Detailed below are the most common pitfalls that precious metals investors often encounter.
Common Mistake #1 – Unrealistic Expectations
One of the biggest pitfalls faced by precious metal investors of all experience levels is impatience and the temptation to chase the price with the hopes of “hitting it big”. Many new investors believe that the metals prices can only go up and that investing success is a given in the short term.
The key to success is the full understanding that investing in gold or silver is a long-term proposition. You can only measure your success over many YEARS, not weeks or even months. If you are looking to “get rich quick” we would recommend you not venture in to precious metals with this expectation.
Take the time to assess the following:
What are your investment goals?
Why are you considering gold and silver?
Will the factors that are moving you to consider precious metals change in the near future?
Most likely you are considering precious metals due to a myriad of global economic conditions – most of which will not change quickly, if at all. This only reinforces a vr 教育 long-term position and mentality when it comes to investing in metals. If you get in the game, do so for the long haul.
Keep in mind the flip side as well. Investors will often jump from investment vehicle to vehicle if their investment strategy doesn’t yield immediate results. We have see many of our clients sell off their metals to go and invest in the “next big thing”, have it fail and then find themselves buying metals back at significantly higher prices.
Common Mistake #2 – Chasing the Price
Some people will spend years chasing after the next big thing, often believing that this strategy is “the one.” When that particular strategy doesn’t yield the results they were looking for, the common response by investors is to blame the strategy and to quickly adopt another. They don’t realize that the problem most often lies within themselves and not with a given strategy or tactic.
Again, step back…
Give the strategy some time. We can’t stress enough that precious metals investments should be long-term holdings. Success in this game is not something that can be accurately measured in weeks or months. This is a long-term commitment. Budget your time, energy and capital wisely.
Common Mistake #3 – ETF’s and Physical Metals are the Same
Many investors, especially those new to precious metals, make the critical error of thinking that owning an Exchange Traded Fund (ETF) that invests in gold, such as GLD, is the same as owning the physical gold itself. It is critical to understand the key differences between owning shares of an ETF and owning physical gold or silver.
For thousands of years, physical gold and silver have been highly desirable and recognizable commodities that are easily bought, sold and exchanged for goods on local and world markets. You can take physical gold from New York to Zimbabwe and everyone will immediately recognize the inherent value in the metal itself. In essence, you can use physical gold or silver