Today mark's the first time in 47 years that the Green Bay Packers play the Dallas Cowboys at Lambeau Field. The last time these two teams played in Green Bay during the playoffs, the game was labeled The Ice Bowl, so fittingly this game is being billed The Ice Bowl 2. However, the temperatures today will not be near as cold as they were 47 years ago. Temperatures today in Green Bay should be around 20 degrees Fahrenheit with wind chills around 0, and in 1967 those were -13 and -50, respectively.
As for the current gold prices the temperatures couldn't be any colder the last 3+ years. Based on some insightful feedback from my last post, I wanted to clarify my stance on this current bear market correction in gold and silver. My recommendation to start or continue accumulating precious metals hasn't changed. Simply because lower prices and negative sentiment don't last forever. In fact, environments like this can present significant buying opportunities. History in gold prices prove that statement to be true.
Why is the price of gold today over $1200 for per ounce compared to 47 years ago when it was less than $50 per ounce? Much like a ticket for an NFL playoff game, the prices have changed dramatically. The price of an Ice Bowl ticket in 1967 was around $10. That same ticket would cost roughly $130 at face value, and likely it would have an additional retail cost because of third party sales distribution (which is a very good comparison to how my 1-5% cost markup works on gold and silver). So the price of the playoff ticket is more than 13 times expensive today than 47 years ago, and the price of gold is more than 20 times expensive today. Why does this matter to you?
It all goes back to my reasons for cost averaging your purchases, or buying at a time you feel comfortable if you plan to go "long" with your investment. For someone planning to hold onto their gold or silver for 5, 10, 20, or 30 years this current price level may be the best buying opportunity since the year 2000.
In contrast, I tend to think the current price level will see lower low's in 2015 before hitting what I believe is the bottom and the next big phase up in the bull market begins. I firmly believe gold and silver present the best (albeit risky) investment opportunity over the next 30 years compared to most any other asset. The long term sentiment and fundamentals haven't changed, and a 3-5 year downturn in prices during a bull market is not a very long time. Remember, this bull market in precious metals only started a short 15 years ago. The bull market in stocks from the 1970's to 2007 lasted over 35 years! Some would argue it's still continuing today. Similarly, someone who purchased gold in 1967 and still owned it today would have seen significant gains on their investment, despite the constant fluctuations in the price. If you have a good financial adviser, they will explain the average yearly increase over that time, and that timing your investments and cost averaging are ways to minimize that risk. That is why mutual funds became so popular, because money managers knew that fact and could help people spread risk, diversify stocks, and cost average their gains/losses. So that is why I write these posts, in hopes that you will remember my advice when you decide to finally take the plunge in precious metals.
So a bear market correction like this, where gold prices were beaten and battered for 3+ years, is a perfect time to start accumulating larger holdings. The sentiment against precious metals have even pushed some of the most loyal gold bugs to think that this is the end for gold. To me, unless you want low interest guaranteed returns (which if you do please call and I can provide some options for you), this is the absolute best time to start thinking about investing in precious metals. We may see $1000 gold or lower in the next few months, nobody really knows, or we might see the next phase of the current 15+ year bull market begin. If you don't want to be on the sidelines, call me when you are ready (920) 819-6921. Even if you only feel comfortable starting with a coin or two of silver, please call me to discuss your situation. Like I always say, keep 5-10% of your overall investments in gold and silver bullion, and if you are younger and have a higher risk tolerance consider buying more than that and/or buying gold mining stocks. As always, God Bless and Keep the Faith. Oh, and Go Pack Go!
Sunday, January 11, 2015
Monday, September 22, 2014
Gold Continues Push Downward
When gold eclipsed $1325 earlier this year it looked like it was staging a rally towards $1400 or higher. However, the rally didn't last and it appears gold has officially fallen into a bear market since the highs around $1900 in 2011/2012. It's anyone's guess how long it will last. You can view a historical chart of the metals prices here.
That being said, gold's recent price drop is not unique. All commodities, equities, and even bonds go through price changes. What is unique about gold is its historical price trend as a measure of value compared to government currencies. Our mandated currency just happens to be the dollar, so that is the currency we are most interested in comparing to gold. That is the reason you hear me preaching about the long term picture (over and over and over). Again, how and when you buy the precious metal depends entirely on your purpose for investing. Are you trading (buying and selling) for short term profit potential? Or are you buying gold to hedge the risks of dollar devaluation over the next 20-30 years? If you are somewhere in between or trying to do both, then you need to be more diligent with timing your purchases and investment allocation. That takes a lot of time and energy, and it is why you need a financial plan. I can help you with that.
