Posts Tagged ‘physical metal’



Protecting your family’s wealth by trading dollars for physical silver/gold is one of the wisest decisions you’ll make. We can debate silver vs. gold but at day’s end both metals are shaping themselves into the last safe-haven currency while all other currencies race toward debasement. This not only means the value of your physical metal will rise but so will the temptation for others to take what you’ve worked diligently to own.

Below are few paragraphs promoting my newest book Storing Silver & Gold. Each chapter is an extended answer to the many storing questions readers like you are asking. Questions like how to insure the PM you have stored at home, what is the best way to discretely buy silver or gold,  or the only time you should store SOME metal within a bank box, and when it’s time to consider storing metal abroad (internationally). I hope you enjoy this tiny taste of my newest book release.

 Storing Silver & Gold: How to Safeguard your Precious Metal.  I believe at least fifty percent of those practicing home storage do so with sub-par safes improperly mounted to the structure’s sub floor or foundation.

Wow, this means half of you should be reading very closely. Now, I’ll be the first to admit I am not a safe or vault expert. (We’ll hear from those who are in the next chapter.)

My goal is to not discourage home storage, but encourage proper protection for the assets you’ve worked so hard for. Storage must be part of our overall PM plan, but you’d be surprised how often it isn’t. If you’re not ninety-nine percent comfortable with your form of home storage, I encourage you to take the money and time to correct this before buying more silver or gold!

Again, in-home theft will most likely never be an issue, but why not provide one last level of security, just in case I’m wrong? Would you be surprised to hear that the number one source of your PM’s security is the one least considered—you!

Let me explain. The best way to defend against bad guys is to beat them at their own game. This starts with a refusal to let anyone take what’s yours. Most robbers try to take something of value from someone unsuspecting and weaker. Their plan is to enter a home full of valuables, and quickly transfer ownership from you to them, unnoticed and un-caught.

Think of it like an offense-defense conflict. The criminal is on the offense and you’re on the defense, trying to keep what’s yours. This usually works out okay, but I propose we change ends of the field.

What if we are the proactive ones? What if we turn this storage plan into an offense success story, leaving bad guys scratching their heads while looking for easier prey? We are about to throw out several proactive ideas; then it’s up to you to determine the best fit for your needs.

I have readers who are so supportive of our Second Amendment rights, they’ll slap NRA stickers on everything in their front yard. I also have isolationist readers who believe the world will soon turn into anarchy. They trust hardly anyone. I also have readers that know nothing about guns, NRA, or personal defense, but see PM as a necessity (and some live under strict gun control laws). Each must find the most appropriate means to store PM, within their beliefs.

I’m hesitant to include the real life story below, because it’s so shocking some readers might elect not to own PM. I want to make this perfectly clear: This is the worst-case scenario and, in all likelihood, will never happen to you or someone you know. It is quite disturbing, I warn you now.  Read more here.

QUESTION:  DC, I read your blog religiously and have been buying silver from Colorado Gold as you recommended. I plan to work another 7 or 8 years and I own my house and land, vehicles, etc. outright. My husband died last year, so I have only my income but I do have a 401k and stocks. Should I plan to get out of the stock market and buy PM? Would you draw the money out of the 401k? I think I’d feel safer putting that money into PM and I could live comfortably on my income. I have a farm and grow a lot of what I eat. Thank you for what you do…you have opened my eyes.

TPS Reply:  Thanks for the email and nice words. It sounds like you’re making wise choices since losing your husband…… I can only imagine how difficult this last year has been. What impresses me most is how you’re utilizing PMs as a foundation for an independent lifestyle, very cool.

As you may know, I’m not a fan of retirement accounts or the stock market. I’m not saying that all stocks are risky or all retirement accounts are in jeopardy but we have certainly entered an age when politicians salivate over exposed pools of cash. My bet is most pensions and retirement accounts will fall under some form of capital controls.

Let me ask you; does this risk, of a bureaucracy controlling your capital, fit into a life built around self reliance? Your situation is unique in that you have personal wealth stored in both PM and “typical” investments too. I would favor PMs over traditional investments (given the times we live) and here is why.

I don’t have a crystal ball but here is how I see things playing out. Wall Street, the Federal Reserve, US Treasury, and this Administration are too wise to outright steal the wealth from those invested in stocks or bank deposits. Oh, don’t get me wrong, they will take some of it somehow but not as directly as what we’re seeing in Europe.

A more likely scenario is one that presents itself as a “takeover” that protects your wealth compared to flat-out stealing it. Those who understand currency debasement and capital controls realize confiscating wealth (like the retirement account you mentioned) allows a government to pay it back over time and with debased dollars. This also empowers a growing government as millions more rely on trusted politicians for groceries, shelter, healthcare, you name it.

Millions of other folks are asking themselves the same “do I or don’t I” type monetary questions. I wish I could offer more but…… honestly, no one knows how far an overreaching government will go in such a time.

Regardless, you’re miles ahead of most Americans….. good job!! Oh, be sure to read the next question because I’ve purposely combined it with yours. Thanks again.

QUESTION:  Why is it that my financial planner has nothing favorable to say when I bring up relocating some wealth into physical metal? It’s getting a little old.

