Building a Monster Precious Metals Portfolio
Acquiring Physical Metals
If you believe in the merits of physical gold and silver ownership as we do, then you will likely want to acquire as much physical gold and silver as you possibly can. There are numerous ways to go about this.
For example, you could decide to:
A: Take your investable capital and get your hands on as much gold and silver as possible
B: Buy gold and silver sporadically when you have some extra cash laying around
C: Make the commitment to purchase gold and silver at regular intervals while dollar cost averaging
In our opinion, choice C is clearly the winner and may provide the most potential long-term benefit to the investor.
Just like making the commitment to save a portion of your paycheck can lead to large riches over time, making the commitment to purchase precious metals with each paycheck can lead to many ounces being owned over time. Many ounces…
Obviously, if you are going to be investing in an asset, you want to acquire that asset at the lowest cost possible.
For example, if you are looking for a real estate investment, such as a home to rehab and sell, you will want to purchase the property at the lowest cost possible.
If you were looking to purchase a stock for the long-term, you would want to buy the shares at the lowest cost possible. Similarly, if you are looking to buy gold or silver as a long-term investment, you will want to buy gold and silver at the lowest prices possible.
Unfortunately, low prices today may not be considered low prices tomorrow. Market prices can and do fluctuate, and the chances of you ever “buying the bottom” are slim to none.
Lowering Cost Basis For Gold And Silver
So, how can you possibly lower your overall cost basis for physical gold or silver?
The answer may be dollar cost averaging.
This is not nearly as complicated as it sounds. In fact, it’s ridiculously easy. It goes like this:
Buy as much gold or silver as you can at regular intervals regardless of price.
Sometimes these metals will be more expensive and sometimes they will be less expensive. Over time, however, buying gold and silver in this manner can significantly lower your overall cost basis-especially if prices trend higher over the long run.
If you buy 10 ounces of gold at $1200 per ounce, your cost basis is $1200. If you then buy another 10 ounces of gold at $1160, your overall cost basis on your 2 ounces is now $1180. Not only will dollar cost averaging potentially lower your cost basis, but it can also get you into the habit of adding to your precious metals portfolio on a regular basis.
Now you are getting the best of both worlds. You are acquiring more total ounces and you may be lowering your cost basis. If that’s not having your cake and eating it too, we don’t know what is…
When is a good time to begin dollar cost averaging?
Gold and silver are currently at we believe are “fire sale” prices. If you are looking to begin building a gold or silver portfolio, now is the time to get going. Fortunately, it has never been easier to start acquiring precious metals. In fact, you can actually buy physical gold and silver in some retirement accounts.
The Bottom Line
Don’t wait for prices to rise. Explore your options today.
One of the simplest ways to gain exposure to these critical precious metals is through a precious metals IRA. Getting started with a gold IRA is easy. Our experienced executives are here to guide you, step by step, through the entire process.
Talk to an IRA advisor about how to roll over your 401(k) into a Gold IRA by opening a self-directed IRA account, contact us or call us at 800-341-8584 today.