Falling Prices, Rising Opportunity

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Falling Prices, Rising Opportunity

Over the course of the last few days, the world has watched precious metals prices drop exponentially, causing concern among even the most discerning investors. While commenting on market price fluctuations is not something our office typically endeavors in, we feel that there is some information and experience that we would like to share. Falling prices present rising opportunity for precious metals investors.

#1 – Fluctuations in the market are normal – don’t lose your cool. Most of what is happening recently to the metals market is being caused by the strengthening of the USD, which means that you can now buy more metal per dollar than previously – a good thing. This, in tandem with a softening in the demand for physical metals from investors creates a buyer’s delight. Buy low, sell high!

Please recall that just three years ago, one ounce of gold was trading for ~$1120 USD. Since that time, metals prices have soared with a peak of just over $1361 per ounce in 2016 and we have seen similarly high prices in previous quarters this year. The idea here is that market price adjustments are normal and to be expected. We expect to see a bounce-back in the market prices in short stride.

#2 – “Carpe Diem” – Seize the Day. The prices that we are seeing today haven’t been this low in years. With demand being low, and your dollars being worth more, this is a great time to ‘buy low’ and ‘buy the dip’. Gold is now below $1200, and silver below $15. If these prices aren’t triggering your buy mechanism, frankly, we’re not sure what will. With that said, the markets are not entirely predictable, and there may be potential for a further decline in prices, however, waiting to save another couple of dollars or cents is a fool’s errand, and may end up costing much more if you hesitate.

During this tumultuous time in the market, we’ve seen our veteran and long-term metals investors come out of the woodwork to capitalize on the lower prices, and they have been buying. New investors also, that have made money in crypto-currency speculation, have been buying gold, silver, platinum and palladium in droves in order to diversify at a relatively low cost of entry, with much promise of gains. Our sentiments resonate with theirs, and we are continuing to buy at these levels as well.