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SHOULD YOU BE BUYING?

BUYING GOLD/SILVER   No comments yet

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.

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WHY I RECOMMEND BOTH SILVER & CASH

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

In all likelihood your home or apartment has an inconspicuous looking device attached to the ceiling, probably more than one. This device has saved untold lives and is a priceless addition to your family; by law each new home or new renovation must include this device. By now you realize the item I’m describing today is a smoke detector.  The primary goal of a smoke detector is not to detect smoke; it is to sound alarm of eminent danger. Unfortunately, few can hear the harmonic sound of an economy in correction, even less realize where there’s smoke there’s usually fire.

Not a day passes without a reader emailing, or calling, TPS to ask what PM I’m buying. The answer is “silver” and the reason is nothing more than the primal desire to survive and preserve. Why so few Americans fail to react to this internal beacon is beyond me. I’m so very glad you’re excluded from this clueless trend sweeping our nation but what if I said physical silver alone is not enough?

Bells and whistles are blaring all around us even as your read these words. Few hear the ringing because most folks view danger based on the reaction of others. It is a proven fact that if enough folks take flight others will follow without knowing why. Unfortunately, the opposite is true too. On a 1-10 scale, I would gauge the flight to precious metals slightly above 1, as of April 2013.

This lack of urgency spawns inaction by business owners, college students, wage earners and retirees. All the above are on the cusps of no longer controlling their monetary future because they fail to recognize how quickly technology can separate our wealth from our control; the video below is but one real-time example.

Economists often compare the Great Depression with today even though this is impossible. The Great Depression was a slow burn that consumed untold wealth over several years. The US economy was primarily “local” in nature unlike today’s global age we’re living. At such time, silver, gold, and the US dollar were all real money.

A monetary life in 2013 is much different. Almost instantly our financial world can be contained by a banking lockout, this usually happens on a Friday afternoon. The video above accurately describes the challenges of every individual who still trusts, therefor stores, personal wealth within a banking system. The powers in control realize the best way to control your wealth…..not to mention preserve their power, is to quickly lock the exits before you can transfer personal capital (savings).

NOTE:  Cyprus bank depositors are allowed to withdraw no more than a few hundred euros per day; this came after an eight day bank holiday.

The political machine realizes the best way to keep the village distracted is to pipe in the soothing sounds of recovery, stability, and economic opportunity. It matters little if true, it only matters that you believe it because if you don’t the powers in control will enforce control. Reminds this writer of an abusive spouse who punishes but only because the victim deserves it.

I’ll say it loud and clear, I’m not a good victim. Since you’re reading today I’m guessing neither are you. The thought of an overreaching bureaucracy divvying out my wealth byway of an ATM ration doesn’t resonate well. I refuse to allow a bank to control how much I spend, where I spend, and on what I spend. This reason alone is why I recommend storing cash as well as physical PM.

Precious metals are in my opinion the best long-term store of wealth. The problem is the only way PM can convert to cash is by selling. We don’t want to sell our silver, or gold; this is why it’s important to understand a world accustom to trading in dollars, a.k.a. cash, will confuse real money with physical dollars, especially in times of banking volatility or unsuspected bank holidays. A Cyprus glimpse proves my point better than I can.

This is why cold hard cash is king, short-term speaking, as shown at the 3:00 minute segment in the above video. A loss of faith within the banking industry will lead to a run on cash.

The play of the day is twofold. I strongly encourage each reader to consider physical silver, while still available, along with a couple thousand dollars in cash and, as always, 1/3 STORED WITHIN ARM’S REACH. If you’re finding this confusing please email or call TPS for assistance in formulating a personal plan that best fits your need.

QUESTION:  I made my first gold purchase a few months ago and ever since it has done nothing but decline. I realize this is all part of the risk but it is a little discouraging. Any words of encouragement?

TPS Reply:  Thanks for reading TPS and taking the time to send over your question. It is always somewhat disheartening when metal prices decline like they have over the last few weeks. For what it’s worth……I too bought physical gold only to watch it decline 23%. The only difference is this was back in 2008 when I paid somewhere around $980 per gold ounce. I recall feeling a little foolish with my “investment” but today my only regret is that I didn’t buy more at the time.

The key word just mentioned is time. We can’t ignore the great economic or monetary challenges of our day. A rising, and soon to bubble over, DJIA is not a sign of an improving economy, neither is a low interest rate infused housing market. Both the DOW and housing are responding to the benefits of currency creation, the cash must go somewhere, right?

Since you’re taking the time to read unbiased PM sources then you must also realize precious metal is a long-term play. Don’t confuse month to month PM movements with validation. Safe havens and real assets are still the best options for realistically minded individuals; regardless how they measure up in dollars (by the way, gold is rising in other currencies. This is why it’s impossible to validate PM gauged in just one currency OR over one moment in time).

I’m not a good gambler; this is why I continue to invest my dollars into PM while watching other investment foolishness from the sidelines. Your decision to buy gold cannot be validated by a rise no more than vilified by a decline soon after (purchasing). My advice is to keep an eye on the long-term goal of wealth preservation realizing what is “real” is real and what is “not” isn’t.

