Is Silver and Gold really a "No Lose Investment"
Friends, I've posted a lot of reprints lately because there's been a lot of good information out there. But I just had to write this article because I find in mind boggling.
Is buying silver and gold really a risky investment? OMG!!! (For my non-English followers using my built in translator, OMG means "Oh My God".) The reason I say that, is because of a number of articles I've read lately trying to discourage people from buying and investing in "Physical Silver and Gold". Basically, this is how these articles present their data.
"You believe that if you buy physical silver and gold, that your investment is "Risk Free"; but if you look at what happened in 2011-2012 when silver and gold reached their peak, then it turned down and it's at some dramatic lows. Those people LOST A LOT OF MONEY!!!!!"
Does this paragraph sound familiar? Have some people told you that type of logic when you told them that you buy physical silver and gold? We've all heard it. The truth is, these people are either idiots or the writers have an agenda designed to try and stop you from buying physical silver and gold. And that agenda is quite real. Governments and the big banks, don't want you to buy silver and gold. If you do, they don't have the ability to "Control You and your wealth". There was even an article I read today saying how the central banks believe it's so important that the world become a "Cashless Society", because they really WANT to help economies grow and make people prosper, but they can't because people AREN'T SPENDING MONEY like they use to. In a cashless society, they can FORCE you to spend. In a cashless society, they can impose NEGATIVE interest rates on your "bank accounts". If you're going to "Lose Money", you might as well spend it. Yes, this could spur an economy, but do we really want that kind of control over us?
Anyway, back on topic. Believing that buying silver and gold is risky investing is crazy? Why? Well, without going all the way back a number of years in my blog, remember, there are 4 reasons to buy silver and/or gold. 1) Investing; 2) Insurance "Preserve Wealth during economic inflation"; 3) To reduce debt "Sell for more than you bought it for and use that to reduce debt"; 4) Or to purchase an item at a discount. "Similar to 3) but you can buy an item like a car for much less than if you just saved currency. Many types of buyers fall into one, some, or all of these categories. It doesn't matter if you're prepping for economic Armageddon or simply wanting to prepare for retirement or a child's education. With the exception of the first category, the real Investor, the key is to have TIME ON YOUR SIDE. If you don't have time, to be able to buy and HOLD your silver and gold, you probably shouldn't have bought it in the first place.
Now, if you bought a house, whether you have a monthly mortgage payment or not, and the price of real estate dropped 50% and your $200,000 house is now WORTH $100,000..... did you REALLY LOSE $100,000??? No... NOT AT ALL. Not unless you were to sell the house. If you're buying and selling houses, and you MUST SELL, then you're more like a real estate investor. But if you're living in the house, and you're still making your monthly mortgage payment, then it doesn't matter what the price of your house does. Just like if it went up to $300,000 you didn't GAIN $100,000. Not unless you sell the house or refinance it or take out an equity loan. The same goes with silver and gold. It doesn't matter if the price goes to $100 an ounce for silver or $10 an ounce for silver. You haven't LOST or GAINED ANYTHING unless you're selling it. And again, this is where TIME comes into play. It all depends on WHAT the PURPOSE is that you bought the silver or gold. If you bought it and HAD to SELL it 6 months later because of something you scheduled, then yes, you could have lost. That's what investing is all about. But the one thing that silver and gold has going for it, once you accept that you have to have TIME on your side, is that it will NEVER be worth $0.00. I've had stocks in a company that went under and the stock literally was worth $0.00. That can't happen to silver and gold.
Some of the NAY SAYERS will also tell you that your silver and gold doesn't make any interest, so it's a bad investment. Well let's be real. The BEST savings account I've been able to find, pays about 2%. And that's only up to a small amount of money. Just a marketing gimmic. Most banks pay around 0.01% or similar interest rates. So your CASH isn't making any real interest either. But unlike cash, silver and gold, if you take out the daily fluctuations with price, almost always keeps pace with the cost of living. I'm not talking about inflation, I'm talking about the cost of living. Basically, an ounce of silver or gold TODAY....... will buy you pretty much the same thing an ounce of silver or gold would buy you 100 years ago. You can't say that for paper fiat currency.
So don't let these 'Manipulators" or the "Ignorant" people around you, try and convince you that buying physical silver and gold is risky and not a good "Investment". Remember, most of us who are buying, aren't buying it as an investment. We're buying it as INSURANCE. To PRESERVE our wealth. To SUPPLEMENT our income in times of high inflation or during retirement. Or, as a source of our wealth during an economic Armageddon. For us, we have TIME on our side.
