3 Questions you should always ask before investing!

Every investor is unique. The circumstances he/she faces at this stage in life, the mentality that he/she carries as well as his/her personal expectations. All these are different!

 

Hence, at GoldSilver Central, we firmly believe that no one product suits everyone’s needs. It is impossible. Chances are, customers end up investing in precious metals solutions that neither suit their needs and objectives and customers end up disappointed.

 

Here, we always ask any serious precious metals investor these 3 questions.

 

1. What is the purpose of this investment?

Are you looking to earn a quick profit? Did a “trusted friend” tell you that Gold prices are on the rise and you need to buy into Gold before its too late? If so, we suggest you take a pause and consider this question first before putting your money down.

 

It is important, because if you were to buy on someone’s advice, who would you listen to then if things do not go the way you expect it to? (take note there is no market that only trends upwards and never suffers pullbacks.) In those situations, would you try to “wait it out”, believing that prices would once again rise up and your investment would be vindicated? For those of us unfamiliar with Gold’s history, prices peaked in 2012 and remained low for the next eight years before reaching a new high in 2020. That is 8 long years to “hold on dear life”, much too long for a “trusted friend’s advice” in my humble opinion.

 

We would humbly suggest for you to consider instead, are you putting your money down with an eye for short term profits or long term asset allocation? If it is the former, what would your exit strategy then be? Are you looking to exit once the prices reach a certain level? If it is the latter, how much volatility are you prepared to take on in your portfolio?

 

These are areas which GoldSilver Central’s staff can discuss more and plan it out properly with you.

 

2. What is your timeframe?

Are you looking for a 1 week trade? Or a 5 year investment? If it is a shorter timeframe, you have to pay very close attention to details such as buy-sell spreads, premium costs, buyback discounts, etc. You have to know that paying a 20% premium for a silver bar, in the hopes that Silver prices rise by more than 20% (only for you to break-even) in a week would have a fairly low percentage chance of occurring. Not impossible, but improbable. If it is a longer timeframe, you then have more leeway to work with. You could employ strategies such as dollar cost averaging, wait for physical premiums to go lower, so on and so forth. That is why long term investors usually fare better than short term traders (and face lesser stress too).

 

 

3. What is your budget?

Do not misunderstand us when we put this question out there. Every investment sum is definitely a step in the right direction. What we mean by this question is this, if you are putting 10% of your portfolio into precious metals then yes, a proper thought process should be worked out. However, if you are looking to put in only 1% of your portfolio into precious metals, then is it really worth spending so much time and effort? Is it really worth spending hours negotiating numerous websites trying to save a few dollars of extra premiums? I would personally spend that few dollars and try to secure a dealer who is able to add value and think along the same lines of investments as me.

 

Of course, if you have a small monthly budget sum, that does not mean you cannot or should not plan properly. With tools such as GSC Live! and Goldblocx, you can buy Gold automatically daily for as low as $0.01! That definitely helps us in achieving our needs and objectives!

 

So that’s it. 3 simple and yet prudent questions which we feel should be asked before entering any investments. If you wish to discuss more, feel free to reach out to us via our GSC:Anywhere platform or just drop us a call!

 

Jason