You read it everyday but few connect the dots to a lift in precious metals. I see them, hopefully you do too, the problem is the masses do not. Today I want to include not only what I view as news worthy events but events soon to project silver and gold out of reach for most in the middle class. Once again, I don’t believe one particular event will send metal beyond what most view as unimaginable. Accumulation of multiple events will ultimately push, or influence, your PM (precious metal) higher.

The attraction to precious metal is NOT universal, let me explain. Indians buy gold stemming from tradition realizing gold jewelry is not only attractive but a great store of wealth. China buys gold to empower themselves into the next reserve currency. Americans buy gold either to hedge against uncertainty or grow rich. Canadians buy gold for the same reasons as Americans.

But Europeans buy gold for an entirely different reason, the same reason most will eventually own PM. Europe is trading currency, or other assets, for gold to preserve wealth lost otherwise. This reason, their reasoning, is a snapshot of our world’s future.

By the way, be sure to read the six plus reasons Why Silver & Gold Will Go Higher available right here.

NEWS WORTHY:

THE DAILY CALLER: “The US has 2-5 years before financial meltdown….it is dishonorable to lie to the American people….based on the debt we have now, it takes $650 billion annually just to pay its interest. I want people to see what’s coming, this is why I wrote The Debt Bomb.” U.S. SENATOR TOM COBURN.  You can watch a short video right here.

NEWS WORTHY

ZERO HEDGE: As US weak hands keep piling out of gold whether to make space for the Facebook IPO tomorrow, or just to load up on paper currencies in advance of central banks printing much more, two things have happened: China is now on its way to becoming the biggest source of gold demand, surpassing India, but more importantly as of hours ago, in a truly historic move, “Okayama Metal & Machinery has become the first Japanese pension fund to make public purchases of gold, in a sign of dwindling faith in paper currencies.” Not our words: the FT‘s. This is worth the time to read.

NEWS WORTHY

THE GOLD STANDARD: The Rising Price of the Falling Dollar by Charles Kadlec – Forbes:

The debauch of the dollar also erodes our prosperity and our security. Since the final link between the dollar and gold was severed in 1971, the paper-dollar system has produced slower growth, higher average unemployment, deeper recessions and more frequent financial crises.

• Chinese yuan, the price of oil today would be $78 and a gallon of regular gas would cost about $2.95;

• euro, the price of oil today would be $74 and regular gas about $2.80;

• Japanese yen, the price of oil today would be $67 and regular gas about $2.60;

• Swiss franc, the price of oil today would be $60 and regular gas about $2.40.

Very interesting read for those questioning the value of a gold standard, it’s right here.

NEWS WORTHY:

FOX BUSINESS:  Gold Fields Says Prices Need to Rise to Avoid Industry Cuts

JOHANNESBURG – Gold prices need to rise or mining companies may be forced to start cutting output and project financing, Gold Fields Ltd. (GFI) chief executive said Thursday.

In recent weeks the price of gold has fallen, with the metal trading around a four-and-a-half-month low in Europe this week.

“We need higher prices over the long term or we will see curtailment of projects,” Nick Holland said. “(The industry) could see output cut if we see gold go down to some of the forecasts.”

The promising production target comes despite mining companies in South Africa experiencing bigger-than-normal drops in output due to more frequent labor disruptions and Department of Mineral Resources-mandated safety stoppages. Read more right here.

NEWS WORTHY:

L.A. TIMES:  “Grexit”: Are Greece’s Euro Fears Causing a $1-Billion Bank Run?

Greek officials were busy today cobbling together an emergency plan after talks to form a coalition government disintegrated Tuesday. In the meantime, Greeks have withdrawn $900 million from local banks.

So said President Karolos Papoulias, according to minutes of a government meeting procured by Reuters. Papoulias, in turn, was quoting George Provopoulos, governor of the Greek Central Bank, who said depositors took out 700 million euros earlier this week and will likely withdraw at least 100 million more.

Greeks have withdrawn 72 billion euros since January 2010, leaving bank deposits with 165 billion euros in March, according to the central bank. Social media users were buzzing Wednesday about rumors that Greek banks had set a withdrawal limit of 50 euros on accounts. Read it here.