TPS Reply:  I hear you loud and clear…… and couldn’t agree more. You can’t believe how often I hear this question from readers who are, like you, growing uneasy with the same nonsense. It’s not only monetarily foolish to not consider physical PM; it’s also playing out to be financially catastrophic in some cases.

Equities have benefited from the creation of a currency that can no longer sustain itself. The U.S. can continue to solely print US dollars (causing worldwide tension) but we can’t print jobs. Nor can we fool ourselves into using printed currency to create temporary jobs while simultaneously believing this is our path to a true long-lasting recovery. IT IS NOT.

Financial advisers have little to gain when your cash leaves the status quo and then reinvests into physical silver or gold. Why would an adviser recommend an asset that profits them nothing? The answer is pure and simple, at least from my viewpoint.

QUESTION:  A relative sent over a site that sells junk silver for as low as $24 per ounce. Why should I pay the premium for American Eagles?

TPS Reply: Thanks for the question. Why would anyone sell physical metal when today’s premiums are around 30 to 40% over silver’s spot price? I would be very skeptical since it’s way too good to be true. If true, please send over the info because TPS has several thousand readers who will buy a boatload ASAP. Thanks again.


FED chief Ben Bernanke will be the first chairman to miss Jackson Hole in 25 years. This event is the Super Bowl for central bankers and I’m not buying the conflict in schedule excuse (this would be like Tom Brady too busy for America’s biggest NFL game). It leads me to ask if Bernanke is on his way out as the most abusive banker in world history. Trust me, we will keep a close eye on Bernanke’s exit and whoever fills the position of the next most powerful person on earth.


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.

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TIME TO BUY SILVER & GOLD? One expert recommends patience!


Okay, I admit it, I find myself asking if now is the best time to add more physical metal to my 10-year-old stash.  Also, I admit paying little attention to what motivates silver and gold, short-term speaking, since most short-term influences are beyond me. We both know Europe is in the death throes of financial hardship as good currency chases after bad. We both know the smallest spark could send PM (precious metals) skyward with little warning. Yes, we both know a limited supply of physical metal could disappear overnight too.

But today’s investment writer makes a good point to wait and I won’t argue with the valid points he makes.  I’m very appreciative that Precious Metals Digest founder Jim McCraigh is willing to share his opinion on why now might not be the best time to buy physical metal.

Jim McCraigh Q & A

Question: Jim, tell us a little about the motivation behind Precious Metals Digest and where you see the site going from here?

Jim M. –I have been interested in investing since first going to work for a commercial bank in 1971, especially in the real estate and precious metals markets. Precious Metals Digest was created to sift through the avalanche of articles, videos and blogs on PMs…some of which is very good and some of which are not so good… and present the best to readers in an engaging and informative fashion. The site will eventually feature more vetted guest writers to offer a diverse set of viewpoints. I’m personally not a gold bug… per se, but I am an investor who wants to make money by either buying or selling different PMs. We will also cover some of the miners, along with platinum, palladium and rhodium going forward.

The mission of the site is to serve investors by helping them navigate the world of PMs. We’ll do this by sharing with readers the things that I would want to know myself as a PM investor. The site is designed to be an alternative to mass media noise and present the facts so that the reader can decide for themselves. We won’t be a news site as such since there are already some good ones out there. However, we will include focus on global and US macro-economic issues and other markets (equities, bonds and currencies) to the extent they affect PM prices.

Question:  I take it from reading your posts over the last month that you would advise those on the PM sidelines to patiently wait to see how this dip shakes out, is this correct and why or why not?

Jim M. — I ‘m glad you asked that question. There is likely some more volatility ahead for at least the early to mid summer period. I’m still preaching patience for both buyers and sellers here, but we might better substitute the phrase “disciplined approach” for patience here. For sellers, that means not trading out of positions in an emotional or fear-based way, but hanging tough until we begin to see the hint of a decent volume-based uptrend again. The only exception to this might be if someone has carefully considered trailing stops in place that are crossed and they sell as part of their overall trading discipline. What I want my readers to understand is the back story for precious metals is still intact… politicians globally will choose to react to deflationary pressures and sovereign debt issues by massive money printing measures.

Buyers should realize that gold is in a secular bull market, and that some attractive entry points may present themselves this summer because of anticipated volatility. As things continue to deteriorate in Europe, we could see more short-term strength in the dollar that puts pressure on prices…. But on the horizon for late summer are some potential market movers like a QE3 that could spike PM prices upward. Gold’s moves will be big in the coming months and years. There is no need to try to time the market here. Sometimes investors feel that they have to DO something. Being patient (and disciplined) IS doing something!

Question:  I’ve noticed at TPS my readers lose interest during times of PM dips. In your opinion, are we as investors too concerned with short-term PM fluctuations?

Jim M. –Unless an investor is a day trader (I wouldn’t recommend it unless you are a true expert) short-term price movements should mean very little to most folks. What’s important is the longer term trend line measured in weeks, months and years… not daily or weekly closes. Reacting to short-term price moves is like driving while only looking at the road a few feet ahead of the car. Sooner or later you’ll rear-end a slow-moving truck ahead that represents the trend line and there will be some serious financial damage.

