As I mentioned in a prior email, the short term trend for gold and silver is not rosy. In fact, we might see further price declines in the near future.
What is the good news? The key reasons and motivations for owning physical gold and silver have NOT changed. I have been buying and selling for twenty years now and have withstood 50%+ price declines. In the end, I am still up on my overall metals portfolio, and significantly so.
Why are we up? Because during these, what seem to be drastic price dips, I buy. And I buy consistently. There are days where I want to puke before I buy, but I know that these sometimes harrowing dips are what provide great long term opportunity.
A quick example, the 2008 real estate crash. My wife and I still kick ourselves for not having bought up a bunch of $20-30,000 condos here in Fort Lauderdale. We would be laughing right now with tripled home valuations and a great rental “annuity” income stream.
We haven’t made the same mistake with metals. Buying what is out of favor is always tough, but it pays off in the long run.
https://www.youtube.com/watch?v=yl5BueTXzck
All Things Considered – John’s Commentary:
“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.” – Warren Buffett
Gold and silver have fallen out of favor as a result of fearful reactions to price declines, and excitement over alternative investment vehicles. In a word, “opportunity” is present.
It never fails, in the future when the gold and silver prices trend back upward I will sell to many who will have wished they bought now. Stand strong and take a position, then put it away and don’t think about it.