PROSPECTOR: It is hard for me to say which article above concerns me most. I wrote about all the above in Why Silver & Gold Will Go Higher so I’m certainly not surprised. Senator Coburn’s book The Debt Bomb intrigues me and sounds like my weekend read, you might consider it too.

Gold Field’s honesty as it relates to mining challenges is something I see as a sign of times to come. The likelihood of environmental concerns complicating an already complex mining industry is something all metal owners should expect, and plan for. Gold and silver are already in short supply at least compared to demand. How can this not affect metal prices of both silver and gold?

Japanese pension funds investing in physical gold could be the purest example of today’s flight to all things real. Folks, this is only the tip and you and I both know it. All the reasons above are why I’m not concerned when gold metal drops $50 or $350 over short term!

Affordable Gold:

Miles Franklin sent over an offer (5-17-12) selling 1/4 ounce fractional gold bullion at a very good price. Supplies limited and will not last considering the offering at 5.5 % over spot. You can find them here if interested.

FEEL FREE TO SEND OVER ALL COMMENTS OR QUESTIONS RIGHT HERE. THANKS FOR READING TPS TODAY!

Tags: buy gold, gold, gold demand, gold standard, physical gold, precious metals, preserve wealth, reserve currency, silver, Why Silver & Gold Will Go Higher

I don’t know the best time for you to buy silver or gold. I do know that not owning PM (precious metal) is far more risky than owning. The internet is buzzing with gold and silver’s recent decline and to be honest all I can think is why, why are we nervous about silver or gold?  I’ve spent my adult life against the flow of mainstream investing. Times like today, times like right now, prove PM is not exempt from market volatility (not one person can accurately predict short-term PM). Today’s post is not a recommendation to run out and buy PM, this is 100% your call and timing. Today’s post is about the art of building wealth.

If you are nervous about silver or gold I urge you to take a deep breath and relax. When asked over the weekend if I was nervous (about PM) it was all I could do not to chuckle. I’ll worry when folks someday view PM as a no-brainer while climbing over each other to buy more, this is not the case today. And, if I might add, the dollars the world cherishes, especially in times like today, are on the fast track to worthlessville.

Do you know why so many are now nervous over silver and gold? They are nervous because prices have dropped in dollars. But wait, shouldn’t those holding large quantities of PM be nervous when (if) the forces driving metal correct. Have driving forces like debt, massive currency printing, debasement, economic uncertainty, fear, and greed fixed themselves?  After all, why would a person doubt PM just because the price drops when the forces pushing metal, over long term, have worsened? This tells me few understand how to build wealth.

Few understand silver or gold and less are confident in PM. This nervousness means many are buying PM for the wrong reasons. I don’t own physical silver and gold because I believe they will go up in dollars. No one with a simple understanding of economics will disagree gold will increase in dollars if for no other reason than to stay equal in value, at LEAST IN THE LONG RUN. I own silver and gold because they are one of only a few safe sources to store wealth during times of storm. Our readers in the South call this a storm shelter. Silver and gold are monetary storm shelters. How can you build wealth without understanding how to keep it?

The last four decades have turned us into poor investors or stewards of our money. This monetary misunderstanding causes us to chase assets we perceive as valuable just because everyone else does. You probably understand but if you don’t I want to further explain.

We chase assets only as they expand into a bubble without questioning why they are growing. Dotcom, real estate, stocks, you name it. We can’t find comfort in silver and gold because we lie in wait expecting them to follow previous bubbling assets not comprehending what motivates PM. Maybe it’s time we pull on our big boy pants and understand PMs as real money and not ballooning assets, good times or bad.

By example, right now our world leans toward viewing residential housing as risky. A few years ago the same folks perceived housing as safe, profitable, and wise. But investing 101 has proven the best way to build wealth is to buy low and sell high, right? Is it possible some view silver and gold as 2007 real estate about to rapidly decline?

