That’s a good question, but let me answer with another question: “Why would you buy gold (or silver) when the price is going up?”
Let’s think of it this way. Suppose you were building a new home and each week you went to the hardware store to buy more bricks; and every week the price is going down. Would it be a wise decision to just stop building and see how far the price will fall? No, of course not. You are building a home and delaying that process could become very costly as other commodities could be increasing in price.
Ten years ago gold was trading at just under $500; five years ago it was trading at values similar to today. Three years ago gold was trading at its highest levels in history (over $1,900.) The question is: Were you buying gold three years ago at its highest level but now you are uncertain about what to do next?
Think about completing your financial house with the best priced bricks. Make your position sure by buying when the price is right and don’t follow the crowd and buy when the sellers say to buy.
All Things Considered – John’s Commentary:
You can’t pick a bottom, I can’t pick a bottom. No one can pick a bottom. Watching the price and waiting will leave you frozen and you will do nothing.
The VERY BEST strategy is to buy in regular, modest amounts. That is exactly what my wisest clients do.
Quote of the Day:
“Be fearful when others are greedy. Be greedy when others are fearful.” – Warren Buffett
