Street corruption, back alley Federal Reserve deals (to only the chosen few), and good buddy bail-outs.  Gold allows owners to sidestep these puddles of corruption and move on with life.  I’m not sure how high a cliff today’s leaders will run the dollar off but I choose to have no part of it.  The only financial protection I know of is gold, and silver.

Owning gold and silver is simple but the effects of not owning metal are complex. Our currencies worldwide are no longer pegged to real money like gold (dollar hasn’t been since early 70′s).  Since this time, an economic imbalance has led to runaway spending, debt, asset bubbles (like housing values around the world), and Pat Hill’s job.  The reality is this pattern will continue a course set into motion long ago.  The best you can do is protecting your own interest with a little gold and silver.

This writer just finished Jim Rickard’s new book Currency Wars late last night. I’ve never felt so uneducated in my life.  My summary of this well publicized book is our worldwide economic troubles are vast and complex.  Just like your local municipality, global currencies are fighting over trade imbalance and value the same as your city is fighting over budgets and entitlements.  An easy fix is not around the corner.  Even someone as bright and knowledgeable as Mr. Rickards is not sure how this mess will play out but he is sure gold will play a leading role.

If you are new to gold and silver I apologize if posts like this one add to confusion.  The reasons to develop personal independence from real sources of wealth like gold/silver must be addressed.  Our goal is to continue forward with simple approaches to gold and silver while sprinkling in a few more complex reasons to own precious metal.  Nevertheless, thanks for reading The Prospector Site.


Small recruiting budget limits Fresno State football. FRESNO BEE

The budget cuts absorbed by the program might already be having an effect on the football field — the Bulldogs had a recruiting budget in the top third of the WAC just five years ago, but as it has been cut the number of wins has tailed off, dropping from nine in 2007 to just four this season.  READ MORE HERE.

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At least once a week I hear that gold is in a bubble and then the same blah, blah, blah, as before.  By nature we mock what we don’t understand and since most folks know nothing about gold mocking it is.  It certainly doesn’t bother me since I understand gold, what drives gold, and how to explain gold.  Most of time I just smile and say, “What makes you say that?”  The conversation usually gets a little confusing after that.  My only beef with those out knocking what they don’t understand, gold & silver, is that many will cross gold off their list from such ridicule.  This is a true injustice and hopefully sites like this and others can work to change a misguided way of thinking.

We will continue our series on “Keeping Gold Simple” by answering why some feel owning gold/silver is unwise. Gold is not that easy to discredit but up until recently precious metals hasn’t had many defenders.  Those owning gold and silver, by nature, are independent types unlikely to volunteer information to strangers or acquaintances.  They buy their gold, put it in a safe or deposit box, then go about normal life without the need to convince others to buy gold.  Most information floating around these days is from dealers or exchanges peddling gold/silver.  I’m not saying it’s bad information, I’m just saying to watch closely to make sure it’s unbiased information.

I have to say a little more about those selling. Media advertising is not helping ones confused about gold and silver.  Cheese ball commercials talking about the dollar being worthless and other endless scare tactics might attract some buyers but most tune it out.  Gold deserves more than that in my opinion.  Gold is nothing more than real money providing a level of insurance against print hungry politicians and leaders.  Gold is holding up as other asset bubbles tumble back to where they would be without cheap and easy credit.  Gold is an organic source of wealth in an age of uncertainty.

A few months ago one of my best friends said www.theprospectorsite needs to be more specific about gold. I understand his point and value his opinion.  The problem with being “specific” is each reader is at a different point along the buying gold path.  We have readers in China, across Europe, and of course right here in the U.S.  Our goal is to provide useful information allowing each individual to make personal decisions in their own best interest.  My point is this.  Those that continue to understand gold will pay little attention to opinions of others that don’t.  This understanding will not come by me telling readers what to buy and when to sell.  Of course we will put our two cents in but ultimately it’s your money we’re spending.

