Don’t Follow The Herd When Buying Gold Or Silver

We receive a lot of questions about whether it is too late to start buying gold. We also field many inquiries as to whether it is time to sell yet.

Here is a typical question:

The price of gold is hovering around $_____. Is that a good price? Should I buy now, or is it too late? – Jim G.

First of all, no one can tell you what a “good” price is, because that depends upon your own unique situation and investment goals.

What we teach a philosophy that looks beyond the current spot price of gold and the short-term volatility on the price of gold.

We look at the bigger picture of things to see where buying gold fits into the context of the current economic wealth cycle.

If you don’t view gold this way, you’ll get caught up in the “Herd Mentality.”

 

It’s not your fault, either. It’s the way we all are hard-wired.

What is Herd Mentality?

When an animal sees the herd start moving, a chemical reaction takes place in its brain, sending an impulse to join the crowd.

 

This “safety in numbers” instinct to stick with the herd could save his life. It is an extremely powerful, albeit primitive response.

You and I still get that chemical response, and it’s why we have the impulse to join the crowd with every big move up or down in the price of gold.

The trouble is, the anxiety and fear of being left behind is almost always devastating to your bottom line as an investor.

 

The herd mentality causes people to foolishly buy at the top and sell at the bottom – exactly the opposite of what great investors do.

It’s especially painful when you make a significant purchase of gold and then watch the price drop another 10% in a few days.

At those times you need to remember the big picture. The only good reason to be in gold is for the long haul.

But many new gold investors haven’t yet figured out how to be comfortable with the long view of gold in mind.

Here’s an e-mail we received from a subscriber who is clearly feeling the fear…

I have invested in gold. I bought it last September at its highest point, $1,790. I plan to remove it as soon as it reaches this point again. Is it wise to wait until then?– M. (name withheld to protect identity)

First of all, we’re not sure why “M” bought gold in the first place. Most likely he/she got caught up in the herd mentality during the late summer months when the price of gold was rocketing up.

The ONLY reason “M” should have bought gold was with a long-term plan in place and only with money he/she didn’t need right away.

Instead, it sounds like “M” bought with the herd as prices went up, and is now tempted to sell with the herd while prices are low.

That’s a recipe for financial disaster.

Once you understand the “big picture” of buying and selling gold or other precious metals, you can ignore all the noise coming from the herd.

You must realize three things to be successful when buying gold:

1. The price of gold will be extremely volatile for years to come.
2. No one really knows how to time the ups and downs with precision.
3. There will be a time in the future when you need to get out of gold, but those indicators are not here yet. Not even close. So any gold you buy at ANY price up to that point is a “good deal.”

Once you understand and agree with the fundamental reasons for buying gold in the first place, then you have to set up a “big picture” game plan and stick with it.

“Everything You Need to Know
About Buying and Selling Gold and Silver”

In that lesson, you will learn:

  • The reasons WHY buying gold makes sense in this economy
  • How much of your portfolio to invest in gold
  • 3 critical indicators that will signal exactly when to start selling your gold
  • How to buy gold so that you never have “buyer’s regret”

Those who read the book and follow the lesson plan don’t worry about the natural volatility metal prices go through.

In fact, they sleep well at night, knowing their long-term financial security is on safe and solid ground.

If you would like the same peace of mind…

Read the book

Doing so will equip you to ignore the panic when gold prices fall and to resist the urge to jump all-in when prices are topping out.

Read this book. It will help you with your gold and silver buying and selling.

Your Partner in Prosperity,