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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

BERNANKE WATCH:

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

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

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

DC Carlton is founder of The Prospector Site and author of the Amazon Kindle #1 Bestseller Why Silver and Gold Will Go Higher and Storing Silver & Gold. If you’re looking for trustworthy PM assistance feel free to contact DC regarding his personalized consulting service. TPS doesn’t sell silver or gold; we represent you, the buyer, looking for affordable precious metal from honest trustworthy sources. Feel free to register here for his free online newsletter that provides precious metal insight rarely mentioned from mainstream media sources.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Last Friday was nothing short of the purest example of a typical day for future gold. When fear and uncertainty grip millions, maybe I should say billions, the results are a monetary flight to all things real.  We are living history and the world is soon to realize paper assets cannot compare to the real protection within silver and gold. How many days like last Friday will it take before the masses line up to pay 2 or 3 times today’s physical gold offering? Let last Friday go down as a sign of the times.

I wasn’t alive during the Great Depression to witness shuttered banks wipe out the wealth of good honest folks. I wasn’t around to watch folks in Germany push carts of currency necessary to buy hyper-inflated groceries during the days in Weimar Germany. But I will be around to witness the greatest wealth transfer in the history of mankind, this is all but certain.

It takes a loss of faith to push something like PM (precious metals) to the point of last Friday. I want you to think back making a mental list of who and how many predicated such a gold advancement like one witnessed last Friday. My list is empty. My point is we have entered a period of perpetual volatility on a massive level and anyone willing to make short-term predictions are unwise or arrogant.

The average person doesn’t realize how quickly wealth can transfer in our age of instant money movement.  Are we on the verge of such a wealth transfer into silver and gold, I think so? The great rush into 10-year treasuries paying under 1.5% could be such a sign of the times described today. Eventually, the result is a flight to PM but no one said the flight is direct.

The few still hanging onto recovery also anxiously wait for the next bailout. Who honestly believes a life of endless bailouts can continue?

Last Friday’s amazing, soon to be typical, gain attributes to a worse than expected jobs report and continued trouble in Europe. Yes, this news lit the fuse but the winds fanning the flames comes from a giant media base willing to sensationalize anything from collapse to celebrity addiction.

This is why I believe gold’s next bull run is an accumulation of multiple factors sensationalized into the greatest flight to safety in our lifetime. Think of it like a person shouting “fire” in a smoky room not to save others but to create a profitable scene of chaos. Nevertheless, the results are the same.

Like most weekends, this one was no different when an individual asked the one question I hear so often, “Why is gold the best choice right now?” See the question below. I’m willing to bet this same individual didn’t have gold on the radar until recently.

Can you imagine a week of multiple days of 5% or better gold gains and how the media will sensationalize gold as the hurry-and-jump-on-metal? You can bet that we’ll be right here to sort it out by making factual silver and gold observations.

QUESTIONS & COMMENTS:

Question: What makes precious metals the best choice considering the volatility around the world? Second question, silver or gold? (verbal question during consultation)

Answer: Thanks for the questions. Just to make sure we’re all on the same page here let me start by saying we are talking physical metal. Also, we recommend low premium bullion, rounds, bars, and junk over rare or numismatic coins.

As said in Why Silver & Gold Will Go Higher, precious metals are the safest store of wealth today. We have to realize the ill economic effects we’re feeling now started many years ago (actually decades ago). Up until recently we papered over the problems with borrowed money but this appears to no longer work.  A life of credit allowed a lifestyle that should have never existed in the first place.  A consumer based economy driven from credit allowed us to invest in assets that appeared solid or trustworthy but are not.

More of us realize with each passing day that traditional investment or savings sources are in huge trouble, this realization drives more in search of solid trustworthy assets. Nothing has a history like silver and gold, nothing ever will. Think of it like the perfect storm driving masses to the one cove of shelter but on a global scale.

As per your second question, I see little chance silver will not benefit from gold’s draft and I personally own both (80%/20% gold over silver). But I do recommend using silver as a segue into PM since it’s easy and cheap to buy. Hope this helps.