Is it safe to say real estate peaked soon after easy credit dried up, of course? Assets bubble only when buyers are no longer willing to pay inflated market price. But did gold climb over the last decade or more because of easy credit? Of course not. The same forces that pushed gold still do. Yes, of course gold could dip for weeks even months but long-lasting economic problems will push long-term gold/silver much higher (folks, we’re in uncharted waters and few short-term predictions are reliable).  Let’s check off our list just to confirm this as true.

• Gold demand at record levels.
• Silver and gold mining output far below demand.
• Expanding world market hungry for physical metal.
• Record debt on a global scale.
• Record debt on a personal scale.
• Record debt on a state scale.
• Record debt on a municipal scale.
• Less available credit.
• Most of all…a growing uneasiness in the USD on a global scale!

The art of building wealth is more about realization than luck. All must stop to ask where the money flows from? What is causing an asset to rise? Is this rise sustainable? What happens when sources heavily in debt are no longer able to backstop or support the asset or investment? The get rich quick bubble days are over. Please view your wealth building plan as a slow steady incline realizing valleys are part of the journey.

Right now, you probably view gold/silver as any other investment, right? What will happen, over the longer term, when the world views gold as necessary, necessary to preserve their remaining wealth? Please don’t underestimate our plight, or long-term PM.

NEWS WORTHY:

TRENDS JOURNAL: The Prospector Site recently commented how ridiculous it is that our administration focuses on gay marriage while Europe burns and markets tumble. Gerald Celente sent out a trend alert exposing such distraction at the cost of our middle class.  Have we entered an age where trickery and deflection are necessary to keep those in power in power? It appears so. Read Mr. Celente’s trend alert here.

COMMENTS & QUESTIONS:

COMMENT to When Your $ Disappears:

The “price” of silver and gold has always been constant. It is the value of the paper fiat money that keeps changing making it appear that gold and silver go up and down.

Paper money is actually debt. That’s why it says Federal Reserve Note. As in promissory note which is actually a debt.

PROSPECTOR REPLY: Correct, the USD became debt, or fiat, when it finally unhinged from gold in 1971. Few understand significance of such a defining time in our American history. It truly is the day the dollar died and only because of life support is it used today. It mystifies me how many, even internationally, flounder to dollars not realizing the heart of world monetary troubles started as a Federal Reserve Note.

Thanks for the comment.

COMMENT: Hi Dc

PROSPECTOR REPLY:  Great, thanks for reading (and helping with the edit too). The DOW is “concerning” since most American wealth, excluding real estate, sits on the banks of Wall Street. You ask a good question, definitely one worth visiting. Look for a post on the DOW as soon as leaks become apparent.

PS.  Most fortunes never existed in the first place, only on paper. It saddens me to say we are on the cusp of what most can only imagine. All while the few wisely owning physical silver and gold question their wisdom!

Tags: assets, building wealth, debt, gold, investing, precious metals, real money, silver

Several years ago my 8-year-old son misplaced his wallet and was visibly upset. We went through the gamut of where did you leave it, when is the last time you saw it, you know. Days turned into weeks until one day he came into my home office to explain his lost wallet held all the money he owned, $27.50.  I felt the little guy’s pain and was thankful one day when he found it in the mess resting under his bed.  Unfortunately, the wealth disappearing today is not “findable” like my son’s small fortune.

I hold not one penny in Wall Street investments. The story featured today will explain why I own physical silver and gold no longer willing to trust “traditional” sources of investing. It makes me sick to see so many still entrusting what history will soon describe as “crooks” but, unknowingly, trusting types will have to learn by example.

The Wall Street Journal recently ran an article describing how J.P.Morgan lost a few investor dollars, actually the number is around $2.3 billion but no need to split hairs.  J.P.Morgan’s mouthpiece describes the incident as controlled or calculated but I see it entirely differently. Let’s skim the highlights of the article for when you find yourself doubting physical silver or gold.

THE WALL STREET JOURNAL: A massive trading bet boomeranged on J.P. Morgan Chase JPM -9.54% & Co., leaving the bank with at least $2 billion in trading losses and its chief executive, James Dimon, with a rare black eye following a long run as what some called the “King of Wall Street.”

Jamie Dimon has been one of the U.S.’s most successful and outspoken bank executives since the financial crisis. On Thursday, he took the blame for a $2 billion trading blunder. David Reilly has details on The News Hub. Photo: Getty Images.

