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WHEN WILL GOLD GO HIGHER?

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

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

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

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

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

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

WHY?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Thanks for the great question.

 

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

 

 

 

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“FEAR FACTOR” SILVER & GOLD

BUYING GOLD/SILVER, GOLD & SILVER, SURVIVAL & GOLD/SILVER   No comments yet

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

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

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

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

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

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

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

News Worthy:

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

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

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

News Worthy:

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

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

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

News Worthy

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

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

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

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

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

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

COMMENTS & QUESTIONS:

COMMENT: I was happy to read your Ebook for you.  I found it easy to understand.  Your presentation of the PM market was very clear for someone who has no previous experience in this area.  I still learn something new about PM every day.

You might also point out any balanced portfolio should have PM in it.  PM people normally refer to this as ‘insurance’.  The recommended percentage is usually around 5% of the total portfolio amount.

Also, most people have no idea (I didn’t until recently) that one can own physical PM.  As you mentioned in your comments, the topic can be easily overwhelming, so I think your book gives a good jumping off point for the novice without being too detailed or boring.

As I watch the news from Greece, one can see how a ‘run on the bank’ works.  With PM, there is no need to panic as you have your wealth where you can physically put your hands on it.  No Federal Reserve Notes to worry about.  I guess this is one reason why bankers poo poo the idea of you having physical PM!
If the Central Bankers in China, India, Russia and Japan buy Gold for their reserves, I think it is a very good idea for me to follow along……


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

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

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

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

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

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TWO FACES OF SILVER & GOLD

GOLD & REAL ESTATE, GOLD AND MONEY, GOLD/SILVER COINS, SURVIVAL & GOLD/SILVER   No comments yet

You know who you are, to be honest; I know who you are too. Well, I have it nailed down to one of two choices. There are only two faces of PM (precious metals), owners that is, and each one motivated to own silver and gold for opposite reasons. One side is more vocal, aggressive, and independent if you will. The remaining side is calculated, confident, even consuming. The one thing both sides have in common is the desire to amass as much silver and gold as possible. My view, I think both sides are very wise in the last regard.

Just to simplify let’s break each side into type one and type two. It makes sense to start with type one since I hear from this type most often.


Type One Silver & Gold Holder:

Last week’s post Rivers of Silver found favor among this type. In fact, tens of thousands read the post and we heard from readers around the world, thanks. Regardless of location, regardless of motivation, all comments sounded similar.

In case you missed Rivers of Silver, we peeked into silver’s future and into a time when one ounce silver is no longer affordable to the masses. An age of expensive silver justifies fractional coins, bars, and rounds for trade and affordability.

Let’s get back to type one PM holders. Better yet, let’s let them speak for themselves.

“If you don’t hold it, you don’t own it”…

or

“What the future holds?…well….get ready today for the way that you want to live tomorrow.”

or

“I will only release coins to jump start the barter system and for the black market because sooner or later…”

or

…”the answer is to use real money, money that is just as good in China as it is in the USA.”

and lastly

“I wish we didn’t have checks, much less plastic, I hate paper trails… : )”

Type One metal owners see the end of this debt debacle as nothing short of a full dollar collapse (nearly all currencies). The plan is to hold something of monetary value which will someday function as money. The plan is to trade silver coins for eggs, milk, bullets, or whatever necessary.

This type doesn’t necessarily view silver as a wealth transport but a tool to barter or trade. This type doesn’t trust government and is very unhappy with our loss of liberties. They view the world as distracted, off course, maybe unwilling to accept the inevitable economic collapse.

Some still own silver they bought for $3 or $4 or $5 per ounce. This type owns fractional silver fully understanding silver trade and barter. This type is not wealthy but they are prepared, prepared for whatever comes their way.

Type Two Silver & Gold Holder:

This type views trade or barter silver as background noise, maybe necessary or maybe not. They own silver and gold with no interest in how it has appreciated but more concerned with how it will appreciate. This type includes those interested in wealth preservation and wealth accumulation. They make comments like the following.

“…your view on storing gold in Zurich?”

or

“Junior gold mining stocks are….”

or

“Please discuss transferring an IRA into silver or gold…”

They view silver and gold as part of an overall wealth building plan. They see real estate as cycling downward while PM cycles opposite. They understand wealth cycles, recessions, corrections, depressions, and eventually recovery.

This type is less fearful and more calculating, economically speaking. They want what is best for their family but themselves too. They see opportunity over protectionism.  This type will continue to buy silver and gold only until they see the next under priced asset.

WHAT ABOUT YOU?

Here is what you must ask.  Are you trying to preserve wealth or planning how to feed your family when eggs cost $65 per dozen? Aren’t both necessary?

Both sides bring something beneficial to today’s PM table that I want to point out. Type one, they are unassuming and survivalist. We all can learn from their ability to prepare for an uncertain future. They are a growing minority.

Type two offers yet another aspect we can all learn from. Unlike type one; they understand a need for cash flow or fresh income. PM used for barter and trade work well but eventually consumed. Cash flow fills the coffers like a year around stream. Type two understands leapfrogging wealth and the need to transport by way of silver and gold.

Here is what both types should also understand. Silver and gold offer many benefits to those who willingly trade currency for real money, but nothing more beneficial than a hedge value or insurance value. I truly believe both metals offer protection against monetary miscues and fiscal irresponsibility.