Question: I love reading TPS and enjoy your realistic view of precious metals (I bought gold many years ago). I’m thinking about taking advantage of cheap mortgages and discounted real estate by exchanging some metal for income property. I recall something you wrote last year mentioning this is wise under certain situations, this leads me to ask two questions. Should I offer gold as part of a down payment or completely “cash out” the properties?

Answer: Thanks for the nice words and reading TPS. I hear your questions and I’m making the same decisions myself. Like you, many of us bought gold for hundreds of dollars and now tempted to buy discounted real estate. I will devote an entire post to real estate this Wednesday and I have no doubt your questions and more answered. Thanks for asking and be sure to catch us on Wednesday.

News Worthy:

CBS DENVER: Embalmer Pleads Guilty to Stealing Gold Teeth from Dead

LONGMONT, Colo. (CBS4)- A man who was working as an embalmer says he stole from the dead in order to support his family. Adrian Kline, 43, of Brighton, pleaded guilty Thursday to removing gold crowns from the teeth of dead people and then selling them.

Kline received a deferred sentence, probation and community service after pleading guilty to two counts of providing false information. Police believe Kline may have recovered or extracted hundreds of teeth from the deceased or the deceased’s remains.

After a body is cremated, any metal — including dental work — is usually removed from the remains to be recycled. Kline claims he only took the gold crowns that were going to be thrown away at the funeral homes, but one funeral home manager in Brighton said Kline was fired after jewelry belonging to a deceased man went missing. Creepy, but readable right here.

News Worthy:

KSEE 24 NEWS: Increase in Thieves Snatching Gold Necklaces of Necks

Gold theft is on the rise in Fresno. Fresno Police Sgt. Mark Hudson explained, “They’re coming up behind the victim or somewhere beside them, running by, snatching the chains right off of their necks and then taking off that way.”

One of the most recent thefts happened at the Git N Go Market on Tulare and Peach. Gerald Kane was arrested after he was caught on surveillance video snatching the cashier’s necklace. This past month alone, there have been ten of these types of thefts in Southeast Fresno. Most of the victims have been women. Police suspect the increase in this crime is due to the increase in the price of gold. Read it here.

TPS adds, we expect to see more of this type of crime as metal prices rise and the economy continues to correct. The problem complicates when we reason states like California no longer have the revenue to incarcerate at the level necessary to clean trash like this off the street.

News Worthy:

AMMOLAND: Firearms Industry Numbers Reflect Record Pace of Gun Sales

NEWTOWN, Conn --(Ammoland.com)- Following the eleventh straight month-over-month increase in consumer firearms purchases, firearms and ammunition manufactures are reporting strong sales even with the down economy.

RUGER SALES UP 10.5 PERCENT IN FIRST QUARTER
Sturm, Ruger & Co. (NYSE:RGR) reported that first quarter sales increased 10.5 percent compared to the same period last year. Read more here.

Tags: bars, bullion, physical gold, precious metals, rounds, silver, spot gold, Why Silver & Gold Will Go Higher

Have you stopped to ask yourself why you own PM (precious metals)? When asked twice last week my motivation behind founding TPS (The Prospector Site) and personally owning gold, I found the timing odd.  The first came from an interview request outside the U.S. where the host asked if I was a “prepper” or “survivalist”.  I understand the question, and it’s fair, but find it interesting with all the questions reasonable to ask the first one is about surviving. My goal is to not only survive but thrive. For the record, here is my view of prepping straight out of my recently released book introduction.

The information you are about to receive does not come from a fringe “doomsday” point of view. I own gold and silver because I understand them as the most reliable transport of wealth in an age of printed money. I’m not thumping away on some keyboard in a cave with a long extension cord. I don’t live off the grid (but understand why some folks now do). From “Why Silver & Gold Will Go Higher”.

Our society is so far removed from a realistic perspective it’s almost scary. They still view silver and gold as risky but accept raising our debt ceiling as responsible to pay past obligations. The masses view those “preparing” as alarmist while justifying $2 to $3 billion lost by one of the largest banks on the planet.

