In years passed those who wanted to own physical precious metals options were limited. In most cases, investors took delivery and were responsible to store and insure their investment. As this option is still available, it does create some difficulty with the costs and timing associated with liquidation. Additionally, there is no method to increase your holdings (number of ounces) in this static manner other than through additional purchases.
The Bullion Advisory Group will arrange home delivery for those interested and also offer our Managed Trading Model if your objective is to attempt to take advantage of market movement. We educate our clients on how to purchase bullion in the most cost effective way. Fabricated bar costs, unallocated "pooled" pricing and the difference between bullion coins vs. bar premiums are all imperative towards your bottom line.
In an effort to understand our Trading System, let us look at a generated sell signal opportunity in the silver market:
Silver had made a stellar parabolic price increase from the time period of August 2010 through April 2011 gaining over $32/oz. Technical analysis showed the silver market to be overbought, but strong buyer sentiment and fundamentals continued to drive prices to near record highs.
Our Trading Department will track trends but also seek to minimize risk of retracement by the use of Bulk Stop Orders. Bulk orders insure that all clients involved will have the same fill pricing (both buying and selling) by trading together as one unit. In our opinion, this is the most equitable and efficient way to operate in a quickly moving market. Having said this, The Bullion Advisory Group is not limited to bulk orders and can custom design a trading strategy depending on each investor’s goals. We analyze daily high-low price movement to establish normal market volatility and set our stop orders outside of this range to avoid being whipsawed prematurity out of the trend.
However, as in this example, once our stop price has been hit, we will exit the position in order to protect existing profits and look for a potential lower re-entry price point. Since no one can predict exact market tops and bottoms, our Model takes the emotion out of this decision making.
In the above silver trade example, our Stop Sell Order would have triggered at $46.00.* Our Trading Department would then look for support (bottom) to establish itself and would have generated a buy signal around $34.50. The result would have captured an $11.50 price swing. Clients would have the option of taking this profit in cash or to re-invest profits into the next trade, thus, owning more ounces of bullion using their existing capital. By acting on these trade signal opportunities over time, we feel that our clients will accumulate more wealth while also reducing their overall risk.
*Market orders are not guaranteed to be filled at the specific price (during a sharp correction) but as a best effort once it has been triggered.