Two Problems. One Solution... A Baker's Dozen Strategy for Automatic Wealth Accumulation

By Rich Checkan

If you don’t get gold, there’s a good chance you may never get any gold at all. And, in my opinion, that would be a horrible shame. You see, if you don’t understand and appreciate gold’s role and gold’s value in your portfolio, you most likely will never reach out to find out more about this vastly under-appreciated asset class.

The result is you may never own any.

After two decades of buying, selling and advocating for gold, I’ve noticed two major obstacles to gold ownership tend to show themselves over and over again, day in and day out.

1. It is difficult (or impossible) to identify the right time – or price – to buy gold.
2. It is difficult to understand why gold, a barbarous relic – is even worth owning in the first place.

The good news is there is one simple solution to both problems. But, before we go there, let’s understand the obstacles a little better.

Problem #1… yesterday

Yesterday was a day very much like every other day at ASI. And like every other day, my staff and I fielded numerous phone calls and emails.

Some were a variation on the theme, “Do you think now is a good time to buy?” Some of the conversations led to clients stating they were interested in buying gold, but they were waiting for “the right price.” Clearly, by that they meant something lower than yesterday’s price.

Both of the conversations above are based upon the assumption that market timing works. The reality, unfortunately, is market timing invariably does not work.

There are simply too many variables, too many factors, too many circumstances outside of our control for market timing to be a reliable and effective strategy. Let’s not forget the impact of emotion on this equation either.

Trying for the perfect price can be dangerous to your wealth.

Securities professionals warn you not to miss the 10 best days of the market. It will cost you dearly.

Historically, the market's 10 best days have come within two weeks of the market's 10 worst days. The chart below shows you the danger and futility of stock market timing.

Problem #2… yesteryear

My Dad collected all sorts of things. And, he owned quite a few gold and silver coins.

Now, either he did not make an effective case, or, more likely, I was too distracted or disinterested to listen, but I never did understand why he owned gold and silver… until I started to work for ASI.

When Michael Checkan and Glen O. Kirsch hired me in February of 1996, I did not have a clue about gold, silver, rare coins, fiat currencies, central banks… you get the point.

But then, something wonderful happened. By listening to Glen and Michael as they worked with our clients, and by hearing their arguments, and by feeling the passion with which they made them, I took the plunge.

I bought some silver at $4.53 per ounce.

Eventually, I saved a little more, and I bought a little more. Then, I bought some gold too. Over time, other tangible and rare tangible acquisitions would follow.

More importantly, as time went by, I saw these assets grow in U.S. dollar terms. Of course, they did not go up in a straight line. They dipped in price too. Sometimes severely. But, over the past two decades, I’ve seen the growth (in U.S. dollar terms) of my gold and silver happen right before my very eyes.

Now, I “get” gold. But, I can’t say I understood or appreciated it until I got some gold for myself.

This all came back to me a month ago as I read an article in The Oxford Club’s The Oxford Insight written by our friend Matthew Carr, their Emerging Trends Strategist. Matt graciously allowed me to share it with you…

I was talking to a Member recently about how he gave a gold coin to each of his grandchildren on their birthdays.

His daughter - their mother - called and said, "You know, Dad, they'd really appreciate something more usable... something they could play with. Like a toy."

To this, he responded, "That's not my job. It's my job to provide them with something I think is valuable. That they can use. If you want, you can take them to the pawnshop and sell the coins. Then they can buy whatever toys they feel like."

For me, this little vignette speaks volumes.

Now, the solution

So, we’ve talked about two problems, two obstacles to gold ownership… 

1. When should you buy?
2. How can we learn (as early as humanly possible) that we should be buying gold in the first place?

The solution is ‘dollar cost averaging.’

‘Dollar cost averaging’ is a method of buying the same dollar amount of an investment at pre-determined intervals, usually monthly, so the price at which you buy averages out over time. You can put as much or as little as you wish into an investment on a programmed periodic basis, assuring that you will have bought or sold at a solid average price.

People much smarter than me (don’t tell my kids such people exist) have proven the superiority of dollar cost averaging over market timing. And, if this dollar cost averaging can be set-up to recur monthly – kind of on autopilot – in small amounts, it can be a great tool to teach children, grandchildren, nieces and nephews the value of owning real money from a very early age.

Like me, they will be able to see the value grow before their very eyes. By “getting” some gold, the might actually understand gold much earlier in life than I did.

And that would be a very good thing for them to learn.

What to do next

This Wealth Accumulation Strategy is built into our online platform, ASI Precious Metals Direct (ASIPMD), one of ASI’s Baker’s Dozen.

ASIPMD solves two problems… how to be price conscious and how to invest in smaller allotments.

ASIPMD's Wealth Accumulation Program is a very easy, practical and efficient way to put your wealth on autopilot and to take your emotions out of the equation.

We want you to take advantage of the opportunity to own physical gold or silver, and to accumulate it at the pace and cost you desire.

To sign up, visit www.ASIPMDirect.com. You can do it all online. But, if you have any questions, or if you get stuck in the process, simply send us an email or call 800-831-0007 to speak with an ASI Preferred Client Relations representative. They will walk you through the process to set up your Wealth Accumulation Program.