At this point some are asking, “Ya, so what, what does it matter as long as I’m protected with PM?” You are correct, kind of. We often hear from PM newbies and all ask the same questions on what, when, and where to buy. Just as necessary is the need to pinpoint your PM objective.

Just like a percentage of wealth should rest in silver AND gold, so should a plan include preparedness (type one) and wealth preservation (type two).

The final question is one only you can answer. Where do you fall?

WE WANT TO HEAR FROM YOU. SEND YOUR COMMENTS AND QUESTIONS TO US RIGHT HERE. DON’T FORGET TO SIGN UP FOR OUR FREE ONLINE NEWSLETTER TOO. THANKS FOR FOLLOWING THE PROSPECTOR SITE.

COMMENTS & QUESTIONS:

COMMENT (Regarding Rivers of Silver post):

I think you’re right. Fractional silver could very well become a necessity before we know it. Which reminds me that China’s currency used to be silver. I wonder how much they hold now?

You answered very well the argument of why gold and silver will be important when the current system fails. I get a lot of people who say to me you can’t eat gold or silver and live, so it’s better to stack no perishables and learn to grow. But those people in the big cities, in the apartment complexes, they are not going to be able to grow enough to live on other than some herbs in a window.

PROSPECTOR REPLY:  Thanks for the comment, and observation. Correct, most no longer have option to farm, raise cattle or chickens. This has changed over the last 100 years as folks migrated to the comforts of big city life. This migration also created an assumptive nature as we find ourselves dependent on passive services.

Silver and gold offer a fresh level of independence. Like our big city migration, our wealth has migrated too. Unfortunately, this wealth migration has allowed those less than trustworthy entrusted with our savings and retirements. It is now estimated that 56% of America’s economy rests in five Wall Street banks, the same ones too big to fail (joint bank assets compared to a percentage of US economy).

A wealth migration into silver and gold could come quickly or not, we just have no way of knowing. It will arrive and when it does the premium for PM will rise beyond what most can imagine. Now might be a good time to plan for such a time.

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RIVERS OF SILVER

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

At first I thought the retail clerk was joking when he hesitantly accepted the $100 bill from my hand. This is when his reply validated his hesitancy, “Great, a hundred-dollar bill, second one this week.” I must have looked surprised when I asked if there was a problem with the bill. He said, “No, they ($100 bills) create a problem making change and guarding against counterfeiting, no problem sir I’ll have your change shortly”.

The world is changing quickly if you haven’t noticed. My dresser top empty change jar proves this each morning when I put my hat on. Our money went to a currency in 1970 (paper/coins) to now digital. Few of our youth carry cash these days, not in a debt card world.


One of the many benefits of founding a business like The Prospector Site is the ability to see behind the monetary curtain. This provides a peek into our future by tracking the path of silver and gold. In an odd way, one ounce silver bullion coins are soon to travel the same path as our paper dollars. Unlike paper dollars, silver won’t be replaced but unaffordable.

Someday soon traditional one ounce silver coins will be too expensive for the majority to own. This seems hard to imagine today since physical silver ounces cost less than $40.

I know this to be true because I understand silver and gold’s ability to keep par with currency values. This rise is nothing more than accumulation of currency devaluation and demand for a very limited source of real money (PM).

Each reader must at least consider importance of owning fractional silver sometime soon. By the way, fractional metal consists of coins, rounds or bars broken into denominations less than one ounce form. Fractional coins are common in today’s gold market but uncommon in our silver market. This is soon to change.

There are two good reasons why we expect to see this change in physical silver.

  1. Affordability (more can afford things when priced less).
  2. Trade value.

Think back to my $100 bill introduction. What if the store clerk couldn’t make change for me? What if I didn’t have a credit or debit card backup?  The answer, the store would’ve lost my business.

Let’s talk about fractional silver affordability first with a brief history on gold. Readers are quick to mention how today’s gold market continues to price them out. I will not argue that gold seems pricey especially when compared to prices I paid many years ago. But fractional gold still provides an option (1/10 ounce to 1/2 ounce) for buyers reluctant to pay full ounce prices.

Just because gold is available in fractional coinage doesn’t sooth the sting of expensive PM, it does provide an opportunity for those on limited budgets.

But silver’s move to fractional coinage is different. Silver (and gold) are soon to be realized not only as real money but necessary. This time, or era, will come only after illusionist winds of economic recovery subside. Such silver demand will justify the cost and trouble to mint fractional silver making 1/2 silver coins, bars, and rounds as common as one once bullion today.

Now, this brings up silver’s future trade value.  Few who follow the PM market argue the fact both silver and gold is transitioning into a currency. This is nothing new seeing both metals started out as money many centuries ago (history repeating).

But this time is different. No longer do families grow or raise things of necessity, they buy them. This means currency plays a larger part of our economy than ever before. I doubt that folks living on the 5th floor will find space to grow or raise things anytime soon, if so, this means they must buy from someone who does.

This takes money, currency, or an asset of equal value (barter).  But we already know currencies worldwide are progressing toward printing themselves more worthless each day. Again, the chart below proves this better than I can describe it.

Please notice how the chart line turns vertical as of late. This means we must earn more dollars to buy what less used to. But this is not the same for silver. The same amount (grams/ounces) buys equal or more.

