Timing The Gold Market... Is There a "Best" Time To Buy?
Updated: Nov 19, 2019
When is the right time to buy gold? Well a crystal ball would help for starters...
Historical trends are sometimes a good indication of when you should buy gold. When we take a look at some archived data, it is clear that 2005/06 was a fabulous time to acquire gold bullion during a period of constant increases, when the cost of gold held at $290oz. The same could be said for 2007/08, when the crisis in the banking system offered another excellent chance to jump on the bandwagon when gold was standing at only $410/oz. Some canny investors recognized these trends and took advantage of them and have watched their gold investment spiral upwards. Many investors have experienced significant returns as gold prices have doubled, tripled and nearly quadrupled in the last 15 years.
Some of the most common questions I hear these days are; Am I too late in entering the gold market? Will it be to late if I invest now? Surely the value of gold cannot continue to rise; I tell them that if you were lucky enough to purchase gold in the mid-2000s and sell at its peak in 2012, then you’d be delighted. But not all investments require a 200% or 300% return to be considered successful. Everything investment related doesn't have to provide the returns of the bitcoin boom for goodness sake . Buying gold is not an exact science, but if you follow market trends, purchase low and sell high, you can make significant returns on your investment. Here are some effective methods to try and have proven to be successful in providing returns on gold investments
Watch for upward trends, the longer, the better.
When you are looking to purchase gold, it is essential to understand gold fluctuation is normal. When you acquire gold, be careful not to panic if gold values dip up to 5% a few months later. That’s gold my friends, it is volatile. That kind of fluctuation needs to accepted if you want to invest in gold. Good news, history implies it will correct itself and shoot back up….then down again…then up… then down, you get the picture- rinse and repeat. This can create opportunity for the average investor though.
Disclaimer- I must say before I go any further that If you want to attempt to time the highs and the lows of gold for the perfect entry and exit consistently, good luck. There are professionals who have been in the industry for years upon years who are still trying to figure that one out. We’d all be rich if that were the case.
Ok I got that out of the way so now we can talk about trends and charts. Gold spot prices are plotted on charts daily. You can follow long and short term trends to help you identify good entry and exit points. An upward trend is where the price keeps rising over a period of time, a downward trend is just the opposite…price continues to drop. If this is of interest to you I highly suggest you read and study technical chart analysis. There are hundreds of books out there. Is it fool proof? Far, far from it. In fact, you have some that say TCA is totally useless. We disagree. Research it yourself. It may help you analyze the gold market in a more effective way.
Gold ownership, in our humble opinion, is simply not an investment for the short term unless you are a trader. We suggest when following chart trends pick the monthly charts and start with those. We think that you should always intend to keep your gold for at least six months or if possible, even longer. We get it if you make a big profit in a short period of time and you want to cash out, It’s up to you but the benefit of gold is in long term ownership.
Buy Gold in Turbulent Times
When contemplating buying gold, keep focused on any important news and reports coming from organizations including Banks, Stock Exchanges, Wall Street, World Governments . Any forecasts of negative economic growth and political instability, are always good times to buy gold. The most straightforward indicator as to when the value of gold might rise is when different investments such as stocks are dropping. In most cases the price of gold, silver and platinum will rise. It is thought that many influential investors and businesses choose gold as a security policy to offset losses accrued elsewhere. It is a hedge. If you can strike while the iron is hot, investments in Gold bullion or a Gold Bullion IRA can offer significant returns, even if you are a first-time investor.
A recent example, was when President Trump and China were neck deep in their trade war, the stock market dropped, but the value of gold jumped from $1400/oz to over $1500/oz. Many investors saw this coming when Trump announced his tariffs and made an excellent return in a relatively short period.
Purchasing gold is partially about choosing the right moment. It may be necessary to maintain a closer eye on the trends in the value of gold. The price fluctuates every few minutes in the market so watching the latest trendline online, setting alerts for any amount that you consider favorable, can create opportunities to take advantage of. Gold prices can rise and dip as much as 5% in a given morning. If you can spot these dips, it is an ideal opportunity to take advantage, as the prices inevitably rise, unless this dip is part of a consistent downward spiral.
Some people take a chance to purchase gold at the best time after doing due diligence, and they can make substantial profits which is great, making a significant profit from an investment is always a positive. But for most investors, gold investments remain ultimately about protecting their assets and protecting themselves from the next financial crisis, by gaining control of their wealth, or at least some part of it, taking it out of the hands of the banks and other financial institutions.
Buying gold is one of the sure investments in life; it is a timeless asset. While it may not always offer huge returns, it has shown consistent growth and offers so much more to a portfolio than other investments in its class.
The best way we know to invest in physical gold is in a Gold IRA. The most reputable company we can recommend for either educating yourself or purchasing a Precious Metals IRA is:
By clicking on the link above, you will be sent a FREE no hassle gold investment kit from them.
You can also visit our website where educational articles are housed on the topic.
The Gold IRAs 101 Team