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Monday, August 22, 2011
Monday, August 8, 2011
Gold is More Expensive Than Platinum?!?!?!
It seems like everyday we reach a new record high in Gold. Today was an interesting new high as Gold prices reached and then continued to soar above the price of Platinum. This jump in price came after Standard and Poors downgraded the US Credit Rating from "AAA" to "AA+"...Wow! The Dow also fell over 634 points for the largest one-day decline since 2008. We pretty much saw RED across the board today, except with precious metals. I think it's time to really consider where your retirement money is. I know mine is in precious metals and I highly recommend putting your IRAs and 401k into precious metals. If not all of your retirement money, than at least a large chunk of it. Obviously, the market agrees with me as prices and demand continue to increase! My recommendation is to buy gold, silver and palladium...diversify within precious metals.
Do you want more information or have questions about investing in gold and silver? Feel free to contact me at blakepollack@gmail.com.
Do you want more information or have questions about investing in gold and silver? Feel free to contact me at blakepollack@gmail.com.
Thursday, July 28, 2011
Isn't it too late to Buy Gold or Buy Silver?
I get this question more than any other question and the absolute answer is 100% NO. People have been asking me this question for 2 years now when gold was half the price and silver was even less. Just because gold and silver prices are high, all indicators point to an increase in pricing for precious metals, just like the did 2 years ago. Every analyst will tell you that this economy is not getting better anytime soon AND that means one thing: Invest in hard assets!!!
Analysts used to say that 5%-20%of your total portfolio should be in precious metals. The analysts that I personally know have now changed that number to somewhere around 40%-50% and they have followed these statements with their own money. I have analysts transferring their entire IRA and 401k rollovers into gold and silver.
Believe me...it's not too late!!!
Do you want more information or have questions about investing in gold and silver? Feel free to contact me at blakepollack@gmail.com.
Analysts used to say that 5%-20%of your total portfolio should be in precious metals. The analysts that I personally know have now changed that number to somewhere around 40%-50% and they have followed these statements with their own money. I have analysts transferring their entire IRA and 401k rollovers into gold and silver.
Believe me...it's not too late!!!
Do you want more information or have questions about investing in gold and silver? Feel free to contact me at blakepollack@gmail.com.
Monday, July 18, 2011
Leverage...like a glass of wine
Many people looking at leverage as a bad thing because many people have negative experiences using leverage. The truth is leverage can be one of the best investment tools to make money in the precious metals market. In fact, every millionaire I know has used leverage as an investment tool at one time or another. The problem exists when you use too much leverage. As I mentioned earlier, the 3 rules of investment are:
1. Be in the correct asset class
2. Diversify in that asset class
3. DON'T USE TOO MUCH LEVERAGE!!!
Follow these 3 rules of investing and you will make money 85% of the time. Leverage allows you to borrow other people's money to make profits BUT you are protected on the downside if the investment goes south (meaning you don't have to pay back the money borrowed...or a non-recourse loan). Many people abuse leverage and borrow 5, 10 or even 100 times their money. The problem with using too much leverage is if the precious metals value decreases by even a small margin, you are asked to make a margin call (or invest more money). The markets fluctuate on a daily basis and, leveraging your money like this, will almost always result in a margin call. The most you should ever leverage your money in a gold or silver account, is 3 to 1. Meaning if you invest $100,000, you'll have $300,000 worth of metals. Anymore than this and you are breaking the rules of investment! I would never go above 3 to 1 leverage and I would never put another investor in more than 3 to 1 leverage as I don't believe it is a good thing. With this being said, I personally made over 250% on my precious metals last year because I used leverage correctly. The most important thing is understanding how leverage works before you use it (just like anything else)! Remember, leverage is like a glass of wine...1 glass per day is good for you...9 glasses per day is abuse...
Do you want more information or have questions about investing in gold and silver? Feel free to contact me at blakepollack@gmail.com.
1. Be in the correct asset class
2. Diversify in that asset class
3. DON'T USE TOO MUCH LEVERAGE!!!
Follow these 3 rules of investing and you will make money 85% of the time. Leverage allows you to borrow other people's money to make profits BUT you are protected on the downside if the investment goes south (meaning you don't have to pay back the money borrowed...or a non-recourse loan). Many people abuse leverage and borrow 5, 10 or even 100 times their money. The problem with using too much leverage is if the precious metals value decreases by even a small margin, you are asked to make a margin call (or invest more money). The markets fluctuate on a daily basis and, leveraging your money like this, will almost always result in a margin call. The most you should ever leverage your money in a gold or silver account, is 3 to 1. Meaning if you invest $100,000, you'll have $300,000 worth of metals. Anymore than this and you are breaking the rules of investment! I would never go above 3 to 1 leverage and I would never put another investor in more than 3 to 1 leverage as I don't believe it is a good thing. With this being said, I personally made over 250% on my precious metals last year because I used leverage correctly. The most important thing is understanding how leverage works before you use it (just like anything else)! Remember, leverage is like a glass of wine...1 glass per day is good for you...9 glasses per day is abuse...