If the price of gold drops to $1300 an ounce tomorrow, so be it. If it jumps to $2200 next week, so be it too. The dollar (number) next to gold means nothing since all markets are affected, either positively or negatively, by forces well beyond our control. Historically speaking, such market interventions rarely last longer than a season. This is why I view my PM as a long-term safe haven.

COMMENT:  Couldn’t agree more with your book’s chapter on real estate. Thanks for keeping it real in an age of confusion.

TPS Reply:  Thank you for taking the time to self-educate. It really comes down to knowledge, doesn’t it? Too many are rushing back to real estate with an improper mindset. Housing is a place to raise families and extinguish birthday candles. It’s always great when it appreciates but the primary goal of home ownership is not an avenue of saving or wealth building.

Here is the question each potential home buyer must ask PRIOR to inking an offer. How much of the home’s value derives from nothing more than the ability to borrow currency at a low rate of interest. This portion, or percentage, of the home’s value is susceptible to market volatility beyond the realm of short-term fluctuations.

It is only because of those who benefit from lending, building, or selling real estate that so many have a false belief in real estate as a good investment. The cheap money used to buy today’s real estate is nothing more than a byproduct of a government in perpetual money creation mode. Cheap interest rates only punish the savers of the world and blur true housing values.

My opinion is we’ll see a day when 20 ounces of gold will buy more homes than not.

QUESTION:  What is causing gold and silver to drop so suddenly today?

TPS Reply:  Great question. The only words I can think of to describe such PM brutality are manipulation, intervention, greed, fear, and corruption. It is impossible to believe a free unrestricted market is the cause of our recent PM correction.  The games happening within the PM market are nothing short of criminal and here’s why.

Gold or silver are nowhere near bubble territory, the charts below clearly show how quickly an asset, like housing, will climb just before correcting or bursting. It is understood that when a particular asset raises too quickly that eventually it will become prone to correct.

Now, let’s look at the bigger picture here since it’s becoming extremely obvious that PMs are under full assault. With the threat of war (both militarily and monetarily), economic uncertainty, and perpetual currency printing, precious metals priced in dollars should be steadily climbing. But this is not the case.

What is not declining is the demand for physical metal. This demand is quickly depleting metal inventories as buyers like you, I hope, take advantage of cheap silver or gold. Such a demand will continue to disconnect physical metal prices from paper price manipulation. At such a time no one selling physical PM will give an ounce of attention to the paper PM market.

Speaking of a gold bubble, it could help to show what a true asset bubble bursting looks like. Below is a chart showing how quickly housing values rose just before the housing bubble burst back in 2005-06. Then compare the next chart showing the Dot-com build and bust back in 2000-01.

 

And now, does the last six months in gold look anything close to a bubble?

 

Below is one last chart I want to add just before posting. It shows the virtual currency Bitcoin just days before it recently corrected. If gold were as vertical as this last chart then “yes” I would have to say PMs have reached a dangerous level in need of correction, but not the case.

 

BERNANKE WATCH:

FED chief Bernanke is the most powerful man on earth. Unfortunately, his ability to accurately gauge how money printing and market manipulations lead to asset bubble’s bursting should be of great concern. Dr. Paul Craig Roberts offered a commonsense approach to why precious metals are under FED assault.

“The exchange value of the dollar is threatened, and if that collapses the FED loses control over interest rates. Then the bond market blows up, the stock market blows up, and the banks that are too big to fail, fail. So it’s an act of desperation because they’ve got to establish in people’s minds that the dollar is the only safe place, it is the only safe haven, not gold, not silver, and not other currencies.” -Dr. Paul Craig Roberts.

 

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.

 

 

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THE ONLY PROTECTION LEFT…..SILVER & GOLD

BUYING GOLD/SILVER, GOLD & SILVER, GOLD AND MONEY, GOLD OR SILVER BUBBLE   No comments yet

Listening to Congress argue over increasing your taxes reminds me of trick I used to play on my boys many years ago. As they crawled into bed I would lean into their room all while hiding the light switch closest to their door. With my free hand I would raise it high in the air asking my boys if dad had the magic to cut the lights with nothing more than a snap of the finger. What they didn’t realize was my other hand, blocked by my body, could flip the switch off simultaneously. The trick worked many times before my oldest let reason supersede the magic of his father. Today, our elected officials play the same cute little trick on the masses as we fall for the same taxation dog and pony show over again.

I love the exposure power of precious metals. Regardless the deceit, regardless the monetary games, silver and gold continue to expose the obvious for those willing to accept that ones in power refuse to admit a failed fiat system will only continue to erode what you and I have worked hard to amass.

Some of you reading today are new to precious metal which means you’re new to TPS (The Prospector Site). First, thanks for joining us today but especially thanks for joining the minority that refuse to accept the word “recovery” at face value.

There is zero chance that record debt creation will create a long-term healthy economy and the only way to protect you and your family is to make a proactive approach by insulating your wealth from taxation and inflation.