Now here is the problem if you don’t own silver.  The same “weight” of silver buys equal but will cost those not owning silver much more to buy. This is why it’s very important to investigate silver ASAP.

Please stay with me here. Fractional silver will soon buy the things we all need regardless of size/weight.

Think how a fractional 1/10 ounce gold coin now buys one week worth of groceries. Look closely at the 1/10 ounce coin below noticing the $5 denomination. This means $5 used to buy a week worth of groceries but barely buys a sandwich today. Silver will follow the same fractional path if our dollars continue today’s course!

Does this mean we could someday need fractional coins of silver just to buy everyday necessities? YES, especially when we consider the possibility one ounce silver could be too valuable for most items!

COMMENTS & QUESTIONS:

QUESTION:

Good day…….how are you doing today ??
…I AM LOOKING TO BUY 100 OUNCE SILVER BAR,Like
MAPLE LEAF, 1oz Silver Eagles, Krugerrand. ANY OTHER GOLD COIN  that are Numismatic in Nature. Kindly get back to me with your availabilities and Prices. Awaits reading back from you soon.

Sincerely

PROSPECTOR REPLY: Sorry but The Prospector Site doesn’t sell silver or gold. I recommend visiting www.GoldShark.com to find competitive pricing on all your PM needs.

COMMENT:

Just wanted to drop an email letting you know how much I enjoy each article. I’m new to PM but realizing importance of silver and gold especially in today’s world. Wanted to pass this along and say “hi”.

Prospector Reply: Awesome, thanks for passing nice words along. You have no idea how nice it is to receive several emails (like yours) now and again. I urge you to continue to study PM until fully confident they are the right choice for you. You will develop a new-found confidence that will last a lifetime.

The goal is to provide unbiased PM information and then let folks like you decide if silver or gold is the right choice. Silver makes a perfect gentle entry into the PM arena so please keep this in mind. Feel free to email us and be sure to register for our free online newsletter recapping recent posts and note worthy PM news. Thanks again.

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THE WAR ON WEALTH (what every gold holder should read)

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

With tax day rapidly approaching I thought it wise to see if blame the wealthy has kicked in yet. Not to my surprise one of the largest California papers stayed true to my blame prediction.  If you own or soon will own silver or gold please pay close attention to today’s post. We are about to enter an age of blame that will with all certainty include folks just like you. Your plan for 2012 must include precautionary wealth.


The Sacramento Bee is the proud originator of this article. I want to hit the high points before adding our two cents.

If California taxpayers paid up, state’s deficit would disappear. THE SACRAMENTO BEE

As Californians put the finishing touches on their income tax returns, tax collectors say the state’s $9.2 billion deficit would drop to zero if all taxpayers submitted what they owe.

That means every resident claiming the market value of tattered jackets donated to charity. Every business reporting every dollar of income they receive even when paid in cash. Every service worker reporting every tip. And every resident paying use tax on Internet purchases.

But full compliance does not occur.

In a new estimate, the Franchise Tax Board says that $10 billion in state income taxes go unpaid each year, often when workers receive payments under the table, businesses skirt reporting requirements or people take deductions for which they do not qualify. The state Board of Equalization says an additional $2.3 billion in sales and use taxes go unpaid.

“It’s our way of investing in society for the various benefits we receive,” said Jerome Horton, who helps oversee the state’s two major tax agencies as chairman of the Board of Equalization and board member at the Franchise Tax Board.

Horton is pushing Senate Bill 1185 with Sen. Curren Price, D-Los Angeles, to create a “Centralized Intelligence Partnership” that would coordinate data across state agencies to flag tax evaders and people selling illegal goods and services. It would incorporate data from agencies ranging from the DMV to the Department of Consumer Affairs. READ MORE HERE.

PROSPECTOR: I want to make full disclosure from the start. I’ve owned multiple businesses in California and very familiar with the state’s monetary miscues. I read this article two times just to make sure I didn’t miss anything, I did not. But what the article should have said I’m saying right here.

Articles like the one above must serve as a giant red flag to PM (precious metal) owners.

We mustn’t view this as an alarmist but realist. The article screams “look out” loudly and all with wealth must understand what is not written into the article. It is quick to continuously point out the need for all to pay fair share echoing the same tune from DC. Personally, it only validates my savings in silver and gold.

There is no mention of massive regulation and the multiple layers of bureaucracy necessary to administer business busting policy. No mention of millions illegally manipulating a welfare system, health care system, and multiple other programs too. Nothing mentioned of swollen entitlements imploding from an unsustainable system regardless of tax revenue.

So what is the truth?

The truth is some taxable revenue always falls through the cracks. Not everyone completely stops at a four way. Not everyone drives the speed limit, not everyone pays taxes on 100% of their taxable income, sorry. The truth is most business owners (independent employees) are simply trying to survive.

But this is a prime example how bigger government or states like California don’t get it. To focus on the 10% unpaid and not on real issues is ridiculous. Why? Because to squeeze hard enough to juice the remaining 10% requires driving out thousands of compliant taxpayers and businesses. This is exactly why I’m not writing this from California.

But this goes beyond what most see as apparent!

This is about taking sides. This is about us against them. This is about if only the ones not paying fair share paid more. This diverts attention away from state level monetary miscues and puts the blame on the tax payers. Who needs to shrink government if we can milk a few more billion from captive Californians?

This is where we must tie today’s post into silver and gold.

