When is the Best Time to Buy Gold?

“The future is something which everyone reaches at the rate of 60 minutes an hour, whatever he does, whoever he is.” ~ C.S. Lewis

Often I hear people saying, “Hey the prices haven’t yet come down. I’m waiting for the right time to invest in gold.” well, this one statement has many contrasting aspects. What is right for one may not be the ethical time for someone else. If you are a gold coins collector or gold bars stocker, the time and season will have a totally different meaning to you than to those who are interested in gold shares or ETFs. At more times than other, the buying and selling depends on market trend but individual liquidity might be another concern.

 

Have decided to invest in gold shares? It is advisable only if you are a keen observer and an unfailing follower. What is obvious is you have short-term gains on your mind. So nothing can be better than stock exchange. But you must be a thinker and not just a doer. Whether the market is bullish or bearish, what is required is patience. Supposedly, gold is fairing $1,626 currently, and keeping some factors in mind you decide to buy it today. You may never know if gold plummets to $1,400 in a week but you should not be quick to hit your head and give away the ownership. This because, gold has a value that it keeps. Your disappointment would soon vanish as the yellow metal gets back on track to an up rise.

Don’t think you can handle the hysteria that flows within the market. Then you are not an exception, most people prefer buying physical gold (bullion) that comes with a surety of touch and knowing that you have what you possess. Also, it is advantageous to invest in gold bullion as it comes without any tax hassles. The time to buy gold bullion also depends on the market rate but the major factor is if the investor is mentally prepared to stake in for long term savings. And that he wouldn’t be compelled to sell long too soon.

For bullion buyers, tracking prices doesn’t hold much importance. All they would like to observe is how much of their pocket fund can they put in bars/coins when the prices are somewhat reasonable. And once bought they are aloof of all the frenzy around minor fluctuations.

Many service people believe in purchasing gold ETFs, exchange traded funds. As opposed to jewelry or even gold coins, ETFs return an appropriate market value and one doesn’t have to go looking for the right place to buy one. For these buyers, price of gold is most important. During a season say festival time gold dealers might offer lucrative prices to their consumers so as to attract most crowd towards their schemes. Also, summer time is a rather slow market time, considered befitting for investing in shares or paper money.

So it is important to keep a few things in mind while deciding when to buy gold. Buying should come in sync with an upward trend. If the gold is rising quite consistently, it is wise to invest now than wait for it to come down. In fact, if you own some now trust me you would never want it to come down. There can be some months of lethargic movement which offer a great opportunity to entrust in gold. Also, you should be aware of good companies to invest in, and then your inch of time would turn into inch of gold! Not everyone who predicts a big hit in gold rate in just a few weeks is your friend.

Lastly, what is equally important is you should learn not to flow with the wave. Sometimes what everybody else is doing is not what is right. Keep yourself grounded and draw a line between emotions and practicality.

Related posts:

1. Should I Buy Gold?