It is interesting you mentioned that there is often an apparent loss of interest during dips. The smartest investors will strategically buy those dips (read opportunities) in a disciplined way while the herd will wait too long and pay too much. If we pay too much, we will rarely make any money or even worse lose big chunks of principle. For me, investing in PMs (or equities or bonds) is a year-round endeavor, not a one month on and two months off kind of thing. If an investor is not willing to be active, they should engage a licensed professional financial advisor to help manage their money.

Question:  Can you share with our readers what other assets (investments other than gold/silver) you see as solid considering today’s economic volatility?

Jim M: –What I can tell you is that I own some agricultural commodities right now… As the world prospers, the first thing people want with their new-found money is more and better food. This will cause some demand based price inflation. So I would want to own some of those here and ride them up over the long term.

I am long GLD, SLV, PHYS, NEM and RJA

Thanks Jim and we look forward to following you at Precious Metals Digest.

News Worthy:

Slate: The Coming Global Recession

America is still recovering from the Great Recession and Europe is melting down, yet from a global perspective, the economy has never been as healthy or prosperous. The world economy enjoyed amazing growth from 2002-08, took a small dip in 2009, and then went back to growing. Sadly the good news seems to be coming to an end in Brazil, China, and India, and that’s horrible news for us.

More alarmingly, both China and India are running into trouble. Catch-up growth, in which a poor country improves its public policy, begins importing foreign production techniques, and gets rapidly richer is a time-honored Asian tradition. We saw it in Japan, then South Korea, then Taiwan and other Asian “tiger” economies in the 1980s and ’90s. China and India are so large that their catch-up growth was able to raise the entire worldwide rate of economic growth. That’s why the world economy kept growing through the 2008-09 financial calamities. Read it here.

TPS adds, what this article lacks to mention is even emerging countries were beneficiaries of the U.S. bubble economy.  In other words, the world recession was postponed by a consumer based economy dependent on debt and deficit spending. Credit tightened and now recession becomes more obvious. Sounds like a good time to be vested in gold.

News Worthy:

The Gold Report: Will Gold & Silver Fall All the Way With the Euro?

What we’ve seen lately is gold and silver prices moving with (and often faster, both ways) than the euro, but the link remain solid. With concern for the future gold and silver prices in mind, it’s time to examine this relationship to see where it’s taking these precious metals. With the Eurozone crisis moving to potential ‘runs’ on Greek and Spanish banks, the future of the euro is now on the line. A look at a precipitous fall in the euro and the potential for gold and silver to follow is warranted. Investors should be prepared for very volatile and surprising gold and silver price moves. Read it here.

News Worthy:

The Gold Standard Now:  2012 –Good Money & Jobs vs. Easy Money & Stagnation

The 2012 presidential election is shaping up to include an argument over opportunity versus equality.  The American economy has been stagnant for a decade.  Income for working men has been stagnant (or even contracting) for 40 years.  Why?

40 years ago is when America started abdicating its classical high-growth monetary policy, the gold standard.  We abandoned good money to chase after a chimerical improvement of easy money — ostensibly to promote job growth.  But as 40 years of wage stagnation has shown, easy money has failed. Read it here.

TPS adds, since releasing Why Silver & Gold Will Go Higher,I often hear questions that lead me to believe many who own PM don’t truly understand why they are so necessary. The last forty fiat years are proving to be more disastrous than most realize but this oddly works in favor of real money holders (yes, even with today’s meaningless dips). Please take time to gain a basic monetary understanding before trading currency for silver or gold.

Comments & Questions:

Question: I just started reading TPS and new to silver and gold investing. Any pointers for someone new?

TPS Reply: Very cool and welcome aboard. You are taking the necessary steps to first educate and then decide if silver and gold makes sense to you. Your question is a common email we receive several times a week, here is my advice. Read everything related to physical gold. Don’t rush into buying either metal. Do begin a plan how to relocate wealth from declining paper assets and into real assets like silver and gold.

Be sure to read First Steps to Buying Gold & Silver posted last Fall on TPS.

Comment: In my opinion, the derivatives market collapse could make the housing and stock market collapses look incidental!

TPS Reply: Yep, I 100% agree and will also bet less than 10% (invested) have a clue the risk of derivatives. Some experts estimate the derivative total exceeds an astonishing $700 trillion, can you imagine.  The run to real money, like PM, comes when the average working guy realizes his retirement is layered in piles of paper promises, like derivatives. I will roll the PM dice any day over piles of paper. Thanks for the comment.

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A friend asked me recently if the drop in gold and silver bummed me out and if I was thinking of selling.  At the same time this person also mentioned how their home had dropped from an appraised value of $890k to $400k in less than three years.  I wanted to say I would seriously consider selling my metal if it dumps 55% ( like their home’s value) but didn’t see the point.  It is odd how precious metal continues to have to prove its value while few question trillions lost in real estate and stock?  The bottom line is paper gold and silver are showing volatility but physical metal is holding up well all things considered.