Is it easier to discredit individuals seeking an independent lifestyle than admit four decades of fiat spending is proving unsustainable? Maybe this is why my second “fear” encounter of last week accused me of capitalizing from fear. This leads me to set the record straight, for all of us. I don’t own silver and gold because I’m afraid, I own PM because I’m preparing for a future full of unknowns caused by decades of greed and monetary mismanagement.

I realize many of my readers are what the mainstream classifies as “preppers” and often victims of ridicule without reason. But how is preparing for a time of uncertainty ridiculous? Is food storage, alternative power sources, a proactive plan of defense, home first-aid, and self-reliance anything but prudent regardless of good times or bad?

Physical silver and gold serve two purposes. One, preserves wealth in times of economic calamity while offering wealth building opportunity. Two, provides another layer of independence (along with the list above) in a time of overreaching government, fiat correction, class warfare and Wall Street manipulation. Fear might kick-start this motor but long-term motivation comes from a realistic revelation of what’s true compared to what is unsustainable.

Folks, gold will go “mainstream” but probably not for the same reasons you own it. The same ones casting ridicule today will pay multiple times the price of your silver/gold.

News Worthy:

GOLD NEWS:  World Gold Council: Q1 2012 Demand Up 16% year-on-year.

The World Gold Council are out with their first quarter 2012 report. They report that whilst the tonnage amount of gold sold dipped 5% from Q1 2011 the US$ value of the gold sold was up some 16% from a year before.

The report highlights how investment demand is becoming more important than jewellery demand. Jewellery demand was down 6% from Q1 2011 at 519.8 tonnes. However investment demand was up 13% to 389.3 tonnes over the same time period. This is definitely worth the short read.

News Worthy:

US GLOBAL INVESTORS – GOLD: The World’s Friend for 5000 Years

Gold—A Reality Check
Investors have “defriended” gold recently in favor of the dollar, as Greek and French voters rejected austerity measures. Greeks have been responding to their escalating debt issues for a while by steadily pulling money from overnight deposits. I often say, money goes where it is best treated, and these deposits will need to find a safe haven.

In the end, I believe governments in Europe lack the courage to be fiscally disciplined. Earlier this week, I told Aaron Task and Henry Blodget on The Daily Ticker that when push comes to shove, Europe will likely continue to print money. This should be positive for gold. Read the rest right here.

News Worthy

CNN- Grow Up, Congress: Make a Deal on Debt

Confronted with record-low approval ratings, Congress seems determined to drive them down even further by planning another game of chicken with the debt ceiling this fall.

The last time they tried this game, the United States lost its Triple-A credit rating as Standard & Poor’s opined that “the political brinksmanship of recent months highlights what we see as America’s governance and policy making becoming less stable, less effective and less predictable.”

Talk about a zero percent learning curve. As you know, the definition of insanity is doing the same thing over and over again and expecting a different result. Well, this asylum is being run by the inmates.

House Speaker John Boehner told CNN’s Erin Burnett at the Peterson Foundation Fiscal Summit that “allowing the debt ceiling to go up without addressing our fiscal challenge would be the most irresponsible thing I could do.” In other words, there’s a showdown waiting on the other side of this election.

That’s not just the debt ceiling he’s talking about. That’s the full faith and credit of our country. That’s our economy. That’s your bottom line. If you can stand it, read more here.

COMMENTS & QUESTIONS:

PROSPECTOR REPLY: Thanks for reading/commenting. It’s funny you mention not knowing a person can own physical gold since this is more true than folks can imagine. Paper ownership is looking less wise with each passing day since I’m convinced paper manipulation is hampering physical values. Yes, Central Bankers are buying record amounts of physical and this should be a sign for all of us. Thanks again.

QUESTION: Love TPS and read each new post, which brings me to ask my question. If PM prices are currently unstable then when why buy physical silver now? Would I be better off waiting for prices to decline more?