Wall Street traders make good money moving money around but don’t like physical gold for two reasons. The first, buyers don’t buy physical metal from stock traders.  Two, once money lands on physical gold it usually stays there for a while.  Traders and advisers make good money but only when your money’s growth is recorded or traded.  Gold does not fit into typical Wall Street action, some paper gold yes but not physical gold.

Q & A:

Question: My husband doesn’t feel gold is a smart choice and I’m having trouble convincing him otherwise.  Can you help me convince him?

Answer:  Let me first say thanks for reading our site.  Yes gold is a team sport and private ownership should be a unanimous decision.  This question has come up several times recently and there is no easy answer.  Some will come around sooner than others but all will eventually realize the magnitude of our economic situation.  Unfortunately, this will cause masses to pay far more for gold than they should.  My question for your husband is what form of savings is better than gold/silver?  Has he, you, lost so much wealth in real estate equity or stocks causing a paralyzing effect?

My recommendation is try to convince him to limp into small chucks of gold or silver all while watching current events unfold around us.  Here is a fact and here is how it can help your situation. It is a fact that more money borrowed, printed, drives up the value of gold.  Together, watch to see if leaders or politicians print money (borrowing money that doesn’t exist but disguising it as “investing, stimulus, bond buying, etc) attempting to solve debt derived economic problems. The typical gold trend is to rise in price as more borrowed dollars flow into circulation  Again, some take the high road around things not understood.  Stick to your guns on this one trying many angles to persuade the unknowing.

Have something to say?  We want to hear from you so please feel free to comment here regarding this or any post.

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Occasionally we get a question that stands out from others.  Recently a reader asked how high gold will go and I thought this was a unique question seeing we often hear why gold will go higher but not how high.  As with many questions if one person is asking then others are too so here we go.  This is Labor Day Weekend so I’m keeping it short and simple to spend time with family.  As always, thanks for reading The Prospector Site.

QUESTION:  How high do you think gold will eventually go?

ANSWER:  Great question by the way. Of course no one knows exactly how high gold will go as it transitions into a worldwide currency but we can offer a few indicators allowing us to peek into the future of gold.  There are at least three major influences driving gold beyond inflation and deficits.

FEAR:  It is safe to say fear has entered the gold arena causing masses to take notice of the value of owning gold. This could be why you are reading this site right now.  Nevertheless, as more folks realize recovery was nothing more than trillions of dollars of new debt they will begin to understand the seriousness of our plight.  Traditional investing, saving, methods continue to fall one by one and soon only a few hard assets will be considered “safe”.  Unfortunately by this time gold could be 5 times more than it is today.

GREED:  Gold is poised to experience the perfect storm driving metal prices toward unbelievable highs. Trillions in wealth sits on financial sidelines waiting for recovery, change, green shoots, whatever but as wealth recognizes some assets are gone and not coming backing anytime soon idle money will look for safe havens and prosperity.  Remember the ones with wealth didn’t make it by not taking risk.  These savvy investors will have no problem paying historical prices for gold and silver as long as gold trends upward.  Could this push gold 10 times higher than today?

SURVIVAL:  Techniques a person may use in a dangerous situation to save themselves or others. I hope economic conditions don’t progress into severe inflation or hyperinflation but if it does all bets are off.  Money will flow into precious metal like we cannot imagine.  Inventories will dry up as those with metal will refuse to sell at nearly any cost and those without will try anything to save what little wealth remains.  I few big buyers could consume what little inventory is available driving the price from high to unreachable.  Could this push gold 100 x today’s price?


We have no idea how high precious metal will top out but we truly believe gold’s buying power will continue to grow until economic calm resumes.  How long this will be is anyone’s guess but my money is in gold and silver until fiscal sanity returns.

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Let’s face the facts.  Since you are reading The Prospector Site you obviously are one of two types of crazy.  No I’m not putting anyone down just calling it like I see it.  Economic conditions like this bring out the nut-jobs making it easy to see why the mainstream gives little credence in assets like gold, silver, guns, or other self-reliant  preservation type stuff.  But does owning gold or preparing for tough times really classify a person as a nut?  Today we ask just what kind of crazy are you?