The trick we must discuss today now plagues not only the USA but most countries worldwide. All of us living in the US must burden the lion’s share of responsibility since we are the only voters capable of stemming the trickery I wish to discuss today. We are the only nation capable of creating more of the world’s reserve currency (US Dollars); therefore, each citizen of this country is responsible in some capacity or another.

Think back, if you will, of my silly trickery shared with my little boys and the hidden switch. My left hand represented today’s argument for taxation by drawing our attention. The news over my shoulder, as I write this post, cackles with left and right leaning personalities arguing who should pay more taxes in order to resolve this “fiscal cliff” rhetoric that fills our news.

This is the same argument we heard last year, and the year before. What if I told you this argument is nothing more than an illusion, or distraction, while central banks around the world create more currency backed by nothing more than your continuation to accept paper as money!

The argument of taxation creates the smokescreen necessary to push the problem one more day down the road and only because we continue to watch a political version of my hand slowly rising to an attention grabbing position. Some of you might ask what the big deal is since we’ve had deficits as long as most reading lived. I’m glad you asked.

Those elected need not raise taxes as long as you accept printing more money. You see, the easiest taxation ever created is the power of inflation since inflation doesn’t appear on a W-2 or year-end tax returns. Those requesting your vote realize the danger of taxing you directly but relish in the ability to tax you by way of inflation.

Please don’t take this wrong but such political power derives from our monetary ignorance, sorry.

If you ask how high silver or gold will rise I have a simplified way to answer your question. Real money (metal) will rise as high as necessary to counterbalance real money with inflation. Will gold rise to $5000 an ounce, maybe silver to $500? Can you imagine what happens to PM prices when we dump fear, uncertainty, and a very limited supply of silver /gold into our bowl of inflation?

The evidence is all around us. It’s at your grocery store, gas station, local utility, everywhere. It’s most evident at your local coin shop who now charges around $24,000 for $1000 of face value legal tender coins made from silver. Folks, these coins…… not long ago I might add, traded dead even with dollars. Now it takes 24 times more dollars to buy the same amount of silver. Welcome to inflation 101.

Our silver example exposes inflation when we consider 95% of our dollar’s buying power disappeared over one generation. Folks, we borrowed more money as a country over the last 5 years than over the previous 200 years. How can anyone argue recovery over inflation?

This type of inflation is tolerable when a debt based / consumer based economy supported growing wages but these days no longer exist….at least not for most of us. Can your income keep par with the level of inflation I’m describing today? If not, my advice is to relocate some of your wealth to precious metal, SOON.

The trick that steals your money is this simple. One way or another we all pay for the monetary mismanagement described today, we pay more in taxes or we pay more thanks to inflation.

LAST WORD…..at least until we try to answer some of your questions. Since the presidential election TPS has received an extraordinarily number of comments and questions. Thank you. This tells me folks are very concerned and looking for real answers in a time of uncertainty but fortunately many of you are considering silver and gold. I encourage each reader to continue their quest to find monetary truths and congratulate each of you for your effort.

WORTH REPEATING:

 November 9, 2012: “The Fed’s paper money system is the major source of economic suffering today. It is the reason that Congress can’t control its spending. It’s why it can fund wars and the police state. The paper money monopoly distorts economic signals and causes booms and busts. It robs the American people with the insidious tax called inflation. We must never forget that the Fed has the massive power it does only because of paper money. If it were restrained by a gold standard or monetary competition, the Fed would be a menace, but not a mortal threat. As it is, the Fed, and, by extension, the government itself, holds our entire economic future hostage.”  Dr. Ron Paul

For those who believe taxing the rich is the answer I want to share the Youtube clip below. It is sobering to say the least.

 

QUESTION: Why does the price for gold have such a close relationship with the price of oil? It’s easy for me to understand the price of gold [PM] following the value of the fiat dollar, but how is that related to the price of oil?
I might note that I have dealt with Don Stott, coloradogold.com on six different purchases, and could not give a stronger recommendation. Everything goes exactly as they say, and you have nothing to worry about. Thanks for the help.

TPS Reply:  Great question so thanks for asking. Oil, since the early 1970s, is priced in USDs and this is why we often hear the term “petrodollars“. It makes sense that oil and gold appear in lockstep when we consider both expose today’s declining power of fiat dollars.

Something else parlays oil and gold together and it can be summed up in one word, volatility. The conflict building in the Middle East has the potential to send both commodities beyond the affordability of over 90% of the world. Think how our economy now depends on oil to make the economic circle complete. Many folks in the US rely on goods transported over 1000 miles yet never consider how $200 a barrel oil affects the household budget. We have a choice to buy silver or gold, or not, but all things oil dependent are a much different story.

Today’s ratio (gold to oil) shows oil under priced so don’t be surprised to see oil rebound over the short term. The average ratio since 1970 is 14 – 15 oil barrels per gold ounce but today’s gold buys closer to 20 barrels. My bet is oil will rebound well before gold prices decline but who knows in such a volatile age of monetary manipulation.

Good call on the oil to gold relationship and thanks for validating Colorado Gold as a reliable source for physical silver and gold.