PROSPECTOR REPLY: Thanks for reading, and the great question (s). Yes, you can wait if this is what you’re comfortable doing. But I remind you and others too, that timing a bottom is nearly impossible but at the same time buying a good dip allows us to own the most metal for our cash. My advice is to keep your $ liquid and ready to strike at a moment’s notice. I will pass along good offers as bullion dealers pass them to me.

For what it’s worth, some folks find it easiest to buy, store, and then move along with life without constantly watching day-to-day metal fluctuations. Again, it’s your choice, your money too, so watch the silver market closely and then pull the trigger at will. Thanks for the question.

SEND OVER YOUR COMMENTS, QUESTIONS, AND BOOK REVIEWS RIGHT HERE. THANKS FOR VISIT US TODAY.

Tags: debt ceiling, economy, food storage, investors, own gold, physical gold, physical silver, preppers, safe haven, survivalists, The Prospector Site, Why Silver & Gold Will Go Higher

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

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

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

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

NEWS WORTHY:

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

NEWS WORTHY

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

NEWS WORTHY

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

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

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

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

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

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

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

NEWS WORTHY:

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

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

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

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

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

NEWS WORTHY:

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

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

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

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

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

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

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

Affordable Gold:

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

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

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

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: gold, inflation, investing, money, physical gold, real money, silver

Another group of great questions came in this week with one regarding China catching my eye.  China released, or leaked, cooling growth expectations but I can honestly say from hands on experience in China this means nothing, at best.  China is an independent country hungry to control monetary worldwide power.  I’m not doubting China is cooling but expectations of growth can be misleading and as much for leverage as anything else.  Let’s jump into today questions.

QUESTION:

A friend turned me onto your site several months ago and I haven’t missed a post since. I noticed China adjusted their growth rate to 7.4% recently while experiencing the lowest trade deficit in over two decades.  You and other gold sites often mention China as the largest consumer of gold and I’m concerned this news could lead to China buying less gold.  This leads me to ask three questions if I may be so brave. How will China’s shrinking economy affect my gold’s value in your opinion?

PROSPECTOR: Thanks for the great question, and insight. I’m not sure but China and India could be neck and neck as world’s largest consumers of gold. Regardless, please notice the difference in gold’s relevance between China and the United States. Mr. Bernanke could hardly choke the word gold from his mouth last year when asked if gold is money. On the other hand, Chinese officials encourage citizens to buy gold even advertising where to find government sponsored retail outlets, go figure.

Up until now, Chinese traded yuan for gold/silver motivated by profit and as a source of savings.  From my experience in China it seems other asset bubbles, i.e., housing & commercial real estate, are just beginning to pop similar to our housing bubble in 2007.  Is it possible some Chinese are ahead of the curve by protecting with gold?  It’s hard to say but my bet is a real estate correction (China) will only contribute to private gold ownership and enthusiasm.  This is favorable to your gold’s value over long term.

Do you expect gold to dip from this news?

PROSPECTOR: I kind of do expect gold to dip but, if being honest, not sure it has as much to do with China as PM  paper manipulation. Will China’s economic correction catch residents off guard causing some to liquidate gold and silver? This is certainly possible but China’s newly wealthy will hedge, with gold & silver, against economic correction over the long term. The internet has changed the way information travels forever and to be honest we have hundreds of Chinese readers routinely reading this site.  Our Asian neighbors are more aware than some like to give credit. But no superpower is completely protected from recession/depression and this includes China too. China will experience economic correction and this will change the way many perceive, or value, PM.

You asked about news so here it is.  China is on the path to internationalize PM trading with an exchange called PAGE (Pan Asia Gold Exchange).  This exchange will compete with our COMEX in New York but with one huge difference.  COMEX and London Metals Exchange only back gold contracts with 10% physical gold. China’s new exchange (PAGE) plans to back contracts 1 to 1.  So what does this mean to the average Joe holding physical gold? It means China is making a run at cornering the gold market as we know it.  Could this be because of a loss in USD (US Dollar) faith? Here is my take, China realizes the path to a world Renminbi currency (yuan), over the USD, is only possible by way of GOLD.

How will this correction affect how I buy gold & silver in the future?