As more realize the recovery of 2011 was just a facade, interest in gold and silver grows by the day. By no means has gold and silver reached a mania point but it certainly is getting its share of media mention.  It really has turned into a worldwide market (unlike the last gold spike of 1980) as readers of www.theprospectorsite subscribe to our online newsletter from China to the UK.  It seems somewhat odd the same concerns we have in the U.S. are the concerns of folks all across the earth.  The problem?  Too much spending supporting too much government and too few leaders willing to ignore honesty and integrity.

But today’s post is how physical metal maintains value by increasing its premium over paper gold/silver. This morning I checked with a couple of brokers I buy from noticing silver carries a 13% premium in today’s market.  Like we have thought all along, physical metal will span volatility by holding its value through premiums.  The Golden Rule will (is) kicking in as all realize “those with the gold rule” and those without grow more concerned with each passing day.

The oddity of it all is precious metal fence sitters are seeing yet another chance to own metal at reasonable prices. Unfortunately these “dips” send more to the sidelines not the bullion lines as doubt wins out over common sense.  These are the same folks who will eventually buy $60 silver as more traditional assets work their way through the wealth cycle.  I’m convinced the more people pay for gold and silver the less likely they are to sell when metal dips like it has over the last few weeks.  The precious metal market will turn the confidence corner soon as more folks realize the recovery of 2011 is just the start of a long purger of too much government and too much debt.


We received a couple of question in reference to our last post What Motivates Us To Buy Gold.  Remember the goal here is provide gold and silver information that allows you to formulate prudent money choices.  It sounds like many readers are doing just that.

QUESTION:  Where did you find the fact less than 2% of the world’s wealth is in precious metal?

ANSWER:  Great question and thanks for asking, and reading. The information we used came from a very reliable precious metal expert named Mike Maloney with wwwGoldSilver.com.  Mike certainly is a numbers guy and very bullish on gold and silver as he travels the world preaching the benefits of metal ownership.  Less than a year ago Mike posted a couple of graphs (see them here) showing how the world’s assets share prosperity and at that time only 1% of the world’s assets were in metal.  Flashing forward to 2011 and I have no doubt the wealth in stock, real estate, and private businesses have declined moving more wealth into gold and silver.  Experts believe, even with this latest cycle, less than 2% of the world’s wealth is in gold and silver.  This is and will change dramatically in gold’s favor.

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Do you ever ask why we can’t accurately predict growth of say gold, stocks, or real estate?  After all, shouldn’t the economy be a simple prediction since by definition economy is consumption of money, material, and resources.  But the last few years have been nutty and making a once solid commitment could lead a guy to the poor house.  You and I both know this shouldn’t be the case.  Supply, demand, and stability should dictate where we invest and how much.

I’m sure most readers realize by now I’m bullish on gold and silver.  What you may not know is gold and silver is not my first investment choice, heck it’s not even my second.  Today we look at why we can’t predict the economy and why this instability only helps gold and silver holders.


I looked for a weaker word, really I did, but nothing seems to describe it as well as manipulation.  Never in modern times has so much government involvement found its way into economies around the world.  Quantitative easing, bailouts, cash for clunkers, monetizing debt, TARP, and the list goes on.  A major reason why you and I can’t judge a good or bad investment is because so many unnatural influences find their way into our capitalist system.  It is no longer enough to judge a market or business on its own merit we now must see how artificial stimulation will affect value.

Why did real estate appreciate so high only to drop like a rock?  Is now a good time to buy real estate?  Artificially low rates pushed values beyond reality causing millions to pay far beyond true market value.  Now these same folks pay on a home worth less than half the price purchased.  These buyers took the risk and failed but what about others that took no risk at all yet now see their store of wealth, their home, becoming more worthless everyday because of an endless supply of bank owned property?

Not a day goes by without someone predicting gold and silver are in a bubble and will fall, not a chance. The three things manipulation causes is uncertainty, fear, and greed.  I have news for the naysayers, this blend of uncertainty is what pushes real money to the surface and to misjudge the value of precious metals is costly.  Experts do expect huge dips and swings but a bubble, no way.  I mentioned earlier gold and silver are not my first choice(s) but they are my source of savings and here is why.  Physical metal is nearly impossible to manipulate.  They cannot be reproduced, printed, or counterfeited.  Their value is derived without government bailouts, tax payer help, or any other crafty form of manipulation.  Now we are talking physical metal here not paper, just want to be clear.  Can you name another investment that can say the same?  Thanks for reading The Prospector Site.


WEEKLY STANDARD:  Obama’s Economists: ‘Stimulus’ Has Cost $278,000 per Job

In other words, over the past six months, the economy would have added or saved more jobs without the “stimulus” than it has with it. In comparison to how things would otherwise have been, the “stimulus” has been working in reverse over the past six months, causing the economy to shed jobs.  Read it here.


NASDAQ:  Gold Could See $1,800/oz on Seasonal Strength and Deepening Eurozone and U.S. Debt Crisis

In the U.S. political squabbling over raising the $14.3 trillion debt ceiling continues. However, it is likely to be resolved as the massive liabilities incurred (not including unfunded liabilities of over $60 trillion) simply cannot be paid back. It is therefore likely that more debt monetization (creating money to buy government bonds) will occur leading to further currency debasement and the risk of stagflation and severe inflation.  Read it here.