We are now entering an era where all wealth targeted. Do you actually think the big squeeze stops with the guy mowing lawns for cash? Look around to prove my point. How much wealth do you store in indefensible assets? Your home targeted by property taxation, all your vehicles too. Your savings fall victim to inflation. Washington now has big plans for private retirements. The list of defensible assets is short.

The freedom to own silver and gold provides an opportunity to practice precautionary wealth.

Let me explain. Silver and gold provide hidden savings and wealth, few assets can say this. Here is a list explaining the benefits of hidden wealth (precautionary wealth)

  1. Precious metals still offer unrecorded ownership.
  2. Precious metals are a worldwide universal currency.
  3. Precious metals can be stored outside of country of citizenship.
  4. Precious metals ignored as a store of wealth.

Not a day passes without someone mentioning silver or gold confiscation. To me, this is less likely compared to confiscating more traditional assets via inflation and government overreach.  Articles like today must serve as a sign of what’s to come.  “Yes” it’s time to turn up the savings in silver and gold.

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US DOLLAR BUBBLE

BUYING GOLD/SILVER, GOLD & REAL ESTATE, GOLD & SILVER   No comments yet

It is now estimated somewhere around $15 trillion (to date) lost in real estate wealth. This wealth is not coming back regardless what 24 hour nonstop news reports. Losses like those from the RE bubble burst are painful, even devastating to some, but nothing compared to a USD bubble burst. Gerald Celente recently referred to our dollar’s burst as a “monetary tsunami”, I certainly won’t argue with his years of economic accuracy.  Very few are prepared for the monetary wave of devastation such a bubble burst will wreck.

Those holding silver and gold will experience anything but devastation as scads run in search of real money.


The US economy continues to find itself in checkmate fashion and my goal today is provide several examples as proof. Even conclusive proof can’t sway the masses away from dollars which leads many PM forecasters the feeling of preaching to the choir.

Here is a huge part of the problem. All currencies (US dollar by example) have the same printed number(s) regardless of declining value. This creates a monetary chameleon like appearance all while hiding devaluation. The need for more dollars to buy what fewer used to hides well in a time of multiple credit options.

Higher gas and food prices are now clear to all but the true epicenter of the problem eludes most.  To be honest few give lasting thought to rising prices that is as long as credit fills the gap.

Evidence of a coming dollar bubble presents itself like the last five minutes of a Perry Mason episode. One glaring piece of evidence lie at the feet of silver and gold. Gold has consistently appreciated 19% year over year and over the last decade. But this rise comes at a big price even for those not buying PM.

Please reread the two sentences above if not 100% understood. Gold’s rises while our dollar’s buying power declines. This has nothing to do with questioning PM as a good investment. This is nothing more than a slow calculated erosion of your dollar’s buying power.

But this doesn’t strike a necessary cord to those holding soft wealth in dollars; it certainly should. What gold is trying to say is each victory for gold is a loss to the USD (all currencies in fact).

Maybe an aeronautics analogy can best explain silver and gold’s ascent while our dollars decline.

Critical mach is an aeronautics term describing the maximum mach number which an aircraft can attain while still remaining controllable by the pilot. Anything over critical mach leads to an unhappy ending.

Below is a graph showing the USD supply over the last few years. Our dollar’s path is now reaching a point similar to our critical mach analogy above.  The problem, if the Fed reduces spending, printing dollars, then our economy sputters leading to economic adversity. This certainly complicates the ability to finance old debt with new debt.

The Fed act like all is in control but something recently proves opposite. The US is now buying 61% of our own debt just to sustain a bad economy. As you can imagine this also requires massive amounts of new money printing.

Here is what The Wall Street Journal had to say about buying our own debt.

The Federal Reserve is propping up the entire U.S. economy by buying 61 percent of the government debt issued by the Treasury Department, a trend that cannot last, Lawrence Goodman, a former Treasury official and current president of the Center for Financial Stability, writes in a Wall Street Journal opinion article published Wednesday.

“Last year the Fed purchased a stunning 61 percent of the total net Treasury issuance, up from negligible amounts prior to the 2008 financial crisis,” Goodman writes.

Goodman also warns that U.S. economy and markets are “at risk for a sharp correction” if conditions aren’t “normalized.”

“This not only creates the false appearance of limitless demand for U.S. debt but also blunts any sense of urgency to reduce supersized budget deficits.”

Fed intervention in the government debt market makes demand for Treasury bonds appear higher than it really is, as foreign creditors and other investors have fled U.S. government debt instruments and are looking elsewhere until the government makes serious attempts to curb spending and narrow its gaping deficits. More

Let’s go back to real estate for a moment. Do you recall the era just prior to the housing bubble a few short years ago? That’s right, the bubble burst when new buyers refused to support (buy) over inflated homes. New buyer’s reluctance to pay higher prices exposed and popped what today we refer to as the RE bubble of 2006 and beyond.

The WSJ article above makes my point perfectly when it mentions “foreign creditors and other investors have fled U.S. government debt…”.

So what does a dollar bubble have to do with your stash of silver and gold?

Let’s recap before we tie PM into the coming dollar bubble.

  1. The US is buying its own debt like never before.
  2. Less buyers willing to buy US debt than ever before.
  3. The US is dependent on currency printing like never before.
  4. Nearly all currencies are printing like never before.
  5. Less wealth stored in silver or gold than ever before.

