Investing in gold is one of the best choices that you can make. Knowing when to buy gold is the tricky part. You can either hit the jackpot when buying gold or incur huge losses. Some people know when to invest in gold and they have been rewarded with massive amounts of profit.
A bit of history of the Gold
There are certain periods when it was the best time to buy gold. In 2005/2006, the people who invested in gold bullions had a huge win on their side. At that time the price of gold was 250 pounds per an Oz of gold. Another example of such a time when the prices of gold had reduced was in the year 2007/2008. During this particular time, there was a major UK bank crisis. The crisis provided the perfect time for one to buy gold. The price of gold was manageable. It was 350 pounds per Oz of gold. Since, then the price has been steadily increasing. The people who bought gold during the above-mentioned times made a wise decision because now, they stand to benefit. The price of gold has increased by about 230% in the past five years! You can imagine if you bought gold during 2005/2006 or 2007/2008, your investment has definitely paid off and the best news is that it can only get better.
I know that most people want me to give them an exact date or period that they should buy gold. Sadly, that is not possible. The only way that we can come close to ascertaining the exact period that one should invest in gold is through our predictions. However, you should note that predictions are not always true.
As an investor, you should look out for certainindications that will aid when you in deciding when you should invest in gold.
Follow the gold price
I don’t mean that you should literally get up and follow the gold price. What I mean is that you should always be connected. Staying connected is a great way to start keeping track of gold prices over the past days, months or even years. Gold prices change very two minutes. Thus, it is imperative that youare connected through either your phone, your PC or your laptop so that you can keep track of the gold price in real time. Prices may always be on the rise but there is a particular time when the price drops by some few coins and that is the best time that you should buy your gold. Prices of gold can dip by even 3.5%-4%. The preference of people varies when buying gold. Some people like to buy gold when the price is in the middle (neither high nor low) while others prefer buying it when the prices is in the dip. As a new investor, you might opt to buy gold when the prices have dipped. Remember do not invest all of your money at once, follow the trend and then invest little by little.
Buy it when you can
We have talked about keeping a track of the gold price. That is important but you should only invest in gold when you can. Gold cannot be compared to stocks. Gold is wealth insurance and thus, you cannot invest in it like the way you invest in shares.Do not invest in gold when you are not sure about your decision. If you invest and you are still uncertain about your choice, then you might end up incurring huge losses. The most important question that you need to ask yourself before buying gold is whether you need to. If your answer is affirmative, then there really is no point waiting any longer. Invest as soon as you can. Do not keep on postponing or waiting for the prices to be more suitable or conducive for you because the truth is that they might never be. When investing in gold, keep in mind that it is safer for you to use part buying (which refers to buying gold in small amounts) rather than buying it all at once.
It would not be fair talking about when to buy gold without including this segment. I know that there are some people who execute their plans based on certain superstitions. This also applies in gold investing. Some people believe that investing in gold during the summer would work well for the investor as there might be some discounts. If you believe that, then summer would be a great time for you to invest in gold. The Hindu festival of Akshaya Tritiya has become a time that is well known by the gold retailers specifically in India. This might also be a great time to invest in gold. However, keep in mind that in the past few years, the Akshaya Tritiya time has not been the best time to invest in gold. Thus, before investing, think again so that you do not end up making the wrong decision that would have otherwise been avoided. There is also a superstition that revolves around the Chinese calendar. The retailers believe that the demand for gold is not as high during the summer than it is in other seasons of the year.
Recognize the long-term benefits of gold
Before I go any further, I would like to inform you that the gold prices might sometimes dip. The price of gold is determined by the dips and the increases that the gold goes through on a daily basis. When they do take a dip, it is important that you do not lose your cool and begin to panic. The real estate sometimes acts this way too. Remember to stay calm as the panic might cause you to make some decision that you will later on end up regretting. We know that the price of gold has been increasing over the years. We buy gold because we believe that the price of gold will increase even after the gold prices have dipped. It is important that you remain hopeful that the prices will increase as this has been shown to be the case over the years. You should also know that buying gold is not a short-term investment. For you to reap the maximum benefits from this particular investment, you should have patience and be willing to wait for more than a year or so before you sell your gold. I advise you to hold on to your gold for a period of not less than six months. If you buy and sell the gold in less than sixmonths, you will have made little or no profit at all.
Buy gold during uncertain times
Do you consider yourself an informed person? If you are, then that is great. If you are not, you should consider working towards becoming one. Before you buy gold, keep an eye out for news and announcements that originate from the Stock Exchange, banks, the government, wall street among others. A good example is the 2007/2008 session. The UK bank was going through major crisis and this forced the price of gold to reduce. Those people who were keen and projected that the gold prices would go down made vast amounts of profits. By buying gold when the price was low could only mean that they will sell when the price increases to even double or triple to that of the original price. Negative political and economic messages create unrest and this causes the price of gold to decrease. It is important that you follow keenly the property, currency and stock exchange markets of very influential economies like those of the Eurozone, US and China. Whenever major investments like stock or even the property market are not stable or have lost their value, the demand for gold increases because companies and major investors begin to use gold as an insurance policy so that they can cover their losses. This then becomes the perfect time to invest in gold either as a newcomer to the market or you can opt to add more gold to your portfolio. Whichever way you decide, you will not go wrong.
Time counts for the Gold Investment
One of the best time to make investments in gold is when you are young. By investing when you are young, you have a sense of security rather than investing when you are old. Young people have a better chance of getting back on their feet even after they have suffered huge losses. However, I do not mean that because you are old, you should not invest in gold. Remember that I also said that the best time to buy gold is when you can. So, if you are sixty years and that is the time that you are ready to buy gold, then go ahead and do so.
Seriousness is a major factor
How serious are you in the gold business? Are you just trying it out or are you planning to invest for the long haul? In my other segments, I have talked repeatedly about gold being a long-term investment. To top that up, there are also huge risks that are involved. There is no doubt in my mind that gold investment is only for those people who are serious and not for the faint-hearted.
Time to seal the deal
Now that you have conducted all the research that you need to and are sure of your decision, then and only then can you invest in gold. If, you still have doubts about the investment, I advise you to carry out more research or abandon the whole idea for a while and then return to it later on when you are sure.
As you have read from the information above, there does not exist a specific time that one should buy gold. The only way to ensure that you get the best price is by doing your research and studying the price of gold and the trend that it has maintained over some time. Always remember to follow the news from important institutions so that you can predict if the gold prices will increase or decrease. Even after you have invested in gold, keep yourself informed at all times lest you make the wrong decision. Do not worry about the sudden dippings in gold prices from time to time. In fact, that is normal. In April 2013, the prices of gold dropped by about 13% in just two trading days and by the end of the year, it had dropped down to 28%. This proves that although gold is a wise investment to make, it also has risks and requires one to be very patient. Remember to buy your gold at a reasonable price. Research the prices that have been in the market in both the previous and current time. If you fail to do so, then you are at a higher risk of being sabotaged by someone who is more informed than you. So, before taking part in any gold rush, conduct your research irrespective of what people are saying. People tend to do things in order for their sole gain. If you are the type of person who buys something just because you have been told to buy, then I would suggest youchange your thinking as it is very easy for people to get conned in this line of business. Gold investment is for everyone irrespective of gender or even race. You can decide to invest today in gold and reap great benefits that may last you a lifetime or you can opt to wait and invest later. Various countries like China are slowly increasing the demand for gold. Like I stated before, there is no good time for one to invest in gold but investing as early as possible is a smart choice as this will give you time to slowly increase your portfolio.
As a parting shot, I would like to remind you again to research and keep on researching.