 

COMMENT:  Just found TPS.  After reading Aftershock (Wiedemers’ version) and Doug Eberhardt’s “Buying Gold and Silver Safely“, reading what I have here and seeing the same logic being applied to the world’s bubble economy and the realities of money printing, it is good to continue to find sources that agree with the Wiedemer’s and Doug in how to protect ourselves.

TPS Reply:  Yep, I agree and thanks for pointing out solid economic and PM information. Aftershock book is one often mentioned on this site since I’ve had long conversations with one of the three authors. It is impossible to not recognize economic bubbles after spending a couple hundred pages reading example after example why assets spike and then quickly lose value.

One event that helped me to truly understand PM comes from the 1980 gold era when metal spiked to just over $850 an ounce only to tumble in the months soon after. The gold bubble of 1979 to 1980 proves how the herd rushes into an asset late but just in time for the slaughter. Wise metal owners sold gold from the backdoor while the masses pushed and shoved trying to find the front door as coin shops struggled to meet demand.

I encourage each person new to PM to research how 2012 /2013 are different than the bubble days of 1980. Gold is off the radar of most investors /individuals considering it is estimated less than 2% own physical PM. Will gold’s relatively unknown status change someday? You bet it will and we’ll be right here to break down how current events affect today’s PM market.

Thanks for finding TPS!!

 

QUESTION:  Hi, I’ve recently become interested in buying gold and silver.  However, I am not thrilled about owning physical metals.  I would much prefer to own something like the SPDR Gold Trust.  I just wanted to get your opinion on owning gold via this method rather than the physical option and also if there is an equivalent silver trust that you like.  Thanks for the help.

TPS Reply:  Thanks for your questions. SPDR Gold Trust is one of many ETFs (exchange traded funds) that allow an investor to invest in metal without actually physically owning it. An investor sends cash to Wall Street and then hopes financial institutions promote your wealth in a favorable fashion. You are wise to show interest in silver and gold but I have reservations about anything owned but not held (allocated).

Owning silver and gold is part of a overall plan to shelter a family from uncontrollable economic conditions stemming from a fiat currency explosion.  The reason more and more search out assets like physical PM is to create an individual monetary system outside the financial establishment. PMs are the foundation to financial independence and have been for thousands of years, this will not change anytime soon.

The monies we hold in our bank accounts and wallets are no longer money, they are promissory. Too many have abused this fiat system we still call money and this is why TPS readers prefer real assets like silver and gold. I’m far more comfortable with you owning real physical metal first and then speculating on PM ETFs down the road.

By the way, if storing metal is not for you why not check out BullionVault or GoldMoney since both allow investors to buy real metal, close to spot (paper) price to boot, without the hassles of personal storage. Regardless, thanks for the questions and thanks for reading TPS.

 

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.

 

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FIGHTING OVER DIRTY DOLLARS

GOLD & SILVER, GOLD AND MONEY   No comments yet

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

 

 

 

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#1 REASON SILVER & GOLD WILL GO HIGHER

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

We receive some great precious metal questions at TPS so I want to take a sentence or two to say “thanks” for all those reading and especially those commenting or asking questions.  Silver and gold continue to confuse most folks and my goal is to provide a forum that helps simplify, yet justify, PM (precious metal) worthiness. I’ll be the first to admit it’s hard to pick just one influence soon to push metal prices beyond most expectations but one reader this week asked me to do just this.

QUESTION:  I read the book (WHY SILVER & GOLD WILL GO HIGHER) and must admit you sold me on the value of owning precious metals. I’m buying silver and my goal is to add gold soon after paying off a few grand in debt all while hoping metal prices don’t surge in the meantime. You make it sound simple (in the book) but my friends look at me like I’m crazy when I recommend trading dollars for silver or gold. What will it take for the world to wake up?

ANSWER:  Awesome – and congrats for making such a wise decision to own physical silver and gold, thanks for reading my book too.  Your question is one I hear often but it’s hard to pick just one influence soon to send metal prices higher. Like an all night poker game the situation changes as we progress. I good example is last weeks news of worldwide gold miners claiming $3000 gold is what it will take to make mining efforts worthwhile, WOW. This is just one wild card example, I could list dozens beyond those mentioned in the book.

If I must pick one major influence it would have to be FEAR. Most metal owners up until now bought silver and gold hoping for profit. New buyers will seek out silver and gold to quench economic fear and uncertainty all while trying to protect what little wealth remains. This fear is building as you read this and why so many hang their hats on this next election. The truth is President Obama could tax 100% of our wealth away and not dent our growing deficit. A president hopeful, like Mr. Romney, could cut programs & taxes yet still not gain control of a growing deficit.

The last four years has resulted in a futile attempt to restart a bubble economy by throwing trillions of borrowed dollars down the drain. Soon the masses will wake up to the fact that printing trillions of dollars only pads the pocket books of a few while lessening the buying power of most. The effects of such spending (debt) are extremely damaging for those holding wealth in soft assets but few holding dollars truly understand why.

