The majority of people are just becoming aware of liquid tangible assets. They are barraged by financial system tremors and a paper trainload of propaganda. Investment banks that sell to retail customers do not feature tangible assets; when pressed by their clients they might recommend a paper form of ownership of commodities or precious metals.
Awareness of owning gold and silver drips into our intellect by way of the media and paid advertising, delivering three primary messages. Message one with the majority of household imprints is to buy gold and silver now. It is eloquently spoken by a TV or radio commentator or any number of semi-famous actors. Uncommon sense dictates to always look at what’s missing. Why is it delivered only by male spokesmen?
The second precious metals megaphone message encourages a person to melt and sell excess gold jewelry. This advertising message is pasted on billboards at pawnshops and targeted to one audience… women. It confuses the consumer because the sub-theme played for the potential customer’s subconscious is to sell now because gold is at the highest price in history.
Number three, and easily the most subliminal message, spews from financial community advertising. Their worldview is in a bubble state; liquidate before it is too late. Uncommon sense used to analyze this message would lead us to review these bubble experts’ track records of identifying such items before bursting. In 2000 did they encourage their readers and viewers to sell their stocks? What guidance was given to protect from a real estate collapse? In 2007 and 2008 was advice given to find protection from the derivatives storm? If their call was correct in only one of the three questions, your family should follow their advice on dealing with precious metal investments.
This writer is not a bubble expert! But I do have friends who signaled the coming explosions in each incident. They are now predicting more bubble termination events in the next two to five years. The last bubble, loaded with a gas so poisonous that American society would be destroyed, is beginning to leak into more and more minds.
Ownership of precious metals and collectibles is insurance to protect you and your family from the ultimate bubble. 10% should be the minimum percentage of your assets held as a currency collapse item. This amount should be placed there yesterday… and supplemented monthly. Pay your taxes; pay your church tithe; then purchase gold and silver bars, coins or collectible coins with a minimum of 10% of what is left. The time to sell this portfolio is never. Do you sell or drop any insurance policy before the wreck you didn’t see coming?
Other funds set aside for future needs such as retirement, your kid’s education, or for living your vision of the American dream, may also have items from the precious metals basket. There is a high probability they will be paper assets because liquidity is more efficient using paper assets. To answer when to buy or sell is a non-exact art. The most expensive answer generally comes from someone who will receive a commission from your action. The federal government loves to see any kind of buying or selling. If the asset has no action they receive no tax. The best advice in my opinion is to accumulate any type of savings over a period of time, as in monthly. Unless your primary business is an investment area the odds of buying at the low and selling at the items price apex are very high. The real secret of true wealth accumulation is in the buying, not in the selling.
Collectible gold and silver coins represent $100 billion in sales annually. As the masses rediscover the real value of precious metals collectible coins should move up to more of a premium. This is because there is a limited supply, just as with gold and silver bars. A printing press and ink only produce fool’s gold.
Concentrate your intellect on saving and buying in the tangible metals market. Hopefully you and your family are never called on to collect on your asset insurance.
Plan for the worst – pray for better!