The losses stemmed from wagers gone wrong in the bank’s Chief Investment Office, which manages risk for the New York company. The Wall Street Journal reported early last month that large positions taken in that office by a trader nicknamed “the London whale” had roiled a sector of the debt markets.

The trading loss “plays right into the hands of a whole bunch of pundits out there,” Mr. Dimon said. “We will have to deal with that—that’s life.”

Asked about the Volcker rule, he said, “This doesn’t violate the Volcker rule, but it violates the Dimon principle.”

On Thursday he admitted the bank acted “defensively” when news reports surfaced. “With hindsight we should have been paying more attention to it,” he said. “This not how we want to run a business.”

“This is yet another example of the need for the more than $700 trillion derivatives market to be brought into the light of financial regulation,” said Dennis Kelleher, president of Better Markets, a liberal nonprofit focused on financial reform. More here.

PROSPECTOR: Some of you doubt silver, maybe doubting gold too. I want to be perfectly clear today when I describe one of the many major factors soon to push PM (precious metal) prices forward. Wall Street is no longer trust worthy. Articles like the one above prove either incompetence or as untrustworthy, you can decide which one.

Is it possible one of the world’s largest banks took such risk because they know a bailout awaits if their Vegas like actions backfire?  Of course, and the sad part is debt derived derivatives will implode and not one rationally minded individual can argue counter.

But today’s post is not to argue if $700 trillion in derivatives is sustainable. Today’s post is to ask what will happen to real assets like silver and gold after $700 trillion of your wealth disappears?

Wall Street banks may be suspect but they aren’t stupid by any means. My prediction is Wall Street will soon recognize the house of derivative cards for what it is and this will eventually leave wealth looking for a safer landing. Who could possibly doubt a large percentage of this wealth will land on silver and gold (this includes both paper and physical metal)?

Andy Hoffman was correct last Friday when he mentioned 99% of all Americans don’t have precious metals on the radar. If true, this means they still believe in banks that lose $2.3 billion dollars by betting on risk and debt. This story is eerily similar to MF Global’s multibillion dollar disappearance which leaves me to ask how much longer will the pack accept excuses from guys still receiving multimillion dollar bonuses, win or lose?

So many of us are quick to judge silver or gold right now. We all know both metals have done well over the last decade but we aren’t sure how they will fair in the future. I understand this and personally feel it is wise to question what is real from not.

We are soon to enter a period when all assets are suspect, especially ones who lose billions overnight. I have little doubt stories like the one today will eventually drive remaining wealth into history’s safest long-term asset, gold.

IF YOU HAVE SOMETHING TO SHARE PLEASE SEND OVER COMMENTS AND QUESTIONS HERE.

Comments & Questions:

Question: I still don’t understand how gold will keep up with inflation? Even if it does (keep up with inflation) how will this benefit those holding gold, will they trade it back into currency vulnerable to inflation? Just confusing to me!

Prospector Reply: Thanks for the questions. Maybe a simple explanation will help since I admit things like inflation and debasement can be confusing. Let’s start with the facts. Fact one, inflation is a hidden loss of buying power and wealth. I said hidden because the numbers printed on our currency stay the same even though they buy less. Fact two, inflation is now to the point of being perpetual since currencies worldwide are printed then injected into economies replacing $ you no longer have to spend.

Okay, let’s recap this. Inflation is a hidden loss of buying power. Two, baseless currencies are now flooding markets worldwide trying to prop up economies.

Now, here is the kicker. If you save, or store, your wealth in currency (dollars, euros, yuan, yen, etc) then you are vulnerable to ride the inflation train to wherever those printing the currency decide to take you. The only way to depart from this inflation is to trade from currency and into something that benefit from inflation, like silver and gold.

So how does this help you ask? Because the same amount of silver or gold usually buys the same amount or more of a product, service, or asset regardless of dollar cost.  By example, a few ounces of silver could fill a car’s tank two decades ago and still fills up a car today (FYI, gas was $.95 per gallon two decades ago). Precious metals seem to “go up” when they actually maintain the power to buy or trade at a constant. Can you imagine your local gas station today selling gas for $.95 per gallon?