Gold is at its lowest level compared to equities since 2008, Gold Sinks to Lowest Against Stocks Since Lehman Collapse. And if you are watching, silver is even lower compared to its recent highs. Is that a bad thing? Not necessarily. It may present the first buying opportunity for many of you. Separately, for anyone who purchased gold at $1900 it probably doesn't sit well seeing the prices hover around $1200. So putting things in perspective might make it easier to sleep at night.
In 2008, almost a decade after the bull run in gold started, after its large price drop that year, the price leveled off around $800. That is compared to $250 at the start of the 21st century. Don't get me wrong, nobody knows how far the gold price might go down this time, but the fact remains it doesn't stay down. How long will it stay there? I guess that depends on your definition of "long." For me and many others who own gold, 5 years is not long. It's been 2 years since the highs in gold and it feels like an eternity. However, looking at historical charts is a good way to stay on track. The purpose of owning 5-10% of your investments in gold is to protect from dollar devaluation over a long period of time. From 2008 to 2012 the price of gold doubled, and it wouldn't surprise me to see the same thing happen again during the next 5-10 years. Your guess is as good as mine when the next run up will occur, but history shows us the trend is clear. Go back 60 years and the change to today's prices is staggering.
The primary fact to remember is that despite gold's volatility, it retains its monetary value over long periods of time. That is why government's and central banks still hold a portion of their currency reserves in gold. In fact, most central banks are currently expanding their gold balance sheets to retain confidence from their respective citizenry.
The fact that gold is down from its all-time highs a couple years ago should not deter you from looking at the big picture. I'll remind our readers again, gold is always valued higher than the government mandated currency. The short term fluctuations in price may be confusing, but the long term trend is obvious and needs to be a part of every investment portfolio. Keep my 5-10% recommendation in mind the next time you are adding extra money to savings, or putting some extra away to pass on to the kids or grand kids.
And as always, Keep the Faith and God Bless.
That being said, gold's recent price drop is not unique. All commodities, equities, and even bonds go through price changes. What is unique about gold is its historical price trend as a measure of value compared to government currencies. Our mandated currency just happens to be the dollar, so that is the currency we are most interested in comparing to gold. That is the reason you hear me preaching about the long term picture (over and over and over). Again, how and when you buy the precious metal depends entirely on your purpose for investing. Are you trading (buying and selling) for short term profit potential? Or are you buying gold to hedge the risks of dollar devaluation over the next 20-30 years? If you are somewhere in between or trying to do both, then you need to be more diligent with timing your purchases and investment allocation. That takes a lot of time and energy, and it is why you need a financial plan. I can help you with that.
Gold is at its lowest level compared to equities since 2008, Gold Sinks to Lowest Against Stocks Since Lehman Collapse. And if you are watching, silver is even lower compared to its recent highs. Is that a bad thing? Not necessarily. It may present the first buying opportunity for many of you. Separately, for anyone who purchased gold at $1900 it probably doesn't sit well seeing the prices hover around $1200. So putting things in perspective might make it easier to sleep at night.
In 2008, almost a decade after the bull run in gold started, after its large price drop that year, the price leveled off around $800. That is compared to $250 at the start of the 21st century. Don't get me wrong, nobody knows how far the gold price might go down this time, but the fact remains it doesn't stay down. How long will it stay there? I guess that depends on your definition of "long." For me and many others who own gold, 5 years is not long. It's been 2 years since the highs in gold and it feels like an eternity. However, looking at historical charts is a good way to stay on track. The purpose of owning 5-10% of your investments in gold is to protect from dollar devaluation over a long period of time. From 2008 to 2012 the price of gold doubled, and it wouldn't surprise me to see the same thing happen again during the next 5-10 years. Your guess is as good as mine when the next run up will occur, but history shows us the trend is clear. Go back 60 years and the change to today's prices is staggering.
The primary fact to remember is that despite gold's volatility, it retains its monetary value over long periods of time. That is why government's and central banks still hold a portion of their currency reserves in gold. In fact, most central banks are currently expanding their gold balance sheets to retain confidence from their respective citizenry.
The fact that gold is down from its all-time highs a couple years ago should not deter you from looking at the big picture. I'll remind our readers again, gold is always valued higher than the government mandated currency. The short term fluctuations in price may be confusing, but the long term trend is obvious and needs to be a part of every investment portfolio. Keep my 5-10% recommendation in mind the next time you are adding extra money to savings, or putting some extra away to pass on to the kids or grand kids.
And as always, Keep the Faith and God Bless.
Sunday, March 16, 2014
Gold Is...Back From The Dead???