My point is this. Investor confidence diminishes in the USD just when our economy needs it most. This “mach speed” race to devalue the dollar hides itself well since the numbers printed on each bill stay the same (even though they buy less).

This charade only lasts so long before folks lose trust in the USD and pilgrimage for a real store of value. Yep, you guessed it, silver and gold will greatly benefit from this decade’s dollar bubble. Think about a gold bullion coin for a moment. An American Eagle one ounce coin is a $50 legal tender coin but no one in their right mind view its value as fifty bucks. This coin has ability to absorb the value lost in USDs.

This is why your gold stash grows in value every time the USD declines.

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COMMENTS & QUESTIONS:

QUESTION:

I love reading TPS (The Prospector Site) and want you to answer a question please. My situation is uniquely different from questions I commonly see asked. I’m thinking about parking money in gold or silver but only for a short term. I say short term because my plan involves eventually investing the money is cashflow property and a start-up business (around 12 to 18 months). In your opinion, is silver best for short term compared to gold? Thank you.

PROSPECTOR REPLY:  Thanks for the question, and reading TPS. Okay, let’s break this down just to make sure I understand the plan. You have cash now but your long-term plan is to reinvest the cash into a start-up and rental property. You’re asking if trading cash for PM is wise considering it’s only for a year or two (or if silver is better than gold). I’m not sure I would buy either to be honest. PMs are not ideal short-term options at least how I view them. I’m concerned 12 month appreciation might not offset the cost to sell back 12-18 month old silver or gold.

Have you considered parking the cash in a money market account? I realize they pay little or no interest but they are relatively safe for the short term. I’m all about owning silver and gold but don’t view it as a short-term investment by any means. Please give it some thought regardless. Oh, one other thing. I too love business and rental investing, but. Consider holding 1/3 in PM in case the new business doesn’t take hold exactly as planned.


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“INVESTING” OUR WAY INTO A DEPRESSION

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

If I didn’t own physical silver and gold the term “investing” could be worrisome. Only a weekend has passed since confetti laden hopefuls celebrated “better than expected” unemployment numbers but few, maybe none, mentioned the amount of “investing” required to achieve improvement.  I have mentioned several times how silver and gold are now lockstep with rising debt (debt ceiling graph proves this as fact) offering only the 1% invested in PM (precious metals) protection from out of control spending, sorry investing.  If you’re one of the many new readers visiting our site please don’t underestimate the protective measures of PM. Profiting is only a byproduct of gold or silver following a distant second to preservation, preservation while the rest of the world invests its way into our generation’s depression.


The term “investing” actually refers to supporting an economy, lifestyle, and society unsupportable, please don’t confuse it with a traditional sense.  The goal is to propel those in power to a higher level or new term of empowerment while the rest pay for it with higher taxes or inflation.  My goal for The Prospector Site is to accurately describe the forces most likely to send your precious metal values skyward, investing is at the list top.  Any business leader realizes investing alone is not evil; in fact, it’s a necessary part of growth and development within all businesses.  But what America has resorted to is not investing; it’s nothing close to the traditional term.  Private enterprises invest by implementing well thought plans capitalizing on innovation and timing.  This type of organized planning reduces risk and exposure all while providing the best odds for future prosperity.  This is completely opposite of today’s governmental “investing” term, do you agree?

It shocks me how easily the American people are now distracted while those in power toss what history will describe as an investing Hail Mary, but with less odds.  This only proves that the line between optimism and denial is nearly washed away leaving only those skeptical to question investing trillions into programs and too big to fails, like this is our best odds for prosperity.  Investing is beginning to look like the rich getting richer while the masses struggle to stay employed, regardless of new numbers. Make no mistake; this is only good news to those invested in gold, silver, and few other assets.

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We can look no further than Freddie and Fannie as investing in leaking ships all while not one person in power draws a limitation line in the sand.  Once private companies, now avenues necessary to invest in America by backstopping a housing industry still in decline and desperately searching for bottom (far more wealth is lost in real estate than will ever be profited in PM).  There is absolutely zero chance of supporting housing values built prematurely from years of easy credit and greed.  Why dump, sorry invest, billions, soon to be trillions, into a housing industry so worthy of correction.  We must realize that the ill effects of trying to fix housing are far more dangerous than letting housing correct freely without manipulation, sorry investing.

Housing is far from the only example of investing in industries desperately necessary to correct, or purge, themselves into free market worth. Wall Street now relies as much on government stimulus as innovation. Again, the ill effects of supporting something so large are far more damaging than allowing dying industries to, well, die.  Real innovation will grow from the ashes but have little opportunity as long as we continue to throw good currency after bad industries.  Again, no one in power is willing to draw a monetary line in the sand regarding too big to fails! This is the point where most readers should ask why we allow leaders to continue this reckless direction. Remember, investing more debt infested capital doesn’t have to work; it only has to convince the majority as successful.  Most Americans honestly feel investing policies are resurrecting our economy.  Why? Because many still believe leadership has their best interest at heart. A tree is known by its fruit, a good man by his deeds. Gold and silver holders know this as anything but real recovery each year metal values increase.

Below is an article describing how Stockton, California has now slipped into a depressed level of economic stability. It can be read here and compliments of the LA Times. No amount of investing will sustain cities like Stockton. Stockton is a perfect example of a community soon to swallow mistakes and then patiently wait for correction to breed new free market innovation. Below are a few highlights from “Stockton Residents Watch Their Port City Slip Away”.

