Buying Strategies

Pinkie B
By Pinkie B on Fri, Dec 19, 2014 - 8:31pm

So, I'm almost ready on a psychological level to start owning precious metals. I have some questions still lingering, though, and I was hoping for opinions.

I talked to my accountant as well as my colleague (macro-economist with background in finance) and a somewhat crazy business owner who believes in 100%+ sustainability, but also used to work for Unilever. All of them suggest to stay in the stock market, specifically to buy electronic versions of assets instead of physical ones. So I'm wondering, other than the possibility that the gold-debt will not be honored, why are people here so committed to the superiority of physical gold/silver possession?

A second concern. For someone who is just starting out, does it make sense to try and time my purchases with the currency fluctuations? I have dollar and yen savings, but active investment that includes reading news about the latest government fiascos etc just stresses me out. One of my goals in buying gold is to feel more secure and less stressed. Is there a way I can do this without feeling overwhelmed?

Thanks all!

Happy Hoarding!


Jbarney's picture
Status: Silver Member (Offline)
Joined: Nov 25 2010
Posts: 233
Just Buy

Not sure how long you have been on PP, but various people have different priorities or abilities to purchase PMs.  Some of us do what we can, others are "all in" and are very willing to discuss the influences on the markets, possible manipulation, etc.  What it comes down to is your own world view and what you believe might happen.  Even if there never is a SHTF scenario, gold and silver are likely to recover a lot from the beating they have taken over the last several years.  Many speculate a return to the bull market in PMS soon, as the current price action makes little sense.  Really it depends on your world view and money situation.  IF you are seeking more information, I highly recommend some of the podcasts Chris has done with David Morgan, Mike Maloney, Eric Sprott, and Ted Butler.

As for purchasing....just getting some physical metal is a huge decision to anyone who may be new to the mindset, but I would HIGHLY urge you to do so.  At the very least it is physical.  It exists.  It is not paper.  It is not an agreement between you and another party.  It is not based on faith.  After you purchase, it is yours, and it won't be taken away by some HFT or other market event.  I remember the first silver purchase I made.  It was just a silver dime, and I was nervous about it.  Don't have as much as I would like, but lets just say that silver dime is at the bottom of the pile now.

As for purchasing PMs there are a couple of other considerations.  Get out of debt.  I'm very close to that magical situation myself, and feel energized just thinking about it. 

Finally, I would dollar cost average, although the likely action in metals in the future is to be up, not down.  They are considerably lower than they were just a couple of years after the 2008 crisis, and even though they may continue to dip, right now seems like a very solid buying opportunity.

I am not a financial advisor so don't sue me if I am wrong.



budwood's picture
Status: Member (Offline)
Joined: Dec 22 2011
Posts: 13
Sounder than a dollar

Yes, I too urge a person to buy precious metals. Also, there can be a good mix of investing in both precious metals and in equities.  I have investments in both.  I favor physical precious metals because they represent values which are historically sound.  I also favor equities because the USA equity markets are perceived by overseas people as representing a strong economy and hence attract overseas money.  Thus, my opinion is that investments made in either venue will be profitable.

It appears that the US$ is being diluted by more and more US$s being printed.  It makes sense for the USA government to print dollars because as the reserve currency, dollars have a perceived value.  Of course, by printing more dollars, its value is decreased markedly.  But why not?  If I owed nineteen trillion dollars, I'd want to pay off that debt by printing paper.  But my concept of what that amount actually is falters, as it does for anyone.

The bottom line is that dollars are on a path to being worthless.  PMs and equities have valuations which will outlast paper dollars.  Always have; always will.

budwood's picture
Status: Member (Offline)
Joined: Dec 22 2011
Posts: 13
Sounder than a dollar


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