The title should read "Gold Is...AND ALWAYS WILL BE MONEY!!!" LOL! I've had a fair number of people ask me why there's been such a delay since my last post, so I hope this one is informative and fun. I could bore you with the details why it's been so long, but that's probably not your idea of an enjoyable Sunday afternoon. The Wisconsin Badgers couldn't get past Michigan State, so I don't have as much of an incentive to get this finished before the start of the Big Ten Championship. However, if you are a fan of NCAA basketball or the Big Ten, it should be an exciting game. So grab some popcorn, and tune in to some great basketball and some fun gold and silver updates!
The news for gold and silver ending 2013 was pretty boring, but things have not stayed that way. First, there was the London gold fix manipulation headlines (London Gold-Fix Banks Accused Of Manipulation in U.S. Lawsuit). Second, the 1st quarter increase in gold prices are more than 10% and futures buying seems to indicate more short term increases (Big Gold Futures Buying Is Pushing Gold Higher). Last but not least, world events have put the currency/resource wars directly in the global spotlight (Exhibit A-Russia Warns Could 'Reduce To Zero' Economic Dependency On U.S. and Russia Wants IMF To Move Ahead On Reforms Without U.S., Exhibit B-Russian Troops Seize Gas Plant Beyond Crimean Border). By all intents and purposes, this is another major event in the ongoing shift of control over the global economy. The underlying change that is taking place is a shift out of the U.S. dollar as the world's reserve currency, and global events continually showcase that trend. Unlike any government currency, gold and silver are natural forms of money and can't take political sides. So it doesn't matter what currency is being used or the tyrannical government that is calling the shots, because gold and silver are always objectively valued as long term assets. Governments and banks can attempt to manipulate the prices, but much like land or energy resources, there is an intrinsic value that can't be hidden. I digress.
For a short term investment analysis you can read more about technical charts and trends here, Gold and Euro Soar On Escalating Ukraine Moves. To sum up the moves in the precious metals market recently, gold bottomed late last year near $1200 per ounce and has been moving upward ever since. As you'll read in some of my article references, some of that is due to futures buying and inflows back into gold ETFs (exchange-traded funds). ETFs are changing the way investors play the stock market. You can read the definition here, ETF | Exchange-traded fund. ETFs are a relatively new type of investment, in historical terms, with a relatively new type of gold and silver investor buying the 'digital metal.' In the past, a small percentage of investors made their home in the gold and silver markets by purchasing physical bullion. While gold and silver still only represent a small percentage of the commercial investment arena, the ease of digital investing is changing that. Money that was circulating elsewhere is moving back into gold and silver. There are also examples of large institutional investors changing their tune about gold to start 2014 (see George Soros article here). Average investors typically follow their lead, and usually they are too late to the party. The herd mentality driving the volatility is not unique to any particular investment (see housing bubble 2008). No matter what the reasons, it doesn't stop us from needing certain tangible assets. Unless you feel like settling for a paltry 1-3% guaranteed interest that doesn't keep up with price inflation, every investment involves some form of risk.
As a volatile alternative currency, gold and silver carry risk, and that is why you need someone to help you with it. While there are no guarantees, if you are timing the market right now, any price below $1300 seems like a bargain. If you own ETFs or are considering purchasing them, remember that the biggest difference compared to owning the physical metal is that someone else owns 'your' gold. You are investing in a company's capacity to store their gold, and paying them a fee to do it. That's a lot different than buying and selling with a dealer (preferably me) and storing the gold wherever you want. There is value in purchasing a gold or silver ETF if that is your only option. However, physical metals can be sold back to me at any time (assuming you accept my buy price), and you also get more flexibility of choosing how to sell your metals if you don't want to sell to me. You can sell your gold or silver at local pawn/jewelry stores, on eBay, at local farmers markets and craft shows, or even choose to barter with it. Unlike an ETF, you actually own the physical metals, so you can create a competitive selling market for your assets.
The recent correction in gold and silver during 2013 is much different than 2008. In 2013 the price bottomed at $1200 compared to near $800 in 2008. If you purchased gold and silver any time before 2010 you are probably very pleased with your investment, even after the crazy drop in prices last year. If you bought when prices were near $1800 you'll just have to wait a while longer for your retribution for last year's price manipulation. And if you are smart, buying when prices are low like they are right now, is a lot better idea than waiting until the price of gold eclipses $2000 during the next phase up in this historic bull run.
