What do Your Naysayers Say?
(Why won't your friends and family listen?)
Silver Stock Report
by Jason Hommel, December 3rd, 2009
Many people have told me of their frustration at trying to convince their friends and family. I hear you. It's not much easier for me!
It took me about 6 months to a year to convince my father to buy his first precious metals. I did it by showing him 4 gold coins, and a gold coin was something he had never seen or held. A Krugerrand, a Gold Eagle, a Gold Maple Leaf, and a gold Philharmonic. Back then, I bought them for about $300 each. The result was electric, he loved touching them, feeling them warm up in his hands, and I let him hold them as long as he wished. We ran through all the arguments together, but it seems that the longer he saw and held the coins, the coins won out.
I wish I could let you hold a coin or two, so you could feel the density of the metal, and how different of a tactile sensation it is to nearly everything else you regularly experience, but email is limited. So, I'll just recommend that you visit your nearest coin shop; ask the dealer to hold some real metal.
It took me 4 years to fully convince my father to fully invest in precious metals, from 1999 to 2003. And I was living with him the ENTIRE TIME!
Fortunately, we were early, and we had good gains. The year 2003 was the low for silver, so we sat on a 25% loss at one point.
But that was 6 years ago now. While many of our arguments were the same then as are being spoken today, today is a different world. More bankruptcies. More bail outs. It's clearer now. There is even a solid up trend for gold as a great confirmation. We didn't have that luxury when we bought.
I need to know what's being said today.
When you talk to your friends and family about gold, I know you are mostly ignored, ridiculed, and your fact-based arguments are rejected with non-sequiturs, invalid arguments, ridiculous statements and absurd assumptions.
I know it has to be that way, based on what my readers tell me, and also based on the numbers. With only $2 billion in the world being spent each year on physical silver as an investment, it shows that only about one person in 1000 understands silver, and that less than one dollar in $10,000 is being spent wisely on silver.
My experience convincing people is different than yours. I have more experience than most by now. But there is another key difference between the responses I get in email, compared to the responses you get when you talk to friends and family. See, most people on my email list were actively searching for information about silver and gold. So you are more open minded than the average person in the public. This colors my recent experiences, since I get more than 10 supportive letters for every one that is negative. In fact, these days, sometimes I don't get any negative feedback at all!
So, I sometimes have to search out what others are saying against gold, since I don't get as much negative feedback in my in box.
Please help me help you.
Tell me exactly what your friends and family who reject gold, actually say.
Please tell me in as much detail as you can.
What are their arguments? What are yours?
How does the conversation go? How long will they let you talk before cutting you off? Do they actually tell you to "stop talking," or do they give you an argument you can't think of a reply to?
What do they need to hear? What are their strongest arguments?
What are they unconvinced of? What do they need to be convinced of?
What would you like to share with them? Have you sent them any of my emails?
Would you like to send them any particular email?
How persistent are you? Do you have a planned conclusion to the discussion?
Do you present them with places to go and buy? Do you just not get that far? Do you expect them to take the time to study diligently for over a year to figure out what you have figured out?
Have you put gold or silver into their hands?
Here's what I suggest next time you see them.
Take various kinds of silver, a few different one ounce pieces, such as a generic 1 oz. round, a Silver Eagle, a Silver Maple, and a Philharmonic. Take a 100 oz. silver bar if you can afford one. Those really impress people with the weight of 6.8 pounds, and being so dense. Take along at least 2 gold coins if you can, the Eagle, and the Krugerrand, the most popular ones.
Then don't say a word. Don't push. Don't say anything. Just answer questions, but say no more. They will have questions. They will come like a hurricane if you wait for it.
Let your answers be as short as possible, so they can get their mental wheels going, and get their next question out.
Let them convince themselves, and they will be won over. You likely already know all the answers to all the questions they will have. For most of the questions they will have, you can discern and discover the answers if you think about it for a bit.
A common concern is theft. Simple answer: Vaults work. That's why locksmiths and gun stores sell vaults. It's not like on TV where you can crack one with a stethoscope in 30 seconds.
But "where to put it all"? Ok, multiple vaults. Put a vault in your relatives' houses if your own house is not safe enough. If your house is not safe enough for an inert object, then why is it safe enough for you to live there? Aren't you more valuable than your money?
Another common retort is that "God will protect me". I agree. God provided protection. He created it. It's called silver and gold. They are designed perfectly to thwart all forms of monetary fraud. But if they fail to buy it, then God's protection can't protect them, but will help others who listened, instead. It rains on the just an unjust alike. Similarly, God's monetary protection is only available to those who have it.
Another common concern is the "all or nothing" fallacy. Money is divisible. That's why it's money. Thus, you don't have to put it all into one place. You can put some into silver or gold. But I'd still recommend you put most of your wealth into silver and gold, including home equity, annuities, etc.
Another common concern is that "You can't spend it." That's proof
it's cheap! With less demand as a use as money, less demand means a
lower price. As an investor, you want to buy while the price
is still low, not after it becomes money, you have to buy it first, before
it becomes money again. You also can't spend your house, stocks or
bonds! Money is more than just a medium of exchange, it's also a
store of value. Something going up in value is a great store of