Why you don’t want to “time” gold prices to buy at a low (a cautionary tale)
A client of Birch Gold Group shares their frustration at not buying gold at its recent low. Find out what you can learn from this story.
We received the following email from a client last week:
“I meant to buy when the prices dipped below $1200 for gold and $16 for silver, but have been overwhelmed trying to find a storage location for the best price and greatest chance of security.
Now that the prices are rising I’m wondering if I should wait for the next dip or if that’s unlikely.
Any ideas for the future? Sure would prefer to buy at a low…”
In recent weeks at Birch Gold Group, as gold prices have started to increase from recent lows, we’ve been hearing this sentiment more and more from clients. It’s a picture-perfect cautionary tale for why attempting to “time” the gold markets is futile.
If you believe in the value of physical precious metals in your portfolio – that they can provide unparalleled protection against a variety of threats to your savings – then the temporary ups and downs in prices should not be a consideration for choosing when to purchase.
This couldn’t be more true than today: As prices creep higher, many experts expect for much more to come in 2015.
In a recent article, Barron’s columnist Michael Kahn argues that gold has already reached a bottom point and that prices will likely only go up from here. “Price and volume continue to surge suggesting growing investor interest, and all of this is taking place as the dollar continues to rally itself,” he writes.
Recently the price of gold moved ahead of its 200-day average, and Kahn argues that prices won’t stop rising. The price of gold has been positively influenced by recent events like the Swiss National Bank de-pegging its currency from the euro and the European Central Bank commissioning a large-scale money printing program, both of which suggest upcoming volatility for currencies worldwide. Among all the uncertainty, Kahn notes that gold and silver are one of the few that will likely hold their value.
Around the world, many other experts share Kahn’s sentiments that gold is set to increase in value in our current economic climate. In fact, it wasn’t too long ago that Peter Schiff told us he expected gold prices to reach $5,000! While this prediction is more bullish than many others suggest, what if prices were to only double from their current levels? Those people who were hesitant to purchase because of potential short-term fluctuations will realize their mistake far too late, while those that recognized the opportunity will reap great rewards because of their willingness to act when others were focusing on things of lesser value.
Our client voiced another concern we often hear, that they pause to act because of uncertainty regarding storage. We encourage you not to let such questions dissuade you from taking action. Even if you do not want to store your metals in your bank’s safety deposit box – and we understand reasons for choosing not to do so – there’s always the option of purchasing a safe for your home. Wall or floor safes can be safe storage options, not only because of their sturdiness but also because of their ability to easily blend into the surroundings of your home.
The key point, as always: We don’t believe that you should purchase physical gold or silver to get rich; instead, we believe that precious metals are a defensive move to protect your savings from the risks of currency devaluation, the rising cost of goods, stock market volatility, and an ever-growing number of additional threats. If you truly believe in this as we do, trying to “time” the markets is the last thing you should do. If the stock market does suffer another collapse, or if the dollar free-falls, it’s much better to have your gold a year early rather than a day late.
Gold isn’t going anywhere – everything else is. So get started now.
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