2/20/2023 0 Comments Basic limbo rulesThey may be deploying bait-and-switch tactics or even running their business as a Ponzi scheme. If the price is heavily discounted or hard to find elsewhere, it could be because the item is illiquid or not to be trusted.īeware of dealers claiming to be selling precious metals below spot prices or otherwise pitching offers that sound too good to be true. Beginners can get a good idea as to whether an item is questionable based on price and availability. Investors would be prudent to avoid unusual and illiquid items, of course. The last rule is to focus on keeping premiums low, even when you’re already sticking with bullion. Shame on these “rare coin” shysters who are a blight on our industry. Now they can’t so much as break even until gold prices double or triple. What they got, unfortunately, was a fanciful story about some “rare” and desirable coin. For a novice, it’s easy to believe coins that are 100 years old, for example, are inherently collectible - or that some “modern rarity” or limited-release coin is worth way more than the metal it contains. What they don’t mention is that their business model is to deploy high-pressure, high-commission salespeople looking to cash in on peoples’ wise instincts to protect themselves.Īnyone calling one of these dealers will get pitched, and pitched hard, on “rare” coins priced far above their actual value.Ĭlients who find Money Metals later frequently report paying 2-3 times what a coin is worth. Ads offer "free investor kits" and talk about gold and silver for defense against rising inflation and uncertainty. They are cashing in on the rush to precious metals, and they know the right buttons to push. These shysters tend to be prominent advertisers on TV and radio. Money Metals has covered this topic extensively over the years, but the problem of unethical rare-coin dealers remains one of the biggest threats for beginners. The next rule for successful bullion investing is to stay as far away as possible from collectible, or numismatic, coin dealers. Given the urgency to prepare, and knowing market timing is counter-productive, the second-best time to buy metal may be now. People decide to buy bullion because they want a hedge against a number of calamities that could happen suddenly and by surprise. A few investors had the courage to move fast and grab metal before prices and premiums rose significantly. Panic-driven selling in the futures market drove metals to extreme lows. With the benefit of hindsight, the best time to buy bullion was in March 2020. They do better when emotions are factored out. Most people are instinctively bad at market timing - they get greedy when they should be fearful… and they are fearful when they should be greedy. It’s a fact that has been studied extensively. There are expert traders who spend huge amounts of time studying charts and signals. Once you decide you need to own it, don’t fool around trying to time the market. The first rule is applicable to any investment. Investors can do just fine by following three simple rules. Luckily, physical metal is about as straightforward as it gets. It is always a good idea to learn something about an asset before making the investment leap. Those weighing whether to buy physical gold and silver as a hedge against all of this have some of the same basic questions. The bubbles in stocks, bonds, and real estate may finally be popping - perhaps all at once. Now we can add unprecedented political and economic uncertainty. People have been flooding into the physical bullion markets ever since the onset of COVID and the tyrannical government response more than two years ago.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |