Elected officials around the world are in the process of making me very wealthy. Each precious metal fan should view this as the reward for staying true to the one true safe haven.  I’ll be honest here, I don’t give a rat’s behind about politics since regardless what’s said, actions rarely favor the few pulling the wagon. My only interest is how political miscues affect those trying to raise families and live productive lives. Regardless, if you’re one of a hundred sitting on physical metal than prepare to soon enter the highest tax bracket.

Some of us did not buy silver or gold to become wealthy, I didn’t. Sure having real money is nice but at day’s end the papers are full of unhappy wealthy. The primary benefit of owning real wealth (silver or gold) is the insulation value it provides while knuckleheads decide how much debt shackles your child’s future.

Today’s candidates drum a recovering economy but fail to mention our economy is  dependent on near zero interest rates and never-ending borrowing. I find it funny that super committees pass off trying to reduce the deficit still growing, how is this possible? Don’t we need to stop the bleeding before all else. The truth is we cannot stop deficit bleeding. If we could we would!

I find it odd that some in society view food, power, water storage and self-reliance as overreacting when history clearly justifies such prudence considering the length of our USD fiat reign. Our age of “assuming” life as normal is turning dangerous in my opinion.

Political leaders are making two gigantic mistakes as you read this post (both will eventually push metal prices higher than most view as possible).

Mistake #1:

It is rumored 83% of the US Senate & House of Representatives are male, I seriously doubt this is true. Please don’t mistake this as a sexist statement because my only point is to question the anatomical strength of today’s male politician. The first mistake soon to drive your net worth skyward is an unwillingness to admit the USD can no longer sustain the world’s lifestyle (make no mistake, the USD is the cure and disease).

This requires all sharing public office, at all levels we should add, to honestly explain why we can no longer borrow $.40 of every dollar spent. Yes, this will cause chaos and discontent, how can it not? But will hyper inflating our dollar not lead to a life like camping?

Do you feel the average politician underestimates the character of hard-working folks around the world, I do? An explanation of “why” we are where we are and “how” shared pain will allow future generations more opportunity is something most reasonable folks will grasp. The ones only concerned with themselves will fall lockstep, eventually, since they are destined to a life of dependency regardless.

Think about this if you will. The upcoming “pain” worsens with decades of deficit spending allowing most to live an unrealistic lifestyle.  This deficit spending allows wars to rage, bubbles to expand and pop, and a USD dominance built from debt and inflation. Not to mention the few who grow richer at the expense of so many others.

Mistake #2:

Part of living a life of political integrity requires ones in control to separate from those most motivated by wealth. This is proving difficult, maybe impossible, since Wall Street now singularly drives political leaders around the world. It could appear your best interest is in mind but comparably speaking you and I are small players when compared to the handful controlling wealth.

This failure to separate is what leads us to a common four words we all know too well, Too Big To Fail. Does is make sense that a banking entity can be too big to fail? How is possible we are willing to bankrupt America to save a handful of institutions TBTF? This defeats the purpose, right? TBTF is nothing more than an excuse for political favors in exchange for one more term.

Yes I realize your retirement (not mine) entrusted to the TBTFs and politicians use this as excuse to continue the bailout party. But each of us must carefully review our options here since the alternative to fiscal responsibility is eventual inflation that gobbles a typical pension allowance with only a handful of groceries.  This “alternative” is now a $16 trillion deficit on cue to reach $21 trillion in an evolutionary blink. My point, everyone will eventually share the pain of today’s individual and political sins!

What about gold & silver owners?

My book editor didn’t like my Introduction to Why Silver & Gold Will Go Higher and I’m forever grateful she encouraged me to rewrite. To be honest I changed the intro to one of opportunity over despair. My heart is torn as a gold holder since I realize my individual monetary protection is not worth the overall pain of a collapsed dollar. This monetary understanding allows us a peek into the future.

The monetary sins coming from D.C. and Wall Street are far-reaching and will cause generational pain, this I’m sure of. Since you are fortunate to still have a choice I strongly advise each reader to take a proactive approach to self-reliance and then make a political stand at a local level. You will be surprised how many feel exactly like us.

IF YOU WOULD LIKE TO READ MORE POSTS LIKE THIS THEN REGISTER HERE FOR OUR ONLINE NEWSLETTER. ALSO, SEND OVER COMMENTS AND QUESTION TO LET OTHER READERS KNOW WHAT’S ON YOUR MIND.

