These rules are based on "The Global-Investor Book of Investing Rules: Invaluable Advice from 150 Master Investors” by Philip Jenks and Stephen Eckett, which includes tactics, strategies and insights relied on by 150 of the world's most respected financial experts are revealed in a concise, digestible form.
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Ten Rules for Silver Investing, by David Morgan
Rule #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 execution 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.
Unfortunately this 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, 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 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 United States, 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, through which we execute transactions with several different dealers in the United States. The small price of this report could save you time, money and heartache.
David Morgan has followed the silver market daily for more than thirty years. Much of his Web site, www.silver-investor.com, is devoted to education about the precious metals. For a short time you can receive full access to The Morgan Report!
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Silver offers an opportunity that that few investors really understand! We will be the first to admit that silver is more volatile than gold and the moves can be exciting!
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