Keep the Faith and as always, God Bless.
www.argentumusa.com
The news for gold and silver ending 2013 was pretty boring, but things have not stayed that way. First, there was the London gold fix manipulation headlines (London Gold-Fix Banks Accused Of Manipulation in U.S. Lawsuit). Second, the 1st quarter increase in gold prices are more than 10% and futures buying seems to indicate more short term increases (Big Gold Futures Buying Is Pushing Gold Higher). Last but not least, world events have put the currency/resource wars directly in the global spotlight (Exhibit A-Russia Warns Could 'Reduce To Zero' Economic Dependency On U.S. and Russia Wants IMF To Move Ahead On Reforms Without U.S., Exhibit B-Russian Troops Seize Gas Plant Beyond Crimean Border). By all intents and purposes, this is another major event in the ongoing shift of control over the global economy. The underlying change that is taking place is a shift out of the U.S. dollar as the world's reserve currency, and global events continually showcase that trend. Unlike any government currency, gold and silver are natural forms of money and can't take political sides. So it doesn't matter what currency is being used or the tyrannical government that is calling the shots, because gold and silver are always objectively valued as long term assets. Governments and banks can attempt to manipulate the prices, but much like land or energy resources, there is an intrinsic value that can't be hidden. I digress.
For a short term investment analysis you can read more about technical charts and trends here, Gold and Euro Soar On Escalating Ukraine Moves. To sum up the moves in the precious metals market recently, gold bottomed late last year near $1200 per ounce and has been moving upward ever since. As you'll read in some of my article references, some of that is due to futures buying and inflows back into gold ETFs (exchange-traded funds). ETFs are changing the way investors play the stock market. You can read the definition here, ETF | Exchange-traded fund. ETFs are a relatively new type of investment, in historical terms, with a relatively new type of gold and silver investor buying the 'digital metal.' In the past, a small percentage of investors made their home in the gold and silver markets by purchasing physical bullion. While gold and silver still only represent a small percentage of the commercial investment arena, the ease of digital investing is changing that. Money that was circulating elsewhere is moving back into gold and silver. There are also examples of large institutional investors changing their tune about gold to start 2014 (see George Soros article here). Average investors typically follow their lead, and usually they are too late to the party. The herd mentality driving the volatility is not unique to any particular investment (see housing bubble 2008). No matter what the reasons, it doesn't stop us from needing certain tangible assets. Unless you feel like settling for a paltry 1-3% guaranteed interest that doesn't keep up with price inflation, every investment involves some form of risk.
As a volatile alternative currency, gold and silver carry risk, and that is why you need someone to help you with it. While there are no guarantees, if you are timing the market right now, any price below $1300 seems like a bargain. If you own ETFs or are considering purchasing them, remember that the biggest difference compared to owning the physical metal is that someone else owns 'your' gold. You are investing in a company's capacity to store their gold, and paying them a fee to do it. That's a lot different than buying and selling with a dealer (preferably me) and storing the gold wherever you want. There is value in purchasing a gold or silver ETF if that is your only option. However, physical metals can be sold back to me at any time (assuming you accept my buy price), and you also get more flexibility of choosing how to sell your metals if you don't want to sell to me. You can sell your gold or silver at local pawn/jewelry stores, on eBay, at local farmers markets and craft shows, or even choose to barter with it. Unlike an ETF, you actually own the physical metals, so you can create a competitive selling market for your assets.
The recent correction in gold and silver during 2013 is much different than 2008. In 2013 the price bottomed at $1200 compared to near $800 in 2008. If you purchased gold and silver any time before 2010 you are probably very pleased with your investment, even after the crazy drop in prices last year. If you bought when prices were near $1800 you'll just have to wait a while longer for your retribution for last year's price manipulation. And if you are smart, buying when prices are low like they are right now, is a lot better idea than waiting until the price of gold eclipses $2000 during the next phase up in this historic bull run.
Keep the Faith and as always, God Bless.
www.argentumusa.com
Sunday, October 27, 2013
The DEBT Part I
You've all heard the arguments about the debt ceiling and the government shutdown. The Republicans use the debt debate to gain power in order to cut social programs, give corporate tax breaks, and expand the military. The Democrats talk about the debt like it's nothing to worry about. They say we have to continue to spend money or the whole system will collapse in a fiery inferno, and they use cuts to social programs as leverage. All the while their solution is to spend more money on federal government programs. The political posturing does nothing to solve the real problems. Separately, most economic attention is focused on inflation and deflation, which is really just noise (for now) compared to the larger debt problems facing U.S. taxpayers. Although both inflation and deflation have a direct impact on the economy as a whole, they are not the biggest long term threat. The national debt is the real threat, but it's harder to see the consequences until they are hitting us square between the eyes. You can view the ongoing U.S. debt calculator here, U.S. National Debt Clock.
Wikipedia also has a nice page devoted to the History of the U.S. Public Debt. As you can see, unlike what the politicians tell the people, it doesn't matter who is in power. The debt keeps increasing, and so is the pace at which it is expanding. Why do you think we're talking in the trillions instead of millions or billions? Another good reference is this link to the U.S. Treasury Website for Foreign Government Bond Holdings. Some credit rating agencies have downgraded the U.S. government, including S&P, and the most prominent Chinese agency, Dagong. While other's like Fitch have put the government on ratings watch with a negative outlook. No matter what ratings agencies say about the situation, it's clear that there is a debt problem in the United States.
