Silver Investing – Rules #4 #5 #6

Posted by David Morgan -

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Ed Note: go HERE for Silver Investing Rules #1 #2 #3

4.  Dollar – cost average to lower your costs – and increase your discipline.

Dollar-cost averaging is an ideal way to implement Rule 2.  By making same-dollar purchases at regular time intervals, you wind up buying more metal when prices are low and less when they are high. This approach helps you develop discipline, erasing the “trader’ mentality that infects many market participants and instead fostering an “investment” philosophy. Dollar-cost averaging also eases some of the sting when prices move against you, allowing you to view the downturn as an improved buying opportunity rather than a disappointing loss.

5. Do not get a raw deal from your dealer.

Because of the specialized nature of the physical metals markets, selection of a well established dealer with a quality reputation is essential.  A good dealer will provide timely executation of your trades at fair prices with reasonable fees. Note, as well, that the lowest price is not necessarily the best price. In the past, some dealers who squeezed their price margins too low in order to attract clients were unable to make delivery, leaving those clients holding the bag.

This unfortunately is an area that prevents many people from purchasing precious metals in the first place. People are leery of dealing with someone over the phone and sending them money, and then waiting for their precious metals to show up. It is very rare that something goes wrong and almost all dealers are reputable. However, as in most aspects of life the occasional fraud does appear.

It has been our experience that most questionable dealers are fairly easy to spot by simply using common sense. Also, we must mention that fraudulent schemes normally appear near the end of the cycle which is not for another five years or so in our view.

Years ago as we were nearing the peak in gold and silver, a nation wide campaign was started in all the major newspapers in the U.S. and the Headline read “Buy Gold and Silver Below Spot”

Now, this is simply impossible and anyone with a shred of common sense would have stayed clear of such a “dealer” , but since some people seek that special deal many customers were taken to the cleaners as this company filed bankruptcy.

Again, we want to point out our special coin report doing actual transactions with several different dealers in the U.S. the small price of this report could save you time, money and heartache.

6. What’s yours is yours – so keep it that way.

While it is wise to keep some of your silver where you can get to it easily, it is also important to keep the bulk of your metal in a safe place- especially as you holdings increase.  However, if you establish an account with a brokerage warehouse or other public storage facility, you should make sure your holdings are kept segregated and that you can inspect them when you wish.

Anyone that has studied the Silver-Investor website knows there is far more paper silver than real silver in the world. In fact our primary premise is that the real sustained move up in silver will not occur until the market recognizes this fact. You certainly can participate in alternative precious metals investments such as pool accounts or options but remember you are dealing in the paper world and expect settlement in paper not in metal.

Fully paid Comex warehouse certificates held by you in your name do comprise real silver.


Mr. Morgan has followed the silver market for more than thirty years. He wrote the book, Get the Skinny on Silver Investing. Much of his Web site,, is devoted to education about the precious metals, it is both a free site and does have a members only section. To receive full access to The Morgan Report click the hyperlink.

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Disclaimer: Information contained herein has been obtained from sources believed to be reliable, but there is no guarantee as to completeness or accuracy. Because individual investment objectives vary, this Summary should not be construed as advice to meet the particular needs of the reader. Any opinions expressed herein are statements of our judgment as of this date and are subject to change without notice. Any action taken as a result of reading this independent market research is solely the responsibility of the reader. Stone Investment Group is not and does not profess to be a professional investment advisor, and strongly encourages all readers to consult with their own personal financial advisors, attorneys, and accountants before making any investment decision. Stone Investment Group and/or independent consultants or members of their families may have a position in the securities mentioned. Investing and speculation are inherently risky and should not be undertaken without professional advice. By your act of reading this independent market research letter, you fully and explicitly agree that Stone Investment Group will not be held liable or responsible for any decisions you make regarding any information discussed herein.


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Times have changed just as predicted by us so long ago, and it requires action on your part! Yes we have always advocated buying real metal first and still do but the biggest gains for us, our readers, and even the coin dealers we feature in this free newsletter have all made the most money in the “paper” markets.

Right now early 2009 presents a gift and opportunity you don’t want to miss, we truly think the next run up in mining shares is going to make the housing and tech bubbles look small. It will take time for this to happen but NOW is the time to get started. For the cost of dinner for a family of four at a mid tier restaurant you can get six months of our best thinking to help you make as much money as safely as possible.