By: John Fisher
Why did you buy metals in the first place?
Think back to when you first bought metals. Why did you do it? Most of my clients would respond with something like, “the national debt”, budget deficit, monetary expansion (QE 1, 2, 3, or the next new name), US Dollar reserve status, privacy, a hedge, personal financial insurance, or other similar reasons.
Almost to a person they would say, “I am not concerned if the price goes down – that’s not the reason I am buying them. I want the insurance and I am holding for the long term.”
However, now the prices have retreated, and many of our clients feel as if they have suffered a “loss”. It was great when the prices were going up. But now – many feel it wasn’t such a good investment after all…..
Was it an investment in the first place – or was it bought for those factors cited in the first paragraph?
All Things Considered – John’s Commentary:
Sure, we all like assets to appreciate and lament their decline. But remember, what you really bought in the first place was ‘insurance’, and unlike other forms of insurance you have to buy (home, auto, liability, disability, etc.), with gold and silver you only buy it once and are guaranteed a return of some, all or more than the premium you paid.
And more importantly, insurance is on sale right now at a significant discount.
Quote of the day: “If you don’t trust gold, do you trust the logic of taking a beautiful pine tree, worth about $4,000 – $5,000, cutting it up, turning it into pulp and then paper, putting some ink on it and then calling it one billion dollars?” – Kenneth J. Gerbino
What to Buy: 100 oz. silver bars at $0.99 over spot, free shipping on 5 or more.
