Let’s talk seriously about Gold for a minute. As many of you know I own a small gold mining company. (Merchant Creek Mining Company) While that is a great opportunity and I enjoy every minute of it, there are several aspects to the Gold and Gold Mining Industries and Businesses. And earlier I had mentioned that in the new 2019 Season I would begin to talk about and introduce you to some of the behind the scenes and business aspects of Gold and Mining and what I and Merchant Creek Mining Company do.
While I come from a diverse background that includes several different things I come from a mostly business and agriculture background. At least those are the two most relevant to discuss here. In and of itself Gold has been a standard in the world economy for over 5,000 years. While obviously gold was fashioned and crafted into jewelry, crowns, and other household, wealth, and power much father back in history it didn’t become a standard for currency until about 3,000 B.C. when populations were seeking a way to develop a sort of universal currency, predominantly in the middle east where travel from country to country was the norm. Gold stamped into coins provided that because it’s value was more universal just as it is today with the world Gold Market. At that time gold was also considered a commodity and it was common for individuals, organizations, businesses, governments, and kingdoms to hold physical gold in both it’s raw and crafted or refined forms.
Today, while Gold isn’t considered a Trading Commodity per-say, it’s important to understand how the Gold Market and how buying and selling gold works. That’s where both some business and agricultural savvy come in. Obviously everyone who invests in anything seeks to make a profit, whether is be a simple interest bearing savings account, or bonds, or shares on the Dow or NASDAQ.
The truth is today we ALL invest in a value driven system of economics. Every day we are immersed in this kind of activity. Grocery shopping, household items, etc. are really all value driven sales. By price, brand reputations, psychological considerations, and content and marketing we choose value weighed against price in many of our daily activities, and in all of our purchases. – And as a side note there is a reason besides convenience you get to physically “hold” the items prior to purchase in a store. We will come back to that later on as it serves as a key part of owning and trading gold and other precious metals.
First to look at the business portion. While in general most businesses are built on and into a standard profit-loss system that can reflect fiscal viability, overall net worth, and the actual value of the business itself. Depending on the type and nature of the business itself profits are extracted from customers, other businesses, markets, and so on. Developing cash flow depends largely on generating cash. Period! Whether that is consumer driven cash purchase, or other is immaterial. A business needs cash flowing in and out to generate revenue, and potentially a profit. The key point here as it relates to the discussion on gold is that “on-paper” values and numbers do not necessarily reflect actuarial figures or “actual” values and numbers. Simple point being there is a distinct difference between business on paper, and business in actual cash. The in’s and out’s of this and the advantages and disadvantages of these are variable and not really relevant to consider here as that would take us down a side track. So on to the meat of the discussion here.
Just as we all walk into a store, or stop at a specifically branded store, or buy a specifically branded item for our own individual reasoning. We are investing cash against value and we select physical product we can essentially hold and own. Make note of this again. “Hold” and “own”.
The ag piece here is another good reference point since we all hear daily about commodities and futures trading on everything from pork bellies and packaged or boxed beef, to live cattle and hog prices, grain futures and prices and so on. Yet still the Investor invests, or hedges and investment in order to extract profit. Note this also. Typically these cash and commodity investments are not physically “held”.
How does that all fit together with Gold? Ok. Here’s, in my view the safest and most secure way to invest in Gold or other Precious Metals. First and foremost there is a risk versus reward in any and every cash purchase or investment! Period! It may be investing in your regular brand of breakfast cereal, the brand of fuel you buy, or whatever you spend on, or invest into on a daily basis. Daily purchases are considered an investment in the big world whether as a consumer we actually view it like that or not. If you open the box of breakfast food to find it spoiled, or if you fill with a bad batch of gasoline, the first thing that goes through your mind is a thought related to “loss”. And you wonder if that loss is returnable or refundable. Maybe yes, maybe no depending on a number of things these days.
So, just as in our daily lives we seek to invest in some form or another in ways to generate cash and extract profit. We’ve been conditioned to that. Whether it’s employment, or savings or self own business, and so on, the goal is to generate cash and extract profit.
