“It was the best of times, it was the worst of times.” How true of life on occasion. Sometimes the very news or event that brings discomfort also brings growth or change that we could never have imagined.
This particularly rings true this week as I of a cancer diagnosis for my father. To know one is going to die is sometimes a blessing as it offers time to set one’s affairs finally and truly in order. Whether we do, or whether we remain with our head in the sand – both metaphorically and financially – can only be a decision taken by every individual. We here at Bleyer seek to illuminate, educate and provide a friendly professional service to those seeking awareness of what is happening below the surface and practical ways to prepare.
The Titanic sunk
The message in Mike Maloney’s piece this week is particularly poignant to both life and our financial affairs, which after all is a key practical aspect of preparing for the future. He has produced a very clear video on why it is time to care about Gold and Silver again and relates this to the above famous quote from The Tale of Two Cities. We all know precious metal prices have been languishing – it has been perhaps a discouraging few years for our recent influx of clients who have joined us since the price has held in this latest long consolidation pattern. But any journey needs time to consolidate, to catch our breath, to figure out where we are. This is precisely the time not to give up on the position we’ve taken.
(Disclaimer: This video is for educational purposes only. We do not endorse the company GoldSilver.com or the presenter Mike Maloney. We believe that the data presented within this video to be beneficial to our readers).
It just about sums up the rollercoaster ride investors have been on for the past couple of decades in Gold and Silver. The Titanic was the pinnacle of human achievement at the time. But we had reached a level of hubris that caused one White Star Line to exclaim that not even God Himself could sink this ship. As we all know it did sink on its maiden voyage and as it was sinking it split into two. But long before the ship split into two, the people on that boat were split into two groups. As that iceberg gashed into the hull and caused a hole that allowed water to start seeping in and it came to a stop, alarm bells were ringing in the control room, orders were being shouted out and now there were two groups of people. There were people in the know, who knew that something was happening, and then there was the rest of the population on the ship. But the band played on and the party continued.
Underappreciated Assets
The real estate is back into a hyper bubble, bonds are in the final stages of one of the longest bull markets in history, individual stocks are incredibly overvalued, more overvalued today than at the peak in 1929.
We’re now in the second longest economic expansion in history, its probably going to become the longest economic expansion in history. But whether this goes for another six months, or a year or two years, it just means that we’re picking up speed before we hit that iceberg. There will be people that are denying that the crash is happening even while it’s happening. I’ve got this friend who said “Yeah, but stocks go up at 8% per year on the average and I think I’m just gonna stick it out.”
They’re denying that it’s happening and this ship can’t be sinking, my end just rose 200ft. The ship WILL sink. And so for most people, it’s going to be the worst of times, but for the precious metals investor, it might just be the best of times,” (GoldSilver.com).
Read ‘Top 3 Reasons Why Our Financial System Is Bound to Fail’ here.
And why does this put you, our readers, in a prime position already? Because most of the population is unaware of not only the advantages of Precious Metals investing but also even the current value of Gold and Silver. And that’s at a value that is significantly lower than the metals have been through history.
Simply put, gold and silver – in the West at least – are underappreciated assets. As Grant Williams famously put it in his excellent synopsis, when it comes to public and institutional sentiment of the precious metals, ‘Nobody cares‘. Which is a big factor why the prices of PMs have languished for the past seven years. And why the flow of bullion has been uni-directional from West to East over that period.
He goes on to give an illuminating anecdote: “A good friend moved and needed help transporting some bullion from his old house to his new one. Most of it was silver, several thousand ounces worth. That much silver is pretty friggin’ heavy! So we huffed and strained, hauling that load out of one bank vault, into his car, and from there into the vault at his new bank. While we did our best to be as discrete as possible, our sweaty, grunting 2-man production team was hard for the bank staff to ignore. Managers at both banks figured out what was going on, as it was pretty obvious. And both separately asked us out of genuine curiosity, “Is that real silver?”. My friend briefly handed over a 100-oz bar so they could see for themselves, sparking conversations about the merits of owning physical bullion.
It turns out that neither manager had ever held a bar of silver before. This was pretty shocking to me. Even though they know that the safe deposit boxes in their own vaults very likely store some bullion, neither own it personally, nor even come into contact with it. It’s just not a part of their world. Anyways, later on I mentioned this story to another buddy who shared my surprise. “Man, if the bankers aren’t familiar with silver and gold, then who the heck is?”, he asked. A very good question…
And it’s not just bank managers that seem not to get the significance of Gold and Silver in the West. Entire nations are missing the point. I was truly surprised, and not much surprises to me anymore, but the following piece of financial information:
“While other central banks have been busy increasing their gold reserves, Canada sold off all its gold reserves in 2016. The Bank of Canada ranks last globally out of 100 major central banks,” (Zerohedge).
Conclusion
So, what to do next? Consider the following two steps regarding Physical Precious Metals – while prices remain at current lows:
- Create your core physical precious metals position if you have none. Many readers already have their core positions in place, should an abrupt crisis occur that suddenly sends demand for ‘safe haven’ assets spiking. But if you haven’t built yours yet, don’t panic. But also don’t delay too long in taking action. A good first step is by educating yourself. Read our Top 5 Things to Look Out for When Buying and Selling Your Precious Metals.
- Setup an ongoing purchase program. The easiest and most affordable way to build exposure on top of your core position to set up an automatic purchase arrangement that buys a consistent amount of bullion each month at a volume that fits within your budget.
Call the Bleyer team now on 01769 618618 to discuss your choice of action.