Like I mentioned before, I'm not an expert of technical analysis. I use common sense in most of my decisions. To say that the U.S. government is addicted to debt is an understatement. With a $17 trillion debt and only a $15 trillion annual GDP it's pretty clear the debt is a problem. It's also clear that the politicians don't have an answer. When it comes to finances, the banks and the governments aren't stupid. They know that it's a death spiral now, and it has global implications.
The wildcard in all of this is the dollars status as the world's reserve currency. China, Russia, Australia and many other governments are busy creating bilateral trade agreements that don't use the dollar (see China Busy Signing Currency Deals). The U.S. government currently has the luxury of leveraging the dollar's status as the primary reserve and settlement currency. However, the world saw this scenario before, and not too long ago in historical terms. When the U.K. pound sterling lost its status as reserve currency the world was a much different place. The implications of the dollar being removed as the reserve currency are widespread, and people need to prepare. And yes, that might mean "black Friday" shoppers can't fight over their next crock pot or tickle me Elmo doll. You can bet that the politicians and bankers who kick the can down the road won't suffer. They always seem to find a way to escape the realities that the rest of us face every day.
The global economy is based on consumption, backed by debt to fund the whole thing. So increasing the GDP simply isn't possible at this point, because the earth's resources don't have the capacity to keep up with the debt. That is why saving and owning hard assets is the best option. Land is a great investment, but what will do you use to buy that land? Owning gold and silver doesn't mean you have to live your life in fear, or that you have to use every penny you earn to own it. On the contrary, once you slowly start accumulating some physical precious metals you won't have to worry as much about the currency issues in the world. You can watch the politicians act like children, all the while seeing their lies and knowing the truth, and laughing at their ridiculous behavior. Stay tuned for Part II.
God Bless and Keep the Faith.
Wikipedia also has a nice page devoted to the History of the U.S. Public Debt. As you can see, unlike what the politicians tell the people, it doesn't matter who is in power. The debt keeps increasing, and so is the pace at which it is expanding. Why do you think we're talking in the trillions instead of millions or billions? Another good reference is this link to the U.S. Treasury Website for Foreign Government Bond Holdings. Some credit rating agencies have downgraded the U.S. government, including S&P, and the most prominent Chinese agency, Dagong. While other's like Fitch have put the government on ratings watch with a negative outlook. No matter what ratings agencies say about the situation, it's clear that there is a debt problem in the United States.
Like I mentioned before, I'm not an expert of technical analysis. I use common sense in most of my decisions. To say that the U.S. government is addicted to debt is an understatement. With a $17 trillion debt and only a $15 trillion annual GDP it's pretty clear the debt is a problem. It's also clear that the politicians don't have an answer. When it comes to finances, the banks and the governments aren't stupid. They know that it's a death spiral now, and it has global implications.
The wildcard in all of this is the dollars status as the world's reserve currency. China, Russia, Australia and many other governments are busy creating bilateral trade agreements that don't use the dollar (see China Busy Signing Currency Deals). The U.S. government currently has the luxury of leveraging the dollar's status as the primary reserve and settlement currency. However, the world saw this scenario before, and not too long ago in historical terms. When the U.K. pound sterling lost its status as reserve currency the world was a much different place. The implications of the dollar being removed as the reserve currency are widespread, and people need to prepare. And yes, that might mean "black Friday" shoppers can't fight over their next crock pot or tickle me Elmo doll. You can bet that the politicians and bankers who kick the can down the road won't suffer. They always seem to find a way to escape the realities that the rest of us face every day.
The global economy is based on consumption, backed by debt to fund the whole thing. So increasing the GDP simply isn't possible at this point, because the earth's resources don't have the capacity to keep up with the debt. That is why saving and owning hard assets is the best option. Land is a great investment, but what will do you use to buy that land? Owning gold and silver doesn't mean you have to live your life in fear, or that you have to use every penny you earn to own it. On the contrary, once you slowly start accumulating some physical precious metals you won't have to worry as much about the currency issues in the world. You can watch the politicians act like children, all the while seeing their lies and knowing the truth, and laughing at their ridiculous behavior. Stay tuned for Part II.
God Bless and Keep the Faith.