The dollar is part of an “all in” poker game and the losers will pay by losing generational wealth. This fear I’m describing today is a result of a loss of faith. Faith lost in a failed monetary system that refuses to maintain fiscal responsibility. Faith lost in cheesy politicians who put personal interest over those who elected them, but ultimately, faith lost in a fiat currency 99% of us call “money”.

I hope all readers hold wealth in silver or gold well before this fear driven run spurs precious metals beyond what most can afford. Thanks for the great question.

PLEASE FEEL FREE TO SEND OVER YOUR QUESTIONS OR COMMENTS RIGHT HERE.

 

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IS OWNING GOLD WORTH IT?

BUYING GOLD/SILVER, GOLD & SILVER   No comments yet

I recently received an interesting question or three from a very worried reader leading me to ask all readers if owning gold in 2012 is really worth the trouble. Most of us understand the natural progression to protect begins monetarily but at least one reader questions gold’s worthiness during what history will write as the economic correction of the century. I believe gold is relevant but, more importantly, what do you think? Here is the question with all its raw honesty.

Question:  Okay, I bought gold bullion many years ago preparing myself financially and emotionally for a day I see as imminent. By doing so I made great sacrifices at my family’s expense that includes living on a narrow budget, taking few vacations and lots of worry. At times my family viewed my decision (to own gold) as overreacting but has slowly come around to the same conclusions that led me to precious metals. The problem is lately I’ve doubted my decision to own gold and here is why.

I see the entire world facing long odds of economic recovery in my lifetime. I see severe social unrest and I see more totalitarian governmental control that only compounds problems by stealing more wealth from those making deep personal sacrifices. To be honest….what good is a boatload of precious metal if a government steals it through taxation someday? I question the benefit of owning silver, gold, or any other storage of wealth in such an age.

TPS Answer: First let me say I do appreciate your honesty and candor. This site receives many gold related questions but few as honest as the ones you’re asking. Most folks are miles away from your prudence and just now looking for ways to preserve what wealth is left in 2012. You on the other hand have accomplished what few will ever realize but still question such prudence, I understand. To be honest, I too have asked myself similar questions and this is why I would rather live in a world with $500 an ounce gold than $10k (quality of life is more important than individual gain).

You are realizing growing gold values come with a price far beyond growing wealth. The downside to expensive gold (gold appreciation is on its second decade) is the pain and suffering as those unprepared realize dollar dominated wealth is an illusion all while gold grows out of reach. “Yes” overreaching governments will take wealth unprotected and exposed. “Yes” social and civil unrest worldwide is happening and will probably expand as the economy corrects.

But all these things you mention will happen if you own gold or not. Those holding wealth have choices other don’t and this means more options for someone like you and your family. The option to relocate, the option to serve others, the option of better health care and the option of growing wealth. But another option is rarely mentioned and one I want to make most clear. A great option of wealth is the ability to protect it, let me explain.

I’ve owned small private businesses my entire adult life and can honestly say nothing can protect wealth more than a compatible team of professionals committed to protecting what you have worked hard for. This is why big corporations pay little in taxes while the middleclass continues to see inflation tax away any real chance of a prosperous future. Your storage of gold – hopefully silver too – provides the ability to pay those with the professional capacity to protect wealth, even from an overreaching government. Now is a good time to take your wealth to the next level, the protection level of metal ownership.

In the meantime, try to enjoy what you’ve been blessed with and appreciate what most can only dream of owning. Thanks for the questions and honesty.

Question:  Do you feel comfortable putting a number to year end gold prices? I’m sitting on the sidelines waiting to buy more gold while hoping gold dips at year end exactly as last year.

TPS Answer:  Great question and thanks for asking. I’m assuming you’re asking in terms of dollars? If so, any year end gold prediction would only be a guess. Gold could drop over short term but no one with a simple understanding of economic sins believes gold will do anything but substantially rise over the longer term (rising deficits equal dollar devaluation which in return equals rising gold prices). I don’t have a problem with waiting since you sound as if you already own gold and looking to add more. If I’m misreading, and you don’t own gold, then don’t wait since marginal gold inventories could leave new buyers outside looking in.

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THREE PREDICTIONS SOON TO SEND GOLD HIGHER

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

I’m not sure if they still do but at one time most popular state fairs had a guy who would guess passerby’s weight. This expert of girth would randomly pick individuals walking by usually guessing a person’s weight within pounds. Wouldn’t it be nice if our economy had the same sort of fellow to help us choose our financial path and make accurate financial decisions? From business owners to individuals the world starves for accurate economic predictions to help protect and build wealth over such turbulent times. This is why today I want to point out three upcoming issues soon to send gold higher.

CONFLICT:

From simple road rage to city council conflicts the world is as tense as ever I’ve seen in my lifetime. Conflict affects all of us in so many ways and few realize this conflict will accelerate precious metal value as financial conflict expands across our globe. Everyone has an opinion how money must be spent and all agree there is no where enough to go all around. This is why cities bankrupt, countries send their young off to war and once happy couples allow slimy lawyers to divide assets and children’s time.

