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

Not a day passes without a prognosticator preaching economic and financial ruin. Such a dire prediction stirs fear in the hearts of some yet supports a state of denial for others. Personally, I don’t believe in the school of economic collapse, at least not in the typical sense we so often read of. I believe the economy is and will continue a course of correction. Now, let me be perfectly clear. This correction could potentially feel like collapse since far too many are socially, spiritually, individually, and economically prepared for anything other than a stereotypical state of normal.

I blame a government that refuses to instill individual responsibility, promotes institutionalization, and….. in some cases – a cradle to grave dependency for such widespread inaction. Unfortunately, physical silver or gold isn’t even on the radar of our ill prepared.

The correction each must recognize affects us individually, and in many ways. Far too many have made the prudent step to buy physical PM (precious metal) but are at risk of becoming a short-term PM seller stemming from a lack of overall preparedness. In other words, they will sell their metal, to continue living a life of normalcy, just when they most need PM. This could come from desperation or it could come from monetary ignorance; it’s just too soon to tell .

The collapse (as most put it) is happening as you read this….. all in slow motion. Ask the man on the street and they will quickly point out a lack of good paying jobs. Ask a banker and they will say the problem is a lack of credit. Ask a politician and they will lay blame on the opposing party or a previous administration. The fact is all the above are 100% correct, but this does nothing to help our situation.

Nothing will stop today’s course of correction because too few are willing to acknowledge the destructive nature of overpopulating a currency. This neglect is building into a monetary civil war within the United States. The type of person willing to trade dollars for PM suffers great anxiety by living in a country that is no longer willing to address our economic challenges with rationality. This is why we’re reading about states proposing legislation in hopes of creating an alternative currency (Utah, Arizona, etc).

Our country has far more to lose from conflict than economic collapse. A divided nation is vulnerable from within, vulnerable from afar, and everything between. Why else is it so many folks like you view PM as the get-out-of-Dodge-card? Wealth stored within physical silver or gold provides an option, or luxury, most will never realize. In my opinion we are well beyond asking “if” our economy will collapse.

What now?

Without fail there is one common question asked when I consult with folks about buying and storing precious metal. They all ask if there is anything else they should be buying or doing other than whatever it is they are actively “doing”. These folks fail to recognize that they’re miles ahead of 99% of all other Americans, politicians, financial planners, economic advisers, accountants, etc. This is what a call the “what now” syndrome.

I’m convinced that a person willing to make the effort to buy physical PM has what it takes to answer the what now on an individual basis. Since you’re reading this post I congratulate you and your ability to actively pursue a personal stake of individuality in a day of complacency. Your next what now could be a career change or it could be relocating where your family calls home. Your next what now could be the start of a plan that includes internationalizing your wealth or it could lead to internationalizing where you live.

Four years ago, my what now led me to relocate my family from a high taxation state to a less populated  and more independently minded fly-over state. Over ten years ago my what now led me to trade dollars for physical gold. The what now inside you could lead to gardening, reloading, campaigning, prospecting, serving, fasting, start-up business, downsized business, who knows? Whatever your what now is please remember this. Owning precious metal should be the monetary foundation of a life commitment to self reliance so that compromise is never a word atop of your to do list.

Let everyone else worry about economic collapse while you focus on reality.

QUESTION:  DC, last week we found out some silver American Eagles circulating around the US and Canada is actually counterfeit reproductions made in China. What steps can a small silver investor like me do to safeguard against fake bullion? Thanks for your work at TPS.

TPS Reply:  Thanks for the worthwhile question. The silver counterfeiting you mention has me greatly concerned for many reasons. Far too many folks view silver with skepticism, this news will only compound the level of silver confusion. It’s easy to say the odds of buying fake silver are low but very real for the few who actually find themselves as the unlucky few.

As silver inventories shrink the benefits of counterfeiting will rise. If crooks are willing to counterfeit legal tender this leads me to believe counterfeit (silver) bars and rounds is a bigger problem than anyone would like to believe. I view this as even more reason to buy from reputable sources who will stand behind every single ounce sold.

The fake silver problem will worsen as the secondary silver market grows because the secondary market is much less regulated, not to mention limitless. As of May 2013, I see no reason to buy fake bullion since the majority of silver sold transfers directly from the mint to the end user (you). I will admit such an opportunity is growing short as demand for silver bullion outpaces output.

I encourage each silver buyer to educate themselves on the sounds and feel of real metal. Real silver bullion is impossible to replicate if a buyer takes the time to look beyond appearance. Feel free to contact TPS for a list of reliable silver sources if you have any doubt.

QUESTION:  Are you buying silver rounds too?

TPS Reply:  Thanks for the tiny question. No, I’m not buying rounds at this time but I will as soon as legal tender bullion supplies dwindle to the point of what I feel are reasonably priced. Silver rounds usually cost less than legal tender coins; this is because anyone can legally mint a silver round. Some private mints will accept your larger silver bars and then melt (mint) the large bars into one ounce bullion, very cool. The fee for this service is minimal compared to attempting to sell a huge hunk of silver.

I like to buy recognizable silver when possible. Also, legal tender bullion will not trigger an IRS notification when a buyer sells bullion back to a PM dealer (please use due diligence since tax laws change quickly).

This doesn’t mean I wouldn’t but silver rounds, just not at this time. Thanks again for the question.

