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When will you buy Gold, at $250, $500, $1000, $2000, $5000+ per Ounce?

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Buy GoldIf you think you will never buy gold & silver, well think again, because I am willing to bet you will. The question is not will/should you buy gold & silver, but WHEN will you buy gold & silver? How can I be so sure you will buy gold & silver…it is all very simple. You will not have any other choice.  I was a spectator when gold was at $250/0z and did not buy it. I came to my senses when it was over $700/oz and started buying. The Gold vs Dollar chart makes it pretty obvious why. If this does not make any sense or you just don’t understand what’s going on, then you really need to read this book, read it fast, and get your a$$ in gear ASAP if you care about yourself, loved ones, and your money. Below is a true story that happened to me the other day while trying to recommend gold to a friend that almost made me lose my cool… just unbelievable.

I recently had a conversation with a sort of arrogant person the other day on the merits of buying gold…notice I said buying gold instead of investing in gold.  It seems that the word investing may bring confusion to those who don’t understand the gold market.  I really prefer silver, but that is another article…

This person, let’s make up a name for him… oh I don’t know… let’s just call him Mike or whatever name you want to call him. Mike claimed to know all about the gold market but as the conversation went on it was starting to become very obvious that he knew very little about the Gold & Silver market, their fundamentals, or even how to value them. However, that did not stop Mike from trying to make a case for how poor of an investment gold is. I listened patiently while Mike continued to talk with an astounding level of ignorance.

Mike acted as if he was some big time billionaire investor that knows how to evaluate just about any investment class, including gold.  He tried to apply his “value analysis” techniques that he uses for stocks on gold.  First novice mistake…you CAN NOT value gold like a stock, so don’t do that. He next goes on to belittle the market and those investing in it. He then makes a claim that gold is a bubble because he heard another big name investor recently call gold the “Ultimate bubble”.  That was mistake number two!  You don’t reach a bubble in a market until it pretty much peaks out.  No one can predict the exact top of any market, but there are signs to look for that typically play out. Mike thinks gold is in a bubble because the speculators are starting to enter the gold market.

This is a simple yet effective way to tell if a market is in a bubble. Phase 1 is the accumulation.  This is when the smart money is entering the market, which is typically very early, the prices are low, and no one is really talking about it especially the public. Phase 2 begins when the speculators start entering the market thus pushing the price up a bit from the accumulation phase or base. At this point, positives and negatives are starting to be discussed but the public is not buying yet. Phase 3 is where it gets real interesting and the price rises dramatically. This is when you can’t turn around without someone saying something about that particular market. You start seeing infomercials to buy in, lots of people you know are doing it and telling you to get in too.  When it gets to this point, you waited too late.  Have we reached phase 3 yet? Well, how many relatives, friends, or people in your neighborhood own gold?  Probably none to not many! Until they do, don’t be concerned about a gold bubble. We are currently entering phase 2, so don’t sweat it.

Next, Mike wanted me to prove to him why gold is such a great investment if it does not pay dividends, interest, or give you a better return than carefully picked stocks (not gold or silver stocks)?  He also said , what good is gold if you can’t earn money on it?  Yet again, Mike proves that he does not know what the @$%k he is talking about!  Anyone still asking basic questions like this definitely proves that they don’t understand the gold & silver market.If you want to capitalize on the rising gold and silver prices, then you need to be also investing in gold & silver related penny mining stocks as they have the most to gain from higher gold prices. Check our  Gold & Silver Junior Mining Trading Cards for some of my hot penny stock picks which included detailed analysis on junior mining stocks. Or do a search on the web for junior mining stock analysis sites.

I was asking these questions about 8-9 years ago when gold was way less than $1100.00 dollars per ounce.  So I can definitely understand where Mike is coming from, I have been there too. However, I also understand that this is not something you pick up overnight. There is much to consider and learn. No one is going to give you a one minute elevator pitch on why you should buy gold and make you believe it. They should not have too.

Seeing that Mike, regardless of what he claimed to know, did NOT understand the gold market and that he is very late in the game, I recommended my favorite book on the subject that that got me going ASAP, called Guide to Investing in Gold and Silver.  Now comes the part where Mike really takes me by surprise and makes mistake number 3! He tells me that if I don’t explain it to him and to his level of satisfaction, then I must don’t understand what I am doing and therefore have fallen victim to gold speculation hype. He goes on to say I remind him of some religious people who blindly follow their leader without any understanding.

To top it off, Mike uses some quote that the says that “the fool does in the end what the wise does in the beginning”. Which I thought was appropriate even though he was saying that I am the fool because I am  investing in a bubble.  I find it humorous and ironic that he said that to me, because that is exactly what Mike and others like him will be doing when gold is well over $2000 an ounce! This is assuming people like Mike will be able afford it when the price is much higher than $1000 dollars.  They will be excited to tell you to start buying too!  However you will be the wise one who bought gold near the beginning instead of  near the end!

Anyway, that was the point where I was ready to make an exit because it is not worth my time or energy to invest in someone filled with so much arrogance and ignorance.  Also, I don’t have to prove anything to Mike, the market will do that in time. If you run into someone like Mike, just don’t bother…. they are not worth the effort.  I don’t care if they are a relative, a close friend, or a worm stuck under a pile of horse sh@$.  Let the market straighten them out.