My wife and I made a commitment to not allow monetary conflict divide a family that means everything to both of us.

Refusing to allow burdensome debt in our lives is one of the ways we choose to promote harmony at home, owning real money like silver and gold is another example. This unity allows for a solid foundation while the rest of society stumbles through a maze of economic correction while conflict rages on nearly every front.

Gerald Celente is a trends forecaster who is and has made extremely accurate predictions over the last 30 years. His latest Trends General explains why the world is on the verge of the first great war of this century. It’s fascinating to read how Mr. Celente chronologically lists how recession, trade wars, currency wars and debt eventually lead to world wars. Our news today of upcoming conflict only validates another one of Celente’s accuracies.

Conflict drives precious metals with uncertainty and debt. History proves most wars find funding by creating more currency even when this monetary creation devalues the worth of those holding such currency. This devaluation is why it takes more cash to buy the same amount of groceries at your local market. This creation of war money also drives the value of your stack of silver and gold.

AWAKENING:

I recall an early morning when my two boys each had several buddies spend the night one weekend. I awoke early stepping over lifeless sleeping bags and empty bags of microwave popcorn knowing the morning’s quiet would soon shatter with awakening. The world around us is soon to awaken as well. This realization of all is not good will lead some to do what we will describe in the next prediction because they’ve not prepared for the inevitable economic correction.

But for now most silently rest still believing lifelong politicians can fix the unfulfillable. They still trust enthusiastic leaders full of promise and hope not realizing the insurmountable levels of world debt will eventually lead most to a lifestyle depending on rations of food stamps, housing allowances and low budget health care.

The word “austerity” equals awakening in my mind. Most won’t connect austerity as an admission of a failed society and fiat economy because most citizens are just trying to protect what they’ve worked for, or not worked for. The price of silver and gold will awaken before most Americans (the world as well) leaving ones needing protection the most outside looking in. But some can afford precious metal, regardless the cost, and are soon willing to pay whatever the few holding physical metal demand. How can such an awakening not drive precious metal prices?

PANIC:

I’m hesitant to use the word panic in an age that sensationalizes even the most trivial events. Many events can spark panic and I won’t pretend to understand what motivates some to run and others to calmly react. But the panic I’m describing today is not only spurred by an empty bank account or the loss of a retirement/pension promise. The one soon to send gold unimaginable is a panic stemming from a loss of trust and faith in a economy doomed by greed, debt and dishonesty.

The monetary panic of this decade will energize itself when world financial markets no longer find bailout money to support a false value. This will lead to an exodus eventually leading remaining wealth looking for anything offering monetary flotation and true value.

Folks this writer has no other insight than history. What we are soon to experience is a scenario that has played itself out many times before. Governments grow too large and make too many promises along the way. Real money shrinks and artificial wealth (currency) expands to a point beyond expandable. The problem this time is the currency expansion spreading toxin around the world stems from the USD. If your wealth is in dollars I urge to you do a quick study of monetary mistakes and then focus on how well silver and gold protect in such a time.

Don’t let panic drive your future. Take time to understand precious metal first and then make a commitment to store your wealth in the one asset history has proven necessary and worthy.

NOTE: For more information on silver and gold please read Why Silver & Gold Will Go Higher. I wrote this book for those searching for a simple explanation of why both metals will continue to grow in price and value.

COMMENTS & QUESTIONS:

Question:  Being an expert on keeping your precious medals safe – what is your opinion on the Free Lakota Bank?  I know it is smart to not have your stash all in one location, and I was therefore contemplating sending 1/3 to 1/2 of my stash to them and even being able to make interest of 7.25% (in silver) on  my investment.  They are fairly new, founded in 2008, and I have no idea how secure their facilities are (or in fact if it is a scam altogether) but wondered about your opinion on them in theory and practice.  This could also help get my currency (fiat money) out of regular banks as this is an interest paying account if you are willing to tie up a portion of your silver for 1 to 3 years.  Thanks for your remarks.

Answer: Great question and thanks for asking it. You are wise to bank outside traditional avenues of saving since the banking system as we know it is in great turmoil (fiat currency).  Free Lakota Bank is part of the Lakota Indian Nation and claims to be the only non-reserve, non-fractional banking institution that operates like any other bank. I personally love the concept and believe banks like Free Lakota are the future of banking (fractional reserve banking is the #1 source of debt creation – not good).

Here is how silver depositing works. A 12 month silver contract pays 3.25% (according to website). A 24 month silver contract pays 5.25% and, as you correctly mentioned, a 36 month contract pays an amazing 7.25% IN SILVER. These accounts are not dollar based, this means all interest is paid incrementally in real silver.

This is what the industry refers to as commodity banking. Free Lakota Bank is in their forth year of operation and I personally know very little about this institution, but intrigued.  If you, I would start out skinny and increase my deposits as worthy. My plan is to try them out with a small deposit and see how it works; I’ll pass along information as it becomes available. Thanks again for the question and if other readers have info on Lakota Bank please pass it along.

