Are You Diversified with Your Investments?
When you hear about being diversified you might think of Stocks and if you are in low risk versus high risk, bonds, insurance and annuities. Have you thought about precious metals as well. There are different assets that you can use from low risk to high risk as well as liquidity. Let me enlighten you a bit more as to why I think now is a perfect time to invest in physical metals.
Precious Metals On Sale
At one point in time the banks could use paper metals as collateral. What do I mean by paper metals? Well the banks could buy a contract on the futures market to buy silver, gold, platinum, copper or other precious metals at a particular date. This meant that they were using pieces of paper to insure the deposits of brokerages and banks. It was all part of the Basel Requirements. Well in 2022 these Basel III requirements for banks changed by the Bank of International Settlement.
Basel III changes from Paper Assets to Physical
The biggest change for the Basel 3 requirements made a change to how the banks and brokerages could back their deposits of the clients. They now had to own physical metals instead of the paper futures contracts. So we saw a bigger drop in the paper market. The selling of the futures contracts that the brokerages and banks in turn lowered the spot price for the physical metals. Jane what do you mean by spot price. The spot price is what the market is charging to the public to buy the physical metal.
Buy Precious Metals at a Discount
Here are a couple of charts to show you why in my opionin now is a good time to take some savings $ and put them into metals.
Here is a chart of the Silver Futures rolling contract and you can see that Silver is down 40% from the High of 2021.
There was also a recent court case about Bear Stearns, JP Morgan and Morgan Stanley Commodities traders that admitted 100% to spoofing on the commodities desk and manipulating the price of metals This move down in precious metals is no different. The banks are manipulating the price of precious metals so that they can buy physical metals to meet their new physical Basel III requirement.
Here is the chart for the Gold Futures rolling contract where you see that Gold has been discounted 17.7% from the high back in August 2020.
And the final chart I will share of the Platinum Futures rolling contract where you see that Platinum is discounted 35.8% since its high in Feb 2021.
Where you can buy discounted Gold and Silver
There are many different places that you can buy Silver and Gold coins. You want to make sure that you are going to a reputable seller that has positive reviews, Accredited Business and an Authorized Dealer. Throughout this blog post I mention BGASC. What I really like about them is the multiple forms of payment that you can use to purchase your silver, gold or platinum.
You can pay via Paypal, Credit Card, or Wire. Not only that but they will help you roll your IRA money into precious metals.
Why Should I buy Silver Now?
I like Silver as the #1 metal to buy now for a couple different reasons.
- Price to enter is small per ounce
- The Most Discounted Metal of the top 3 people think of
- Silver is a highly conductive metal and business buy it for multiple uses, when used it is depleted so a decreasing metal (dropping supply means price should increase)
And of course the icing on the cake is we are now seeing more heavy darkpool prints coming in on SLV, GLD, GDX prepping these for a big move. You could trade the paper, but I find physical more satisfying to own knowing that for years the prices have been manipulated. SEC is now cracking down on these big firms for price manipulation and we should see the true value appear.
Let me know your thoughts in the comments below.
I love hearing feedback from you. It makes my trading more personal and I like to hear how I can help you. If you would like to be in Training Pit with me sign up here or if you want one on one training you can email me jane@thedarkpools.com You can contact me here or Twitter (@ItsAirplaneJane), Instagram (missairplanejane), LinkedIn and or YouTube Every Trading Day at 815am on Youtube I stream building of my daytrading watchlist for my Youtube Members
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For my charts I use tradingview.com which offer free charting and paid services This blog is for informational and educational purposes. I am not a registered securities broker-dealer or an investment adviser. The information here is not intended as securities brokerage, investment or as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any security or fund.