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: counterfeit silver, economic collapse, gold, physical silver, precious metal, storing gold, storing silver

Most folks completely misunderstand today’s silver market. Even more are unaware of the disconnect between physical metal and the highly leveraged paper promises, most commonly traded, thanks to large investment banks and bullion dealers. Oh sure, they believe silver’s spot offering (price) is relatively close to the physical silver market…… but they are mistaken (today we will prove just how unfortunate this is playing out to be). The PM crash in April of 2013 disrupted, maybe added is a better description, an alternative buying option, but this new option does come with a hefty price. If you’re one of the many silver hopefuls, and looking for immediate silver possession, please read today’s post closely. With that, welcome to the mysterious world of secondhand silver.

Lake Tahoe is one of the most unique lakes in North America. With 72 miles of shoreline and a depth of over 1600 feet, Lake Tahoe also has one other very unique characteristic. Although invisible to the eye, a state boundary runs through the middle of Lake Tahoe. Both California and Nevada lay claim to the pride of the Sierra Nevada mountain range.

Today’s silver market reminds this writer of Lake Tahoe because it too has an invisible barrier. The line between online physical silver for sale compared to cash-n-carry physical silver is now obvious. Let me explain it like this. A silver order placed today could take a month or longer to reach a nervous silver buyer; but an in-person silver transaction is immediate. The latter option is one our industry often calls the secondhand PM (precious metal) market.

Over 90% of the world’s investors view the price of silver in a paper dimension, as aforementioned. They see silver’s recent decline and say, “Thank goodness I didn’t invest in silver”, but not realizing paper silver is running a distant third in the great PM race of 2013. To expand this racing analogy, online physical silver (silver available to purchase but weeks or months until deliverable) is running a respectable second position.

Our silver runner in first place is our focus today. This, of course, includes all physical silver available in real time AND held by some entity willing to sell. The list shown below illustrates the mysterious three silver options of ownership priced in one ounce bullion.

1.  Paper silver. $24.00
2.  Online physical silver (back-ordered). $30.00
3.  On-demand secondhand physical silver. $34 – $37

No one knows when but it’s almost a sure bet that someday very soon silver buyers will have no other option than secondhand silver (most costly of all silver offerings) or speculate within the paper PM market. Sure some buyers will win the silver lottery with a limited opportunity to buy rationed online silver (Blanchard, Miles Franklin, Colorado Gold, etc) but this certainly will not be the norm. What will be normal is the realization of paying what the few willing to sell will accept.

It’s impossible to accurately estimate the additional premium for future secondhand silver. If I must, I would guess the secondhand silver market will soon escalate to a 100% premium over spot (or paper value) and then eventually reach a constant somewhere around 500% to 1000%, over silver’s spot offering, just as our economy reaches the epicenter of economic correction. I only base this estimation on the similarity between 2008s silver market to today’s – realizing the world’s fiat currencies then are nowhere close to today’s level of printing.

Please take one more glance at the three options listed above because 99% of the folks contemplating silver, but yet to own any, STILL BELIEVE THEY CAN PURCHASE AN UNLIMITED AMOUNT OF PHYSICAL SILVER FOR $24 PER OUNCE. This miscalculation will become more costly from here forward.

Precious metals are an unsolvable mystery. Today’s economic and political actions affect tomorrow’s silver availability. Then, a limited availability affects, or drives up, the price of physical silver. What affects the price of physical silver the least is paper silver. If you’re relatively new to silver please pay particularly close attention to the next sentence or two. The price of secondhand silver is worth it ESPECIALLY if new to physical silver. After some accumulation it is perfectly okay to purchase online physical metal (back ordered as I write this) while patiently waiting for its arrival.

QUESTION:  A large standup style safe will not work under my PM storage situation. Do you recommend using a bank box or passive method of storage in such a case? Thanks.

TPS Reply:  Not exactly but thanks for the question. My view of a secure PM storage plan includes using up to three storage options. I believe in taking a proactive approach to PM storage by thinking like a thief who is willing to part you from your metal. Most individuals storing silver and gold think in one dimension and this greatly concerns me. The right PM storage plan really does come down to each individual’s situation.

I recommend storing at least 1/3 of your PM within arm’s reach. This 1/3 can be stored many ways and a standup safe is one of but several options I recommend in Storing Silver & Gold. For less than $200 a security minded individual can purchase, and install, a compact safe perfect for securing what you’ve worked hard to amass (please check out Costco.com).

Bank boxes serve a limited purpose and I only recommend this storage option during extended travel or for the elderly uncomfortable with personally securing something like PMs within the home. BTW, don’t forget to insure all of your PM regardless how or where it’s stored. Thanks for the question and reading TPS.

COMMENT: Continuing to read and enjoy the straightforward approach at TPS.  I’m recommending TPS to anyone waking up to reality and wondering what is going on economically and how to protect themselves.

TPS Reply: Great, thanks for the recommendation. You mentioned something that caught my eye regarding protection. This really is about protection in an age when preservation is so important. So many complain about today’s fiscal insanity and all the economic and social volatility that accompanies such an age but few actually make a personal attempt to insulate themselves when possible.

I see the option to protect by way of PM as a closing window; even silver will soon become either too expensive for most or flat out unavailable. This is why I’m beating the PM drum ever so loudly while we still have choices to transfer our personal wealth beyond traditional avenues exposed to heavy taxation and capital controls.

Looking back……. I made a few PM mistakes by not knowing the best metal to buy and from whom. But each miscue led me to a new monetary understanding that now allows me to think for myself. My hope is each reader spending precious time with TPS develops this same understanding as well. Thanks for the comment.