Let’s tackle your second question since this confuses plenty. When to trade metal back to cash is always the question but this is only because we let currency (dollars) dictate what we perceive as money, cash is not money. If our current trend continues, and I certainly believe it will, less will trust cash and more will prefer real money, like silver and gold.

This is nothing new and I’ll go so far to say this is history repeating itself. The problem with what to do with future silver or gold is one that deserves little worries or concern. Silver and gold have and always are real money. At any time in the future your stash of PM is exchangeable for all currencies worldwide (if you chose to do so), or most assets. Thanks for the questions and thanks for reading TPS.

Tags: gold, inflation, investing, money, physical gold, real money, silver

Thanks for joining us today.  Before we dive into my recent Q & A with Andy Hoffman with Miles Franklin I want to take a moment to discuss this week’s leading headline.  Let me be perfectly clear at this point, it’s not like Europe is burning down. It’s not like record numbers of Americans are on food stamps or record numbers underemployed or out of work either. With so many pressing issues facing us today can you guess what leads our mainstream media? Yep, the most important issue of all is Obama’s stand on gay marriage, absolutely unbelievable.

Folks, this nonsense is nothing more than a distraction. I’m so glad you, my readers, are in tune with reality and willing to accept the challenges that lie ahead, good for you. I’m most glad you understand how necessary owning PM is in such times.

RANTING ANDY HOFFMAN:

If you have yet to read or listen to Miles Franklin front man Andy Hoffman then you are truly missing out. Andy is somewhere between the late Randy Savage (WWF) and Einstein, but with slightly less hair. Agree or not, Andy’s commentary always leaves readers in deep thought and little doubt how Andy truly feels about PM manipulation, Wall Street, and the Feds. I’m very thankful Andy agreed to share a few minutes with TPS.

Prospector Question: Joining Miles Franklin is obviously a good fit for Ranting Andy. Does writing such an in-depth PM newsletter help filter today’s attacks on silver and gold, personally speaking?

Ranting Andy: My blog has enabled me – in serial fashion – coordinate years of observations into a daily newsletter.  The creative process utilizes the analytical skills I learned as a sell-side analyst, the communication skills learned in investor relations, and my PASSION for helping PROTECT people by educating them about Precious Metals.

Prospector Question: It is now clear China’s plans for gold include backstopping the yuan into a reserve currency. Andy, Bernanke and the gang might be academics but they’re not stupid by any means, do they understand how destructive this type of monetary switch will be on the USD?

Ranting Andy: I believe Bernanke is stupid, contrary to popular opinion that he “must be to occupy such an office.”  As a lifetime academic – like Obama – he is particularly dangerous, with no understanding of the real world.  Irrespective, the point is moot, as he MUST continue with “QE to INFINITY” to prevent an all-out collapse TODAY.

Prospector Question: The perception today is that plenty of new bullion (both gold & silver) is available but we both know this is far from true. Does the average PM fence sitter truly realize how little PM actually exists?

Ranting Andy: I don’t feel such a perception exists, as nearly no one – particularly in the States – is even aware of Precious Metals, let alone to have an opinion on supply.  In other words, the “average PM fence sitter” probably describes less than 1% of the U.S. population, and less than 10% of the world population.

Prospector Question: Why is it so few understand the power of physical PM as real money? Have our centers of higher learning let us down?

Ranting Andy: Our “centers of learning” are part of the problem, prescribing curriculum that meet their goals of teaching undisputed U.S. – economic, financial, and military – hegemony.  Plus, the Mainstream Media is bought for by Washington/Wall Street, which HATE PMs.  Otherwise, very few people even have the MONEY to protect themselves in this world of dying middle class, so why bother trying to understand.

Prospector: Thanks. Andy only agreed to our Q & A if we kept it short and to the point. Andy writes 30 – 40 hours per week as part of his position as marketing director with Miles Franklin Ltd. You can reach Andy at www.milesfranklin.com.

