The value of gold is constantly increasing. In the last ten years, there hasn’t been a single year in which gold hasn’t grown by at least 10%. You might think that gold has reached its peak, but many experts believe that it has a good few years of growth yet to come.
It’s not too late to join the party, but you want to make sure that you enter at an appropriate time.
- Buy gold whenever there is a correction happening. Ideally, when the spot price hovers around the 200-day moving average or goes below it, it’s a good time. Just calculate the average of the spot price of gold for the last 200 days, and when it hits that average, it’s time to buy.
- The gold-to-silver ratio is one of many ways you can determine the optimum time to buy gold or silver bullion. When the ratio is high, the general consensus is that silver is favored. This is because, relative to the ratio, silver is somewhat cheap. Conversely, a low ratio tends to favor gold and may be a signal it’s a good time to buy.
- Buy gold during uncertain times. Keep an eye out for major news and announcements from banks, stock exchanges, governments, etc., Negative economic and political messages create unrest, and this unrest creates panic in the precious metal markets. As a general rule of thumb, when investments such as property and stocks are underperforming, the price of gold and silver will increase, as investors selling their shares in the former, tend to turn to the latter to provide some financial stability.
- Try to accumulate physical gold and silver over time, buying more every time prices fall.
- The best time to buy is when everyone else is selling. There is, of course, a reason they are selling, but over time gold will stabilize and there is always an inherent value in this metal.
- Remember that owning gold bullion is about owning a safe, secure and timeless asset. It’s not about making huge profits at the end of every month, but about preserving your wealth and protecting yourself against economic crashes and crises.
- Experts agree that the current gold cycle is only about halfway completed — billionaire investor Warren Buffet stated as much with his 40-year economic super-cycle theory. Buffet’s theory states that paper-backed investments rise for approximately 20 years while commodities and hard assets lose value, and then the opposite occurs for the next 20 or so years. Gold and silver has been on the upswing since 2001, which means that now could be the best time to invest, at least until the year 2041.