BERNANKE WATCH:

The world’s most powerful man continues to tease our media with hints of slowing the printing pace, but those trusting PM know this is only lip service.  Unfortunately, our press repeats such nonsense without verification (see the quote below). Central bankers now realize economies worldwide depend on currency counterfeiting just to sustain today’s level of a failed economy AND support the millions who depend on some form of government assistance to live. There is zero chance quantitative easing will end anytime soon.

“A bigger-than-expected rise in tax receipts to Washington has improved the U.S. fiscal outlook, and the Treasury and private analysts have been taken by surprise by how quickly the deficit is shrinking. Belt tightening in the wake of the series of mandatory budget cuts worth $85 billion – known as the “sequester” – could further reduce federal borrowing needs if it doesn’t inflict lasting damage to the economy”.  Reuters May 2, 2013.

A bigger-than-expected rise in tax receipts is only beneficial under fiscal restraint. The latest housing boom, and then bust, provided both record levels of tax receipts and a continuance of record deficit borrowing. This means in good times or bad, the size of government grows regardless. Does anyone really believe a reduction in government spending will happen voluntarily or redirect government to live within their means?

Everything from funding pensions to printing food stamps now depends on the next level of debt creation to sustain itself. The thought of reducing debt, or a reduction in currency printing, is no longer an option. This fact alone will continue to create adverse economic conditions and cause PM prices to rise beyond what even the PM faithful can imagine.

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: invest in silver, paper silver, physical silver, precious metal, secondhand silver, silver, spot, storing silver and gold

Several readers have asked about buying more physical silver or gold since the April decline. My answer today will surprise many and this is why I’ve stepped up my blog posts since the great metal meltdown. It is important for each person to create a level of comfort within PM, regardless the price at any particular spot in time. With that said, let’s dive into the $64,000 question.

QUESTION:  I know what you will recommend but asking anyway. I suppose it is recommended that I buy silver and gold with both hands, correct?

TPS Reply: Thanks for the question; I will answer it with one word. “NO”, this is 100% not what I recommend. In your case, like several others I’ve talked with lately, I’m not an advocate of adding more physical metal until you fully understand what is happening and why.

A lower than yesterday price is not reason alone to run out and join the buying frenzy. Personally, I’ve purchased metal since the meltdown but no more than I had planned to buy anyway. Your decision to buy more must find justification from knowledge over recommendation.

Let’s step back a moment and process the PM (precious metal) carnage. Silver, gold, oil, copper, and other commodities rapidly and unsuspectingly declined last week/ first of this week. Not one “expert” warned of such a commodity reversal, not one. This means 99.99% of us singing PM praises missed the boat.

Creditability is at play here, not just mine but everyone else willing to make a stand for PM (each person has their own motivation; some have good intentions and some by profiting from selling PM). In my case, I have an Amazon #1 bestseller (inflation category) that proclaims silver and gold will go higher. It is in my best interest, monetarily, for metal prices to rise, obviously, and I 100% truly believe they will.

But this is not to say the same volatility soon to influence prices higher over the long term won’t push them drastically lower over the short term.

Here is my take on the recent metal meltdown, for what’s worth. I believe someone yelled fire. This was probably a conspired effort to short the paper PM market and the result was a quick price drop that led to panic paper PM selling. It is no secret than most PM investors invest in metal by way of paper; they often trade within the futures market. Once prices dipped to a level most are not comfortable, automatic “stops” triggered even more selling; the rest is history, sort of.

My belief is that metal prices would have dropped lower if not for the bombing in Boston.

Like it or not, the paper market still affects those of us who own physical silver and gold. Until you understand that today’s price offering means nothing, then don’t add to your anxiety by buying more.

We are living in an age of great geopolitical and economic volatility. Politicians and world leaders try to downplay this fact but it is now undeniable. This volatility will lead to historical declines far beyond what we’re living with today, and I’m not just talking about PM. Wait till the DJIA does the same thing. Can you imagine the chaos if today’s DOW suddenly dropped to 7000?

This type of volatility should be expected because this is what happens when a currency based on fiat reaches a breaking point. We cannot print our way into a prosperous economy. We can’t print jobs, we can’t print industry, and we can’t print physical precious metal. Until we accept these economic truths great volatility will become the new normal.

Now, let’s go back to silver and gold as we wrap this up. Soon (nobody truthfully knows when), the same fear that punished PM will reward them. This fear will drive remaining wealth and liquidity into safe havens because, honestly, many folks will have nowhere else to turn. At such time, and not a moment before, metal prices will rapidly rise. Until then I recommend pulling the big boy pants high and tight while understanding we’re in for a wild ride.

If you can wrap your mind around the belief of ounces over the dollar value assigned to metal, then buy more. If not, then please wait. Thank you for following TPS.

QUESTION: How low will metal prices drop before rebounding?

TPS Reply:  Thanks for the question. Silver and gold are limitless. They can rise and fall without limits. This means the same metal that could reach $75,000 per ounce could decline to $.75 per ounce. This is why I store most of my wealth in precious metal and not fiat currency.

Fiat currency has no chance of long-term gain; it always becomes the victim of abuse (over creation) and therefor always declines in value. This decline is hard for most to see because the dollar NUMBER PRINTED ON paper dollars remains the same, regardless a loss of buying power.

I don’t worry about a declining PM market like most do. I’m into PMs for the long term and my goal for 2013 is to acquire more silver while I educate the world on why. I won’t change my plans if precious metal rises or falls. This is why it’s called a long-term financial plan.

Hope this helps and feel free to email over any other questions that come up.

