Beating the Bubble: How Disciplined Investing Really Pays Off
By Carl Weber III
You are probably already familiar with Dollar Cost Averaging (DCA). You purchase the same investment, allocating the same amount of money, at the same intervals, to average out the buy price over time. DCA has long been the centerpiece for disciplined investing, funding retirement plans, saving for college and even selling your holdings in a rational, controlled way.
But, does it really makes sense to Dollar Cost Average when stock prices are zooming, and gold and silver prices are beginning their rise?
Yes, it does. To understand why, it is important to look at the not-so-mysterious workings of the human brain.
As much as we have evolved, we are still ruled, particularly when it comes to money, by the flight/fight response of caveman days. A well preforming asset gets adrenaline going and puts us on the hunt. We lose our cool and our perspective. Especially in uncertain times, our brain's flight response kicks in to protect us. That's what it's there for; to stop us in our tracks.
This is why so many people stop investing when prices go down and actually wait until they see a rise in price to get back in the game. They need validation. It's all part of our amygdala's 'loss aversion' brain function.
Watch out for that amygdala hijack.
The part of the brain that 'lights up' when the flight/fight experiments are done is the amygdala. Dollar Cost Averaging takes the caveman out of the equation. It works not only because it averages out your price, but because it averages out your emotions allowing you to take disciplined, rational action throughout the course of your financial life.
Most people associate DCA with stocks or mutual funds. For more than 30 years, ASI has noticed our clients who have accumulated the greatest and most secure wealth are those who Dollar Cost Averaged into precious metals rather than make one big buy and let it ride.
Michael Checkan, our co-founder and Chairman always asserts, "Money goes where it is treated best."
People who spend wisely, manage their taxes, do research, spend time with advisors and generally treat their money with respect just get richer.
They seem to have extraordinary luck. We sometimes say, "everything they touch turns to gold." Actually, they are managing their flight/fight response in an unemotional and disciplined manner. They see and grasp opportunities the rest of us never do.
ASI offers stress-free, DCA programs in precious metals, rare stamps and rare coins so you too have access to opportunities, without an amygdala highjack. We have worked diligently to be sure you can start at any level for yourself, your children, your grandchildren or your company and get in the game with Dollar Cost Averaging.
Set it and forget it.
Check out ASI Precious Metals Direct, our online metals trading platform. In less than 10 minutes you can set up a relationship from your PC anywhere in the world. From then on, you can trade in seconds during normal trading hours. You can follow your holdings online 24/7. You get the best pricing, as over a dozen dealers bid on both your buy or sell orders.
With the ASI Precious Metals Direct Wealth Accumulation Plan, you put precious metals Dollar Cost Averaging on automatic pilot, just as easily as you can any e-traded mutual fund.
Simply designate an account from which a stated amount of money can be withdrawn monthly to purchase precious metals for you. If the amount you designate does not purchase a full ounce of gold or silver, we will add fractions of an ounce to your holdings. Your metals will be stored in a 100% insured, secure facility in New York City. You can set up a Wealth Accumulation Plan for an individual, joint, corporate, partnership or UTMA account for children or grandchildren.
Choose from the following holdings:
• 1-ounce gold bars
• 1-ounce Gold Canadian Maple Leafs
• 1-kilo gold bars
• 100 ounce silver bars
If you are interested in a Wealth Accumulation Plan for your IRA, or you are interested in precious metals other than what's in the plan, such as platinum or palladium, you can create a do-it-yourself DCA program that gives you the freedom to store your precious metals domestically or offshore in New York City, Salt Lake City, Singapore, London, Melbourne, or Zürich.
Just decide on a monthly sum to fund your ASI Precious Metals Direct, take a few seconds to place your order on the same day each month, Voila!
ASI has other Dollar Cost Averaging Alternatives
The ASI High Touch Reminder System for Dollar Cost Averaging.
I personally call one of my clients on the 15th of every month to ask him if he wants to buy metals. I do this at his request, gladly making myself a human reminder system for his Dollar Cost Averaging program. He told me, "Carl, without this service, time would run away from me." Despite all good intentions, his future wealth building would not be well served. Once in a while he doesn't buy. Most of the time, just because I've made the call, he makes the commitment and has accumulated substantial wealth in small increments over many years.
We are grateful if you give us the opportunity to do this for you. Just call 877-340-0790 and let's talk.
The Flexible Trading Portfolio of Rare Stamps.
We are one of the very few companies in the world who approach rare stamp buying from an investor's, not a collector's point of view. That's one reason why we are Stanley Gibbons Ltd. North American representative.
Stanley Gibbons Ltd. is the oldest and largest stamp dealer in the world and has held the British Royal Warrant continuously since 1914. They are the publisher of the GB250 and the GB30, the only rare stamp indices followed by financial professionals on Bloomerberg Professional.
To emulate DCA in this unique arena, we offer a Flexible Trading Program that allows you to add stamps to your portfolio any time after making the minimum initial purchase of £10,000 (around $17,000). This program comes with no storage charge, management fee or yearly appraisal fee.
All you have to do is decide how much you want to add to your portfolio and when (even once a quarter), and the experts at Stanley Gibbons will find the right stamp for your portfolio. Learn more about our Rare Tangible Assets program at www.raretangibleassets.com.
Perth Mint and other DCA Opportunities.
Given the wide range of products we offer at ASI, we are able to craft a Dollar Cost Averaging program for whatever works best in your portfolio.
For example, one of our leading products is the Perth Mint Certificate Program. These certificates are guaranteed by the Government of Western Australia. Your holdings are 100% insured by Lloyd's of London, at current market value and stored at the Perth Mint.
We can assist you in creating a self-directed IRA with one of our affiliated custodians and immediately begin your program to DCA into allowable precious metals for your 2014 contributions.
We can also craft a DCA style program in truly rare coins handpicked by Douglas Winter, the world's leading authority in pre-1933 U.S. rare gold coins.
Our mission is to make it easy for you to Keep What's Yours. Make this a reality for your financial future by calling us at 877-340-0790.