Precious metals are generally traded and exchanged in two different forms. 1) The markets. 2) Physical ownership. Each owner and trader have their own preferences as to why they do what they do. I will judge neither. I will however give you my best recommendation for extracting profit from precious metals such as gold. And, will largely keep my discussion on gold itself because that is my industry and business.
The first thing is that I cannot tell you, nor can anyone if investing or trading is right for you. You have to reach that decision on your own. It’s your money you are placing and you need to have some confidence and understanding that you can extract a profit in the future.
First discussing the Gold Trading Market. And using myself as a Guinea Pig. Merchant Creek Mining Company trades gold on the Forex Market. Mostly as an investment hedge against company loss. The example would be the 2018 season where wild fires forced the shut down the mining operation in mid season. The investment carried the small company the rest if the year. It also could have added to the on paper season loss had there been a significant price drop. Fortunately the price movements remained within projected ranges so profit was extracted.
Now, having said that, there are a couple of this to consider for this type of investing or gold ownership. First, just as gold mining it is a high risk versus reward endeavor. And secondly just as with the commodities, pork, beef, or grain markets and futures you only “own” the product on paper, you don’t physically hold it in your possession. So, generally speaking, that leaves to door wide open for third-parties to manipulate prices, volumes, trades, and so forth wide open. Yes there are various regulatory organizations and agencies such as the S.E.C. who regulate the trading industries, however more than likely, and we all know it happens, market and price manipulation, and insider trading occurs and leaves investors with a direct total cash loss and worthless paper ownership. Cash gone forever.
The second way to invest in gold or precious metals is through “direct ownership”. That is exactly what it means. You invest in Gold and physically take possession or stored ownership of the actual gold. It’s yours. You own it. You can have it and hold it physically, and it greatly increases you chances of profit and greatly decreases you chance of loss. This is by far the best investment method as far as I am concerned. Limiting risk is the key to a foundation for generating and extracting profit.
The storage option is much like storing grain at a local grain elevator. They charge a storage fee in exchange for housing your physical grains. Or like a cattle feed yard that’s collects yardage and keep fees for managing and taking care of your physical cattle ownership.
That’s why I have done countless hours or research here. Talked to many people and brokerages, and so on. If I was going to align Merchant Creek Mining and Myself with any form of Gold and Precious Metals Buyer, Broker, or Exchange it had to be the best. First securing a buyer for Merchant Creek Mining Company Gold, then later working with a broker and exchange. I believe I’ve done that. The end buyer for my gold produced through Merchant Creek is the same end-buying company that buys, or at least buys part of the Gold from the Gold Rush TV Series.
Secondly I am extremely comfortable in my association with Gold Broker. For the exact reasons I have discussed here. Gold Broker is one of the few companies today that deals in physical ownership. Investors and buyers physically own the gold they buy! It’s yours to do whatever you want with and is completely in your possession. This eliminates the third-party and other concerns. See Goldbroker.com
Whether you know it or now, even the world’s biggest banks don’t physically own the majority of the gold, they buy, sell, or trade. So gold investment through the banking system is more safe than trading openly on the markets where it’s all on paper, however since the buy, sell, and trade more gold than they physically have in their control at any given time, there is risk since some is still on paper.
Lastly, investing in or buying gold as an investment is not as costly as one might think to get started. We’ve all seen the commercials and ads for various mints and so forth. My only comment there is that is most cases I think the investment is over-priced. Which is another reason I aligned what I do with Gold Broker. Visit Goldbroker.com
Offices based on the U.S.. A long track record of success. Sales and service for almost any budget from small buys to multi-million dollar sales. And a very high trust factor rating. You know when you use Gold Broker you are getting “value”, “physical possession”, and you can “own” and “hold” in your hand the product. That speaks volumes! And it’s easily exchanged for cash at any time since it’s yours!
It doesn’t get much better than that! To see what Gold Broker offers you can click on the links below. Or if I can be helpful in any way let me know!