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

Tags: buy gold, buy silver, investors, paper gold, physical silver, precious metals, safe haven

Actually, who doesn’t want to be a millionaire?  As founder of The Prospector Site I have the opportunity to work/consult with many hardworking millionaires. I’m guessing many of you reading today are on the millionaire list……. congratulations. If your name isn’t on the list, yet, then please read today’s post closely because many preconceived wealth notions are false. In fact, by post’s end you may rethink your wealth goal well beyond joining the elite list of millionaires. Welcome aboard and thanks for joining our precious metal discussion.

This could come as a surprise but I can say with 100% certainty that millionaires worry about money just like those living check to check, it’s true. Could this be why the same millionaire who worries while building wealth then worries how to keep it? Just as surprisingly, I’ve heard a few actually compare wealth to a ball and chain as they cautiously maneuver wealth away from taxation and into safe havens (some have actually said they enjoyed life best when worth less!).

Nearly all millionaires still live on a budget. I’m estimating over 50% are self employed and somewhere around 20% have a master’s degree. You would be shocked how many have nothing more than a high school diploma. Over 80% are self-made and fewer than 20% inherited the wealth that adds their name to the millionaire’s list.

The question must be asked, “Are today’s millionaires nothing but a bunch of whiners?” I personally have my doubts. My opinion is that today’s millionaires are scared, tired, and frustrated by the economic challenges of the day. Their (millionaires) despair only validates my belief in faith, self-fulfillment and independence (freedom) as the truest source of happiness.

What nearly all millionaires have in common, at least up to the point of trading dollars for PM (precious metal), is the mistake of building personal wealth in dollars or dollar related assets. Actually, it all comes down to a loss of confidence in the US dollar and the realization that those with exposed wealth will pay for their entrepreneurial sins.

Taxation, fees, penalties, and capital controls are words the wealthy will become all too familiar with, at least those not protected by PMs.

The problem actually goes beyond the aforementioned as millionaires realize, in their own time I should add, that dollar wealth is much different from “money” wealth. Wealth stored in dollars may appear to offer stability but recent asset bubbles, then bursts (i.e. Dot-com, real estate, DOW, and soon bond, dollar, ?), remind those invested in dollars how quickly this wealth can disappear.

It is at this time we must compare a dollar millionaire to a PM (precious metal) millionaire. I seriously doubt few traditional millionaires give the difference a second thought. This is most evident by how few actually own physical silver or gold even as currencies worldwide constantly spew warnings of a great fiat demise.

The few who do “own” PM only own a few ounces of gold or, worse yet, own paper precious metal; paper silver or gold may appear protective but realistically are nothing more than speculative. Even our country’s millionaires suffer from monetary normalcy bias as their wealth falls under attack or, at least, subject to historic debasement.

I like to compare dollar to gold wealth with today’s spirited world of innovation. Innovation has forever touched our lives by making information the new industrial revolution. Anyone living within 200 miles of California’s Silicon Valley will attest our age of technology has only reached the tip of the iceberg. If not for the decline of the US dollar, I would have to compare today’s age of technological innovation to the implementation of fire, penicillin, telephone, or the combustion engine.

The problem isn’t innovation; the problem is our means of monetary exchange. The US dollar is the only component that will stifle our growing age of innovation. The reason I believe this is because all new innovations are built around capital and the availability to invest dollars in R & D. Today’s disruption of capital (dollars) will eventually devastate, or at least disrupt, the wealth of those investing in tomorrow’s innovation.

Now, please give the next sentence or two your full attention. The same folks at the tip of innovation are also the same folks invested in an outdated source of wealth storage and saving! Saving in dollars is no different than attempting to forward an email through a manual typewriter. Even our wealthy fail to compare old innovations to a dying currency; ironic isn’t it?

One reader recently asked why I’m so convinced the dollar is on its deathbed. My opinion; why else is it we have to inject perpetual transfusions of blood, QE1, QE2, QE3, QE?, if not for a terminally ill currency? This is not about economic recovery; this is nothing more than not letting the dying die. This, my friends, is why each person walking God’s green earth must understand the difference between dollar wealth and PM wealth.

QUESTION:  Precious metal prices have fallen far below the expectations of nearly all PM experts. Have we reached a bottom in your opinion? I’ll never hear the end of it from my family if I buy now and the PM market dumps lower!

TPS Reply: Thank you for asking such a timely question and congrats for at least considering PM. Let me put your mind at rest by mentioning the one fact all PM owners must grasp. Precious metals will rise/ fall and not one person, expert or otherwise, has a clue when either will happen next.

Most “experts” get paid when you spend your cash on their offering of precious metal. I’m not insinuating that today’s PM experts don’t know what they’re talking about, I’m only exposing fact. Truthfully, it really doesn’t matter how PMs perform over the short term since it’s only short-term minded PM investors who worry over volatility.

Please keep your eye on the larger picture by not over thinking physical silver or gold. Here is what I do for what it’s worth. I buy silver or gold each month, store them over three locations and sources, and then look forward to my next monetary chess move. Why would I worry about something I did yesterday when yesterday is already in the books?

Oh, by the way, you’ll never live up to all family expectations…… so quit trying.

QUESTION: Okay DC, you know my situation and you know I store my gold in a local bank. Cyprus has me worried sick and I’m not sure what the heck to do. What if a bank holiday traps my PM and I can’t get them when I need them? Sorry to be a weekly burden but I’m worried. As always, thanks for being patient.

TPS Reply: Man, no softballs today. I understand your situation and, honestly, there is no easy answer. Living in a large city complicates in-home PM storage. The risk of being burglarized must be compared to the risk of storing PM in a bank box. The question is not what the safest way to store PM is; the question is what the best way is considering your situation.