Within the next three months, Stockton could become the nation’s largest city to file for protection from creditors under U.S. bankruptcy code. Using a new California law, the City Council is trying to slow or stop the bust by entering mediation with creditors, including public employee unions. In the meantime, the Central Valley port city of 300,000 has suspended several bond payments and will not cash out vacation or sick time for employees who leave.

PROSPECTOR: Why or how did Stockton reach such a point of economic devastation? Please read below.

The city had a vision. Like San Antonio or Baltimore, it would transform its rough waterfront into the city’s shining jewel. The real estate market was hot and credit was easy. Up went a theater complex, a high-rise hotel, a sports arena/convention center financed by city bonds, a marina and a walkway.

PROSPECTOR: Stockton “invested” by borrowing money to develop a waterfront area financed by city bonds. Now their only hope is federal “investment” money to afford a style that shouldn’t have existed in the first place. No amount of “investing” can support something built on an era of limited wealth or from easy credit or from tax revenue derived from easy credit expansion.

“Everyone had taken money out against their houses,” Koster said. “Everyone had dough and they were spending it.”

As taxes from sales, property, business licenses and utilities dropped, so did money for day-to-day operations such as police, fire, parks and libraries.

PROSPECTOR: I can not find an accurate measure of economic depression but I’m guessing we can agree a situation without police, fire, parks and libraries is on the directional path of depression. Please notice the quote above, “Everyone had dough and they were spending it”.

The landlord already cut the monthly rent from $4,750 to $2,750. Koster said he has thought about asking for another break, but he doesn’t see how the owner would make his mortgage. The owner bought the building for $600,000; it’s now valued at less than $200,000.

PROSPECTOR: This is the most sobering part of this LA Times article, no winners that I can see.  The landlord has cut rent by 50% and at risk of owning a vacant building now worth 1/3 compared to when he bought it, amazing.  This means his investment is worth 1/3, half the cashflow, and in jeopardy of owning a vacant building still in decline.  We must understand the ill effects of fixing, or investing, in cities like Stockton only postpones default and continues to grow deficits on a national level. Can you imagine the level of national debt necessary to bail out cities across this country? Each new day offers yet another city struggling to balance budget shortfall with yet another decline in tax revenue.

YOUR TURN:

SHOULD WE ALLOW CITIES TO “CORRECT” OR CONTINUE TO BAIL OUT AS NECESSARY?  DO YOU BELIEVE BORROWING MORE CURRENCY TO BAIL OUT HOUSING, WALL STREET, & CITIES WILL DRIVE SILVER & GOLD HIGHER?  REACH ME HERE.

COMMENTS & QUESTIONS:

COMMENT:  Your post Building Silver Wealthis spot on. Just speaking from someone relatively new to silver (bought 500 oz but soon to buy more) it seems to me silver is more popular than gold.  It stands to reason silver will outperform gold if for no other reason than its popularity.  Love the site and look forward to each new post.

PROSPECTOR REPLY: Thanks, you are correct since 9 of 10 emails mention silver over gold.  Does this mean silver will out perform gold? No, not necessarily. Silver is hot today, especially in the US, because silver allows newbies to gently test the PM waters.  You said it yourself when you mentioned the word “popular” but this alone does not guarantee an asset as worthy over long term.  Sure silver has great monetary and industrial values but gold is now a worldwide currency.  I will caution to not overlook gold’s worldwide influence and stability, I personally own more gold than silver.  Having said that, welcome to our site and congrats on your first silver purchase, well done. Now, don’t forget about gold too.


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MY ADDICTION AND YOUR GOLD

BUYING GOLD/SILVER, GOLD & SILVER   No comments yet

 

It pains me to admit this but I have a personal debt problem.  The founder of The Prospector Site is man enough to admit he has a serious spending problem and my problem affects your gold and silver value.  Since I’m confessing like a two-year old elbow deep in a cookie jar, let me also admit I have a drug problem too.  I’ve heard the first step to correcting problems like such is admit and confess a problem exists, I guess this is what I’m doing now? But as I look deeper I’m realizing the same addictive type problems I have you have too, so let me explain.


Up to this point, neither of us have done a good job controlling personal problems alluded to just a moment ago. Even though I don’t use illegal drugs my drug problem is worse now than ever before, I know this because overall drug use is as rampant as ever before.  Like my debt problem, our addictions are to a point where authorities claim it’s almost non containable.  This could be the point where you argue back, “Listen Doug, I don’t use drugs and I have little debt.  There is no way I should be included on the list of major addiction, not me.”

 

If ever there was a case of guilt by association it is now. I, like you, have a drug problem because others on my street have drug addiction.  I, like you, have a debt problem because our entire economy requires new borrowing just to continue this destructive course.  It is virtual impossible to separate ourselves from a society, no culture, as addicted as us.  To falsely believe you’re excluded will eventually play out costly even as this denial becomes the norm.  From your Main Street to the halls of DC, we can easily see the ill effects continue to erode our economy and, worse yet, our American way of life.  To our readers abroad, your way of life is as affected, and in the same way, as my drug and debt association.

