As I was waiting at the barber shop, I had two choices. Look at Fox News or keep my eyes closed. The visual noise of the multiple banners of modern news broadcasts is bad enough, but the hype of the advertisements is even worse.
One of the ads that caught my attention was a company selling gold. They offered it at one percent over dealer cost and with free shipping.
First, what do they mean by "dealer cost"? Is that the cost to buy it in the first place? Or is it the cost to buy it and sell it together? After all, the sales people, the management, and the advertising are all costs for the sale. And isn't the "free shipping" a cost?
Second, if owning gold is such a good deal, why aren't they holding it as an investment? Won't they make more money by holding it than selling it? Maybe they are trying to dump it before the price drops even further.
Magree's law of market timing: When others are excited about buying, keep what you already have. When others are excited about selling, sell what you already have.