Tags: buy silver, gold, monetary sins, precious metals, self reliance, wealthy, Why Silver & Gold Will Go Higher

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

DYING INDUSTRY #1:  WALL STREET replaced with GOLD $ SILVER

WALL STREET OUT

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

GOLD & SILVER IN

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

DYING INDUSTRY #2:  NEW CONSTRUCTION OUT & MR FIX-IT IN

NEW CONSTRUCTION OUT

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

MR FIX-IT IS IN

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

DYING INDUSTRY #3:  ENTITLEMENTS OUT & SELF RELIANCE IN

ENTITLEMENTS OUT

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

INDEPENDENCE IN

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

NEWS WORTHY:

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

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

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

NEWS WORTHY:

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

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

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

NEWS WORTHY:

MARKETWATCH:  Real-estate scam that’s devastating prices

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

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

Tags: $2000 gold, dying industries, gold & silver in, owning gold & silver, physical metal, saving grace, self reliance

The fact is the Federal Reserve Bank doesn’t want you to buy gold.  These are the same guys who recently admitted using your tax dollars to bailout foreign lenders with sweet heart low-interest loans back in 2007/08.  Money even went to countries we are at war with.  Congressman Ron Paul put it best by saying, “We dropped bombs and cash on the same country.”  The big question is why do the feds not want you to buy gold?

REASON #1 SAVINGS: There is no better way to “save” money than to trade dollars for gold or silver.  Now I realize most gold buyers are looking at gold prices to grow therefore looking at gold as an investment.  This has been the case but the primary intent of turning dollars into real money like gold is to create a store of wealth.  I guess you can say gold is a time out in the inflation game.  When you pull dollars out of circulation, the economy, then invest it into metals you are working counter to what the federal reserve is doing.  They need spenders not savers because savers only show that debt is to blame for a failing economy.  This is why billions of borrowed dollars are flowing from the Federal Reserve and then into circulation.  The Federal Reserve Chief, Bernanke, even threatened to drop cash from a helicopter if needed.  You and I buying gold certainly doesn’t bode well for his plan.  Debt brings us to reason two why the feds hate gold.

REASON #2 DEBT: If the world stops borrowing money the entire economic system as we know it will collapse.  Those that hold gold and silver will prosper beyond belief but the masses will live a life a lot like camping.  Our government borrowers 40% of each dollar of its day-to-day budget just to keep the “illusion” of a strong economy.  Experts say this debt is “passed on” to our grandchildren but this is not exactly true.  It is “passed on” to everyone that uses dollars to buy anything even as we speak.  Your breakfast doughnut cost has a percentage of debt built into every delicious bite.  This will become more clear if you keep reading our daily post because economics is the easiest thing to understand as long as we don’t listen to experts.

Gold and silver is rarely purchased with borrowed money and this is part of the reason the feds dislike.  I doubt your local banker will lend you $40k to buy a stash of gold or silver, I know mine won’t.  Gold brokers don’t usually accept credit card payments so most metal is bought with cash.  Not only do we pull money out of the economy when buying gold ( by saving) we fail to create new debt as well.  Our economy will decline, or worse fail, if enough fiscally responsible people say enough is enough.  We must ask how we got to a place like this to not repeat it.

CHOICES: The choice is yours but you must pick between only two.  Either personally protect with assets like gold/silver creating a life of self-reliance or bank on a debt derived economy for the rest of your life.  The difference could be a house on the hill compared to a life just like camping.

QUESTION:  Have your heard anything about a half ounce silver coin being minted?

ANSWER:  It does exist but I can’t remember the mint issuing them.  You are correct in that they are 1/2 ounce silver coins better known as fractionals.  If I remember right they sell for a slightly higher premium than one ounce bullion.  I will pass along info as it comes in because this will be popular considering how high silver prices are.

TIP OF THE DAY:  Dollar cost averaging means to allocate a predetermined dollar amount, usually monthly, for metal purchases.  This is opposite of buying on the “dip” but has worked well for folks on a budget.  Don’t be afraid to use dollar cost averaging.

