Top 3 Reasons People Don’t Buy Precious Metals
Most people believe that precious metals are a good idea, but some never add them to their portfolios. There is an easy way to decide if precious metals are a good idea. Suppose you win a contest. The prize is either $100,000 in cash or $100,000 at today's price of gold bars.
The catch is that you can't claim your prize for five years.
Overwhelmingly, most people would choose the gold bars because the $100,000 in cash would lose purchasing power, and the gold would probably increase. Hence, gold is the better option. Suppose you choose the value of cash over gold five years from now. In that case, precious metals are probably not suitable for your portfolio. However, if you choose gold, you believe that precious metals are a good idea, and the Dollar will lose purchasing power over time.
Like most people, you would choose the gold. (We know because you are still reading). Every situation is different, but there are some recognizable patterns about why some people that want precious metals never buy precious metals. The three most common reasons people don't buy precious metals are life getting too busy, fear of making a mistake, and trust issues with the dealer.
Life gets too busy.
One of the most common reasons people postpone buying precious metals is the busyness of life. Everyone gets busy, and things always come up. However, consider this story about Bill. Bill thought he had one more day.
Bill stared at the clock. 7:18 p.m. He couldn't believe he had worked another twelve-hour day. "Doesn't the boss know other people here can take some of this work off my plate?" Bill thought. "Well, I guess it's like they say…if you want something done, give it to the busy person," Bill muttered to himself.
"Oh no! The insurance! Linda is going to be so angry at me." Bill exclaimed as he realized he had forgotten to call the car insurance agent.
Bill's wife, Linda, has been nagging Bill for weeks to call the U.S. Insurance Bureau to renew the car insurance. Somehow, Bill and Linda missed a few payments, and the carrier canceled their insurance about a month prior. Bill needed to speak with the agent to get it reinstated. At breakfast, Linda told Bill she felt unsafe without car insurance. Bill joked about being a good driver and insurance was a scam because he probably would never get into an accident. Linda insisted, and Bill promised to call the agent today, but he got so busy at work that he forgot.
Bill rehearsed what he would say to Linda the entire drive home. About two miles from his house, a drunk driver rear-ended Bill. Bill was shaken up but not seriously injured. However, the driver didn't stop, and Bill was in shock. He didn't get a good look at the vehicle or person driving. The car's rear was folded metal, an angled flat tire, and a broken axle.
After calling the police and fire department, Bill didn't know what to do. He wanted to tell Linda he was okay but didn't want to tell her he didn't call the insurance agent. To add insult to injury, the police officer ticketed Bill for failing to have insurance, even though he was a hit-and-run victim.
"If only I had taken the 20 minutes, I wouldn't be in this mess," Bill said into his hands and then released a long sigh.
Bill's story is tragic but not uncommon. Bill felt no urgency to protect himself because he didn't believe something bad could happen. The truth is that accidents can happen anytime or place, including in the economy. Some people drive for decades without ever having an accident but pay their insurance premiums every month. In any given year, 3-6% of car insurance policyholders file a claim. Markets work in cycles and crash about every 7-12 years, meaning almost everyone has a financial accident at least once a decade.
Insurance is a contingency plan for accidents but only protects you if you have it before the accident. Precious metals are a contingency plan for inevitable accidents in the economy. Life can be busy, but the regret of not having insurance far outweighs the burden of getting it. The same is true of precious metals. If protecting yourself is important, you should make time to get the financial insurance that precious metals afford. Tomorrow is not certain, so waiting is risky behavior if there is an economic crash.
Fear of making a mistake
Taking the first step can be scary, but it shouldn't be why someone never buys metals. Some people become so afraid of making mistakes that they never make their first transaction. The music group Rush's lyrics say, "If you choose not to decide, you still have made a choice." The unknown is indeed scary, but doing nothing can be worse. Doing nothing means choosing the status quo of the economy and politics of the day. Most people looking at precious metals seek diversification, inflation protection, estate planning/inheritance, and something for worst-case scenarios. Doing nothing is choosing that those objectives aren’t worth accomplishing.
The antidote to fear is knowledge. Every client of the U.S. Gold Bureau is assigned a precious metals expert to coach, educate, and answer questions free of charge. It takes years to become a precious metals expert. In the meantime, you can borrow our expertise and learn as you go. When getting started, most people prefer to dip their toes in the water instead of doing a double-back flip off the high dive. They want to methodically build over time to reach about 5-20% of their portfolio. Your advisor can help you make a plan tailored to your goals and resources.
Not trusting the dealer.
Unfortunately, the sad fact of life is that not everyone is honest. There are dishonest people in the precious metals space as well. For this reason, it is paramount to deal with a reputable dealer. The U.S. Gold Bureau’s entire business model is integrity first.
Please pardon us while we toot our own horn for a moment about a few of the many reasons people trust the U.S. Gold Bureau.
The U.S. Gold Bureau has been in business since 2003 and under current management since 2008. We are the largest bulk purchaser from the U.S. Mint and one of the largest dealers in North America. The State of Texas hand-selected the U.S. Gold Bureau over 300+ other precious metals companies to run and operate the only state-run bullion depository in the nation, the Texas Bullion Depository. Also, the U.S. Gold Bureau has the strongest buy-back guarantee in the entire precious metals industry.
Give the U.S. Gold Bureau 1% of your trust, and we will earn the other 99%. It may sound like a cheesy line, but it is true. If you have the time, we will educate and be with you every step. We stand behind all our products with a rock-solid, buy-back guarantee. People who have dealt with other precious metals dealers are pleasantly surprised by the level of service they receive from the U.S. Gold Bureau, and you will be too.
The most important thing is to get started. The size of the transaction is irrelevant. We have no maximums, and our minimum order is only $100. Whether you are comfortable with $100 or $100 million, our experts will treat you respectfully, answer all your questions, and help you avoid common mistakes and pitfalls. The most important thing is to take action. As they say, the squeaky wheel gets the gold (or something like that).
Let’s create a plan together.