When to buy gold

A question that often arises, when to buy gold?

Although it is remarkably stable in comparison to most commodities, the price of gold still fluctuates over both the short and the longer term.

Gold prices will be affected by factors such as general perceptions of the value of gold, relative to major currencies (particularly the dollar), the demand for precious metals, how much gold there is currently being traded on the global markets, and a whole raft of political situations around the world.

There are particular short-term seasonal variations in the price of gold artefacts and jewellery, which are traditionally bought for special occasions such as religious festivals, when high demand pushes prices upwards.

 

Money markets and stock markets

The various forms of ‘paper’ gold (such as stocks, shares and funds) are constantly in a state of flux, as there are a multitude of factors which can affect each of them individually, as well as the sector as a whole.

 

Gold bullion

By contrast, investors who buy and hold physical gold bullion tend to do so as a long-term strategy, seeing any fall in the price of gold as a potential buying opportunity to add to their holding.

Gold makes a very stable foundation for a broader investment portfolio, and many investors see it as a way to ensure they can build a solid asset to pass on to future generations.

 

Owning physical gold

If you are actually going to hold and store physical gold, make sure that you are fully aware of any additional costs for shipping and insurance, over and above the cost of the gold itself.

If you are being asked to pay any sort of premium over and above the net value of gold itself, you will need to factor that into the deal to understand exactly what you are getting for your money, and to monitor the value of your holding.

 

Watch for the opportunities

If you are a confident about buying gold and are in the market for the longer term, you can often take advantage of a sudden fall in the value of gold caused by an unforeseen event (a miners’ strike, for example) and exploit it as a buying opportunity. Being an active investor and watching the markets can pay off handsomely!

Please contact our expert team for more information on when to buy gold.