After a fall of almost 10% in dollars this month, rather than trying to guess if the metal is going to get cheaper or more expensive gold ira companies reviews, it is to buy periodically, no matter how it goes up or down. In the end it will have a convenient average acquisition cost.
One of the most recurring questions I have received in recent days is whether the "great time" to invest in physical silver has arrived. This is due to the fact that the price of the troy ounce in international markets has plummeted almost 10% in dollars just this month.
However, before answering the question, it is worth remembering first of all why and why this precious metal should be had.
The current monetary system of fiat money -inconvertible-, that is, without support beyond debt, is a global race to the bottom in which the bills and coins that we carry in our pockets devalue more or less quickly depending on the currency in question over time. This money always tends towards its true value: zero.
In this way, the purchasing power of our income and savings, if they stagnate in currency, is doomed to be diluted.
This is precisely why any serious investor who is concerned about the preservation of his patrimony, should be left without this protection in real money, that is, gold and silver. The value of these will never reach zero, so they constitute a kind of financial insurance: they cannot be disappeared at a stroke or erased from any balance sheet. They are private property in themselves and not someone else's debt that may be defaulted.
There are several ways to have it, such as jewelry, medals, coins, bars, and bullion. The most convenient for the vast majority is the currency for its superior negotiation (it is easier to sell and with a lower penalty on the metallic value when reselling it).
In countries like Mexico, certain types of fine metal currency are even legal tender. The Monetary Law of the United Mexican States establishes in its Article 2º. Bis. that "The metallic coins minted in platinum, gold and silver, whose weight, stamp, grade and other characteristics indicate the relative decrees will also form part of the system."
According to the same article, said pieces are legal tender for the equivalent in pesos of their daily price, and the Bank of Mexico is obliged to receive them unlimitedly.
In that category enter those of the Libertad series. Surely it is easier for most to acquire an ounce of silver from this series -which this week is already sold for less than 400 pesos, and that in September it was sold for more than 450 pesos-, than one of gold of more than 25 A thousand pesos.
It should be remembered that the historical maximum for the Libertad silver ounce was reached in April 2011, when it was sold for 610 pesos. The fall in pesos in October has been possible thanks to the fact that the dollar has also fallen.
Like any investment, it is best to buy silver when it is cheapest and not when it has been rising to new highs. Experience, unfortunately, teaches us that most do just the opposite, buy high and then sell when prices fall, which generates significant losses. Don't make that mistake.
Holding fine metal coins as an investment is essential for long-term financial protection, but of course, it should not be your only investment.
If you are looking to speculate on quick profits, physical investing is not for you. For that, approach a good broker that will offer you different mechanisms of exposure to the price of this metal.
The recommendation then, rather than trying to guess if it is going to get cheaper or more expensive, is to buy periodically, regardless of whether it goes up or down. In the end it will have a convenient average acquisition cost.
No one has or can have any idea when the final minimum will be touched, with the aggravation that even if silver plummets in dollar terms, the rise in the exchange rate could prevent the price from improving much in national currency.
Take advantage of the current levels then, it is a matter of time before we will never see them again.