Do you want more information or have questions about investing in gold and silver? Feel free to contact me at blakepollack@gmail.com.
Tuesday, July 12, 2011
No Social Security Checks?
President Obama released a statement today that there was no guarantee social security checks would be paid on Aug. 3. This means that 27 million Americans may be without their social security money. If that is not alarming, then I don't what is! After that statement was released, Gold also soared to an all time high of $1,568 per ounce. Is there a relationship between the two? ABSOLUTELY! Are economic times looking up? It doesn't seem that way and THAT is why people are investing in precious metals. Almost every analyst will agree that the dollar will not get any stronger for a while. That means gold and silver prices will continue to rise through, at least, 2012. We may not be sure about the strength of the US dollar but gold is gold and silver is silver...there is only a limited amount on Earth!
Do you want more information or have questions about investing in gold and silver? Feel free to contact me at blakepollack@gmail.com.
Do you want more information or have questions about investing in gold and silver? Feel free to contact me at blakepollack@gmail.com.
Monday, July 11, 2011
Why do precious metals companies charge more than the spot price to buy gold and silver?
Like any business, precious metals companies are in business to make a profit. If companies even bought gold and silver at spot, which they don't, they would still have to charge you more money to make money.
Most gold companies I've worked with charge 25-35% above their wholesale price (which is usually 2-4% above spot). To me, that seems unethical to charge that much as the precious metals price would have to increase by at least that much to make any sort of profit. People who charge less than 25-35% usually have some sort of hidden fee somewhere. The reality is that you are going to pay sort of premium on precious metals as no one work for free but it is EXTREMELY important to find out what you are paying.
I believe, if you're going to charge someone a premium, you need to work for that premium. The problem is that most companies charge you a huge premium and then don't talk to you again until they want more money. Here's the secret: you need someone who manages money and knows when to sell. Anyone can buy into anything BUT the real success comes from knowing when to sell to make a profit.
In my practice, I believe on a max of 15% on any purchases and NO hidden fees. I work for that money and I know when to sell. No fees on selling, no fees on shipping, no fees on storage (if you store your metal), etc. I charge maximum 15% and then I hold my client's hands as we make money together. I don't work for free but my clients DO make money and that is what a modest fee is supposed to be charged for...not a HUGE premium because you are a large company and have HUGE expenses!
Do you want more information or have questions about investing in gold and silver? Feel free to contact me at blakepollack@gmail.com.
Most gold companies I've worked with charge 25-35% above their wholesale price (which is usually 2-4% above spot). To me, that seems unethical to charge that much as the precious metals price would have to increase by at least that much to make any sort of profit. People who charge less than 25-35% usually have some sort of hidden fee somewhere. The reality is that you are going to pay sort of premium on precious metals as no one work for free but it is EXTREMELY important to find out what you are paying.
I believe, if you're going to charge someone a premium, you need to work for that premium. The problem is that most companies charge you a huge premium and then don't talk to you again until they want more money. Here's the secret: you need someone who manages money and knows when to sell. Anyone can buy into anything BUT the real success comes from knowing when to sell to make a profit.
In my practice, I believe on a max of 15% on any purchases and NO hidden fees. I work for that money and I know when to sell. No fees on selling, no fees on shipping, no fees on storage (if you store your metal), etc. I charge maximum 15% and then I hold my client's hands as we make money together. I don't work for free but my clients DO make money and that is what a modest fee is supposed to be charged for...not a HUGE premium because you are a large company and have HUGE expenses!
Do you want more information or have questions about investing in gold and silver? Feel free to contact me at blakepollack@gmail.com.
What are the 3 rules of investment and why are they SO important?
Because I'm somewhat of a conservative investor, I follow the 3 rules of investment.
The first rule of investment will tell you to be in the right sector or asset class. An example of this would be back in the late 90’s technology stocks were leading the market, before that it was biotech stocks. When those sectors were leading the market it seemed you could buy any biotech stock or technology stock and you made money. Even if you were invested in a horrible company the share price still went up. If you instead choose the best utility company for example that was run almost perfectly with increasing revenues and increasing earnings, those shares rose much less so your return was minimal at best. Precious metals is, without doubt, the right asset class to be in now!
The second rule of investment will tell you that once you invest in the right sector or asset class, diversify in that sector (don’t put all your eggs in one basket). In relation to precious metals, don't just buy gold or just buy silver. Buy a combination of different precious metals.
The third rule is to not use too much leverage. I think of leverage like a glass of wine. One glass per day is ok but 10 glasses and you are abusing it. Don’t abuse leverage.
Experience shows us that following the rules of investment gives us the greatest opportunity to make money, and at the same time controlling risks.
People break the rules of investment because they get greedy. Experience shows us that trying to outguess, outsmart, or out time a market will only put you at greater risk and therefore put you in a position to have a higher probability of losing. We have all heard of people losing money when the market or asset class is performing amazingly. This will typically only happen when they break the rules of investment.
Do you want more information or have questions about investing in gold and silver? Feel free to contact me at blakepollack@gmail.com
Do you want more information or have questions about investing in gold and silver? Feel free to contact me at blakepollack@gmail.com
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