Buying gold as we are approaching the mania stage in this gold investing cycle is pretty exciting. Are you positioned to profit from this bull market or will you miss out on the opportunity of a lifetime?
While some call investing in gold a bubble that can hardly be the case right now. Very few large fund managers have much exposure to the yellow metal and the average person on the street does not even recognize a gold coin when someone on the street shows them one.
(There was a viral video demonstrating this not that long ago!)
You local broker is not going to advise you to buy gold for your investment portfolio, the best he will do is offer an ETF for paper gold – which is not the same thing – so that he can make a commission.
If you have stayed away from buying precious metals as an investment because you know little about them then that is understandable. That is one reason we take the time to write articles like this so the people can become informed.
Investing in gold can be the best way to protect your wealth, whether you have large investment holdings or small, in these financially perilous times.
Let me give you 6 resolutions for buying gold in 2011:
Resolution #1: I will buy gold until it doesn’t matter how much money Ben Bernanke prints.
This suggestion stems from a financial truth that not everyone fully understands directly. While everyone knows that one dollar does not buy as much as it used to, they seem to forget that when watching their brokerage statement increase.
You see, if your statement goes up by four percent in a years time, but the goods you buy go up by five percent, you have lost purchasing power of money even though you have more money.
And when it comes to reporting inflation, the governments numbers are irrelevant. The grocery store does not use the governments numbers when they mark up prices.
Resolution #2: I will purchase gold coins for personal storage.
You should always make sure that a portion of precious metals you buy are in your direct control.
Having something in case of emergency but not being able to get at it defeats the purpose. That is just one of the problems with ‘paper gold’ that is mentioned above.
Resolution #3: I will not get emotional about gold’s volatility.
Whether or not you agree that the price of gold is artificially manipulated by higher powers than you, you have to accept that for a variety of reasons there will be lots of fluctuations in the price of gold coins.
Having some guidance by a professional can help you set parameters in your precious metals investing that can help you sleep more soundly at night when things like that happen.
Resolution #4: I will learn to buy on the dips and average down.
The people who make the most amount of money in a bull market are those who are not shaken when the price of an investment drops, but instead take advantage of the ability to buy an asset they want at a lower price.
This takes some knowledge and a bit of discipline so that you have confidence you are buying the right investment at the right time and right price.
Resolution #5: I will not continually buy and sell, or try to time the market.
Market timing is for professionals who have immediate access to markets and information, and even then many lose money trading the gyrations of the daily prices.
Resolution #6: I will save every month.
If there is anything this current financial crisis has told us is two things. First, saving is critical to your future. Second, governments will do anything to save themselves even if it means destroying your savings.
A monthly savings plan where you convert your savings into a store of value, like gold coins, done on a consistent basis can be the difference between retiring someday in comfort versus working yourself to the bone for the rest of your life.
Get answers to your questions about buying gold and investing in precious metals at our website.
We can connect you with proven professional advice that allows you to cash in on one of the biggest bull markets of your lifetime. The address is http://InvestLetters.com.
