Buying Physical Gold On a Small Budget... Also, Could the Deflationists Be Right?

Stefan Gleason Stefan Gleason

Stefan Gleason

July 16th, 2015 Comments

At Money Metals Exchange, we believe a significant part of our mission is to educate customers and the public at large about the many aspects of the precious metals market.

Our precious metals Specialists enjoy addressing your many excellent questions on an individual basis. But we know you also like to see what others are asking about.

Precious Metals Questions Answered

So we regularly share some of the most relevant questions and answers in a more public way...

Who is Harry Dent? He keeps running newsletter ads telling people to sell their gold and silver. He argues we are having a deflation and says gold will drop to $600 per ounce while silver falls to $5.50. I am freaking out!

Deflation vs Inflation

While we do not have a crystal ball, we believe that Harry Dent and other deflationists will continue to be wrong about gold prices as they have been most of the bull market over the last 10-15 years. Those who heeded the deflationists' advice over the past 15 years probably regret doing so, unless they happened to buy within a few months of the $1,900 gold high in 2011.

There is always a temptation to try to time the market...

But it's downright dangerous NOT to own some gold and instead place your full faith in paper assets, the politicians, and the central bankers.

Physical gold and silver are financial insurance, and folks should have some whether prices are going up or down at any given time.

While there are indeed deflationary forces at play, central planners at the Federal Reserve and other central banks around the world are committed to counteracting those forces with inflationary policies, and they have the unrestrained power to create unbacked fiat money to do so.

Inflationary forces have “won” throughout the Federal Reserve's 102-year history, a period in which the U.S. dollar has lost more than 97% of its purchasing power. And there is no reason to believe this trend will suddenly change.

As Former Federal Reserve Chairman Alan Greenspan admitted recently:

"The United States can pay any debt it has because we can always print money to do that. So there is zero probability of default. We can guarantee cash benefits as far out and whatever size you like but we cannot guarantee their purchasing power. Because we can always print money but we cannot guarantee their purchasing power."

Here is a deeper examination of the deflationists' views and why we at feel they will continue to be misguided in their predictions. On the subject of “freaking out,” here is a great article by our columnist Guy Christopher that may quell your fears. And please take a look at the advice Money Metals contributor David Smith shares about using a “secret investment tool” – your mind! – when investing.

If I want to buy a good amount of gold, and I do not have the money to buy it outright, can I pay for it a little at a time?

Monthly Gold/Silver Plan

Yes! This is exactly why we have a monthly savings plan. It’s perfect for accumulating gold and silver over time.

You can put your individualized plan on autopilot and even set it to happen automatically via bank debit.

Money Metals’ gold/silver savings plan is one of very few in America, and over 3,000 people are currently enrolled to purchase every month. The monthly minimum is just $100 for silver and $200 for gold.

It’s popular for folks who are on smaller budgets or who wish to take the guesswork out of timing purchases.

Dollar-cost averaging is a proven, disciplined way of building wealth over time. Check out all the details here.

Stefan Gleason

About the Author:

Stefan Gleason is CEO of Money Metals Exchange, the company recently named "Best Overall Online Precious Metals Dealer" by Investopedia. A graduate of the University of Florida, Gleason is a seasoned business leader, investor, political strategist, and grassroots activist. Gleason has frequently appeared on national television networks such as CNN, FoxNews, and CNBC and in hundreds of publications such as the Wall Street Journal, TheStreet, and Seeking Alpha.