 

 

 

 

 

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WHEN OWNING PRECIOUS METAL IS NOT ENOUGH

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

Sometimes just owning silver and gold is not enough, it wasn’t for me. The goal of precious metal ownership is to create an independent life no longer relying on agencies and assets that will continue to decline as our economy weakens. Most have not connected the level of societal unrest or personal wealth loss and still truly believe one more trillion dollars borrowed will fix decades of monetary mistakes. These same folks simply fail to recognize what their local community will become as budgets decline to the point unrecognizable. At such a time owning precious metal is not enough.

I want to be perfectly clear at this point, there is no perfect place of monetary utopia.  Even the Manhattan billionaire is affected by potholes and unanswered 911 calls.  This article is not describing escape since escaping is impossible but “better” is attainable.

Your definition of “better” is different than mine. For me, better was wide open spaces in a friendly flyover town where folks still look after each other.

My better is a place where city and state budgets look for ways to decrease spending not tax payers more when times get tight. These types of places are growing extinct but my bet is you’ve probably noticed this.

In Why Silver & Gold Will Go Higher, I discuss the benefits of hiding wealth in precious metals and provided more than enough facts why both metals will make holders very happy over the long term. What the book doesn’t discuss – as much – is the trade off for prosperity. All things sending your stacks of silver and gold higher also lead to a severe decline in quality of life that few metal holders want to think about.

A decision to buy precious metal is a big decision but nothing compared to saying goodbye to family and friends while over packing a U-Haul. I won’t pretend to know what is right for your family but will provide a few trends to look for that may help open denying eyes.  I’m guessing many of my readers today are seriously considering “getting out of Dodge” so I thought maybe we should list a few trends that could help with such a big decision.

TREND #1: MAJOR DECLINE IN HOME VALUES: Declining home values are far worse for communities than most imagine. Most city and school budgets rely on property taxes to fund safety services and local programs. When values decline budgets shrink. When budgets shrink then services are cut. This eventually leads to a breakdown in infrastructure on nearly all levels. This means your city services can no longer support local citizens and this always ends with you paying more taxes or living with such a decline.

Most of you are familiar with the growing number of cities declaring bankruptcy but most fail to realize this also increases the number of individual bankruptcies too. This chain reaction – if you will – severely weakens a local quality of life not to mention the drag on personal wealth. My question for you is how much wealth do you have stored in your home’s equity? How fast is it declining?

TREND #2: UNEMPLOYMENT:  The year 2012 introduced a new term called “Silent Depression”.  By definition, a silent depression describes bad economic times hidden by massive government support. Picture soup lines of the 1930s replaced with EBT cards, food stamps, long-term unemployment benefits, ever increasing numbers on disability, etc. This support becomes normal when job opportunities decrease or pay less than the local standard of living. There is a difference between a temporary safety net and long-term dependency (only one is sustainable).

The problem arises when we consider the wealth of most countries cannot support the rising numbers using such services, this is why most countries have growing deficits. The facts show cities in a silent depression are experiencing an increase in robberies, rapes and murders. Can you imagine the extended level of such crime when services are reduced or benefits lag behind inflated food and housing costs? Can you imagine the level of hatred as those who truly feel entitled decide to blame those with remaining wealth?

TREND #3: DECLINING INCOME: Some of you cannot imagine saying goodbye to family and friends, I understand. But the fact remains you live where you live because of opportunity, even if you’ve already relocated. Opportunity to grow a business or advance a career keeps us in a place slowly deteriorating. For some, it really comes down to income and a lifestyle but the truth is today both are in serious jeopardy of decline. My advice is to watch both closely realizing something must “trigger” a God given instinct to protect family and remaining wealth. I personally left a tax heavy state (simultaneously killing business with more useless regulation) when my income no longer justified the hassles of such a lifestyle. I wish I had made the move a decade before to be honest.

Several decades ago Americans fell into a trap when someone convinced us “more” is the secret to happiness. This lead to “more” spending, more personal and public debt, more acid inhibitors, more family fights over money, and especially more compromise in order to live someplace in obvious decline. If one thing good comes out of today’s economic correction let it be a return to common decency and a simple family oriented way of life. This lifestyle I’m describing does not take a boatload of money but a savings in silver or gold will help.

Let my last note be this. Who knows what your wake up call will be or if you will hear one. I personally would rather own less metal and a better quality of life than the other way around. The choices are yours but you can rest assured we will continue to justify precious metal ownership as events unfold, regardless where you live.

QUESTIONS & COMMENTS:

QUESTION:  In 2011 I bought 200 ounces of silver for the first time thinking silver was a wise move but now not so sure. I do not doubt my decision to buy silver but question my timing more than anything. How does a small silver investor know when is the best time to add more considering how silver continues to drop in price?

 TPS Reply:  Nothing casts doubt like PM prices dropping especially for those new to silver and gold. Thanks for the great question and let’s see if we can help ease a few concerns and then answer your question. First, yes silver has significantly dropped and this leads many new to PM to doubt such a wise decision. This doubt has a short shelf life since “real money” will soon surface as one of only a few true safe havens of wealth storage. The true question is what will silver do in the future, right?

