How Smart Gold Investors Profit from Unexpected Events

Most gold investors tend to be pretty conservative investors. They hold onto their gold and think, “It’s a quiet market right now...prices are stable and relatively low...and not much is happening...I can relax and just wait until something changes.”

But they’re wrong, because unexpected things do happen in the precious metals markets. We’ve just learned that from the recent strong uptick in gold trading prices that was triggered by instability in the Chinese stock market. Who saw that coming? Everyone was motoring along and thinking that nothing much was happening and then suddenly something unpredictable really did.

Artwork for Gold Refiners blog post about how smart gold investors profit from unexpected developments events. Credit: ene/iStock.  

That one event teaches us something valuable about investing in gold . . .

Prices can suddenly increase or fall for unexpected reasons, 
and we need to be prepared.

History has shown us that the value and price of gold can be suddenly affected by unforeseen changes. Looking back over the years, we’ve seen gold prices buffeted when countries have moved away from gold-backed currencies, when the increase in the number of consumer electronic devices suddenly created a bigger demand for the metal, when environmentalists suddenly made us all aware of the necessity of buying “green” gold that is responsibly sourced, and other events. Gold prices might look stable when you look at them over a period of a few months or years, but they really are not.

How Can Investors Prepare for the Unexpected?

That’s the big question. After all, if you don’t know something is going to happen, how can you get ready to profit from it? But when you stop to think about it, you realize that the essence of good investing is to learn to balance predictable events with unpredictable ones. Another term for that is “risk-minimized investment.”

So, what kind of strategies can help you profit when prices rise and insulate yourself from loss when prices fall? We encourage you to call our consultants now at 800-426-2344 to discuss wise investing strategies, which can include:

  • Set up a Specialty Metals Gold Pool Account. Our pool account enables you to send us your recyclable gold items for testing and appraisal now. We let you know the value of your holdings. Then you tell us to recycle your items and pay you when prices reach a point that you specify. In this way, you position yourself proactively to profit from higher prices when they occur.
  • Buy and hold. To apply this strategy, you amass quantities of gold in the form you prefer: bullion investments, unrecycled items like sputtering targets, old gold-filled jewelry – whatever you like. You then take the long view and don’t liquidate your holdings until prices rise. In essence, that is the same strategy that underlies the Specialty Metals Gold Pool Account that we describe just above. The difference is that our account enables you to liquidate unrecycled gold quickly; if you have recyclable gold items and send them to us for testing and refining after prices have already risen, you might not be able to liquidate your holdings quickly enough to take advantage of price upticks.
  • Place your gold holdings in trusts, IRAs and other vehicles. These are strategies for insulating yourself from losses long-term. Because they should be part of your overall financial and estate planning, plan to talk them over with your attorney or financial advisor. If you choose to invest your gold holdings in this way, please keep us in mind and call us at 800-426-2344 so we can add our expertise from the perspective of a precious metals refinery that can process your holdings and establish the reportable values and other information that you and your financial advisors will need.

A Cost-Minimized Way of Testing Precious Metals

When you call us, mention our blog and ask about how you can ship your precious metals to us for testing. In some cases, free or discounted shipping costs could apply.

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