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GOLD & SILVER   1 comment

Folks in North Dakota have hands on experience just how destructive swollen rivers are to homes, farmland, and lives.  As you read this post many in this state are asking how high the water can get and how much longer extended dirt banks can hold back historical flooding.  I’m willing to bet where you call home will not be affected by this flooding but what you may not realize your own water of concern is rising and now is the time to ready for the economic flood.  Today we look at the rising tide of economic collapse.

We recently posted asking how much silver is enough to protect in this age but the fact is just like the state of N.D. had no idea how high the water would rise neither do we from a collapse point of view.  For certain debt, inflation, housing, and overall economic water is rising and those unprepared will find it most destructive.  Most don’t realize how powerful gold and silver are as economic sandbags by holding back ill effects of debased dollars and will only realize when swelling costs put ownership beyond reach.  Like North Dakota, the severity of the situation sweeps possessions away as helpless watch and worry.  You don’t have to be a victim.


Daily we watch world government leaders meet trying to solve what governments caused.  People protest loudly but their cries are misdirected and energy wasted.  Most governments are reactive to problems or issues long after they have taken root by choking out true prosperity.  Every century or so it takes a wall of water to flush away everything allowing new growth and those willing to bury dying industries to get to work.  What we are seeing today is a flushing of top-heavy governments indebted in entitlements no longer able to keep promises made long ago.  Again, the economic water rises and soon to be victims cry for help to the same source that opened floodgates.

Ben Sherwood in his book Survivors Club points out most people become victims of disaster because they never plan what to do if the situation arises.  He points out how witnesses of a subway fire tell horrific tales of folks not running for safety but asking others fleeing if this life threatening disaster could delay their travel.  Unwilling to face the tragedy and unprepared to help themselves.  If you are new to gold or silver ownership and asking how physical metal can protect your family please keep reading sites like this and others to fully grasp the insurance value of precious metals.


The Prospector Site is not as much a promoter of precious metals as it is an advocate of self-reliance.  The best person to handle your savings is the one reading this post.  The days of blindly trusting others to protect and grow savings are over and now replaced with self-educated willing to protect their own interest.  Physical gold and silver should be top of this list of independence along with anything else that provides a buffer of self-reliance.  Several times we have posted how many individuals will grasp this trend and profit from it.  I hope it’s you.

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I recently heard a story of a little girl running for class president promising cake and ice cream for all classmates if she won.  She won by a landslide, of course, over her running mate who promised to work hard, be honest, and represent the other children well.  Today we are witnessing history as countries like Greece burn because of promises to people who can no longer be paid for.  This next sentence should bring it all into perspective like nothing else can.  The biggest difference between the U.S. and Greece is our country has the power to print money.  Today we look at what happens when the printing stops.


If you’re part of the 2% who own physical metal then congrats on the wisdom that few understand.  This year, 2011, will go down in history as an awakening world-wide exposing the truth of paperless money with no value.  I have always appreciated the honesty of gold and silver as it patiently watches economic calamities around the globe showing no intimidation at all.  I guess it shouldn’t surprise seeing that gold has seen all this before and unfortunately will see it again.  My fear is as prosperous as it will be for gold/silver holders it will be just as devastating for the non-holders of real money.  As always, thanks for reading The Prospector Site and feel free to sign up for our no cost newsletter.


We mentioned earlier the biggest difference between the U.S. and Greece is the ability to print money.  Please take a look at a few recent headlines but instead of the word “Greece or Greek” substitute “United States”.  Here we go.

ATHENS, Greece (AP) — Greece was wracked by political turmoil Thursday as the embattled prime minister faced down a party revolt over new austerity measures — a bitter dispute that forced the EU to hint at new loans so Greece can fend off a summer default.

The party feud heightened worldwide concern that a Greek financial collapse could trigger panic elsewhere in the 17-nation eurozone — a fear that saw borrowing costs in vulnerable EU countries surge and stock markets come under pressure

But fears of a second Greek bailout drove the yield on Greece’s two-year bonds above 30 percent for the first time ever Thursday and kept the 10-year equivalent near all-time highs around 18 percent.

“The measures we are implementing are only cuts in salaries and pensions,” she said during the emergency meeting. “We voted for other measures but we have not implemented them.”


SYDNEY MORNING HERALD: The original bailout has failed. Despite tough cuts over the past year, unemployment has risen and youth unemployment is at 42 per cent.

”They are traitors, they’ve plagued the country,” said one unemployed woman of the nation’s politicians.


The United States has an option most countries don’t and that is to print more of the world’s reserve currency, dollars.  The problem is other countries can’t print more dollars so each dollar they own of ours debases, or devalues, every time we print more.  Below are typical results of over printing and buying our own currency.  Time will tell but typically this is what happens in the latter stage of fiat currencies.

