tradegbp and fxtrade777.com want to make sure their clients are fully aware of what they are getting into when they invest in gold and silver. Gold and silver offer the same volatility that other investments do. The first step is understanding the volatility that each investment presents. The second step is taking the proper precautions, making sure you do not make the same mistakes others have made.
1) Do you have unreasonable expectations? Some investors like to chase something hoping for a big win. Some investors get so impatient they end up making poor choices. Gold and silver is a long-term goal. You cannot get the results you want by betting on the short-term. You will remain blind-sided by making this choice. Gold and silver will not offer a “get rich quick” scenario for you. Investors who feel this way should opt out and choose something different.
2) Are you chasing after the price? Are you betting that the investment is”the one”? Investors like to blame the strategy when something does not work out. The problem lies with the person, not the strategy. You need to take a step back. You might have one plan that does not work well. You do not use this as an excuse to give up. You need to remain diligent. You will not see results in a few weeks or months. If you remain patient and put in the work, you will see the results.
3) Are you aware that ETF’s and Physical Metals are one in the same? You need to understand the difference between owning an ETF and owning gold. Your ETF is a piece of paper, nothing more. The fund managers own the gold. You are holding a promissory note that requires you to pay the shares back. You cannot trade the ETF the way you can a piece of gold.
4) Are you falling prey to confiscation scare tactics? Tally gets told that the bullion bars on the market are subject to confiscation. She is informed by her fund manager that certain rare coins are not subject to confiscation. Tally is offered a price that is between 30-70% higher than the bullion coins. Tally is being swindled by her manager. Tally will have to pay more money than she needs to pay. You cannot get swayed by these tactics. You can learn a great deal from Tally. The tactics her funs manager used are illegal.
5) How much research are you doing? You need to be diligent in your research on gold and silver. You cannot rely on your fund manager to be 100% honest with you. You cannot rely on minimal research with gold and silver investments. You will be faced with an assortment of scams and unethical behaviors. You need to know who is and is not being honest with you.
6) How much can you afford? You do not invest every penny you have right away into gold and silver. You need to invest small amounts and let your account grow.
7) Are you becoming too obsessed? A gold search produces more than 800 million results. A silver search produces more than 500 million results online. You will get burned out by taking all this information in. You need to be less reactive and more proactive. You need to take a break every so often. If you become too obsessed, it will take over your life, and you do not want that.