Quit trying to Time Your Precious Metals Purchases

October 5, 2007 by david.pennington.

by: Mike Pennington

I talk to many people reluctant to buy right now because they believe the price of gold and silver will decline in the future. I always ask them, “How much do you think it will  decline?” They always answer the same, “I’m not sure”. How could they be? No one can predict the future. Why try to guess on any given day what the volatile gold and silver prices will do. The intelligent investor looks at the long term trend and knows that gold and silver will continue to rise in the future. The important thing is to establish a plan and then work your plan. In 1996 I wanted to buy some 8000 silver eagles. The only dealer that had that volume charged me an extra $.25 per coin. Instead of paying $4.10 per coin, I had to pay $4.35 per coin. I’m sure he laughed at me at the time. But earlier this year I sold some of those coins for more than $72 per coin. The extra amount I paid seemed small then. The point is everyone should own some precious metals to protect their family’s assets. Don’t shop around for a year looking for the best deal. Find a dealer you can trust, who gives you good advice and stick to your plan. DO NOT TRY TO TIME YOUR PURCHASES OR SALES.

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