I usually begin each morning catching up on a couple of trusted PM blogs before turning on the early morning news. My time invested in morning news is mostly wasted because political positioning is the flavor of the month and will be until November, nothing anyone can do about this. I say wasted because historical events are shaping our world and nearly all have to do with you, your wealth, and our silver/gold. During a commercial break I noticed an advertisement warning viewers to watch a doomsday video about a dollar collapse among other not so cheery but dire predictions. Now I have no clue what is in the video and to be honest don’t really care to. Why? Because I don’t need to be shocked into buying gold or silver.
If you take one thing from today’s post I want it to be this. What good is it to break the grips of debt and monetary debasement only to shackle yourself with fear? I refuse to succumb to a scared straight version of precious metal ownership and my hope is you feel the same way. Owning PM is prudent and each day provides yet another layer of evidence of such wisdom but too many are willing to capitalize on growing fear. Today is the first part of a two-part series (part II this Friday called Bait-n-Switch Silver & Gold) exposing those more than willing to profit first from fear and secondly from haste. Part 2 will expose a few popular B & S techniques often used by those more concerned with a higher commission than you owning the right PM, don’t miss it.
Are bad things happening more today than ever before? Should we prepare for a time of economic correction? The answer is yes but most issues like conflict, government overreach, and civil unrest stem from the symptoms of too much debt; this has little to do with fear. Fear is the reaction folks experience who are unprepared for such a time. I’m guessing since you’re taking the time to read this post this doesn’t include you. Trading currency for silver or gold must be a calculated process based less on human emotion and more on a long-term plan. This is not the norm and unfortunately bullion dealers and media know this too well.
I have no way to prove this as fact but believe it to be as true as the nose on my face, 90% of the today’s crises news/information is primarily focused on profiting from your fear and uncertainty. This is no different from using attractive women to sell beer or handsome men to move cologne, this form of advertising does work. Several million people looked up JOHN 3:16 after Tim Tebow pasted the scripture on his face. Levi pants became popular after James Dean wore them while acting like the cool guy he was. Gold and silver sells when buyers swell with fear while looking for a monetary life preserver. Think about this if you will, did you know gun sales grow lockstep with physical precious metal sales?
Don’t let the market dictate when or what you buy (silver and gold speaking). My efforts on The Prospector Site are about providing useful facts based on current events and trends thus allowing you to develop a precious metal plan. I don’t sell silver or gold, I don’t profit if you buy 1000 ounces nor do I lose if you don’t. Take the time to research the best and most affordable methods BEFORE contacting a seller or bullion broker. See you this Friday when we expose Bait-n-Switch pitfalls.
FLASHBACK, if you are new to silver and gold please take a minute to read First Steps to Buying Gold & Silver.
PLEASE LET US KNOW HOW WE’RE DOING. WHAT MOTIVATES YOU TO OWN SILVER, WHAT ABOUT GOLD? REACH ME HERE.
COMMENTS & QUESTIONS:
COMMENT: While reading Real Estate in Collapse as Gold Stands Strong I noticed you stopped just short of saying a home is not an asset, I disagree. I do agree owning gold and silver is important but far more have wealth in our homes than PM. Real estate has, historically speaking, always been a great store of wealth and will be again someday. Still enjoy reading the site but have an issue on some real estate opinions. Thanks.
PROSPECTOR REPLY: Wow, I published the post you mentioned in June of 2011 so you must have dug it out of the archives. Thanks for the comment and sharing your opinion. You are correct by mentioning the lion’s share of private wealth is in real estate, the bummer is this wealth is vanishing whether we want to admit it or not. Not since the Great Depression have we realized such declining R.E. wealth, not my opinion but fact. Maybe sharing a conversation with a friend will help us decide if a home is an asset.
This friend bought a new home forty years ago this June paying around $25k then. Several houses in the neighborhood recently sold and simple math values this same home around $125k in today’s dollars. If my math is right, my family friend’s home increased 400% over 40 years. Now I want to compare this same $25k to silver and gold but also want to disclose a family can live without PM but not a roof over their heads. My point is nothing other than comparing assets to assets in hopes of proving, or disproving a home as an asset. The same $25k in gold is now worth around $675,000. The same $25k in silver is now worth around $603,000.
Please read carefully because my motive is not to sell you gold or silver, I don’t sell either. My motive is to provide accurate as possible information so each of us can make the best monetary decision possible. The concerning aspect is one asset is in major decline while the other is ascending, to make things interesting let’s extend today’s trend out five short years. In five years it is likely my friend’s home may be worth $87,000 while an equal savings in silver/gold worth around $1,500,000.00, if our current trend continues (FYI, this puts silver around $94 per oz. and gold @ $3900, respectively). My opinion is these trends WILL NOT continue; I honestly feel housing worth less than our trend example, in five years, and PM worth more because of worldwide ownership opportunities. If today’s trend continues few will view a home as an asset, not at least compared to inflation resistant PM. THESE ARE ONLY TREND SUPPORTED OPINIONS, NOT PREDICTIONS!
This is why several years ago I sold a larger than needed home, downsizing, (reducing risk in a declining asset) and supported my PM holdings shortly after (supporting risk in an appreciating asset). One last thing you pointed out, I too agree that today’s trends will someday change finding favor in R.E. values. The question is when? I hope you agree long-term PM wealth over R.E. is something worth investing more time and research into, soon. Thanks for bringing it up, and your view.
Just as I ready to publish both metals are down around 3% which could mean a buying dip for those still on sidelines. Worth watching if in the market to buy gold or silver.