  1. Higher interest rates like recently reported in Greece necessary to offset risk and attract new buyers of debt.
  2. College age unrest. Like the youth of Greece with 42% unemployed but worse because of unprecedented college debt with little chance of paying it off soon.
  3. Real estate decline caused by higher interest rates, high inventory, low demand.
  4. Inflation increasing as the U.S. Dollar transitions out of the world’s reserve or returns to a gold standard.
  5. Gold and silver increase to new highs daily with huge premiums on physical metal.  Fear and greed inflate a solid safe haven like precious metals into bubble territory.
  6. Major stock declines as investors lose faith in overpriced stock.

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Few are willing to call it but the facts show the 2011 economy is far from any form of a recovery.  Like a boxer past his prime, many industries are dying regardless of how much tax payer bailout money is thrown away.  The ones willing to accept this change strong enough to divest from dying industries and dying dollars have a much brighter future than ones that don’t.  Today we look over three dying industries and three emerging industries.  Once again, the facts aren’t what we want to hear but they are the truth.  The question, are dying industries stealing your money?



I recently had a lady email me saying she understood the benefits of gold but wanted to invest her savings in something with a long track record like stocks.  I guess 5000 years as real money is not long enough for this investor.  There are two reasons why Wall Street will soon decline and if your savings is here please listen up.  The #1 reason Wall Street is in danger of decline is many stocks are not worth what they sell for, not all of course but many.  Billions in bailouts have created a Wall Street bubble and its collapse will evaporate billions of dollars from hard-working citizens.  The second dagger for Wall Street is greed by exposing new crooks every time we turn on the news.


Gold and silver will see a major part of fleeing Wall Street money for many reasons but none more than boomers protecting a shrinking nest egg.  We recently posted how a majority of our seniors have no hope of ever retiring by admission.  It is difficult for some to believe an asset with a ten-year bull run is an emerging market but the truth is physical gold and silver is cheap compared to not so distant prices.  The next phase of precious metal buyers will find motivation by fear and self-preservation.  Combine this with a limited supply of physical metal and it’s not hard to see why many experts predict $2000 gold soon.



The Prospector Site has posted several examples of residential real estate for sale at 1/3 of replacement cost.  Think about this for a second, why would someone build new when an existing property can be bought 50% to 70% less?  This price decline coupled with huge inventories is playing havoc for all remotely related to new construction.  Case-Shiller Index recently stated our residential housing problems are many years away from improvement.  Those sitting on large inventories or equipment dependent on new developments may want to reconsider, quickly, these positions.


If you have been a homeowner for anytime then you know stuff around the house needs fixing.  Now I’m a handy guy but anything plumbing or electrical related and my first move is calling a pro.  Regardless of how bad our economy becomes there will be a need for quality service oriented repair companies.  Some contractors will easily slip into this emerging market but others will see it coming only after it’s too late.  Repair type business has many benefits including low overhead, low manpower, and low capital needed.  As we see more owner occupied property move into the rental category the need for repairs will be as large as ever.



The cattle ranching industry has a simple term, and I will paraphrase a little, by saying the source of the milk is dry.  Not only those dependent on entitlements but ones that draw a paycheck dispersing entitlements are at risk.  John Stossel ( see it here) recently reported how a Alabama town cannot pay pensions for retired municipal employees.  Imagine someone telling you thanks for 30 plus years and by the way we have no way to pay your pension.  History will show debt and entitlements broke the back of our current economy with some help from greed and stupidity.  Older or disabled folks will feel this pain the most as entitlements dwindle just as housing, food, and health care cost rise.  The saving grace of community churches, clubs, and organizations will step up just as government entitlements step down.  Your help will be needed.


By definition, independence means a sufficient income for comfortable self-support.  The one thing I love about owning gold and silver is how I usually feel the day’s bad news is pertaining to someone else.  Please don’t take that wrong because I’m all about helping others every way possible, in fact, gold and silver allow this to happen.  A dependence shackles those willing to succumb to a power of control therefore dependent on this power.  Let me give a few examples of how precious metal ownership breaks the shackles of dependency.  Inflation is powerless over gold and silver.  Declining real estate values are powerless over gold and silver.  Government deficits are powerless over gold and silver.  Social Security cut backs, Medicare cutbacks are powerless over gold and silver.  Your local bank closing is powerless over gold and silver.  Are you starting to see the point here?  Independence is the next big trend and the foundation to independence is a safe store of real money.


FORBES 16 Things I Wish I Knew About Money When I Graduated College

12. Never invest in anything you don’t understand. Otherwise, you won’t know what you’re buying; you won’t know when to sell; and you can’t accurately evaluate the advice you’re given.

15. The biggest financial risk you can take is to ignore your money, and do nothing at all.  Read more here.


FORBES:  10 Things Not to Do When Going Back on Gold

The lesson is to keep it simple. Properly run, you’ll see the gold standard deliver in huge fashion – in terms of growth, living standards, and the ability of people to save money that will hold its value. Populist results will come from hands-off policy.

It’s getting to be a distinct possibility that relatively soon, the major world currencies will make themselves convertible to gold once again.   Read more here.


