Don’t Sell, Don’t Trade!

I was going to write about something else, but this is too important to ignore.  We get calls all the time to sell and take a profit, or sell gold to buy silver, or even the reverse.  Don’t do it.

Do not speculate with physical gold and silver, hoping they will correct, buying it back at a lower price.  You want to gamble?  You think it will correct?  Then do it with futures contracts, not physical!  Why?  Because you will sell physical at the ’bid’ price, and pay to ship it.  When you buy back, you will by it at the ’ask’ price, and pay a commission.  We get small corrections all the time, and they simply do not last, nor are they great enough to make a profit if you had sold.  A $40 gold correction, would not show a profit.  Take a Gold Eagle as an example.  Click on “selling?” at the top of the web site, and as as I write this, there is a $19.90 ’spread’ on Gold Eagles.  If you had bought them from us, we charge no selling commission, but you have to ship them by registered, insured, mail, and that will run additional costs per coin you will receive.  When you buy them back, you will probably have to pay a 1.5% commission, which includes shipping.  You will pay over $40 more, per Gold Eagle, than you sold them for, to buy them back.  It simply does NOT work!

Keep your gold and silver, and be glad you have them.  Go to Las Vegas and play the slot machines, or buy futures contracts if you want to gamble and bet on a correction, but keep your metals close by you, and do not gamble with them!!  Sell gold and buy silver, because silver is a better buy?  NO!  Why?  Because you will be selling the gold at the ’bid’ price, and paying to ship it.  You will buy the silver at the ’ask’ price, and pay a commission to get it to you.  The difference may be so many dollars difference per ounce, that it may take a long time to make it up…maybe years, because both are going up, not just silver.

You want silver because it is a better buy, and over the years it will outperform gold?  Great, and I won’t disagree, but both are precious metals, and both will go up together.  Silver will go up a bit faster maybe, but not enough faster to make it worth your while to switch.  Many so called ’experts,’ are saying that silver isn’t even a good buy now, but of course we both disagree with that one.  Stock brokers love to ’churn’ their customers, by telling them to sell one stock and buy another, which gives them commissions both ways, and to hell with the customer.  We don’t like to ’churn’ you, and will argue vehemently against selling, if you don’t need the money.  Want silver?  Great!  They use it as a buying guide.  Buy silver rather than gold, but don’t switch them, as it is far too expensive.

Need a few bucks?  Need a lot of dollars?  Fine, and that’s why you bought the gold and silver in the first place.  If you need dollars, by all means sell, and take your profits, but ONLY if you need the dollars.  Why convert real money into paper scrip, which is backed by nothing, and which are flooding the earth, making them continually lose value? There’s an old country song which says something to the effect of,  ’Don’t make love to gingham, when you’ve got silk at home,’ or something like that.  That song is so old that even I remember it, but the truism is there.  ’Don’t sell your gold for paper scrip.’  Another old as the hills saying is, “Don’t get ants in your pants,”  which can be translated into, ’just because you have gold and silver, leave it there, and don’t mess with it!’  Let it sit there in all its beauty and majesty, and DO NOT GAMBLE WITH IT!