As you know, I’m not against using bank boxes for short-term storage that includes traveling or winter escape. I’m far more hesitant to recommend such storage options as part of a permanent storage plan. Regardless, you must diversify your storage in such a manner that includes keeping at least 1/3 within arm’s reach (this could be in home or with someone trusted).

I hate to say this but it must be mentioned. There is not, to my knowledge, a 100% safe way to store/own physical silver or gold. In fact, there is nothing in this world 100% secure or safe. This is a challenge we must accept and then move forward with the best plan possible.

With the risk of sounding commercial like; Storing Silver & Gold will hit Amazon.com the week of April 8th, in digital format. The book does offer a source, affordable source to boot, who will insure all PM stored at home OR in a bank box. I highly recommend taking the extra effort to insure all PM, especially in your situation.

COMMENT:  A friend recommended your book and I want pass along how much I enjoyed reading it. The simple manner in which you explain silver and gold to our current economic plight was just the motivation I needed to make a monetary change. Record levels of debt will not fix our economy and it angers me that more educated individuals can’t see the overall picture. Anyway, we started our plan by committing to buy silver bullion at the first of each month. Thank you for what you do.

TPS Reply: You made my day, thank you.

BERNANKE WATCH:

FED chair Ben Bernanke is the most powerful man on earth but other central bankers are quickly becoming powerful in their own right. The Bank of Japan just doubled down on its latest version of QE by devaluing the yen and, unfortunately, punishing currency savers. Once again, the banks win, exclusively, as Japan outpaces Mr. Bernanke with a fresh commitment to print currency.

The world is awash in printed currency and today’s video only proves the level of desperation among today’s central bankers. This fact cannot be overstressed when we compare a rising supply of currency to precious metal. Please add worldwide quantitative easing to the growing list of reasons to own real money like silver or gold.

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

Tags: bank holiday, dollars, gold, money, physical silver, precious metal, real money, storage plan, storing gold, storing silver, wealth storage

A few events are forever etched in our minds, literally. John Medina, a developmental molecular biologist, claims the reason some memories “stick” and some don’t is simple. Even the brain finds a few events so worthy of record that the mind actually strikes a deeper line in the brain.

Mr. Medina is also quick to point out another fascinating mind nugget. If not for the ability to instantly forget most information….. we will die, within days in fact. Honestly, I can’t deny or verify what this professor of bioengineering claims as factual. What I can say without doubt; I will always and forever recall the moment I decided to buy gold over a decade ago.

Before we dive in today, the Q & A section is all about dealing with PM (precious metal) crooks, be sure to catch it.

Every once in a while someone emails or calls TPS (The Prospector Site) looking to argue precious metal. They usually hangup thinking, “Gosh, this guy doesn’t know much about physical silver/gold for a bestselling precious metal author?” So be it. My goal is not to argue the worthiness of PM for those not ready to own silver or gold.

If I have to convince someone to buy they’ll like me less the first time silver or gold turns south. Before a person is ready to own PM they must first reach a point of realization. Maybe realization is the wrong word, maybe acceptance is better. Regardless, the old way of saving, investing and entrusting your wealth to someone else is over, period.

Until then silver and gold appear just as “risky” as a credit default swap or a Bernanke promise.

Politicians, corporate executives, and media pundits can drum recovery and economic stability but only the most hopeful continue to believe what PM faithful have know for some time. Each new day is another one closer to the demise of a fiat reserve currency. Your decision to own physical metal is a de facto admission of the dollar’s eminent demise; welcome aboard.

This liberation goes beyond silver and gold. My acceptance of monetary truth changed my perception in more ways than space. I found satisfaction beyond things driven by debt or greed. I found myself questioning everything, even to the point of questioning my faith. After all, it’s only after questioning what others blindly accept we learn, and then grow wiser.

Trading dollars for PM goes far beyond investing in the typical sense. Trading dollars for sound money offers savers the ability to grow wealth beyond the risk of confiscation that fills today’s evening news. Pension funds, retirement accounts, bonds, stocks, and real estate can’t offer the same peace of mind. Not that the aforementioned are bad investments, just not protected in this cannibalistic age of taxation and confiscation.

My Prospector Site email blew up Sunday as rumors of Cyprus bank runs filled my smartphone. Someday all bank accounts will face similar capital control challenges from central banks and/or government.  At such a time, you too will remember when and why you decided to buy physical silver/ gold.

QUESTION:  For your information, XWZ Corp (edited) is a con artist willing to sell old folks like me overpriced gold coins. Its been over two years and the coins are worth half of what we paid. A local coin dealer appraised the coins so I know what they’re worth……HALF, OR LESS. Something must stop the con artists in the bullion business!!!!!! (EDITED, A LOT)

TPS Reply:  First let me say how sorry I am.  You’re right, it sounds like you paid far over market for the nine rare coins we discussed during our phone consultation.  This deceptive practice is unconscionable – but I hear stories like yours far too often.  If I were in your position, I’d safely store the coins away knowing someday soon the PM market will, in all likelihood, surpass this over-market premium you paid. I realize this doesn’t help much but it’s not a loss unless you decide to sell short.

NOTE:  I spent at least an hour with this client and, honestly, the situation is not fixable; but due diligence could have saved a lot of hardship.  People are afraid like never in my lifetime. They hear about bank holidays (Cyprus), they see inflation stealing more from a fixed income, and then they hear some advertiser promoting gold as the answer to everything economically wrong. This, my friends, is when the trouble begins.

