One of the biggest misconceptions about money metals (i.e. silver and gold) is that they are bundled in with the likes of stocks and commodities. A better comparison is cash. Another common misconception is that money metals are "useless" for the everyday person, because you can't spend them. I would argue that you can barter them, but a better answer to this false claim is that you don't need to or want to spend them. However, you might want to give them away for charity purposes, which I'll cover some other time. Today I will explain how to buy money metals as a natural savings vehicle, which is far more important than spending your hard earned dollars on the next overpriced consumer trend. This video link will explain how Gold is Money.
The problem with the naysayers is that they have absolutely no clue how to buy money metals in the first place. If anyone ever tells you not to buy gold or silver, ask them if they own any. They will tell you they don't, and that it's not a "sound investment" or that "it's too risky" or maybe even that it's "unsafe." The last one is the funniest to me, because it's like they're saying it's an illegal narcotic or something! IT'S NOT SAFE TO BUY SILVER...MY PAPER DOLLARS CAN BE BURNED FOR HEAT IF THE SH*T EVER REALLY HITS THE FAN. Ha, ha!! :) I'm being sarcastic, but you get the point. It's essentially like taking advice about purchasing a house from someone who has rented their whole life. It doesn't make any sense. And believe me, your best friend, neighbor, and maybe some of your family will have an opinion when you start buying gold and silver. For some fun, tell them you own REAL money, and watch their reaction. Oh, it's a hoot, believe me! You can tell they think you're nuts. When they finally have the guts to tell you what they think, it means that they really want to know more and just don't want to admit it. Since I started my business in 2009 I've experienced this many times, and just like anyone reading this who owns some physical bullion, it's really nice to sit back and not have to stress about a devalued currency.
Speaking of stress, let's face it, money and investments are stressful. So let's talk about the actual purchasing of physical gold and silver bullion, and how to apply this to your life. If money didn't exist we wouldn't have to worry, but that's not reality. That is reserved for a happy place after we die.
There are three primary things to remember when you start buying bullion (hopefully from me). 1) Consider your goals for saving dollars, which includes paper cash and digital cash in your bank account. The 2nd part of this is knowing how much of your net worth you want to keep liquid. I believe 5-10% in gold and silver is a good starting point as you build your total assets. I can explain this when you purchase. 2) Are you planning to trade gold and silver for short term profits? If so, you shouldn't be buying bullion for this purpose. You should probably talk to your investment adviser about ETF's and gold mining stocks. Full disclosure here, I am not a certified financial adviser and do not want to be one. I will refer you to someone if you want to buy paper contracts. 3) How much can you afford to buy on a monthly, quarterly, semi-annual, or yearly basis? This will give me an idea how to recommend your frequency and volume of purchasing. I suggest purchasing smaller amounts to begin with and use the gold to silver ratio to determine which metal to buy. The last question, and maybe the fourth thing to know, is "how much can I afford?" If you don't think you have enough dollars, I would suggest cancelling the cable for a few years, get Netflix and Amazon online, and take the $1000 per year you save and put it into silver. Now you know why some of my friends and family think I'm crazy! Who the heck do you know that would cancel their cable!
The last point I want to make on this months post, is that a truly "useless" investment vehicle is something that can not be used (hence the word use being the primary part of the word useless). What can you really do with your digital investments and paper cash? I think you and I both know the answer to that...nothing... except spend it. Gold and silver are a natural savings vehicle. If the prices on the metals go down people naturally tend to save it and miners stop mining. When prices go up people get more for their money so they spend it, and refiners look for ways to recycle the metals and buy from individuals. Therefore increasing demand for the money. I won't discuss inefficiencies with our consumption-based economy today but I'll save that for another post.
Since the metals are an asset they never lose their value in relation to other goods and services (i.e. houses like described in the above video). Most importantly metals have intrinsic value because they are always in demand for production purposes. They are used by recycling and refining companies, electronic manufacturers, medical device makers, investors, car manufacturers, banks, jewelry makers, and many other practical uses. What are those digits or paper bills used for again?
In conclusion, remember to contact me to evaluate your situation and talk about a purchasing program that works best for you. I would like to remind anyone and everyone who follows me that they can buy directly from my website, but if you want better prices please contact me. My site is http://www.argentumusa.com/apps/webstore/
Thank you as always for reading, and please don't forget to subscribe to my blog. Next month I'll be explaining how to accumulate your metals in more detail.
Keep the faith!
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