 

It shocks me how few can connect dots of today with increasing prices of precious metal. We don’t “get it” because we refuse to accept problems mentioned are to a point of disruption and control.  We still hear leaders say if only a few will pay a lot more, if only some will bring jobs back, if only you and your spouse will pretend all is okay by spending more.  We are willing to lie, blame, confuse, and contradict, before admitting our path is not the road to prosperity.  The world watches and grows increasing less willing to play the game like nothing is wrong.  Why is the rest of the world concerned with our domestic addictions?  Because the world trades in US Dollars and we are the only one who can legally print them.

My point is this and I want all readers to fully understand. You can do everything as you perceive right and still drug down by societal ills.  I often hear readers say they are debt free or own their home outright but this isn’t true on either account.  Each of us must understand debt dependency now controls all economic aspects regardless of your personal financial position.  The rising tide of inflation water will not bypass your home, job, or lifestyle.  Of course protecting with gold and silver will help but it will not change our overall economic climate.  Eventually this economy must grow, must profit, to improve decades of fiscal insanity.

 

A crushing rumor circulated earlier this week (1-24-2012) how India and Iran negotiated oil trade not in Petrodollars but GOLD. This isn’t the first time rumor like this has surfaced and expert economists agree it won’t be the last.  Adversities stemming from debasement, never-ending debt, and a failure to correct both will have worldwide complications.   All while gold turns from a tool to a weapon.

So what is your take on this?  Have we reached a point of no return as it relates to debt and gold?  Tell us your thoughts right here.

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COMMENTS & QUESTIONS:

COMMENT (REGARDING “ARE WE LOSING “IT”)  I have owned both silver and gold for several years and still can’t believe how many people refuse to admit things are not getting better.  My family fails to see the signs of despair even while they struggle to pay credit card and house payments.  I don’t know one person still making the same money as a few years ago but it amazes me others don’t realize our past is finally catching up with all of us.  I think more should be “losing it”!!  Great article and keep them coming.

Prospector Reply: Thanks for commenting and thanks for the encouragement.  Being honest, I thought we would hear from more readers about this post, but we haven’t.  You said it best with your point how our past is finally catching up with all of us because never before has this been as true.  I still believe PM remains a mystery to most even though more search for something real and protective like gold or silver.  Who knows what it will take for Americans to snap from a state of denial?  Glad to hear you have a realistic understanding and congrats to you for making the effort to do so, good job.


 

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RIP NEW HOME CONSTRUCTION

GOLD & REAL ESTATE, GOLD & SILVER, GOLD AND MONEY   1 comment

New readers could mistake articles like this as irrelevant to gold and silver but this is the furthest from the truth.  So many economic indicators point to importance of metal ownership and residential real estate is certainly a key indicator.  As trillions in real estate wealth disappears savers turn to real money like metal.  I will be the first to admit the gravity of our economic condition in the US is understated but, in reality, there are trillions in dollars of wealth sitting on asset sidelines willing to push precious metal prices higher. Today we mourn a big part of the American dream, new home construction.


I had only two stops during my trip to town last Friday.  One stop was at my local coin shop and the second to a local lumberyard. The number of customers, respectively, in both sums up my point better than I can.  My lumberyard sat empty of customers but full of flatbed delivery trucks ready for even the smallest of deliveries.  The counter help tried to act busy but after a few minutes of visiting I realized busy is no longer the norm.  The store manager informed me a stabilizing in the stock market is what it will take to get buyers buying again.  I think the problems go much deeper than a volatile stock market.  Millions in inventory, building costs, manpower, and equipment welcomed the only customer on a Friday morning, me.

My visit to the local coin shop looked entirely different from the lumberyard.  The shop itself is less than 1400 sq. ft. and only person works there most of the time.  I made the fourth customer when I walked in and patiently watched to see what my local market was trading.  As I waited I couldn’t help but think how the store I left (lumberyard) had so much invested with so few customers and this store thrived with an inventory of less than $100k or so.  My Friday trip to town left little doubt where the money flow is flowing at least for this fly over community.

CEO’s from large corporate home builders argue temporary declines in new home construction ( some regions are seeing a 70% decline in new home permits) are only temporary.  They anxiously assure stock holders single family homes are severely under inventoried but this is not true. The fact is most homes built over the last twenty years are underutilized by proof of families not long ago raising children, more children in fact, in homes half the size of new homes today.  More new homes is not the trend now and won’t be for some time as credit tightens, more do with less, and inflation steals wealth from the mouths of families worldwide.

But something always replaces a dying market and new construction is no different. Many have asked what is a good business considering our current economic decline.  If you are one of the millions looking for ways to make a living in the construction industry please read closely.  The trend replacing new construction is space utilization and energy efficiency.  Think more folks in the same footprint of an existing residence.  College kids come back home waiting for job prospects to improve.  Loved ones looking for shelter as banks realize sitting on shadow inventory only leads to a bigger loss.  Contractors offering affordable ways to convert wasted space into functional living areas will prosper more than new home builders waiting for a return not coming soon.

Yes so many indicators point to gold and silver as our economy built on credit and consumption replaces itself with self-reliance and small government.  Thanks for reading The Prospector Site and feel free to sign up for our free online newsletter here.

NEWS WORTHY:

There is a strong indication that home builders have almost ceased activity in several states as demand for newly built homes has dwindled. The slowdown in new home permits is particularly stark when compared to the total number of existing homes in each state. 24/7 Wall St. examined the number of building permits to find the states where no one wants to buy a new home. 24/7 WALL STREET NEWS.  Read it here.