Now, let’s focus on how this never happens to you or anyone you know. Since I don’t sell PM let me first say the metal this author recommends exposes a PM crook in less than 30 seconds. Precious metal sellers can only take advantage of those lacking PM knowledge, this excludes you.  The majority of PM victims do not know what they’re buying; they just know it’s made from silver/gold. Buying any silver or gold is not good enough; we must put the “right” metal in your safekeeping….soon.

If you truly feel the need to trade dollars for PM but are not 100% confident in the process, then call or email me. I represent you the buyer, never the PM dealer, broker or seller. I don’t charge a percentage; regardless if you buy all the gold stored in Fort Knox or one silver ounce, it makes no monetary difference to me. I charge according to how much time it takes me to find and secure the right metal FOR YOU, I receive zero compensation from the seller.

Locating the right metal for a customer sometimes takes less than an hour, in many cases, or it could take a little longer. Regardless, you’re only charged for the time it takes according to your situation, no surprises. It is not unusual for my fee to total a $100 – $200 (is $100 too much for the peace of mind knowing you’re PM protected with the right metal AND at the best price possible?). It’s time we bring integrity back into the PM market and this is exactly what I intend to do. Contact me here for more information.

QUESTION: I just don’t understand, gold doesn’t pay a dividend or interest, correct? It rests in a vault, in a secret location, all while protected by the best security possible. Wouldn’t you agree that the only thing physical PMs can offer is the chance of appreciation?

TPS Reply: Thanks for the comment and questions. You are correct in regard to gold’s inability to pay interest, it typically does not. Respectfully, I 100% disagree that the only thing physical PM can offer is the chance of appreciation. Gold and silver equal money, everything else we typically call money is currency. Please stop thinking like an investor, think like an innovator (innovators are willing to change).

It’s time the PM skeptical face a few facts. Investors (savers) are long for the slaughter and Cyprus is proof. Eventually the entitled of the world will far outnumber the savers (depositors, pension holders; all investors with exposed wealth). At such a time, the entitled (impoverished) will not only condone new taxation and wealth confiscation – THEY WILL DEMAND IT.

The world’s stockholders fail to compare their risk to a Cyprus depositor (by the way, depositors in Cyprus are under capital controls by way of a bank holiday). A typically safe storage of wealth can no longer keep pace with inflation (certificates of deposit, money markets, savings accounts), they no longer pay a reasonable rate of return.

Even ultra-conservative investors now turn to stocks in order to preserve wealth; this is why the DJIA is at a new high. Someday soon the entitled of the world (impoverished) will far outnumber those holding wealth in stocks. At such a time, ones depending on entitlement will not only support new taxation – they will demand it. Remember, giants rarely die suddenly; they starve slowly but only after total consumption.

How can you or any other stock investor honestly believe your wealth glowing on Wall Street will not fall under confiscation, capital controls or painful levels of new taxation?

This is what happens when currencies die and governments lose power; this is what divides nations, states, communities, churches, and families, too. Thinking like an investor in an age of wealth confiscation is nothing short of dangerous. My advice is to transfer some wealth, if not most, into something less vulnerable to taxation and confiscation. Physical silver and gold are part of the few safe havens outside the banking/ investment system.

We’re past the point of arguing if silver or gold are worthy investments. The only questions left: how quickly can you turn dollars to PM, what to buy, from whom, and at least three safeguards for PM storage. Time will validate the aforementioned.

 QUESTION:  Just paid slightly over $33 per coin from an online PM broker. I’m seriously considering buying more silver but questioning if the price is fair? Thank you.

TPS Reply: Congrats to you for practicing such prudence; I just paid close to the same per ounce price. Now, I have a question or two for you. Do your coins contain one ounce of silver, many do not? Do you know the difference? Please contact me immediately if you don’t.

My suggestion is to view silver like a typical bank savings account. Most Americans no longer save; they spend every dime that comes in – plus some.

Using PM as a savings offers two huge benefits. One, it’s far more difficult to impulsively spend a savings in PM. Two, a savings in PM will rise beyond the imagination of even the most optimistic PM holder (my opinion, use due diligence). We’re living what history will someday describe as the largest monetary shakeup of mankind. The fiat currency experiment has reached the boiling point. Thanks for the question.

BERNANKE WATCH:

The most powerful man in the world is not a politician, not significantly wealthy….. yet rather mysterious to most folks obliviously wondering through life. His name is Ben Bernanke and it is certainly in your best interest to understand how his influence will directly affect your future. He is the most powerful man on earth and starting today we will feature a “Bernanke Watch” in each TPS post.

There is no doubt FED Chief Bernanke is a very smart man. His words are purposely patterned to instill monetary confidence and, unfortunately, monetary confusion. The trouble within our global economy is not Mr. Bernanke’s fault. Bernanke is nothing more than a very significant snapshot in time now controlling the most powerful, yet most secretive, monetary entity on earth.

In the above video Bernanke defends the FEDS actions with six powerful words. He said, “…..never lost a penny doing it“. It is imperative to understand that it’s impossible for the FED to lose dollars. They are the only entity in the world that can create unlimited amounts of dollars from thin air. Today’s era of no restraint allows the FED to create dollars, secretly, and obviously accountable to no one (according to the above video).

Don’t miss our next Bernanke Watch when we discuss exactly how the FED not only influences the DJIA but controls it too.