PROSPECTOR: Great question.  China is forever changing the way we buy gold and silver, even outside of China.  In China, gold sells from banks, vending machines, and retail stores like Starbucks in the US.  The Chinese government not only sells gold but they recommend each citizen own as much as possible, this is not limited to physical gold either.  Paper gold, bullion gold, gold jewelry, you name it and it sells.  Also, the Chinese government continues to buy gold at record pace leading many experts to question what the heck their plans are for what Bernanke denies as money.

If you take one thing from today’s post let it be this.  The one thing all PM experts overlook is emotion.  I think we all agree that fear and uncertainty are human emotions without boundaries. This trigger, by emotion as much as anything else, is what leads you to read what you’re reading today.  The internal revelation of something amiss will cause a Chinese change of perspective. They, like us, will perceive gold as necessary, protective, and comforting.  How will this not tax a limited supply of gold?  How can this not influence gold’s value and price upward?  Yes, emotion or reaction will be the last straw sending currencies by the boatload to PM, especially over long term.

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QUESTION:

Here is my question. I own gold and silver bullion but wondering when or how to trade both metals into income producing real estate (rental properties).  I don’t necessarily want to be a landlord but my wife and I are both soon to retire, the additional income would be nice.  Gold is great but it will never provide monthly income so now maybe the best time to move into something else. You write about real estate but lead me to believe now is not a good time to buy, I’m asking why?  By the way, we enjoy reading TPS, especially when RE is the topic!

PROSPECTOR REPLY: Congrats on your wisdom to buy gold & silver. Trading an asset like PM (precious metal) into a discounted asset is the name of the game.  The question you’re asking is if the timing is right to make an exit from gold and into residential housing. Consider this; timing is relative to your situation.  Have property values corrected in your neck of the woods? How much? Are housing values still in decline? What about rents, jobs? Do you know someone willing to professionally share local RE trends and analysis? If so, why not tap their experience even if it costs a couple hundred bucks? Income producing property is only as reliable as the local job market. Please reread When to Sell Your Gold.

Here is the thing. If cashflow is what it takes then trade some gold into income producing properties. I never recommend living your life for gold but rather leveraging gold to live your life. I have no doubt you have worked hard and looked forward to retirement for many years, good for you. We live in a time when each person soon to retire must ask themselves if retirement promises are realistic. You are wise enough to stack the deck in your favor allowing a nontraditional saving source to provide lifelong income. Feel free to contact me regarding options how to safely trade PM into real estate. We will discuss ideas how to safely accrue rental income and still own PM, very cool. Thanks for the question, and reading TPS.

Tags: asset bubbles, bullion gold, cashflow, gold is money, gold to dip, how I buy gold & silver, income, physical gold, private gold ownership, real estate correction, silver, silver bullion

Little puts more fear into the hearts of PM (precious metal) holders than the word “confiscation”.  Since silver is the hot metal of the decade I would like to continue our discussion on all things silver related.  We often associate gold with confiscation and unbeknown to most silver fell victim to gov’t confiscation as well. My goal for today is provide proof silver confiscation happened, yes in the US, but unlikely to happen anytime soon.  Since I don’t sell silver I feel comfortable describing silver’s good, bad, and ugly side.  If you’re new to silver please don’t interpret this post as anything but a lesson why silver ownership is wise.  Nothing once confiscated is valueless, silver certainly isn’t.  Let’s dive in.

Franklin D. Roosevelt convinced constituents to elect him four times; only because of his death did American citizens realize a new president.  Below is a currency in circulation graph (USD) beginning shortly before Mr. Roosevelt’s era to today.  One glance at this currency graph (compliments of the Federal Reserve Bank in St. Louis) provides proof why PM had to be confiscated to allow a fiat currency room to create a debt based system and then continue to monetize debt. What does this mean to the guy who works for a living? It means the only way to legally print your currency into worthlessness is to control real money (gold & silver) at least until paper currency became the new normal. It’s worth noting gold & silver graph similarly to the currency graph below all rising along the way.

