Are you buying silver or gold this month? Precious metal investors will buy more gold this December than nearly all other months of 2012 combined. Unfortunately, 90% of those buying gold in December will pay far more than necessary or simply buy wrong gold. In fact, most December buyers aren’t buying gold for an investment but simply looking for the perfect gift for someone special. This buyer, the Holiday buyer that is, doesn’t realize the same amount of currency spent on retail jewelry could buy two, maybe three times the precious metal that we recommend here at TPS.
You might recall last month when I shared with readers my willingness to brave Black Friday. I have to admit, our retail industry has done well to create this frenzy of shopping excitement that only comes once a year. I found myself standing in front of a Kay Jewelry store…. watching, as a dozen or more willing buyers snatched up discounted gold all while failing to realize Kay’s “amazing” discount was still well beyond intrinsic value.
Now don’t get me wrong here. Buying silver or gold well over market value is a million times better than not buying at all. And, I seriously doubt someone you love wants to unwrap a bullion coin as a token of your admiration come Christmas Eve.
In fact, I recall an email received many months ago where a woman reader asked if silver and gold jewelry should be viewed as an investment.
“Yes”, of course jewelry made from silver or gold should be viewed as a worthy part of your PM (precious metal) stash, but.
My shopping day just after Thanksgiving exposed something else that the retail business has figured out but 99% of the folks walking your streets haven’t, the value of gold. Just past the popular jewelry store aforementioned rests another jewelry vendor but this vendor is looking to buy, buy your old jewelry for cash that is.
Why so many are willing to pay far over gold’s value (retail jewelry) only to someday “short sale” as scrap only proves most of us don’t understand the true value of silver and gold.
The truth is gold and silver are valuable only because they are a real asset, rare (little inventory), and a worldwide currency. This means from London to Tokyo, New York to Mexico City, both metals will easily exchange for the currency of choice, and have for thousands of years. Sure they both shape and shine into works of art but their truest values lies within the metal itself. Everything else comes at a premium.
But for some reason Americans fail to understand silver and gold’s basic value. From an investment aspect, we view silver and gold as obsolete and irrelevant or as one reader put it, “Won’t pay a dividend”. Yet, we hold an intrinsically valueless paper money in the highest regard, even to the point we allow those elected to create endless amounts more just to sustain this fiat Ponzi scheme another day.
We just fail to understand the value of silver and gold. Worse yet, we fail to accept the declining value of a paper currency supported by nothing more than faith, optimism, and denial.
I want to leave you with two points today. One, if buying jewelry, please understand the offering price is a derivative of talent AND precious metal. This means you will pay extra for a subjective portion of what ever it is you’re buying. My second point, don’t sell scrap jewelry for a discount. Someday soon scrap buyers will have bidding wars over everything and anything silver or gold related. Do everything possible to refrain from selling grandma’s broken pendant or other scrap metal resting in your sock drawer.
COMMENT: Thank you for your post today about conquering the “fear factor.” You are absolutely correct in that most of what I read regarding gold and silver tends to stir up fear as a motivation for buying. I have found fear to be a terrible motivator as many times the things we waste time fearing never come to pass and all that stress doesn’t change anything. It was good to be reminded though, as I have to catch myself at times slipping into a fear mentality.
I actually have found the best remedy for a fearful attitude about finances is to give. It always amazes me that when I give from the abundance that I have been blessed with, my grip on the material things seems to loosen and the fear looses its grip on me as well.
I really enjoy your blog. Thanks for taking the time to write!
TPS Reply: Thank you for sharing such wisdom. You’re 100% correct; the best remedy for a fearful attitude is to give, so well said. I’m not sure why so many selling PM or “experts” motivate buyers by fear other than it must work. My goal is the opposite. I want you to understand silver and gold, inside and out, and only then decide what is best for your family. Sure fear lights the fire but ultimately such a prudent decision must be made from an educated rational view over fear based.
Most of you realize that The Prospector Site doesn’t sell silver or gold, this is for good reason. We want each of you to understand our objective is to provide an educational source OUTSIDE of the precious metal trade. Regardless, thanks for the nice comment and reading TPS, you made my day.
COMMENT: Please let your readers know that I just made a substantial purchase of silver from ColoradoGold and everything was as promised! Price, quality of the silver, and the delivery were all outstanding! I will be doing more business with them.
TPS Reply: Fantastic, thanks for sharing your experience with Colorado Gold. So many email asking for reliable PM vendors and I have yet to hear anything less positive from those using CG, as you just mentioned. This is because brokers like Don are honest, reliable, and worthy of your business.
Also, congrats to you for making such a wise choice to physically own silver. Each day we hear of more borrowing, bigger government, and this bodes well for those owning silver and gold. Thanks for reminding all of us that good PM brokers are easily available for those willing to do a little research.
QUESTION: Why don’t you write more often? I miss reading TPS daily!
TPS Reply: Thanks for missing me. To answer, it all comes down to time and mine is divided between family, business, and The Prospector Site writings. Also, the majority of my writing time is invested in several precious metal related books. Why Silver & Gold Will Go Higher is out; Storing Silver & Gold is in final edit and Rising Silver (How Obama’s re-election will propel silver) is in the works as you read this.
My dream for TPS is to devote a portion of each post to your stories and why readers like you are buying silver and gold. Feel free to share your story, anytime; knowing discretion is always top priority. Thanks.
DC Carlton is the founder of The Prospector Site and author of Why Silver and Gold Will Go Higher. Feel free to register here for his free online newsletter that provides precious metal insight rarely mentioned from mainstream media sources.