Contrarian Investing – Why Aren’t More People Turning to Gold Right Now?
On Monday, July 20, 2015, the financial markets got a jolt when the trading price of gold in Asia suddenly plummeted to a five-year low. The impact was felt globally. Half the world away in London, the price fell 2% on news of the Asian price drop.
Time for some contrarian investing with a Pool Account at Specialty Metals? Credit: mikdam/iStock/Thinkstock.
One celebrity investment expert, CNBC’s Jim Cramer, got on air only hours later and advised people to buy gold at its low price, as a “hedge against inflation.” That’s traditional wisdom about buying gold and other precious metals – investors should buy and hold as a hedge against inflation. It’s good advice, but it makes us wonder why so few investment experts are recommending buying gold at low prices and then selling it when prices rise.
Buy Low, Sell High . . . Right?
Isn’t that the strategy that is often recommended for investments like these?
- Buy stocks from younger companies, wait to see if their value increases over time, and then sell them for a profit.
- Buy real estate when it is undervalued, wait for it to grow in value, then sell it and make money.
- Buy fine art from young artists and sell it for a profit when it appreciates in value.
If you ask investors why they aren’t executing that same strategy with gold, they’ll probably say that they don’t want to buy now because they’re afraid that values will fall even lower. That’s a valid concern, but can’t the same objection be made about investing in stocks, real estate or fine art? Of course it can. If you invest in something, it really doesn’t matter how far its value falls. The only thing that matters is its whether you can sell it for more than you paid for it, whenever that happens.
Why Recycling Offers another Way to Profit from Today’s Low Prices
Even though gold prices might be low right now, there is nothing to stop you from recycling gold and other precious metals today and holding them as part of your portfolio. In fact, Specialty Metals Smelters and Refiners offers a Pool Account that lets you recycle your metals and sell them later on when prices rise.
Here’s how it works . . .
- You send us your recyclable precious gold and other metals. We establish your account.
- We immediately process the materials that you send us, send you a full report that shows the content of your scrap or other recyclables. Please note that timing depends on the kind of material that you send us; some materials can be processed in days, others can take longer.
- You can contribute more gold or other materials to your account in the future.
- When you tell us to, we will sell your metals at the then-current trading/market prices and pay you the value of your Pool Account.
- You can also control how much profit you will make, by issuing us instructions to sell your gold and/or other metals when trading prices reach a level that you specify.
Act Now to Lock in Future Profits in Gold and other Metals
The Specialty Metals Smelters and Refiners Pool Account is a great way to turn your holdings in scrapped precious metals into a profitable investment. Whether you have quantities of silver or gold scrap, used sputtering targets or any other materials that contain precious metals, give us a call at 800-426-2344 to discuss investing strategies that can position you to take advantage of future price increases.
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