Type 1:

This type is growing in record numbers of folks like you no longer buying into the notion unlimited money printing leads to economic prosperity. This type no longer believes more government means more prosperity and is willing to stand up for organizations like the Tea Party.  This type cares little if Democrat or Republican but is all about a constitutional motivated form of government willing to live off moderate to low tax revenues.  I guess I fall into this type and I’m hoping most our readers do as well.  

Gold fits in nicely with this type because they no longer trust a currency based on nothing and more worthless each day. This person understands a limited government creates a strong society and economic prosperity without mandates like personal health care.  Redistribution of wealth is not part of this types lifestyle but helping those truly in need certainly is.  If you listen to political leaders, the left, and mainstream media you are some kind of crazy if you fall into this type.

Type 2:

This type believes our current economic decline could lead to Mad Max type social unrest, major wars, and a complete currency breakdown. They buy gold and silver not only to preserve wealth but as a tool for barter after a dollar collapse.  Water filters, kerosene, night vision all play a part in this type of gold owner.  Credibility, once rare, is growing with this type but the fact is most folks still haven’t excepted the size of our economic quagmire.  Some folks within this type, wrong or not, sell doom & gloom yet find some way to prosper from it.

Here is my take on type 2.  I have no idea what the future holds but I do believe countries like ours are built on solid principles and most are not afraid of hard work and risk.  We certainly have drifted from what built our great country but if economic shakeout is what it takes to get back to small government and self-reliance then so be it.  I do agree that this type sets a good example of preparedness for disasters of all kinds.  The one common thread both types have is the importance of owning real money like gold and silver.

We have a lot today so I want to keep moving but let me know what type of gold nut you are.  Feel free to leave comments here.


If you have followed our site then you know we are all about buying local and buying American. Recent news of a mega country music star putting his effort into buying American is exactly what our country needs to bring jobs back home.  Toby Keith has asked his merchandising manager to make and sell everything related to Toby Keith to be made right here in the USA.  Other country acts are getting on board and I can’t say enough about the commitment Mr. Keith is making.  CHECK OUT TOBY KEITH’S MADE IN AMERICAN SITE HERE.


Your post Ways to Profit From the Next Depression makes life sound no fun at all.  Can you expand on the timing?


Thanks for reading our site and thanks for commenting on Ways to Profit From the Next Depression. Let be clear on at least one thing.  No one knows what our economic future will bring, certainly not myself, but there is little doubt depression is the direction of most economies around the world.  Unlike the last depression our world is connected like never before.  No longer are currencies pegged to gold so budget shortfalls are “fixed” by printing more money.  The problem is nearly all currencies are racking up huge deficits simultaneously.

Profiting from a depression is more about making lemonade from rotten lemons.  I would much rather see an overall healthy economy and quality of life over my gold or silver profiting.  The fact remains until those in power make real change self-reliant people will need gold, prudence, faith, and ways to profit from the upcoming depression.  Thanks again for the question.


I haven’t turned on the news this morning but I’ll bet the media will talk about how overvalued gold is and ask “experts” about a possible bubble. If you are relatively new to gold, or silver, please stay strong to your commitment to own metal.  Like we have posted many times huge swings are to be expected as gold climbs.  Take advantage of these dips if more gold and silver are part of your financial plan.  The next wave of bad economic news will bring gold back to necessity level therefore driving the price up even more.  Very easy to predict.


“We all knew it was coming, it was really a matter of when,” said Phil Streible, senior market strategist at MFGlobal. “In 10 days prices went from $1,700 to $1,900.”

“We haven’t had a correction, other than brief correction, since the $1,500s,” he said. “I don’t see it going down there, but we needed a good correction.”

Either way, the analysts said this break in gold won’t have the same severity that the price break in silver experienced this spring when it fell 30%. “This market is very different from silver. Gold is trading as a currency, whether you believe it is money or not…. The reasons that have caused people to put capital into gold have not been solved,” Lesh said.  KITCO NEWS.  Read more right here.