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

Tags: bank holiday, bullion business, buying more silver, coin dealer, confiscation, currency, fiat currency, physical silver, precious metal, precious metal crooks, precious metal storage, sell silver, silver ounce

Buying physical silver or gold is easy these days. Unfortunately, finding more PM (precious metal) in the future will become increasingly difficult, but possible. I don’t have a crystal ball, what I do have is an ability to understand what motivates folks to seek monetary protection….. and what doesn’t. Silver, especially silver, is the metal to watch as more folks realize a rising DJIA and housing market is nothing more than a temporary spike spurred from piles of fiat currency. Use ounces of gold to determine true value and it’s obvious neither the DOW nor real estate should be viewed with optimism. 

The coming age of second hand silver, or gold for big spenders, is smoke on the horizon. Record setting silver sales over the last couple months prove our world thirsts for tangibility in an age of digital promises. Please prepare to say goodbye to “on demand” physical silver or gold.

Today, the price for an ounce of physical silver adds a 10 -12% premiums (minimum) over spot or paper metal. A hunk of real tangible silver, aka money, sells for $32.50 an ounce as I click away this beautiful March 2013 morning. Even though greatly discounted compared to previous offerings, a silver buyer today can find a boatload of options . Buying second hand silver is not necessary, not yet.

Caliber 223 ammunition may offer a not so distant glimpse into silver’s future; just months ago, rounds of 223 ammo filled shelves all while reasonably priced – not cheap, but reasonable. Today sporting shelves collect dust where 223 rounds once rested. Oh, don’t get me wrong; 223 ammo is available but predominantly sells on the secondary market. Did I mention 223 ammo costs have tripled in 2013 alone?

This run on ammo is not by duress. I know of no city street’s burning, no riots, and no other out of the ordinary civil unrest here in the United States. The run on 223 ammo is on red alert because our liberties are under full assault. Caliber 223 ammo is nothing more than a 17th century pitchfork revolution.

This article’s primary focus is second hand silver, I don’t want to lose focus here. We can safely compare silver’s future demand on a monetary loss of liberty….that’s fair. But the point I truly want to make is how such an era of increasing silver demand will influence who and how we buy physical PM.

Some of today’s precious metal experts are misled, respectively. Silver sales will not cease when demand greatly outpaces output; there will always be someone holding silver who’s afraid it has peaked and therefor willing to take profit. Simultaneously, there will be buyers who believe silver will continue to climb…..no matter how many hundreds or thousands of dollars per ounce. The only difference in tomorrow’s silver world compared to todays is a SECOND HAND premium…..just like 223 ammo in a Obama second-term world.

Ammo prices in popular calibers have steadied. This means demand, price, and availability have found an equilibrium. But this lull provides a far greater indicator. It means ammo is to the point unaffordable for many, maybe most. Future physical silver wannabes will face the same fiscal fate.

We are reaching a point when everyone will “want” hard assets and sound money. But just like the 1000 rounds of 223 ammo for sale on gunbroker.com, only a few can justify or afford the second hand market.

QUESTION: Can you compare a currency like Bitcoins to silver or gold? Are they as good investment as precious metals?

TPS Reply:  Thanks for sending over a couple of great questions. BTC is a virtual currency completely independent from a banking system or government. I’ve watched Bitcoins since March of 2011 with great interest. It amazes me how BTCs have appreciated when you consider this currency is nonexistent and attached to no commodity.

The creation of a currency….. like BTC, is only possible because of technology. The advancement of a currency like BTC is only possible when citizens revolt against the merger of government and banking to create a means of wealth preservation. No government can control a virtual currency, bitcoins have no physical corporate location.

What governments can do is tax profit and income. This is when and where competing currencies, like BTC, will conflict with an overreaching gov’t hellbent on more taxation. It is very possible a currency like BTC could be the precious metal of the virtual world, time will tell.

Now, to your questions; are BTCs a good investment? Below is a chart that goes beyond the need for explanation. Will such BTC appreciation continue? I have no idea but I do recommend using due diligence; no appreciating asset is reason alone to invest. If I were to buy BTC, here are the questions I’d ask beforehand.

1.  What or who controls BTC output (creation)?

2.  Is my BTC investment protected by way of discretion?

Below is a chart comparing Bitcoins to gold, not dollars – thanks to our friends over at www.pricedingold.

COMMENTS: TPS (The Prospector Site) received several comments regarding our last post, The MONEY CURE. First, thank you for commenting. Secondly, thanks for forwarding TPS over to friends, enemies, and everyone in between. Keep sending over your comments and questions since many are not only finding their way to this site but also mentioned in an upcoming book (never a name attached to a comment or question).

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

Tags: Bitcoions, buying physical gold, currency, fiat currency, physical silver, precious metal, second hand silver, sell silver, silver, silver buyer, silver sales

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

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

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

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

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

WHY?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Thanks for the great question.

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

Tags: falling gold prices, gold and silver, gold bug, gold coin, intrinsic value, money, physical silver, precious metal, real money, rising gold, sell gold, sell silver, silver price, spot silver, The Prospector Site

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

By now I’m hoping my readers understand gold and silver’s relevancy according to the age we live. The benefit of such understanding extends beyond the typical layman’s confusion during PM (precious metal) decline, like lately. I pay little attention to the dollar number next to gold or silver. It means nothing when it rises and means less when it declines. I view both metals as necessary according to our real-time economic climate and will only change my opinion of PM relevance when fiscal sanity improves. Until then words like disorder, disturbance, disarrangement and decline mean nothing as others use these descriptions to label PM volatility. I pray you feel as I do.