NEWS WORTHY:

“Gold has become the portfolio antidote for the global financial crisis,” James McDonald, chief investment strategist at Northern Trust Corp., the Chicago-based custody bank and money manager, said in an interview.

The metal is up more than 32 percent in 2011, which would be its 11th straight year of gains, while the S&P 500 Index (SPX), a benchmark of the biggest U.S. stocks, has lost 9.5 percent including dividends. Investors have accelerated the retreat from equities on concerns that European countries will struggle to repay their debts and that the U.S. economy is weakening under the strain of unemployment above 9 percent, falling home values and a decline in consumer confidence.  BLOOMBERG.  Read it here.

NEWS WORTHY:

“That ratio may repeat under the present scenario, indicating gold could hit about $4,000 over the next few years,” Wang said.

Central banks from South Korea, Mexico and Russia to Thailand have been adding gold to their reserves in a sign of waning faith in the West’s benchmark bonds and currencies like the dollar and the euro.  REUTERS.  Read it here.

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THE VIOLENT SIDE OF ENTITLEMENT

GOLD & SILVER, SOCIAL UNREST   No comments yet

Few articles are as hard to write as this one. If you are sensitive to violence you may want to skip today’s post. For the record I’m not referring to little old folks and social security as entitlements ending in violence.  The entitlements I’m discussing today are life long sometimes generational dependencies that our country can no longer afford.  Most fear being  branded racist or lacking compassion for those less fortunate but the fact is cutting programs rarely takes food from the mouths of children or needy.  Yes this does relate to your gold and silver!!


Last week was not a good one in Hanford, California at least not for Denise McVay.  Denise got up early for work but stopped by her local car wash before her morning shift as a nurse.  Details are sketchy but local law enforcement tell us sometime soon after Denise stopped a 17-year-old gangbanger stabbed her thirty times before ending the struggle when Denise’s throat was slit.  The teenager took the car and money only to be caught the next day.  Denise died going to work by someone who didn’t have to.

I’m not sure how or why something like this happens but no one can convince me trillions spent on programs so others don’t have to improve themselves is working.  This teenage animal should have been working, studying, or resting but somehow this lowlife had the time and energy to take an innocent life .  The fact is this guy, like millions of others, doesn’t have to because programs fill the need to work or better themselves.  The result is not always violent and I won’t pretend to say it is.  As program funding disappears those dependent on entitlements will only grow angry at a system no longer able to support itself.  Years of entitlement can’t, didn’t, and won’t replace responsibility and the results are violent time and time again.

Entitlement has replaced fatherhood.  This is not my opinion but proven by 70% of inner city African-American children growing up without a father.  Programs certainly are not replacing the need for a father. Gang violence, domestic violence, theft, drugs, all supported by feel good entitlement programs that do little to help the poor.  We recently posted how this economic depression is different from the 1930′s with one big example of drug addiction. Free time and idle hands have created a breeding ground no longer safe, certainly not in Hanford, Ca.

Programs like Youth Promise Act sound worthy but only create a new layer of dependency falling far short of the benefits of a healthy family. But the argument is moot regardless of your opinion since the money doesn’t exist to support programs like this and thousands of others.  The money hasn’t existed for some time but few are willing to admit this.  The entitlement money will dry up or the dollars will inflate to a point of worthless, either way creates a social reaction unpleasant to most folks.

Police reports tell us Denise fought her attacker but sometime around 5am her battle ended in a puddle of blood.  The conflict is over for Denise and now her family will try to make sense of the senseless.  I for one refuse to ignore or make excuses for violence like this or any other.

I’m well aware The Prospector Site promotes independence through gold and silver but the current economic mess we have created is not that simple. Of course we are bullish on precious metals but unfortunately the forces sending gold up also cause social discontent.  Conflict on social and political levels should be expected and a plan for protection exceeds a portfolio of gold and silver.  Thanks for reading The Prospector Site.

Feel free to sign up for our weekly online newsletter right here.


NEWS WORTHY:

“There is also an uncanny correlation between the gold price and the US debt ceiling. Over the past 30 years, the gold price has tracked the ceiling whenever it has been raised.”

Gold is a hedge against the debasement of currencies and rampant inflation – and all of these problems are now getting worse. The case for gold has never been stronger.

Gold at $2,000 by the end of the year is not a certainty – but everything is now in place to make it happen.  THE TELEGRAPH.  Read it here.

NEWS WORTHY:

“You could see $3-5,000 to clear the market as the central banks and bullion banks run out of gold to meet the growing demand,” Bill Murphy, chairman of the Gold Anti-Trust Action Committee (GATA), which is hosting a conference in London this week, told CNBC Thursday.

“Six years ago when gold was at $436 we predicted that this would happen.”

“There are a lot of things driving the gold price today. One of them is fear; another is increasing demand from Asia” CNBC:  Read it here.

NEWS WORTHY:

“We decided to take that into our own hands, have our own business and create our own security,” Lee said.

This has been a common story during the economic downturn. In the past two years, jobless entrepreneurship has been on the rise. According to the Kauffman Index of Entrepreneurial Activity, the rate at which Americans started new businesses in 2009 and 2010 is the highest it’s been over the past 15 years.  FRESNO BEE:  Read it here.

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