Also, remember. As I've said many times, you should not be liquidating your 401K and retirement plans to buy silver and gold. You shouldn't be taking all of your life savings and cash out of the banks and buying silver and gold. Whether you call it "Investing" or you think of it as your "Assets", the key is to be "DIVERSIFIED". Your assets includes your house, cars, furniture, clothes, jewelry, cash, silver, gold, guns, ammo, stereo, tv, etc. These are all your assets. You don't live in an apartment with just a mattress on the floor and a million dollars in the bank. That's not living. Well, the same goes with your wealth. Be diversified. Have your retirement accounts, your savings accounts, your pensions, social security, etc. but also have some silver and gold.
And for what it's worth, when I started RE-BUYING silver and gold again, it was after the peak of $49 an ounce silver and $1900+ gold. When it started coming down, I started buying when it was in the mid $30's. ($33-$37 an ounce silver). The key is...... I KEPT BUYING!!! Remember, dollar cost averaging. So, for me, I like it when the price is low. Over the last 3 years, my AVERAGE price for silver that I've bought, is at $21.00. Now, imagine if silver gets back to $50, $70, or $100 an ounce. (These numbers in my opinion are VERY CONSERVATIVE). I believe silver and gold will go up a lot more when it shifts. But I only need to get to $21 an ounce for silver to "BREAK EVEN". Even if I HAD to sell it all today, while it wouldn't be worth as much as I spent on it, the loss wouldn't be that bad. Probably close to what dollars would have been worth with 3 years of inflation. Now; if you're the person who bought 100 ounces of silver in 2012 at $37 an ounce, and you haven't bought any more since then, then yes, you'll have to wait until silver is above $37 to not take a loss. But if you have your silver for the reasons I mentioned earlier, then it doesn't matter. The silver will be there for you when you NEED IT, and it will be worth everything to you. It is your insurance.
So don't get discouraged when you read an article that says silver and gold are bad investments. You know why you are buying it. You're not the PAPER SILVER and GOLD ETF buyer who is buying and selling on a regular basis like a stock. You have PHYSICAL silver and gold, and it WILL NOT LET YOU DOWN. Take care.
CYA: SE:
Is buying silver and gold really a risky investment? OMG!!! (For my non-English followers using my built in translator, OMG means "Oh My God".) The reason I say that, is because of a number of articles I've read lately trying to discourage people from buying and investing in "Physical Silver and Gold". Basically, this is how these articles present their data.
"You believe that if you buy physical silver and gold, that your investment is "Risk Free"; but if you look at what happened in 2011-2012 when silver and gold reached their peak, then it turned down and it's at some dramatic lows. Those people LOST A LOT OF MONEY!!!!!"
Does this paragraph sound familiar? Have some people told you that type of logic when you told them that you buy physical silver and gold? We've all heard it. The truth is, these people are either idiots or the writers have an agenda designed to try and stop you from buying physical silver and gold. And that agenda is quite real. Governments and the big banks, don't want you to buy silver and gold. If you do, they don't have the ability to "Control You and your wealth". There was even an article I read today saying how the central banks believe it's so important that the world become a "Cashless Society", because they really WANT to help economies grow and make people prosper, but they can't because people AREN'T SPENDING MONEY like they use to. In a cashless society, they can FORCE you to spend. In a cashless society, they can impose NEGATIVE interest rates on your "bank accounts". If you're going to "Lose Money", you might as well spend it. Yes, this could spur an economy, but do we really want that kind of control over us?
Anyway, back on topic. Believing that buying silver and gold is risky investing is crazy? Why? Well, without going all the way back a number of years in my blog, remember, there are 4 reasons to buy silver and/or gold. 1) Investing; 2) Insurance "Preserve Wealth during economic inflation"; 3) To reduce debt "Sell for more than you bought it for and use that to reduce debt"; 4) Or to purchase an item at a discount. "Similar to 3) but you can buy an item like a car for much less than if you just saved currency. Many types of buyers fall into one, some, or all of these categories. It doesn't matter if you're prepping for economic Armageddon or simply wanting to prepare for retirement or a child's education. With the exception of the first category, the real Investor, the key is to have TIME ON YOUR SIDE. If you don't have time, to be able to buy and HOLD your silver and gold, you probably shouldn't have bought it in the first place.