Monday, August 26, 2013
Measuring The Immeasurable...Confidence
Anyone who knows me understands that I'm not in this business to get super rich or for individual political gain. I write this blog and run my precious metals broker business primarily as a service, but also as something that will hopefully make me a little money for my time. I want it to be a part of my life (as strange as that might sound). Moreover, I don't want my blog to be seen only as a platform for pushing my products. My intent is that my blog is an educational resource first, and as a marketing arm second. There needs to be a voice of truth, because the fear tactics used by many dealers and media pundits are just plain wrong. My goal was to educate anyone who would listen about the role precious metals play as money. I saw the need and an education gap, and I wanted to help fill that gap no matter a specific political persuasion. Anyone following my earlier posts knows I've spent a lot of time on the subject of money, and the reasons why precious metals are the one true monetary standard. However, I think it's time to move on. Some additional resources for more about the history of gold can be found at Wikipedia, and my current favorite site The Visual Capitalist Timeline.
I think I've established an understanding for my readers about the role gold and silver play as money. Next I want to discuss some of the questions about the investment role of precious metals, and specifically address the recent price volatility. This recent sell off in metals shook the confidence of the average investor. From the standpoint of a central banker and large institutional investor this price drop was a Godsend, because they could buy more, and that's exactly what they did. Goldman Sachs just issued a "buy" recommendation on precious metals, a few months after issuing a "sell" recommendation. I won't go into detail on how the futures market works, because it's too complicated for this post and I believe it is a small bump in the road for a long term investor. However, in their most basic form, futures contracts and short selling are based purely on speculation, with very little cash required to purchase a contract when compared to the actual value of the metal (as little as 10% down). The unsustainable leverage is not unique to precious metals. It's everywhere. You and I have very little control over these asset price swings, as extreme as they may be in some cases. There are a million articles analyzing technical charts so I won't do that here. There is plenty of data available from reputable sources like Seeking Alpha and Motley Fool. I don't feel equipped or certified to offer that kind of advice. In fact, many of the authors at those sites have primary job functions trading future's contracts, or as financial advisors.
My job isn't to analyze all of the speculative opinions in the gold and silver market. It's not a good long term strategy to regularly attempt to time the market. At some point if you've seen tremendous profits technical analysis may be more pertinent, or if you feel like we're approaching historic low prices and want to buy in large amounts, then we can address it. If you think you can trade with the big institutional investors and time it perfectly, I wish you the best of luck. However, if you are looking for some personal guidance and strategy for accumulating your physical metal holdings, then please buy from me and sell to me, because that is my area of expertise and my prices are competitive with some of the biggest dealers in the U.S. Investing in metals is not easy, and I don't have all of the answers, but I'll keep you on track. Accumulating is the only cure for volatility, in any investment.
Furthermore, accumulating your metals doesn't just mean I try to get you to spend all of your money on metals. It does involve regular purchases and timing of the market in some cases. I base it on your previous purchase history, individual needs, and current market price volatility instead of a general "buy" or "sell" recommendation. I tend to disagree with some of the extreme bullish cases for gold and silver, but I also disagree with most of the bearish cases too. So that puts me in the middle, and pretty much enemy #1 on both sides. However, that means I am looking at things from an objective lens, which is good for you. Will I promise that I can time your purchase exactly before the market is about to skyrocket higher...no. Will I be able to tell you when to sell right before prices fall...not exactly. Anyone who tells you they can do that is lying. My promise is that if you don't feel comfortable buying on my recommended timelines I won't pressure you.
My approach will empower you to become a better long term investor and a better precious metals buyer. If I can't help you I will refer you to someone who can. I work with 3 very reputable investment companies whose financial advisors sell securities, and they can help you with stocks and fixed income vehicles. I will also make another pledge. I won't recommend you buy more than your risk tolerance. If you tell me you don't like volatility or you are using precious metals for your retirement income, I will advise you to start buying a coin or two, or start collecting a few coins that you think are cool. In that case you are serving the primary purpose of diversifying your dollars in a conservative manner through slow accumulation. Plus, you are actually helping me grow my business more than if you plopped down a big chunk of money all at once.
Much of what we do in life is based on confidence for a call to action. My customers trust that I'll get them their metals on time and in good condition, and not pressure them to buy from me constantly. The entire monetary system is based on confidence. Human nature trusts an historical track record, and money metals have proven successful over thousands of years. Fiat money has a 100% failure rate through history. I want you to confidently purchase from me and understand precious metals. Am I going to lose short term sales volume because of my approach...Yes. Will it pay off for me in the long run...I hope so. I know it will be better for my customers. Call or e-mail me anytime, (920) 819-6921, argentumwealthusa@gmail.com.