Please notice how the amount of currency in circulation stayed flat until early 1940s.  This only shows the level of fiscal constraint our US dollar held while hinged to PM.  Confiscating gold first and then silver were the missing link government needed to spend at will without the restraint of pesky gold or silver.  Since this era, and up until the second you read this post, it’s impossible to define an accurate value of our USD; this is why both gold and silver continue to climb.  The most recent activity on our graph is not for the faint of fiscal heart but it is relevant to those holding PM (probable most relevant for those not holding PM).

For anyone interested here is a link to Executive Order 6814 – Requiring the Delivery of All Silver to the United States for Coinage, confiscation of August 9, 1934.  It is interesting reading exclusions for industrial, commercial, professional, artistic, and monetary use.  I’m not sure how receptive silver holders were to 50 cents per oz exchange or the immediate tax on silver sold prior to the 90 day confiscation exchange period.

It helps to broaden our view of something like confiscation to keep future confiscation in perspective.  Unlike Pre 1930s, PM today has no limiting effect on digitally printed money.  Unlike 1930s most folks on the street see nothing monetarily relevant with gold or silver coins.  This is why our Federal Reserve can simply increase the currency, monetizing debt and funding programs, as it pleases and the amount of gold on hand is meaningless.  This certainly was not the case before the dollar gold standard, but is today.  This is why I honestly feel private metal ownership has little odds of modern-day confiscation. Combine this with the trace amounts of both metals compared to trillion of dollars in circulation and you can see my point.

This could, and hopefully will, change someday if our monetary system reenters a PM standard but this could be a distance down the road.  Owning some metal in Canada, or other international vault programs, is worth exploring just in case of the worst case scenario. No doubt interesting times we live.  Oh, one last point for those asking if silver poised to increase in dollars.  The silver supply is proportionally only a small fraction of the currency supply shown above and in our graph.  This means while silver/gold rise lockstep with dollar printing, metal supplies are not.  Few interpret such fact as anything but favorable for PM holders.

FEEL FREE TO COMMENT LETTING US KNOW IF CONFISCATION CROSSES YOUR MIND.  REACH ME HERE.

COMMENTS & QUESTIONS:

COMMENT:   Thank you for pointing out the TRUTH about the dollar. You have pointed out something that should be so obvious, but I didn’t see until you brought it up. Where the dollar has lost much of its value over the past 80 years, gold’s value has increased 100 fold! Amazing and crazy! It would be wise to consider the value of investing in hands-on gold.

PROSPECTOR REPLY: Thank you for reading.  You make a good point with investing hands on and I always recommend newbies own physical gold/silver first before anything else.  This is also why we recommend making the effort to understand PM before spending one dime. Silver and gold can be a little confusing and the only remedy for this confusion is spending the time to self educate, having said that, I have no problem with mining stock or paper metal as long as we’re comfortably protected with physical first.  We have many readers who own pounds of both metals leading them to venture, or speculate, on other PM sources.  Thanks for the comment.

QUESTION:  We took advantage of the last drop in silver by ordering 500 one oz  Canadian Maple coins.   Our goal is to add another 500 over this year and this where the confusion comes in.  Are we better off to buy some each month or wait for a dip like the last one?

PROSPECTOR SITE: Thanks for the question.  To be honest we have readers using both buying methods.  One is commonly called dollar averaging and the goal is to average high and low into a comfortable medium.  The problem with this system is timing, let me explain.  The silver market is volatile and this will not change anytime soon.  Understanding this volatility and using it in your favor (buying the dips) can be the difference between tens of thousands of dollars someday soon, no kidding.  Buying on dips does require patients and confidence.  Regardless, the most important point is to own precious metal, congrats!!

Tags: dips, drop in silver, gold & silver, monetize debt, physical gold, precious metal, printed money, silver coins, silver confiscation

“THE MOST DANGEROUS UNTRUTHS ARE TRUTHS MODERATELY DISTORTED” GEORG CHRISTOPH LICHTENBERG

Wouldn’t it be nice to believe in things we know not true?  Who wouldn’t want to believe in a Santa flying around in a sled dumping off awesome gifts while we sleep?  As adults, when we believe in something too much we sometimes find ourselves willing to overlook counter support or even realistic proof otherwise.  As a gold advocate I often challenge myself to read articles counter to gold rising.  To only study supporting information is nothing more than following masses and the gold masses usually sell gold (sometimes their opinions are bias if not scripted).  The United States is slow to find physical gold and I can only attribute this to a false perception of recovery.