You already know the same monetary mistakes still take place in fact, most currencies have only increased the mistake that will drive your silver skyward, debt. Nothing will stifle economic growth like the burden of debt. This is why the job market lags, this is why housing can’t rebound, and this is why cities across America, heck the world, are starving for revenue while college students riot in the streets. All these things cause remaining wealth to flee for safety. Nothing has the historical track record of silver and gold, nothing ever will.

To answer your question, my advice is buy each month with little attention on price realizing it will average over the long term. I too bought silver only to watch it fall. I also bought gold less than $400 an ounce. My point is we are soon to enter a time when price paid is far less important than ounces owned.

 

 

 

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KEEP YOUR GOLD & SILVER SAFE

BUYING GOLD/SILVER, GOLD & SILVER, GOLD/SILVER COINS, SECURING GOLD & SILVER, SOCIAL UNREST   No comments yet

Have you noticed that there really is nothing 100% “safe” from theft? From Wall Street to Main Street the threat of someone taking something from you is as real as I can remember. The longer I write about precious metals the more I realize theives come in many shapes and sizes and by no means stereotypical. Now I’m not just talking thievery like we see on TV where thugs with covered faces rob folks at gunpoint. The biggest threat to your wealth is the guy sticking campaign signs on your neighbor’s front yard, or his cronies (taxation). The second threat is inflation and the sad side of this threat is that most victims don’t realize how much wealth is right now lost from it.

This is why it’s so vital to not only own physical silver and gold but to also have a bullet proof plan to keep it safe. This is where I can help so thanks for joining us today.

Keeping your PM safe is not difficult but does require a well organized security plan with a continued effort from you and whoever shares your address. I’ve heard from readers who question the above statement by mentioning other family members living in the same home know nothing about the stash of silver or gold. This, my friends, is a recipe for disaster since those not knowing can’t be part of a plan to protect your metal, not good!!

I don’t believe in secret PM storage programs, here is why. My thinking is PM security is a family effort since the fact you are storing the metal in home means you are willing to put all those living there at risk. Risk you ask? Yep, owning PM and storing it at home carries risk and only someone naive will believe differently. Maybe it’s time we put the cards on the table showing exactly the growing risk each PM holder will face as our economy continues to unravel.

I knew when I wrote Storing Silver & Gold that some readers would find true examples of home invasion too much to take. I’m guessing my book editor right now is thinking the same thing. I warned readers before hand with each home invasion example because each of you must prepare for the risk that comes with something that every person on the earth will soon view as necessary. I hope I’m wrong but doubt it.

As precious metal holders, few look beyond future wealth and riches. We think of the nice things we can buy or opportunities to help others but rarely invest thought that a rise in gold’s value equals a decline in society as a whole. This exposes you as different – even lucky, or wealthy – putting a big old bull’s eye on your family’s back. Think about it.

The challenge to keep your metal safe will grow as the economy weakens, sorry.

This is why it’s so important to begin a plan now to store physical PM in multiple locations. I do recommend keeping at least 1/3 of all PM owned in hand or at least close at hand. I like storage diversification most because it adds an insurance value to all eggs in one basket. Another thing I like is insurance (yes, insurance exactly like the policies you have on life, home, car, etc) on every ounce of silver or gold you own.

SEND OVER YOUR QUESTIONS OR COMMENTS ANY TIME. FEEL FREE TO SIGN UP FOR MY ONLINE NEWSLETTER TOO.

QUESTIONS & COMMENTS:

Question: You wrote about insuring gold so I thought instead of emailing I would call, hope this is okay? My question is can I determine the value of a particular coin when buying insurance? Will the company offering this insurance ask for an appraisal?

TPS Answer: Thanks for calling and “yes” it is okay to call (I actually prefer email but realize some want to discuss by phone, this is okay too). No, my understanding is a person cannot simply request a rare coin worth $3000 insured for $6000. I don’t have rare coins insured (I’m mostly in bullion, rounds, and bars since they carry less of a premium) but can tell by the conversations I’ve had with those offering insurance that value must be proven. They could ask for a proof of purchase and this will help determine value at least at time of purchase.

Something else comes with each new policy all readers must be aware of. Each new policy comes with a signed fraud statement plainly explaining the charges for insurance fraud. My advice is to keep it straight and sleep well at night.

If other readers have questions on insurance for physical silver or gold please feel free to email me at theprospectorsite@gmail.com.

Question: What exactly does The Prospector Site do?

TPS Reply: We offer facts related to why, how, where to own physical precious metals all without readers worrying with a motive. Most PM information floating around the internet comes from companies selling PM (most have a buyer’s best interest in mind, some don’t). TPS doesn’t sell silver or gold, we only write and consult with individuals why it’s so necessary to own it and then offer proven ways to buy and protect it (precious metals). Thanks for the question.

 

 

 

 

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INNER CITIES & STACKS OF SILVER

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

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

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

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

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

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

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

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

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

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

QUESTIONS & COMMENTS:

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

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

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

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

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

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

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

 

 

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