I think I've established an understanding for my readers about the role gold and silver play as money. Next I want to discuss some of the questions about the investment role of precious metals, and specifically address the recent price volatility. This recent sell off in metals shook the confidence of the average investor. From the standpoint of a central banker and large institutional investor this price drop was a Godsend, because they could buy more, and that's exactly what they did. Goldman Sachs just issued a "buy" recommendation on precious metals, a few months after issuing a "sell" recommendation. I won't go into detail on how the futures market works, because it's too complicated for this post and I believe it is a small bump in the road for a long term investor. However, in their most basic form, futures contracts and short selling are based purely on speculation, with very little cash required to purchase a contract when compared to the actual value of the metal (as little as 10% down). The unsustainable leverage is not unique to precious metals. It's everywhere. You and I have very little control over these asset price swings, as extreme as they may be in some cases. There are a million articles analyzing technical charts so I won't do that here. There is plenty of data available from reputable sources like Seeking Alpha and Motley Fool. I don't feel equipped or certified to offer that kind of advice. In fact, many of the authors at those sites have primary job functions trading future's contracts, or as financial advisors.
My job isn't to analyze all of the speculative opinions in the gold and silver market. It's not a good long term strategy to regularly attempt to time the market. At some point if you've seen tremendous profits technical analysis may be more pertinent, or if you feel like we're approaching historic low prices and want to buy in large amounts, then we can address it. If you think you can trade with the big institutional investors and time it perfectly, I wish you the best of luck. However, if you are looking for some personal guidance and strategy for accumulating your physical metal holdings, then please buy from me and sell to me, because that is my area of expertise and my prices are competitive with some of the biggest dealers in the U.S. Investing in metals is not easy, and I don't have all of the answers, but I'll keep you on track. Accumulating is the only cure for volatility, in any investment.
Furthermore, accumulating your metals doesn't just mean I try to get you to spend all of your money on metals. It does involve regular purchases and timing of the market in some cases. I base it on your previous purchase history, individual needs, and current market price volatility instead of a general "buy" or "sell" recommendation. I tend to disagree with some of the extreme bullish cases for gold and silver, but I also disagree with most of the bearish cases too. So that puts me in the middle, and pretty much enemy #1 on both sides. However, that means I am looking at things from an objective lens, which is good for you. Will I promise that I can time your purchase exactly before the market is about to skyrocket higher...no. Will I be able to tell you when to sell right before prices fall...not exactly. Anyone who tells you they can do that is lying. My promise is that if you don't feel comfortable buying on my recommended timelines I won't pressure you.
My approach will empower you to become a better long term investor and a better precious metals buyer. If I can't help you I will refer you to someone who can. I work with 3 very reputable investment companies whose financial advisors sell securities, and they can help you with stocks and fixed income vehicles. I will also make another pledge. I won't recommend you buy more than your risk tolerance. If you tell me you don't like volatility or you are using precious metals for your retirement income, I will advise you to start buying a coin or two, or start collecting a few coins that you think are cool. In that case you are serving the primary purpose of diversifying your dollars in a conservative manner through slow accumulation. Plus, you are actually helping me grow my business more than if you plopped down a big chunk of money all at once.
Much of what we do in life is based on confidence for a call to action. My customers trust that I'll get them their metals on time and in good condition, and not pressure them to buy from me constantly. The entire monetary system is based on confidence. Human nature trusts an historical track record, and money metals have proven successful over thousands of years. Fiat money has a 100% failure rate through history. I want you to confidently purchase from me and understand precious metals. Am I going to lose short term sales volume because of my approach...Yes. Will it pay off for me in the long run...I hope so. I know it will be better for my customers. Call or e-mail me anytime, (920) 819-6921, argentumwealthusa@gmail.com.
Monday, July 22, 2013
Accumulating, Bartering, and Buying
I attended the Bridge Point Church vendor fair this past weekend, and a young man reminded me that value takes on many different meanings. I'm sure you remember the old saying, "one man's trash is another man's treasure." In this case, he viewed my treasure as his own treasure, and I viewed his treasure as my own treasure. I suppose it would've been financially better for me if I could have unloaded some of my trash, so maybe if this whole metals business falls apart, I'll start hawking Packer memorabilia and yard ornaments. Sorry, I digress.
So after the young man approached me and asked what I was selling, we discussed qualities, history, and stories of silver and gold. He taught me a few things, and I think he also learned something from me. At first it was somewhat difficult to explain the idea of accumulating metals over a vendor table, but after we hung out for the day I think he really understood it. In fact, I think he caught on very quick and understood it better than most people do, so I hope he follows through with his investment goals. He also approached me for some bartering, which is a fantastic way to accumulate or acquire pretty much anything if you have something of value to offer someone. In this case, he had raw copper nuggets, obsidian, quartz, and a few other stones that I wanted so I traded him some silver. He was happy because he wanted silver, and I was happy because I wanted some raw copper and other minerals.