Comments & Questions:

Comment: I’ll tell ya I hate to see what it’s going to be like when my two boys are my age!! (They are 13 and 15) I’m new to your site,,,and I think it’s great.. I’ve invested in silver about 2 months ago FROM Colorado Gold and I think we will see historic highs on the horizon.. I was reading one of Don’s columns and he led me to your site…

Prospector Reply: I’m very glad you found us and thanks for commenting. Look, I’m guessing this is the first time I’ve heard from you since it sounds like you’re new to PM. My point, you are spot on and I also have two boys very close to your children’s age.  Their future is not as bright at some would like to believe. The monetary games played today don’t have our children’s best interest at heart, not by along shot. Andy (Q & A above) said it perfectly when he mentioned, “As a lifetime academic – like Obama – he is particularly dangerous, with no understanding of the real world”.

Does this mean a life of limited opportunity for our children? No, not at all.  It means young minds must understand opportunities do, and will continue to, exist but only for those willing to create opportunity (after all, this is what built our great country in the first place).  The wealth from their hard work must store in real assets that include gold and silver.

Question: Okay, one big question if you’re up to answering. Where does all this end (endless printing, never-ending recession, etc)?

Reply: You are not the only one asking this question so let’s see if we can shed some light.  We cannot stop printing currency, not just here in the US but worldwide. Your next question is why do we purposely expand debt when the outcome is predictable and dangerous over long term?

We have entered an era of debt addiction like a junkie’s drug dependency. Where this all ends depends on if we continue our destructive nature to borrow currency while pretending this supports a stable economy, it does not. I believe the borrowing will continue and this is why I own silver & gold. In Why Silver & Gold Will Go Higher, I describe how the rich have a grace period that the middle class doesn’t.

The “end” you ask about resembles an extended version of poverty more than anything else. Only then will the masses understand how necessary fiscal restraint is (both home and in government) to maintain a constant monetary balance. The end is more like a correction in my view since opportunities still exist, even during bleak times, at least for those willing to accept life’s challenges.

Tags: attacks on silver, collapse, debt, dying middle class, gold, new bullion, precious metals, real money, Why Silver & Gold Will Go Higher

Do you want the best for your children? Of course you do, this is why you work hard and worry about their well-being. Today I want to share three necessary steps that will empower your children for their lifetime. The art of money need not be complex or confusing. The understanding of silver and gold need not be complex or confusing. Our world is at a critical stage from a lack of money knowledge and the derived compromise this causes. Your family, your children need not be part of either.

Regardless if you like it or not your children are part of a debt based system (economy). They are told, at a young age, to borrow money for education, a home, a car, even a tropical vacation. If not told then led, maybe by your example, to perceive debt as a necessary part of a complete life.

Just for fun make a mental list of organizations in your life depended on debt.

• Your community (most likely since only four states are debt free).
• Your employer.
• Your country.
• Your school system.
• Your state.
• Your church.
• Your neighbors.
• You.

The fact is our children will face something our generation of adults can’t imagine. They, likely, will watch the middle-income dwindle toward an expanded level of poverty. The few who understand simple economics and real money will find themselves prepared for such an age. The rest will find them blaming everyone from the wealthy to the elected. It is our responsibility as parents to prepare our children for such a time!

Three facts your children must understand about money!

#1: A GOOD EDUCATION DOES NOT NECESSARILY GUARANTEE A GOOD JOB OR SUCCESS:

Today is May 9th and graduation time is upon us. Ask any H.S. senior the plan and over half will gleam as they describe plans for college. We have embedded the key to their success is a good education regardless of cost.

Now, here is the problem. College tuition and fees have risen far beyond health care costs, inflation, and wealth. The price to educate your son or daughter is what business folks refer to as cost prohibitive.  This means, at least in most cases, the return on your investment will not compensate for the outlay.

Why? Because too many are paying too much to learn about dying industries or useless skills.

It is only because of debt that the cost to attend college has risen so out of reach. Nevertheless, the facts are what they are so let’s focus on a remedy.  Parents and children must rethink post high school plans by thinking like an entrepreneur. Education must from here forward  be viewed as a structured integral plan with a financial return.

This must include tossing out what an individual wants to be compared to what will provide steady income in the years to come. This should not be interpreted as squashing a child’s dream. Dreams are part of innovation but must be prioritized to fulfill success. The following questions must be answered.