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Since our childhood days we’ve heard the rich get richer but few of us understand exactly how this works.  Never before has the rich had such a bull’s-eye painted on their backs and if you are a physical metal holder you too may be a target.  Over my business years I have had opportunity to work with a handful of self-made billionaires and noticed they have a few things in common.  Very tenacious, very confident, and very against giving money away against their will.  Today’s economic quagmire finds the wealthy giddy with deep discounted assets at every turn. Today we dive deeper into why debt will make holders of gold rich.

Physical gold is poised to spike casting this relatively unknown metal into mainstream mania. Both scam artists and financial planners will beat the gold drum loudly but the oddity is owning precious metal will no longer be an option for the middle class and down.  In fact, gold ownership is no longer a consideration since most will struggle just to cover existing debt.  Yesterday we mentioned how the last decade or three our economy survived off debt.  Refinanced mortgages allowed for a new pool, vacation, new car, or boat.  Equity lines made perfect down payments for a new Harley or a second home.  Credit card debt filled the cash flow gaps until one day debt became away of life just like having a pet dog around.

But the times they are a changing as the old saying goes and boy is this as true as ever.  As your precious metal creeps along holding real value not just dollar value other assets like houses, cars, boats, ATVs, snow machines, etc continue to decline from lack of buyers and distressed owners.  Of course the buyers of yesterday still want the toys and homes but can no longer afford to own them.  The next few years will see buying opportunities like never before.  Many regions are already seeing this buying opportunity in real estate. The Prospector Site recently posted how 800 ounces of silver can buy a newer 3/2 home in Arizona, around 1/3 of replacement cost.  Think about this if you will.  A home that sold for nearly $200k a couple of years ago can now be bought for under $40k.  If you ask how it is the rich get richer look no further than real estate.

Precious metal holders will figure out what every successful Vegas gambler understood years ago.  Take risk when playing with the house money. As precious metals continue to rise so will the net worth of physical metal holders.  Most of those holding metal will parlay real money into cheap assets like houses and stocks pushing wealth into generational support levels.  Earlier I mentioned how the rich dislike paying big taxes.  One secret only a few will share is not only will the wealthy buy bargain basement assets but these assets will allow for tax deferment by way of depreciation as well, a perfect storm for wealth building.

A perfect example is a ranch not far from where I write this post sold for something like $1200 during the last depression ( owners could no longer cover debt/taxes ) that would bring close to $10,000,000.00 today.  This buyer not only bought the ranch on the cheap but found tax shelter by growing cattle, grain, or feed grass.  As middle class slips away the wealthy pick up discarded assets like a natural food chain.  When this time arrives, and it certainly is on its way, few precious metal owners will worry what they paid for gold or silver.  Thanks for reading The Prospector Site.


REUTERS:  Iranians go for gold amid inflation and currency fears

“During these times of instability in Iran, the safest form of investment is gold coins because no-one knows how much the rial will decline or interest rates will be,” said 30 year-old private sector employee Saba Aqabala.  Read it here.


FORBES:  With Gold Set To Peak At $1,700, Miners Like Goldcorp Look Cheap

Buying the “alternate monetary asset” thesis, Tom Winmill, portfolio manager for the Midas Fund, understands that investors are accepting gold as a store of value, and he plans to monetize that.  Read it here.


THE WEEKLY STANDARD:  More Economists Agree — the Stimulus is a Failure

The two-year-old recovery’s terrible tale of the tape: A 9.1 percent unemployment rate that’s probably closer to 16 percent counting the discouraged and underemployed, the worst income growth and weakest GDP growth of any upturn since World War II, a still-weakening housing market. Oh, and a trillion bucks down the tube. Oh, and two-and-a-half years … and counting … wasted during which time the skills of unemployed workers continue to erode and the careers of younger Americans suffer long-term income damage. Losing the future.  Read it here.

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