Besides, I really don’t have the time it will take to bring someone like Mike up to speed on gold.  His mind is just too filled up with misinformation and he lacks the basic essential information needed to understand anything I am going to tell him anyway. Life is too short for this folks, so if you find yourself in this situation, then just recommend to some good information to read or watch, which will work for most folks that are not as arrogant like our “soon to be poor” friend Mike.

At some point, everyone will want to buy gold/silver.. it is really just a question of when. However, there will come a time unfortunately when it will be too late to do so economically. Again if you don’t know what I mean, then you got some reading to do.  You don’t have to be the sharpest knife in the drawer to understand that it is far better to buy gold & silver now than to wait 1 year from now, 2 years from now, you get the point? Gold will be rocketing to heights never seen before  for many fundamental reasons, again all in that book, so I am not going to repeat it all here. The question is, will you be wise enough to buy now or when gold is over $5000 dollars an ounce?

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  1. SW
    February 20th, 2010 at 21:51 | #1

    Great website!!!

    I was wondering, have you heard of “Anglo Far East Bullions”:

    http://www.anglofareast.com/

    Any thoughts on this company or had any dealings with them?

    Keep up the great work!

    PS: Sorry for leaving this as a comment but I couldn’t find your email address or any contact us info on your site

    • February 21st, 2010 at 07:19 | #2

      Thanks. Actually, I have not heard of Anglo Far East Bullions. Are you considering using them to hold your precious metals? I will try to get a contact us page up soon.

      • SW
        February 21st, 2010 at 07:55 | #3

        Yeah I am considering them. Do you read the DGC magazine?

        http://www.dgcmagazine.com/

        They advertise in there but I came across them when David Morgan interviewed them awhile ago. They hold allocated/segregated metal in your name in Switzerland.

        I have read your recommended reading book and it is excellent.

        • February 21st, 2010 at 18:44 | #4

          Thanks SW. I have not personally used them or have heard of them until now. Due to your question, I just posted an article on my favorite company that is highly recommend by prominent figures in the gold community and I also personally use for online storage of gold and silver.

          http://goldstockmania.com/2010/02/21/goldmoney-com-review/

          Let me know what you think.

  2. SW
    February 22nd, 2010 at 01:36 | #5

    Thansk for the great review, I already use GoldMoney so I know how good they are ;-)

    Do you think you will look into Anglo Far East? I think its a good idea to diversify as much as possible just in case something should happen to one of the places that store your metals…

    I can highly recommend reading the DGC magazine (its free)

    • February 22nd, 2010 at 06:48 | #6

      Sure… I will take a look at them and see what’s going on. I will write up a review about them. I want to check them out thoroughly as possible so it may take a little time.

      • SW
        February 22nd, 2010 at 13:37 | #7

        Thank you, I really look forward to it.

        Great review of GoldMoney BTW!

  3. April 7th, 2010 at 02:43 | #8

    The post is a good one. Anyone’s audience is a group of individuals. Nothing can change it.
    Nice article written here. I got to know a few more things about the topic

    • goldstockmania
      April 12th, 2010 at 06:01 | #9

      Hi Alassiliank,

      Thank You. More info is always on the way:)

  4. Flobo
    April 23rd, 2010 at 10:45 | #10

    “You CAN NOT value gold like a stock”, is not a novice mistake, but correct: gold, just like stocks or bonds or any other investment asset, should be valued according to their (expected) future cash flow. If this return is favorable compared to stock or bonds, then gold should be purchased, if not then gold is priced too high (not that I think it is).

  5. goldstockmania
    April 26th, 2010 at 19:05 | #11

    Flobo :

    “You CAN NOT value gold like a stock”, is not a novice mistake, but correct: gold, just like stocks or bonds or any other investment asset, should be valued according to their (expected) future cash flow. If this return is favorable compared to stock or bonds, then gold should be purchased, if not then gold is priced too high (not that I think it is).

    Hi Flobo,

    As you know, gold does not produce dividends, yield interest, or cash flow. That is why gold does not appear to be a good investment when often compared to other investments like real estate, stocks, bonds, etc.

    If you have not read the “Guide to Investing In Gold and Silver”, I highly recommend it, as it thoroughly covers your comment in plenty of detail and I can’t cover all that info here.

    However, I will attempt to try to sum it up. Gold is money and typically used as insurance against falling fiat currencies. Typically people don’t invest in gold to get rich, but to preserve the wealth they already have. I hope this brief explanation will be somewhat helpful.

  6. May 6th, 2010 at 15:10 | #12

    Anglo Far East Bullion’s President, Philip Judge, has founded the YOUnique Wealth Plan for Every Man which allows anyone to buy gold and silver and a private fashion from their Argor Haraeus Refinery in Switzerland.

    I have started purchasing physical Gold & Silver my self to protect myself and my family’s future – you should do so it!
    Check out http://www.youniquewealth.co.il for competitive gold & silver products and prices, or contact me at mark@younique.co.il to learn more.

  1. February 27th, 2010 at 18:42 | #1

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