• What career field offers the best opportunity of providing income during a time of economic correction?
• How can I complete my education without debt?
• Which source of higher learning is most practical regardless of what others are doing?
• Can I educate myself outside traditional higher learning sources?

Remember, this is about choosing a career to provide income far over picking a college!

#2:  CASH IS NOT KING!

One of the best lessons you can teach your children is the difference between money and currency. Cash is no longer king, at least not long-term king. Cash (currency) is a derivative of gold and silver. Your children must understand what real money is and how cash is drifting toward worthlessness.

The masses perceive themselves as cash poor and truly believe if only they can earn more cash things will get better. This is 100% false since you cannot out earn today’s electronic world which lacks fiscal restraint.

This real money understanding will empower children for a lifetime. The US Dollar, the world’s reserve currency, is no longer earned but printed, printed at an alarming rate of $3 million per minute! This means your child has to earn $85k annually over 35 years just to equal one minute of monetary printing.

It is unlikely a college graduate can keep pace with this printing trend. Why? Because the trend calls for today’s $3 million per minute to jump to $4.5 million per minute and then to $9 million per minute. Debt is a dangerous thing but the only thing more dangerous is the power to print cash!

So what can little Johnny do? Children must understand importance of separating themselves from cash when possible.  This means using cash as trade only and then investing the rest of wealth in hard assets. This removes their savings from debase able assets dependent on dollars. Yes silver and gold are hard assets!

#3 DEBT IS NOT NECESSARY TO SUCCEED!

This segment refers to personal debt not debt businesses use to capitalize expansion. Personal debt allows us to own things we can’t afford, no place to store, or no longer need. America’s want list grew because  too many supported a non-sustainable lifestyle with debt.

I honestly feel the only cure for such deep-rooted debt is default. I honestly feel default is a word our children will know too well. This is why it is so important to separate your children from a lifestyle dependent on debt or greatly affected by default.

The good news is that other assets (outside the precious metal world) are growing less expensive. This means those wise enough to save in gold will buy other assets paying discounted prices. Actually, this discount for gold holders has been in effect for some time. In 1971, such as, it took 714 ounces of gold to buy a medium priced home in the US. Today, it takes around 100 ounces of gold to buy the same medium priced home.

This makes little sense to those who don’t understand PM (precious metal) or simple laws of economics. This is why so many are content to pay for  a medium home 2 to 3 times over with 30 year mortgages. Savers today are greatly rewarded but only if they save in hard money assets like precious metals. Your children must understand this as fact if they want to live a life of fulfillment and opportunity.

COMMENTS & QUESTIONS:

COMMENT:

I have been a frequent visitor on your site since this year started and I am new to PM. My experience so far with the PM has been negative ( I am actually losing money since I started buying in late February but still believing in PM in the long run) but i will gladly review/comment your ebook as an appreciation to you and TPS.

Best Regards,

REPLY: Thanks for the comment and welcome to the world of PM.  No, you are not losing money. Your perception is one of loss but this is because our mindset is to value our PM wealth over one period in time. The only way you lose now is if you panic and sell the metal you diligently worked to amass (thoroughly explained in  Why Silver & Gold Will Go Higher). By the way, I’ll send you over a free copy for commenting and appreciate your willingness to review.

You already know owning PM is not the same as traditional investing. You must find a comfortable understanding of PM or dips will drive silver and gold owners nutty. In all honesty, I pay little attention to dips or spikes since I realize what motivates both metals to rise regardless what happens over the short term. Keep reading this site and others, soon you’ll develop the same confidence. Thanks for commenting.

PS…. The world still views paper metal and physical metal as one in the same. This will change as our economy continues to correct and this will lead everyone, and I mean everyone, to question what is real and what is paper. The future of paper is not looking as good as it you used to.

DO YOU HAVE A COMMENT OR QUESTION? I WOULD LOVE TO HEAR IT SO SEND IT OVER HERE.

Tags: debt based, debt free, education, gold, good education, inflation, precious metals, silver, simple economics, wealthy, Why Silver & Gold Will Go Higher