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The most basic principle in investing is to buy low, sell high. Akin to this notion is the philosophy of “buying the dip” in which a downturn in an asset’s prices warrants immediate purchase, especially when it’s expected to rise again very soon. But short term investment practices don’t always apply to precious metals, in which the general idea is to “buy gold and hold.”
So, which is it?
Why not both?
“Precious metals are hovering at their lowest prices since March, so we’re seeing a lot of people buying already this week,” said Ira Bershatsky, managing member at Advisor Metals. “I had a customer who had gold and silver shipped to their home while also doing a retirement account rollover.”
Even as most economists turn more bullish on physical gold and silver, it’s important to understand the purpose of adding precious metals to a portfolio. They should not be considered investments even though chances of appreciation are strong. Physical precious metals are a hedge against economic turbulence. With the U.S. Dollar at risk, markets fluctuating erratically, Central Bank Digital Currencies coming, and inflation remaining high, many Americans are protecting their life’s savings with gold and silver.
“We tell our customers they shouldn’t play the price guessing game with gold and silver,” said Jonathan Rose, co-founder of Genesis Gold Group. “I know that goes against the industry norms in which salespeople at ‘Big Gold’ companies say prices are going to skyrocket any day now, but Genesis doesn’t believe in scare tactics. I always say you don’t wait to buy gold, you buy gold and wait.”
One of the biggest challenges Americans have with timing on investments is seeing through the official narratives coming out of Washington DC. It behooves any administration to promote rosy numbers, but the real numbers often paint a different picture.
Inflation is the big one as it pertains to precious metals prices. If it continues to be an issue, then rates will be raised again. That will almost certainly affect the value of precious metals.
“Inflation is taking too long to get back to target,” IMF’s deputy managing director Gita Gopinath said at an ECB event Monday. “While headline inflation has eased significantly, inflation in services has stayed high, and the date by when it is expected to return to target could slip further.”
In other words, we’re in the middle of the dip. Could prices go down even further? Yes. But as both Rose and Bershatsky have noted, it behooves Americans to see precious metals in the long term. Protecting one’s life’s savings for years or even decades is where precious metals have their greatest strength.
So, should Americans “buy the dip” or “buy gold and hold”? Yes.
Contact family-owned Advisor Metals today to get started on retirement account rollovers, transfers, or cash purchases, or contact faith-driven Genesis Gold Group to learn about their self-directed IRAs backed by physical precious metals.
(Note: The information provided by The Liberty Daily or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.)