MARKETWATCH:  Real-estate scam that’s devastating prices

WASHINGTON (MarketWatch) — Question: My neighbor in Palm Springs, Calif., who claims to have millions or more in the bank, let his home with a $1 million mortgage go into foreclosure. A real-estate friend of his bought it from the bank and is renting it back to him. After one year, my neighbor plans to buy it back. It affects me as a homeowner because now we have a home in our community that shows a sale price for $600,000, instead of the current market of $725,000. How do I report such activities? —J. McK.

Question: I am a real-estate broker in San Marino, Calif., that specializes in foreclosure and short-sale properties. Although Bank of America is a client of mine that I regularly represent in such transactions, I am interested in bringing to light an advertising campaign that I have found offensive and, dare I say, even racist? Any idea how we could get these ads some publicity that might make them a little more sensitive to their customers? —P.A.  Read the answer here.

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This was the question Robert Shiller with Case-Shiller Housing Index was most asked at the Housing Summit 2011.

Audience members, largely from the finance industry, kept asking the same question in different ways, ‘When is this all going to get better??’ Source CNBC.

Mr. Shiller couldn’t answer the question anymore than you or I can but somewhere between the question and the answer lies the facts so this is what we will look at today.  As we posted yesterday, I sincerely feel opportunity is there for most but only those willing to adapt to the normalcy of major change.  Let’s look at how Mr. Shiller answered the questions at the summit.

We already have millions of borrowers who are not current on their mortgages. They haven’t hit the foreclosure pipe yet, but many will, and the panelists seemed most concerned about this huge glut of properties that will not just hit, but continue to plague the market for years to come.

This “wage-less recovery,” he argues is largely behind the lack of buyer demand, despite much-improved affordability.

How I interpret this not so good housing news is this.  Even with low rates and affordable houses few are buying based on lack of buyer demand.  Kind of like selling Christmas trees on December 26th.  But not one person born and raised in this great country is accustom to a long-term recessed economy.  The part that makes my stomach ache is Mr. Shiller’s quote below.

“Statisticians deal with things that repeat themselves. This housing boom and bust is so historic and unprecedented, you can’t forecast the future because you have no comparison.”

The Prospector Site has posted several times how this economy is in uncharted waters and Shiller just stamped validation to this fact.  Folks we have nothing to compare this to and I’m not just talking about housing.  We could substitute national debt, jobs, you name it.  Not trying to be a bummer just stating fact so we can put together a game plan, right? One thing I have learned running business is to fix a problem all decision makers must first establish fact and agree on it.  Only then can a true remedy be found.

“Getting better” for you may be different from your neighbors.  We have been beating the self-reliance drum promoting people to create a safe buffer between themselves and dependence of any kind.  It seems those dependent on uncontrollable sources are the ones in trouble most.  Maybe this is why we promote a saving or insurance in gold and silver for those able to still swap dying dollars for metal.  Maybe the getting better question will be less relevant to those owning physical precious metals.


Physical metal owners along with self-reliant types are less likely to ask when things will get better.  If you have yet to trade dollars for gold or silver please consider doing it soon.  Yes I know it’s expensive but it’s expensive because it is worth it.

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Not a day goes by without my email looking back at me with the question“what should I do right now?” This confusion is creating a state of economic disorientation stemmed from once solid sources of income drying faster than a Polar Bear dipper on New Years Day.  The premise of The Prospector Site is not about advising folks how to invest but to offer an informative resource that assists you in making smart, and independent, decisions with your money.  We could easily talk one day about silver rounds then the next about rare gold coins ( and certainly will) but these are features of metal ownership when benefits are what we are after.

Acceptance of old retirement and investment ideas as dead is the first step to taking control of your personal financial independence.  The days of sending off a percentage of your paycheck and then praying it grows is as outdated as the typewriter.  We saw just how volatile 401(k) accounts are back in 2007/08 when the stock market crashed to half of its high in a matter of days.  The odds of this happening again are as high as the ever-increasing national debt.  Another concerning fact is underfunded pension plans from state to state.  I completely expect many pension contracts to be restructured before this is all done.  My question is why chance it if you have a choice.  The choice for many is to add gold and silver to help give a source of savings for your families future.  The days of one single form of retirement are over.

The second thing I would do right now is empower myself on how to trade dollars for gold or silver.  I will go as far to say silver would be first choice.  I would go online or call at least one major precious metal broker like Kitco.com or Blanchard.com to see current prices for one ounce silver coins, rounds, or bars.  I would then go to my local coin shop to see what they sell the same silver for.  If I could buy local and close to what I could buy online for then local it would be.  What I wouldn’t do is be talked into buying rare coins that I know nothing about.  What I wouldn’t do is rush into something without due diligence. Let me recap in list form.

  1. Research all aspects of gold or silver ownership including risk.
  2. Check with online silver or gold brokers for current prices of physical metal.
  3. Check with local coin shop(s) to compare pricing.
  4. Not accept advice to buy rare coins as first purchase.
  5. Buy as much as comfortable realizing this is part of the learning process.
  6. Not watch over my new silver or gold like a new-born baby.
  7. Make a long-term plan including how often to buy and how much.


  1. Local purchases can be with cash, check, or credit card depending on your shop.
  2. Online purchases can be made by check, wire transfer, money order, cashier check, etc.
  3. Most gold & silver purchase are not subject to sales tax.  Check with your state or shop.
  4. EBay auction houses will accept PayPal type pay services.