FAIR PRICES FOR GOLD & SILVER (12:00 pm MST)

• ONE OUNCE SILVER BULLION:                           $45.47

• ONE OUNCE SILVER ROUND:                               $43.17

• ONE OUNCE GOLD BULLION:                               $1549

• ONE OUNCE GOLD BAR:                                         $1512

Tags: bailout, buy gold or silver, dollars for gold, economy will decline, failing economy, fed hates gold, gold as an investment, hold gold and silver, one ounce bullion, self reliance, silver coins

Traditionally we think of gold bugs as crazy old men spending weekends in well lite basements.  You know, gold owners, bomb shelter types, UFO believers, the list could go on.  But what if I told you your neighbor, brother-in-law, hair dresser, banker, kid’s teacher, and church janitor are all investing in metal while you are investing in the past.  It’s true, if you have a hard time believing this just pick up the phone and call any gold broker.  I recently asked my rep who is buying gold and she said one call will be from a new investor and the next a $5,000,000 client.  Is it time you take a hard look at gold?

DISCRETE IS THE WORD: The reason you have no idea of who’s behind the new faces in gold is because they wear no sign of metal ownership.  This is unlike the flash of yesterday when “the Jones” wanted only to impress through depreciating assets.  These days are over and frugality coupled with safe investing is as “in” as home cooked meals.  Gold coins fit nicely into the pockets of self-reliance and this is exactly what new faces are seeking.  With so much talk of entitlement numbers increasing, the big story is the increasing numbers of lone wolves looking for nothing but independence.

I wouldn’t say the new faces mistrust government, well maybe a little, they just don’t agree with increasing debt to solve debt problems.  Most new gold owners realize something has to give and this realization has led to life of self-sufficiency.  Owning physical gold is only one part of this lifestyle of many layers.  Many new owners are still at working age so wealth preservation is more important than income.   Many of these same types are now realizing huge creations of golden wealth but Mum is the word.

WHAT IS THE PLAN? The long-term plan for most is contingent on the dollar’s future.  Many modern gold bugs don’t trust devaluing dollars and will hold onto gold until the smoke clears.  Some fear the herd will run to gold but realize this demand will create a false value derived from speculation and greed.  Most modern-day gold holders will be long gone before this spike bursts the gold balloon.  Money profited, or preserved, will go into new emerging assets yet to be determined but surely profitable to those that understand cycles.  Some will trade gold for income producers ,like real estate, and enjoy a life of depending on no one.

Please don’t underestimate the power of gold and silver or its independence.  Coming in late to a cycle is far worse than not coming in at all as many can attest from the recent real estate bust.   My opinion is gold has plenty of life left for those willing to research and then trade dollars for gold.  The new face of gold doesn’t run to the gold market by fear but by reputable unbiased information.  Thanks for reading The Prospector Site and congrats for taking the first step to taking back control of your future.

LAST WORD: Today’s news is very relevant to all gold/silver owners.  Political leaders are in search of compromise on a 2011 federal budget in April of the same year.  This is not about politics but a conflict between fiscal responsibility and irresponsibility.  If borrowing (debt) is an option for politicians it will almost always be the choice in the last hour.  My opinion is gold & silver prices will continue to rise along with debt.

QUESTION:  Why not buy paper gold since it is less than physical gold?

ANSWER:  You are correct in the fact of paper gold being less ( by around $75 per ounce) than physical gold but remember independence is what we are buying.  I like the idea of owning physical for fresh investors and then research if paper metal is a for you down the road.  The gold buying process is education, research, and then buying metal regardless of paper or physical.

TIP OF THE DAY:  Be cautious of new advertising selling gold coins that look like US Minted but are actually only gold-plated.  Buying anything but true gold or silver is speculation only.

Each business day we post fair prices of physical gold and silver.  These prices change by the minute so stay current with metal pricing.  If your metal source is over these prices please question or find a new metal source.

FAIR PRICES OF GOLD AND SILVER (9:15 am MST)

• ONE OUNCE SILVER BULLION:                  $43.63

• ONE OUNCE SILVER ROUNDS:                    $41.29

• ONE OUNCE GOLD BULLION:                      $1523

• ONE OUNCE GOLD BARS:                              $1486

Tags: buying gold, dollar's future, gold balloon, gold bugs, gold coins, increasing debt, independence, investing in metal, new faces of gold, real estate bust, self reliance, The Prospector Site, trade gold for income

Have you grown up believing something was true only to find out it’s not?  Many families are trying to understand how the rules changed on what seemed like basic economic protocol.  The sad part is no one bothered to tell some about the new rules.  I congratulate you for taking the time to visit sites like The Prospector Site.  Exploring the true value and independence of trading dollars for gold & silver is time well spent. Four myths you must take to heart.

