Over the years we have literally met with thousands of customers from various walks of life and from different social and financial classes. Our customer base consists of hard core survivalists, CEO’s of large corporations, and just about everyone in between. On the surface, it doesn’t appear as though many of these individuals would have much in common, but as we took a closer look at our transactions, including when purchases were made, the frequency of purchases, and the conversations that we’ve had over the years, we’ve been able to identify four characteristics that define successful gold and silver investors. We thought it would be helpful to share this information with our readers to see if you possess these characteristics and if not, to identify traits that you may want to develop.
Without fail, our most successful gold and silver coin investors are future oriented. This trait probably defines most investors in general, as investing involves avoiding the temptation of immediate satisfaction for the long term benefits that are surely to accompany delayed gratification. However, simply being future oriented isn’t enough, as your time horizon plays just as important a factor in your success. If you’re saving for near term goals that may be one to two years out, gold and silver may not be the best investment option for you. However, if you’re investing for intermediate to long term goals (five or more years), you’re likely to benefit from the upside potential that we’re sure to see in the precious metals market in the years to come.
As mentioned above, the price of gold and silver can be volatile over the short run, but this volatility tends to moderate over time. Individuals that are prone to watch the price of gold and silver daily and respond to short term fluctuations are likely to make poor decisions. Being a coin dealer, it’s imperative that we stay informed of the price of gold and silver in the commodity futures market, but over time, we have become less inclined to make major decisions based on the price at any particular time. You know yourself better than anyone else, so if you’re tempted to make knee jerk reactions, it’s probably best that you only periodically revisit the price of gold and silver. On the other hand, if you’re immune to short term fluctuations in price, you may be able to capitalize on short term dips in the market.
The level of knowledge that our customers possess is truly amazing. While we take pride in being well informed and knowing the historical price of gold and silver, factors that affect the price, and how gold and silver have maintained their purchasing power over time, we are always enlightened by our customers. In fact, we probably learn as much from them as they do from us. As they say, “knowledge is power,” and this is certainly the case with the gold and silver coin market. In particular, gold and silver investors seem to have a strong grasp of the Federal Reserve and its effect on the loss of the dollar’s purchasing power over time, which is one of the primary reasons why individuals choose to invest in gold and silver coins.
While somewhat similar to exhibiting patience, we felt that being steadfast and having an unwavering commitment to investing in gold and silver coins differed enough to warrant a separate discussion. We’re always amazed when we buy coins from estate collections, which were purchased by the original owner at a fraction of their current value. In particular, individuals that steadily purchased gold coins beginning in 1975 when it became legal to do so again in the United States have in some cases seen a ten-fold return on their initial investment! Moreover, modern gold and silver coin investors have also experienced strong returns in recent years. Individuals steadfast in their belief that gold and silver are sound investments have experienced strong returns when buying on dips over the past 6 years or investing when gold and silver were out of favor for much of the past two decades.
In summary, throughout the years we’ve identified four characteristics that define successful gold and silver coin investors. Without fail, these individuals are future oriented and can see the long term benefits of investing in gold and silver bullion. Secondly, the most successful investors are patient and are not susceptible to making knee jerk reactions. Thirdly, the best precious metals investors are those that take the time to educate themselves and are familiar with the history of gold and silver. Lastly, having an unwavering resolve, especially when gold and silver are out of favor, will likely pay huge dividends in the future.