Last night (2/12/2012) 60 Minutes ran a segment on India’s physical gold thirst that every gold holder will find interesting. Physical gold in the form of jewelry is not only ceremonial it’s their savings.  Jewelers find it easy to sell gold jewelry because each buyer views it as a savings account one can wear.  Our Indian neighbors have a solid perception of gold’s power as real wealth, both in jewelry and bullion. But Americans can’t see the need for something so idle like physical gold or silver.  We thirst for the good old days of new cars, houses, and vacations and to be honest gold doesn’t fit well into our consumer lifestyle.  We hear recovery because we want to see recovery, but this doesn’t change improvement supported by never-ending debt.

Most Americans want to perceive recovery because of a desire to return to “normal” debt based spending. From now until November we will continue to look at “recovery” closely.  Those seeking re-election are quick to offer such a perception but even a fool knows this as risky, at best, if not unlikely.  No doubt recovery will happen but what we have entered is a correction phase that will exhale plenty of air before improving.  The price for believing in a perception over reality will play costly for most Americans and no gold justification on my part can win over what you want to hear as recovery.  Gold is something many turn to as last resort or ultimate protection when all else seems risky or ambiguous. 

Few of us are willing to ask how much a perception of recovery will cost our children because another trillion is impossible to comprehend. Since comprehending is nearly impossible why not believe what we perceive as those in control, right?  If we can’t trust elected officials and masterminds in the Federal Reserve than whom can we trust?  Not many will stop and question a fiat (currency) plan that has never worked or a worldwide scenario with as much debt.  I’m not sure how high gold and silver will climb when this false perception shows itself as, well, false but I’ll bet it will be far over today’s prices.  I doubt $38 silver or $1810 gold (physical) will be an option but time will tell soon enough.

This could sound odd but the same false perception of recovery will find its way into a false security within gold. As a founder of this site I have little doubt folks will eventually find gold but few will understand its value as they should.  Yes, gold will find the same ill-conceived perception someday pushing PM far beyond true value.  I’m sure many years from now I’ll write not about a false perception of recovery but a false perception of gold & silver, kind of ironic wouldn’t you say?

WELL, THIS IS MY TAKE SO TELL US YOURS.  YOU TOO CAN REACH US 24/7 RIGHT HERE.

YOUR COMMENTS & QUESTIONS:

COMMENT (Regarding “Creating Your Own Gold Standard”): This article caught my attention. I have been a coin and bullion collector since 2000.  I have often said that I am my own IMF (Individual Monetary Fund). I do not save Federal Debt Notes, I exchange them for something of value, bullion, stored food, firearms, ammunition, gasoline, etc. Great Web-Site keep up the good work!

PROSPECTOR REPLY: Thanks for the comment and congrats on such vision back in the year 2000.  Love the idea of your own IMF because you, like other readers, understand the importance to distance from the illusion of wealth and false prosperity.  Others are slow to awaken but will soon and when they do the value of things necessary and real will remain while debt supported assets decline.  Those prudent enough to physically own now will inherit the wealth of tomorrow (nothing new here just history repeating).  Your comment plays into today’s post perfectly because many are still willing to believe buying from our own child’s lemonade stand is somehow profitable for our kid even though we borrowed the currency to do so.  Good for you and thanks for the comment.

Tags: bullion, debt, gold rising, gold's power, physical gold, recovery, sell gold, silver

Isn’t it great to invest a couple of hours watching an old movie you’ve seen several times before?  Even though you know the ending, even though you know the progression, an epic movie always seems to entertain us over and over again.  Watching today’s gold (and silver) market reminds me of an old classic film of yesterday.  For those of us who follow gold closely, gold’s progression is not only obvious but predictable.  Many disagree on timing but, in all honesty, timing is impossible to pinpoint and attempting the impossible comes down to luck more than anything. Today we’ll explain why stage is set for PM to go mainstream.