MYTH #1  SAVING MONEY: When I was eight years old my grandmother took me to Sears to buy batteries for a new gift.  As we got back into her car she asked where my change was from the new purchase.  The clerk neglected to return five cents change so I told my grandmother it was no big deal.  Bet you know the rest of the story.  Her generation new hard times with a few cents being the difference between a meal or not.  Not to cross my grandmother but this thinking is entirely wrong in a dollar devaluation age like today.  If you are holding onto the myth that you can save your way into financial freedom I have bad news for you.

We must replace the word save with preserve.  Our dollars are buying less and less because more dollars are constantly being pumped into the economy at a pace virtually uncountable.   Just today, the largest store in the US released a statement for shoppers to expect large increases in food and cotton items. When a currency is devaluing as fast as ours it must quickly be moved into a safe hedge to preserve original value.  Gold and silver do exactly this.

MYTH #2  EDUCATION: My heart breaks for young adults, fresh out of college, that believe an eduction equals financial freedom.  Don’t get me wrong because I believe in education, that is what this site is all about.  What I don’t agree with is the assumption education guarantees a good paying job.  We can see from the long faces, and long lines, of the newly educated the worst side of unemployment.  Add the burden of school loans and its easy to see why so many grads are moving back in with mom and dad.

The young, as well as parents, must reconsider education with serious thought to emerging markets of opportunity willing to bury the dying industries of yesterday.  A global market, in so many ways, will need pin point intelligence, skill, and focus.  To underestimate the seriousness of rising unemployment will be more costly than any degree from the most respected institution.  Many newly educated need to accept little will be easy and self employment should be a consideration.  Once solid careers in city, state, or federal systems are no longer a sure thing.  Self reliance is the new word for those unafraid to lead the way for the next generation.

MYTH #3  MY HOUSE IS AN ASSET: So many baby boomers are finding primary residences are no longer a store for retirement.  We got caught using the in-house ATM machine one too many times just as the real estate market corrected.  Even homes with low mortgages look like liabilities especially in high property tax areas.  A historically declining real estate market has left many dreaming retirees looking for double shifts.  Unlike the young, who can redirect, many of our elders are making plans to work until unable.   Next time you are in Walmart, Kmart, or Target just look around at our elderly working when they should be enjoying their golden years.

MYTH #4  GOLD IS FOR THE RICH: We can’t talk of independence without looking closely at the freedom of gold and silver.  Many misunderstand this investment thinking it, unlike other investments, needs to increase in dollars to offer a good return.  This is a myth.  The minute dollars are traded for metal the inflation train stops dead in its tracks.  If gold or silver go down it’s because your dollars have stabilized and are no longer decreasing in value.  The only exception to this is if golds been speculated over its true value.  This is what happened in January of 1980 when gold went vertical as herds of people ran it off a cliff.  We are not close to anything like this in my opinion but who knows for sure?

The myth that gold is only for the rich is unfounded.  Small fractions of gold can be bought allowing new investors to baby step into this market of wealth preservation.  Anyone can start trading dollars for silver for as low as $40 per ounce.  The buying power of just one ounce of silver could be huge this time next year.  Assets like gold and silver are shelters in troubled times preserving your wealth while assets like real estate are in decline.  At some point, trading gold/silver for income producing property can offer a life long form of independence and income. Talk with your local, and trusted, Realtor about the right time to jump back into income producing real estate.

QUESTION:  My husband and I are looking into picking up two rental houses to supplement our retirement income.  Our Realtor says now is the time but we are unsure so how do we know?

ANSWER:  Great question but let me start by saying I’m not an expert, by along shot, in your real estate market.  What I personally will look at, when its time to reenter the real estate market, is three things.  One, do distressed properties add to swollen inventories locally?  Two, has local job losses stabilized?  Three, are home values still on the decline month over month?  All this information is available online so due diligence is the word. No reason to pay more for rental properties than you have to especially if your current wealth is in metals.

TIP OF THE DAY:  Real estate used to be location, location, location but his has changed.  Location is still important but just as important is jobs, jobs, jobs!!

FAIR PRICES IN GOLD & SILVER (9:00am MST)

• ONE OUNCE SILVER BULLION:                            $42.06

• ONE OUNCE SILVER ROUNDS:                              $39.72

• ONE OUNCE GOLD BULLION:                                $1496

• ONE OUNCE GOLD BARS:                                        $1461

Tags: fair prices in gold & silver, financial freedom, fractions of gold, freedom of gold, gold and silver, house is not an asset, saving money, self reliance, The Prospector Site, trading dollars for gold, unemployment