Alexander Trigaux, Editor, GoldSilver
MAR 4, 2019
One of the great frustrations of covering the precious metals markets day in, day out, for weeks and months and years at a time, is figuring out when to highlight short-term price movements in gold and silver.
Short-term, sharp drops in price are easy. They’re the one-foot putt, the empty-net goal, the gift-wrapped-on-a-silver-platter handout gift from the market to any investor who is unemotional and forward-thinking enough in his buys to take advantage of them.
In fact, my favorite market day of the past year was August 15, 2018 when silver fell over 4% in a day. In the span of several hours, it went from over $15/oz. to $14.39/oz. An investor who managed to dollar-cost average $300 a month into a growing silver position suddenly found themselves able to buy nearly an entire extra ounce than they could the previous day.
We sent out an alert that day to make sure all of our newsletter subscribers knew about his opportunity. Many of you capitalized on it, and silver recently rallied over $16/oz.
Which brings me to my next point: Discussing short-term price rises is much trickier. We recently sent out another alert as silver was hitting multi-month highs and gold was as well, breaking above $1,340/oz.
We feel it’s our duty to keep you apprised of newsworthy price movements in gold and silver, but it is much more difficult to get genuinely excited about buying at near-term price highs than it is at multi-month lows.
Still, the savvy investor doesn’t stop buying when prices rise. The patient, shrewd, dollar-cost-averager now finds that his $300 buys two full fewer ounces than during the August 2018 sell-off. By purchasing the same dollar amount each month, he automatically buys more when prices are low, and automatically buys less when prices are higher, systematically and automatically lowering his average cost over time.
Dollar-cost averaging, buying the same dollar-amount of metals every month, means automatically buying more when prices are low, and less when they are high.
Since we sent our most recent alert on February 20, gold and silver have done little but fall. Gold is back down to $1,288/oz. and silver has fallen to $15.13/oz. Which, you guessed it, we’re pretty darned happy about.
The sharp investor never stops buying. Because he understands that while getting the cheapest price per ounce is great, it is vastly less important than accumulating as many ounces as he can before the coming Great Gold and Silver Rush of the 21st Century.
At GoldSilver, we are focused on the long term. We believe an era-defining, multi-generational paradigm shift in the way the world views and values real money (gold and silver) over ultimately worthless, empty, ink-on-paper lies masquerading as promises (fiat currency, including the USD) is coming.
Which is to say that yes, we believe the price of gold and silver will be exponentially higher in the future. For example, we foresee a day when silver sets a new all-time high. From here, that’s over 3x silver’s current price.
Given this belief, the most important factor, by far, in our investment strategy is gaining the maximum exposure we can to gold and silver while their prices are still very low. Very simply, converting as much fiat currency as we can into physical gold and silver, stored safely outside of the US banking system, as efficiently and quickly as we can.
Buying when prices are at short-term lows is great, but the name of the game is steady accumulation over time, regardless of market volatility.
To this end, a short-term 4% price spike is a mild annoyance. We want the lowest prices we can get for as long as we can get them. A 4% price drop in a day is cause for celebration, nothing less than an intraday clearance sale on something we’re going to buy every single month regardless of price movement anyway.
Successfully maximizing your gains, getting the most of this one-in-a-millennia trade, requires almost superhuman levels of patience and perspective, the ability to not act on the (largely unavoidable, totally understandable) fits of anger, unhappiness, and bitterness (as you watch the Everything Bubble stock market rush mindlessly higher once again, despite all-time high overvaluations).
Make no mistake. You will feel the agitation, the angst, the wall-climbing, gear-grinding frustration. We all do. We’re human.
Because if you believe like we believe, the life-changing investment of many lifetimes is hiding in plain sight, and it’s as obvious as can be. We’re not afraid to think independently, to be contrarian. What we are afraid of? The one question we couldn’t bear to ask ourselves after the fact?
Why didn’t I buy more when it was all so painfully clear and prices were so low?
It is said that hindsight is 20/20. We believe our foresight, unshakably fixed on the far horizon, is equally sharp. Prices up, prices down, prices stagnant: Today is a great day to buy gold and silver.