You want to buy gold. You have heard all the great qualities and advantages gold has over other investment vehicles. But you can’t decide when would be the best time to invest.
We agree that gold is a very stable investment option, but we are humans and always consider timing before deciding. So you are asking yourself, “is this the best time to buy Gold? Is it possible that if you wait for a couple of months, you will get a better price?
I looked at the data available and came up with an answer. The best time to buy gold is at the beginning and the end of the year. The best prices for gold were seen between early January and early April or between mid-June and early July.
But the answer is not as simple as this because some people believe it is already too late to buy gold and that it won’t do much good to their portfolio. These are some of the questions I will answer in this article.
I will discuss whether you should buy gold and what time of the year you should buy gold.
Is It Too Late To Buy Gold?
This is the question on the mind of many people looking to buy gold. Most people looking to purchase gold want to make a profit in the future. They are asking, “haven’t I missed my chance?”
Historical data show that 2005/06 and 2007/08 were great times to buy gold. And many people took this opportunity to buy as much gold as possible. These people have enjoyed watching the value of their gold double over the last decade.
So is it too late to buy gold? The answer is no. It is not too late to buy gold. We don’t have an exact science to tell us when the right time to buy gold is, but historical data has given us information on some of the best times to buy gold.
The Best Month To Buy Gold
Unlike most people think, January is not the best month to buy Gold. History has shown that the best month to buy gold is in March. Since 1975, the price of gold has tended to drop this month. Other months to look out for include April, June, and October.
The Best Quarter To Buy Gold
We already look at the best months to buy Gold, so let’s talk about the best quarter. If you look closely at the months, I listed above, you should be able to tell the best quarter to buy Gold.
If you said the second quarter, then you would be right. Since 1975, gold has been at its weakest in the second quarter, making it one of the best times to buy. However, the third quarter is one of the worst times to buy gold. Gold is always at its strongest from July through September.
Effective Techniques And Tips To Help You Decide When To Buy Gold
The months mentioned above are not backed by any form of science, so I cannot guarantee that buying your gold in those months would mean profit. The market is dynamic, and pricing is subject to different factors.
What do I mean? Well, although history doesn’t support this, there is a chance that you might buy gold during the time that I have mentioned and then have the price fall the very next month.
That is why I am giving you some techniques and indicators to look out for before you make your purchase.
1. Look For When Other Investment Properties Are Doing Poorly
It is generally believed that when other investment vehicles like stocks and property are not performing optimally, the price of gold rises.
This is because the big wig investors and companies are using gold as insurance to soften the effect of the losses they have accumulated with these investment options.
So, look out for negative political and economic news, especially when it involves influential economies like China, the US, and the Eurozone.
Times like this are great for entering the gold market or increasing your portfolio.
2. Gold Has A Long Term Upward Trend
The price of gold has been on an upward trend, increasing almost every month for years. So there is a fair chance you will still see an increase whenever you buy gold.
Most people buy gold and panic when there is a little dip in the price after a month. However, this is normal, and the market has a way of correcting itself.
Gold prices face mini dips and increases; however, there is an underlying trend of more increases than dips, and if you are lucky, this trend will continue even after your purchase.
3. Keep A Constant Watch On The Price Of Gold
Gold price changes every two minutes, so it is necessary to keep an eye on the price. Fortunately, technology has made that easy for us. You can keep an eye on the price of gold using your smartphone, tablet, or personal computer. (I found a good gold price app here).
Gold is a fairly stable investment option, but it is not uncommon to see up to a 5% price dip in one morning. If you are lucky enough to notice this, it might be an ideal time to add gold to your portfolio.
4. Gold Offers A Security Blanket
While I cannot precisely tell you when to buy gold, I can tell you when not to. If you are hoping to buy gold to garner profits at the month’s or year’s end, you should not bother buying.
Gold is a safe and timeless investment option, and the benefits are reaped over time. You shouldn’t expect to rake in huge profits from the onset.
Of course, some people are lucky enough to buy gold at the best times and make a profit within a short period. There is nothing wrong with this. However, you should not buy gold with this kind of mentality.
Buying gold is about taking control of your wealth by finding a stable way to preserve it. When you buy gold, you take the control that banks and ETFs have over that portion of your wealth. This is a very sensible thing to do.
And over time, you will see that your gold bullions will do better than the rest of your investment options, just as it has in the past decade.
So When Is A Good Time To Purchase Gold Bars And Coins?
You should buy gold bars and coins whenever you can. However, do not make a massive purchase at once; buy your gold in small quantities that have been spread out. This way, you ensure you are buying at a lower average price.
Also, you should stop postponing your purchase. I have told you that some months are the best for buying Gold. If you are reading this when those months have gone by, do not be tempted to wait till next year, especially if you plan on holding for a long time.
Buy your gold this year because it is possible the price won’t be the same by next year.
Yes, the price might fall, and you can add to your stash at that point. But there isn’t a better time to buy gold than now.
Conclusion
So here is the deal. The best time to buy gold is today, and the next best time is tomorrow. Do your research, study trends, and follow the news. Buy gold once you feel the time is right, and do not fret about short-term dips.
Do not buy gold all at once; rather, pay attention to the market and buy bit by bit whenever you think the price is reasonable.
Gold offers long-term security that most investment options do not have, so take advantage of this and buy gold. Take control of your wealth.
Martin Thomas, the owner of Sutter Gold Mining, is a true gold investment aficionado. With decades of experience and a wealth of knowledge, he is the go-to source for anyone navigating the vast world of precious metals. Martin has dedicated decades of his life to understanding the intricacies of the precious metals market and the best strategies for maximizing returns. His expertise in this field is unmatched, and his commitment to helping others make informed investment decisions is unwavering. With him as your guide, you’ll gain a deeper understanding of the gold market and learn how to make smart investment choices that will benefit you for years. With his guidance and wisdom, you will never have to worry about taking the wrong investment step again.
