Do you view silver and gold as necessary? In a moment you will read a quote from New York Times best-selling author Ben Sherwood. Mr. Sherwood wrote one of my favorite books called the Survivors Club. If you haven’t read it please do. I had not heard the term behavioral inaction before Sherwood mentioned it while promoting his book several years ago. Since, I can’t help but compare today’s economic correction and lack of urgency to Sherwood’s definition of behavioral inaction.
“The best way – in the moment – to respond is to have spent a small amount of time anticipating that you could find yourself in this situation. One of the reasons why behavioral inaction happens – when people see the wing on the plane on fire and they sit frozen in their seats rather than making a run for it – is that they never imagined that happening. They literally search in their minds for a correct response to this situation and there is none.” BEN SHERWOOD
A common question from a PM (precious metal) Newbie is why more don’t see silver or gold as important enough to own. I believe the answer is because of behavioral inaction. I also believe a reversal someday soon will propel your stash of both silver and gold values far beyond what most can imagine.
Average Americans view economic correction as past tense. Their mindset is the worst is behind us and recovery is upon us. This belief (behavioral inaction) certainly doesn’t prepare the masses for a realistic future, in fact, this belief doesn’t prepare the believers for anything but failure.
Progression from today’s “do nothing” mentality to tomorrow’s “panic buying” point could be great news for you (assuming you own physical silver or gold) but can be devastating to the rest unprepared.
Let me explain it this way. On this date one year ago gold’s price bounced around $1435 per ounce. On this date two years ago gold’s price was $1124 an ounce. Now many look at gold’s rise and quickly chop it up to yet another asset preparing to bubble. But this view holds little water and here is why. PM is not popular, only 1% even own PM other than a wedding ring or a few jewelry pieces. Also, PM is not a victim of easy credit like yesterday’s housing.
PM, both silver and gold, is rising to keep up with worldwide currency devaluation. What does this mean for the guy working hard to pay bills and feed his family? It means the same amount of silver and gold buys equal, or more, amount of life’s necessities.
This makes little sense to those practicing behavioral inaction. In action prompts the willing to support a system trumping recovery without proof. In action prompts the willing to view worldwide money printing as a necessary path to “normal”. There is nothing normal about stealing your wealth’s value!
I mentioned a moment ago recovery perception will change and how when it does metal’s perception will change as well. Sherwood used a burning plane wing example. This type of emergency requires quick action and then devastating effects to those inactive. But our example today is a much slower burn. The ones in monetary control are able to postpone, for a while at least, a complete engulf.
Shadowstats continues to disprove controlled inflation. PM owners see this each year as silver and gold rise both in value and dollars. This proves the plan to print currency appears beneficial when markets rise (Dow or S&P) but a different story when compared to silver or gold.
The price of silver or gold inaction is shaping into a slow derailment compared to a head-on train wreck. Regardless, the results are the same and the price of inaction just as damaging. We are talking about a major loss of wealth, hope, and future.
I’ve mentioned before how my entry into PM also broadened my view of all things real from things not. This is not by coincidence. The same energy pushing you into PM also enlightens owners or, better yet, creates a spirit of action.
This independent spirit of action does not fit in well with overreaching government! It does provide security during a time of massive behavioral inaction.
COMMENTS & QUESTIONS:
I’m almost ready to trade dollars for silver or gold. I have around $40k to invest but want to structure the transaction without bringing attention to new PM ownership. What do you suggest as the best means to secure PM without a recorded paper trail? Thanks.
PROSPECTOR REPLY: Thanks for the question. This question comes up more lately but rarely with as large a trade as $40,000. The options are to break purchases into smaller sizes (dollar cost averaging approach). This could include buying discreetly from a local coin shop. Most states don’t require buyer ID but a little research on your end can answer questions like these. By far the majority of larger PM purchasing is online via bullion dealers (see GoldShark for competitive pricing). I’m told wire transfer information is not shared with anyone outside of banks, but. We live in an era of digital currency and this makes it very difficult to discreetly trade. Your wire transfer should go unnoticed but my guess is a record will always be available somewhere.
Silver and gold ownership still has ability of a paperless trail but local research on your part is recommended. Remember, the downside of trading discreetly, or paperless, creates risk in other ways (counterfeit, theft, robbery, etc). Many large PM owners use several methods to buy silver and gold, some more discreet than others. Hope this helps.
It seems paper gold is dragging all gold value down. I see no reason to buy when prices of gold bars or bullion manipulated or in decline. What do you say?
PROSPECTOR REPLY: Thanks for the question. I have waited for his one especially considering all the internet chatter of PM manipulation. For those new, paper gold is exactly as sounds and most is not backed by physical gold (or silver). This leads many to believe large PM paper players, and central banks, can manipulate overall PM prices buying or selling (trading, shorting, naked shorting, futures) paper metal. This certainly appears to be the case. So what does this mean for physical gold holders?
It means the plan stays the same. I personally take advantage of PM manipulation by buying more physical metal. This manipulation is nothing more than an intermission over the long term. I have little doubt physical metal will part with paper silver and gold someday soon. In some ways it already has but with new bullion availability it’s hard to recognize. This could change quickly since inventories are far less than most imagine. Waiting to buy silver or gold could be risky but certainly your choice. In my perspective this only prolongs the opportunity to protect wealth via affordable silver and gold. Regardless, thanks for reading our site.