This young man was not much more than 20 years old. By the end of the day he accumulated 4 ounces of silver, or in dollar terms about $100 worth (he definitely got the better deal in that respect). How much will silver be worth in 20 years? Who knows. The more important thing to realize, is that he will be about 40 years old at that time, probably have a family, a mortgage payment, and monthly bills. Except now he has 4 real and tangible assets that hold their value over time. He also has something that is extremely liquid, in that he can sell 1 or all 4 ounces when he needs government currency to pay bills. Or maybe he will have a good paying job and won't need more government currency. So he'll just hold on to the silver, which he can use to barter, sell in case of an emergency cash crunch, or pass on to his kids/grand kids some day. Much like land it won't lose it's value, but it's a heck of a lot easier to sell or barter. Not to mention, you can easily carry coins around, and there are no property taxes or maintenance costs.
The point is that it's not hard to start investing in money metals. I hear the argument all of the time that it's too "expensive" or "it's not the right time" to buy. So you'd rather hold cash that you KNOW will lose it's value over time??? If it's because of current price volatility then don't put more than 5-10% of your liquid assets into your holdings! It's not rocket science, and most of the time it's simply an excuse to spend money on something else. That's fine with me, but don't complain when big banks, corporations, and governments destroy your hard earned savings and drive up prices on everything we buy. For as little as $2 you can buy a nice 1 oz copper round from me. For roughly $30 you can buy an ounce of silver. Call me at (920) 819-6921 and we can discuss better pricing for 20 or more ounces.
Speaking of copper, I'm going to write about it next month, but I wanted to announce that I'm adding fine/pure copper bullion to my product line starting immediately. I will carry rounds, ingots, and bars. I realized at the vendor fair this weekend that silver is just too expensive for a lot of people. Copper is one of the coolest non-precious/base metals on the planet. Ask any geologist, chemist, electrician, plumber, or doctor about the usefulness of copper and you'll be amazed. It may tarnish easier than silver or gold, but it cleans easily and shines beautifully, just like a precious metal.
Don't forget to sign up for my blog at the top of the page. Till next time. Keep the faith and God Bless!
So after the young man approached me and asked what I was selling, we discussed qualities, history, and stories of silver and gold. He taught me a few things, and I think he also learned something from me. At first it was somewhat difficult to explain the idea of accumulating metals over a vendor table, but after we hung out for the day I think he really understood it. In fact, I think he caught on very quick and understood it better than most people do, so I hope he follows through with his investment goals. He also approached me for some bartering, which is a fantastic way to accumulate or acquire pretty much anything if you have something of value to offer someone. In this case, he had raw copper nuggets, obsidian, quartz, and a few other stones that I wanted so I traded him some silver. He was happy because he wanted silver, and I was happy because I wanted some raw copper and other minerals.
This young man was not much more than 20 years old. By the end of the day he accumulated 4 ounces of silver, or in dollar terms about $100 worth (he definitely got the better deal in that respect). How much will silver be worth in 20 years? Who knows. The more important thing to realize, is that he will be about 40 years old at that time, probably have a family, a mortgage payment, and monthly bills. Except now he has 4 real and tangible assets that hold their value over time. He also has something that is extremely liquid, in that he can sell 1 or all 4 ounces when he needs government currency to pay bills. Or maybe he will have a good paying job and won't need more government currency. So he'll just hold on to the silver, which he can use to barter, sell in case of an emergency cash crunch, or pass on to his kids/grand kids some day. Much like land it won't lose it's value, but it's a heck of a lot easier to sell or barter. Not to mention, you can easily carry coins around, and there are no property taxes or maintenance costs.
The point is that it's not hard to start investing in money metals. I hear the argument all of the time that it's too "expensive" or "it's not the right time" to buy. So you'd rather hold cash that you KNOW will lose it's value over time??? If it's because of current price volatility then don't put more than 5-10% of your liquid assets into your holdings! It's not rocket science, and most of the time it's simply an excuse to spend money on something else. That's fine with me, but don't complain when big banks, corporations, and governments destroy your hard earned savings and drive up prices on everything we buy. For as little as $2 you can buy a nice 1 oz copper round from me. For roughly $30 you can buy an ounce of silver. Call me at (920) 819-6921 and we can discuss better pricing for 20 or more ounces.
Speaking of copper, I'm going to write about it next month, but I wanted to announce that I'm adding fine/pure copper bullion to my product line starting immediately. I will carry rounds, ingots, and bars. I realized at the vendor fair this weekend that silver is just too expensive for a lot of people. Copper is one of the coolest non-precious/base metals on the planet. Ask any geologist, chemist, electrician, plumber, or doctor about the usefulness of copper and you'll be amazed. It may tarnish easier than silver or gold, but it cleans easily and shines beautifully, just like a precious metal.
Don't forget to sign up for my blog at the top of the page. Till next time. Keep the faith and God Bless!
Sunday, May 5, 2013
Cash or Money Metals?
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!
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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