QUESTION:  Say I decide to buy silver coins from a silver broker.  Are the coins new, do I actually receive the coins, and how do I use the coins?

ANSWER:  Good questions from a new metal investor and congrats on taking the plunge.  It depends on the silver you decide to buy.  For instance American Silver Eagles are new (uncirculated) regardless of the date on the coin.  No one would use a minted $1.00 coin that is worth many times face value because of the silver within it.  If you decide to buy junk silver or rare coins than “yes” the coins within are pre-1965 circulated coins that attribute value not by the number on the coin but the silver content of each coin.  The last part of your question about how to use the coins can be answered by one word, “don’t.”  Find a safe place and store them.


  • ONE OUNCE SILVER BULLION:                     $44.32

  • ONE OUNCE SILVER ROUND:                         $41.98

  • ONE OUNCE GOLD BULLION:                         $1535

  • ONE OUNCE  GOLD BAR:                                  $1498

TIP OF THE DAY:  You cannot go wrong with new silver or gold coins.  These coins usually come with a low premium(compared to proof or rare coins) and their value is easy to track.

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GOLD & SILVER, GOLD AND MONEY   No comments yet

If you are new to The Prospector Site thanks for visiting and congrats on taking a big step toward protecting your family’s wealth.  We are not economist, financial planners, or precious metal brokers.  We do offer unbiased information on ways to store wealth and protect your money.  One of the most common questions new investors have is whether or not gold is real money.  After all you cannot take gold coins to the market or movies and expect businesses to trade for services.

If gold is not money then what is?  If you were to ask a 100 people on the street surely 90%  or more would say dollars are real money and gold is not.  The same people might complain that dollars don’t buy what they used to but nevertheless they truly believe dollars are real money.  But most, if not all, other assets leave buyers with some tangible when purchased.  If we buy real estate we receive a trust deed as proof of ownership.  If we buy stock in a company we receive a stock certificate that shows we are holders, or partners, in the same company.  If we buy gold or silver we get either physical metal or a certificate that represents ownership of metal.  But what about dollars?

When you cash your payroll check the teller hands you over a stack of paper money we call dollars.  We rarely think about these same dollars being absolutely nothing but printed paper but that is all they are.  If the average Joe realized that dollars are backed by nothing or valued to nothing they would be a little more concerned.  The only reason more folks are questioning our dollar’s value is because they see dollars buying less everyday.

For thousand of years countries have used gold as money and why shouldn’t they?  Gold doesn’t rust away, its rare, and its the most durable of all metals.  To use it as a store of wealth makes sense so why is it we don’t use it today instead of dollars?  The answer to this question can be answered in two words.  Fiscal responsibility.  Most of us understand from school days that dollars used to be backed by physical gold (gold standard) but not anymore.  When dollars are backed by gold it means each dollar in circulation has to be backed by physical gold.  If our government, back in the gold standard days, wanted to spend money on a program or war they were limited to the amount of gold in hand.

The gold standard caused all kinds of problems because government leaders and politicians had made promises to get elected and the pay back required money.  Eventually the gold standard became boring and no longer fit a modern economical way of life of the 1900s.  By kicking gold to the curb allowed money to be borrowed when pet programs needed more funding (payback time).  Fast forward to now with a $14 trillion debt, dollar devaluation, bailouts, and underfunded social programs its easy to see how having a gold standard counters fiscal irresponsibility.

This may seem a little odd but every item you buy has a built-in cost for this debt.  It’s true because the same item would be substantially less if this massive debt didn’t need to be spread over all things bought and sold.  If it seems prices are going up then it will make sense that they will only go higher if debt increases (and debt will climb since we now use borrowed money to pay interest on borrowed money).  But what does this have to do with gold/silver?

Buying gold today freezes prices (everyday items) to this date and time.  Buying gold ten years ago froze prices(everyday items) to prices ten years ago.  Not only is gold money but it is the only way to “lock in” cost from inflating out of control.  To verify this to be true simply go back ten years ago and divide the price of a barrel of oil by the price of gold for the same time period.  In 2001 an ounce of gold would buy nearly 11 barrels of oil ( oil was $23 per barrel and gold was around $250 per ounce).  In 2011 an ounce of gold can buy 14 barrels of oil.  This means even though a barrel of oil cost four times the amount of dollars it costs less in gold then it did ten years ago.

TIP OF THE DAY:  Somewhere down the line Americans have lost track of what is real money and what is not.  Take time to learn for yourself of the difference between the two.  Regardless of  what told, look at how inflation has knocked the dollar to its knees.  On the other hand gold stands strong and will continue to surge as long as our economy is debt ridden.

QUESTION:  If gold is the best form of money then why do we spend dollars for everything?

ANSWER:  The only reason we trade dollars for goods is because dollars can be printed (or increased electronically).  This printing of money allows citizens, politicians, and governments to live way beyond their means.  The result to living like this is always destructive to middle-income folks (far worse for the poor).  Creation of dollars backed by nothing is the biggest taxation possible.

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