Even more ironic – while the world views hard assets as risky a growing minority are feverishly adding new stacks of both silver and gold simultaneously.  Metal buyers realize the dollar lid is no longer in jeopardy of blowing off, it’s blowing off. This is why over 7 million ounces of Silver Eagles found new homes in January 2013 alone. The time to buy physical silver or gold is upon us.

Political leaders are on the offensive. This means they will say anything to keep law abiding individuals from pouring into the streets under protest over record deficits with no plan to scale back the size and power of government.

Their offense (government) creates a defensive nature in most Americans. Look how quickly this administration rolled from PPACA (Obama Care) to gun control to immigration reform to who knows what’s next. Folks, it’s only February and the arrows out of Washington have every taxpayer, every business person thinking of nothing but self preservation.

This offensive role is no accident. You can’t ignite revolt, monetarily or otherwise, while circling the wagons. The gold disorder of today is part of such assault.  Keep PM volatile and less differentiate real money from promissory notes, aka dollars. There is no gold disorder, there is only fiat disorder. You must know and accept the difference in order to trust the same protective instincts that drove you to PMs in the first place!!!

We often hear economic experts try to explain wealth distribution. This means nothing more than the rich getting richer and the middleclass & poor growing poorer. I don’t see it this way, at least not exactly. I see it more like a power shift built around vulnerability, wealth distribution is only a byproduct of a society less interested in real socio-political & monetary issues and more enthralled with modern entertainment & entitlement.

We only accept the proposal of something unconstitutional – like gun control – because we feel vulnerable, or unsafe. We only accept governmental overreach because we feel vulnerable to economic correction. We only allow massive currency printing and dollar debasement because we desperately desire normalcy in exchange for vulnerability.

This feeling of vulnerability eludes those that control their own wealth. The governmental infringements aforementioned are inconvenient, yes, but nothing close to a level of dictating. I see little disorder among those prudent enough to store wealth within physical silver and gold AND living a life of self reliance. Again, the dollar sign attached to today’s gold and silver has nothing to do with it.

QUESTION:  What is happening to physical gold and silver? Why is it not going higher?

TPS Reply:  Thanks for the short question. Not only is gold not going higher but it’s down around 5% year-to-date. Your question is worth asking but unfortunately no one can honestly offer an answer. Gold has appreciated, on average, around 17% per year over the last decade; I expect this trend to continue over long term.

Most gold experts will answer a question like yours by trying to explain PM suppression. I rarely mention metal suppression because to me it’s wasted energy and discussion. We can’t control naked shorting, nor can we control Wall Street’s finest who are more interested in their own interest over trading with integrity. I refuse to be a part of such monetary recklessness.

No one thinking realistically will question gold’s relativity in such an age as we’re living today. The fact gold is suppressed is the good news since this offers readers like you an extended opportunity to add more silver and gold to your growing stack. I recommend we stay the course, regardless how gold performs in the short term. Thanks for the question.

QUESTION:  Love the Prospector Site and really enjoyed your book.  I have a question relating to reportable PMs at time of sale. Can you explain why some silver and gold sales are reported to the IRS and some aren’t (when sold). Is it that important to buy PM excluded from notification at time of sale? Thanks again for what you do.

TPS Reply: Thanks for the kind words. You are correct; some PM transactions will trigger IRS 1099-B. As of right now some won’t, the determining factor lies within how, what, and to whom you sell. Selling metal back to a PM dealer will trigger an IRS notification IF THE PM SOLD FALLS WITHIN REPORTABLE SILVER & GOLD.

Is it that important to buy PMs excluded from such income notification? Probably….. here is why. I have little doubt that a government so large and in debt will eventually demand notification of most reportable income. Silver and gold held in American Eagles, by example, are excluded and do not require an IRS notification after sale, at least for now. This means declaring such income is voluntary (of course you could face stiff penalties if hiding income).

The difference between amount paid and amount sold is income. This income…to my understanding falls under capital gain and is subject to taxation. This taxation INCLUDES all gold and silver sales, nothing excluded. Now back to your question, some forms of bullion, bars and rounds will not trigger an IRS notification. This doesn’t exclude the metal holder from a tax obligation but will exclude a seller from receiving IRS 1099-B form.

I’m not here to preach tax obligations or obstruction. Each person holding PM is accountable as they choose. I provide the facts as I see them and the choice, as always, is yours. Feel free to set up a personal consultation since buying the right silver and gold is something we’ll completely cover. Thanks for the questions.

COMMENT:  I was stunned to find this site.  These are my sentiments exactly.  It has taken me awhile to get myself together and begin the process of purchasing pm.  I would more than welcome info on where to purchase safely.

TPS Reply:  Fantastic, another one joins the growing minority of PM holders….good for you. The process of safely buying silver and gold need not be complex. The “right” PM is all metal offered as close to spot price as possible. Finding the right source is crucial in order to have the peace of mind that only comes from PM authenticity.  You can’t go wrong with new bullion American Eagles, gold or silver.

I recommend contacting Colorado Gold or Miles Franklin if searching for a reliable PM source.  Congrats for making the most influential monetary decision of your life.

 Worth Watching:

The video below features Paul Harvey. For those unfamiliar, Paul Harvey was a radio broadcaster very concerned with the economic and social decay of America. We lost Mr. Harvey in 2009 but his words ring loud as ever thanks to modern-day technology. Please take a few minutes to watch, or re watch, If I Were the Devil by none other than Mr. Paul Harvey. Oh, did I mention the message below was recorded over 47 years ago, amazing.

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: bullion, gold, physical silver, precious metal, Silver Eagles