Do you own physical gold or silver? If you don’t you will and in all likelihood compete against some heavy hitters to do so.  I say this with confidence because in my mind I have a few criteria that must be met before gold does what I know it will do, someday.  One big criteria is for gold/silver to find mainstream populace during a time of currency debasement.  We already live with global economic uncertainty and anyone doubting this as fact is not living reality.  So the question is when will mainstream gold ownership collide with current uncertainty?  We think the moment may be at hand.  There is no chance mainstream investing will stand idle while gold and silver climb, especially when other investment types destabilize.

The reason we feel the moment is at hand is because three things must happen to trigger the mainstream toward precious metal ownership. One, an overall lack of confidence in recovery.  No matter the country, state, or city, folks worldwide are losing confidence in recovery whether they are willing to admit it or not. Two, Fed commitment to never-ending quantitative easing (Fed announced last week the need to keep near zero interest rates till 2014). There soon will be twice the debt as when President Obama took office.  Three, a run toward protection by mainstream investment, pensions, insurance, health plans, and private capital.  Even those in power don’t want the game to end, they can no longer ignore the power of real money like PM (especially considering an age of imaginary money).

Can I hear a BINGO? The big question is what will a mainstream run do for your stash of gold and silver? I can describe the future of PM in one word, pressure.  PRESSURE; urgent claim or demand….,a burdensome condition that is hard to bear. The kicker is gold and silver value is not containable, they are compelling.  They are compelling because a limited supply of each exists without the opportunity to create much more.  Combine this limited supply with an urgent claim or demand and it’s easy to predict gold/silver’s outcome.  This is a perfect description of long-term gold and silver!

I urge readers to not take my word but look to current events as proof the above information is factual. Why does the Fed really need to keep interest rates near zero?  Is this the only way to pay on record levels of borrowed money?  Why are countries around the world (central banks too) buying gold at record levels?  Is this a signal of self acknowledgment that reckless printing is ruining currencies?  Is this acknowledging gold as the only true source of money and wealth preservation? Why does gold and silver continue to rise year after year?  All signs how events of the day will influence gold and silver into a urgent claim or demand.

What is your take, is gold going mainstream or do prospective PM owners have plenty of time?  Tell us your thoughts here.

YOUR QUESTIONS & COMMENTS:

Really enjoy the site and especially enjoy reading what others have to say.  I do own some PM but probably not as much as I should.  To me it seems the gold and silver market is in a state of volatility far over other forms of savings.  I see no reason to pull money from a money market (guaranteed) then buy something that could drop in price (gold or silver)?  At least I know my money will be there when I need it.

PROSPECTOR REPLY: Thanks for following our site (I also enjoy comments and questions most).  You make a valid point concerning the safety of money market accounts but the long-term trend for such a source of saving is not good.  Since 1971 to now, we punish the savers of the world.  We know this by how little savers earn from deposits of hard-earned cash.  The Fed just announced this punishment to savers will continue but disguised it well with trying to stimulate the overall economy (just looking after your best interest right?).

I have no concern if the goal is to keep savings in cash over short-term.  One benefit of this site is providing several options but ultimately the decision is yours alone (I also keep a bank savings in cash, small savings). But the long-term benefits of cash will be devastating to say the least and it’s important that you realize this.  Eventually interest rates will rise and eventually the buying power of your cash will decline.  To be honest, it is already because interest earned is less than real inflation.  It only appears the same amount of money because you’re comparing dollars to dollars and not dollar value to gold value.  To me holding too much cash is similar to the ground splitting open in front and toward you but you doing nothing. To do nothing is certain destruction but moving left or right offers hope.  My point; being proactive is necessary and my money is on PM. We are living history while watching a monetary collapse fueled by too much debt and invisible currencies.

Tags: buying gold, currency debasement, physical gold, precious metal ownership, real money, silver market, wealth preservation