Now, if you bought a house, whether you have a monthly mortgage payment or not, and the price of real estate dropped 50% and your $200,000 house is now WORTH $100,000..... did you REALLY LOSE $100,000??? No... NOT AT ALL. Not unless you were to sell the house. If you're buying and selling houses, and you MUST SELL, then you're more like a real estate investor. But if you're living in the house, and you're still making your monthly mortgage payment, then it doesn't matter what the price of your house does. Just like if it went up to $300,000 you didn't GAIN $100,000. Not unless you sell the house or refinance it or take out an equity loan. The same goes with silver and gold. It doesn't matter if the price goes to $100 an ounce for silver or $10 an ounce for silver. You haven't LOST or GAINED ANYTHING unless you're selling it. And again, this is where TIME comes into play. It all depends on WHAT the PURPOSE is that you bought the silver or gold. If you bought it and HAD to SELL it 6 months later because of something you scheduled, then yes, you could have lost. That's what investing is all about. But the one thing that silver and gold has going for it, once you accept that you have to have TIME on your side, is that it will NEVER be worth $0.00. I've had stocks in a company that went under and the stock literally was worth $0.00. That can't happen to silver and gold.
Some of the NAY SAYERS will also tell you that your silver and gold doesn't make any interest, so it's a bad investment. Well let's be real. The BEST savings account I've been able to find, pays about 2%. And that's only up to a small amount of money. Just a marketing gimmic. Most banks pay around 0.01% or similar interest rates. So your CASH isn't making any real interest either. But unlike cash, silver and gold, if you take out the daily fluctuations with price, almost always keeps pace with the cost of living. I'm not talking about inflation, I'm talking about the cost of living. Basically, an ounce of silver or gold TODAY....... will buy you pretty much the same thing an ounce of silver or gold would buy you 100 years ago. You can't say that for paper fiat currency.
So don't let these 'Manipulators" or the "Ignorant" people around you, try and convince you that buying physical silver and gold is risky and not a good "Investment". Remember, most of us who are buying, aren't buying it as an investment. We're buying it as INSURANCE. To PRESERVE our wealth. To SUPPLEMENT our income in times of high inflation or during retirement. Or, as a source of our wealth during an economic Armageddon. For us, we have TIME on our side.
Also, remember. As I've said many times, you should not be liquidating your 401K and retirement plans to buy silver and gold. You shouldn't be taking all of your life savings and cash out of the banks and buying silver and gold. Whether you call it "Investing" or you think of it as your "Assets", the key is to be "DIVERSIFIED". Your assets includes your house, cars, furniture, clothes, jewelry, cash, silver, gold, guns, ammo, stereo, tv, etc. These are all your assets. You don't live in an apartment with just a mattress on the floor and a million dollars in the bank. That's not living. Well, the same goes with your wealth. Be diversified. Have your retirement accounts, your savings accounts, your pensions, social security, etc. but also have some silver and gold.
And for what it's worth, when I started RE-BUYING silver and gold again, it was after the peak of $49 an ounce silver and $1900+ gold. When it started coming down, I started buying when it was in the mid $30's. ($33-$37 an ounce silver). The key is...... I KEPT BUYING!!! Remember, dollar cost averaging. So, for me, I like it when the price is low. Over the last 3 years, my AVERAGE price for silver that I've bought, is at $21.00. Now, imagine if silver gets back to $50, $70, or $100 an ounce. (These numbers in my opinion are VERY CONSERVATIVE). I believe silver and gold will go up a lot more when it shifts. But I only need to get to $21 an ounce for silver to "BREAK EVEN". Even if I HAD to sell it all today, while it wouldn't be worth as much as I spent on it, the loss wouldn't be that bad. Probably close to what dollars would have been worth with 3 years of inflation. Now; if you're the person who bought 100 ounces of silver in 2012 at $37 an ounce, and you haven't bought any more since then, then yes, you'll have to wait until silver is above $37 to not take a loss. But if you have your silver for the reasons I mentioned earlier, then it doesn't matter. The silver will be there for you when you NEED IT, and it will be worth everything to you. It is your insurance.
So don't get discouraged when you read an article that says silver and gold are bad investments. You know why you are buying it. You're not the PAPER SILVER and GOLD ETF buyer who is buying and selling on a regular basis like a stock. You have PHYSICAL silver and gold, and it WILL NOT LET YOU DOWN. Take care.
CYA: SE:
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