An ongoing trade war, coupled with rising inflation rates and a booming real estate sector, are making it challenging for investors to make good long-term decisions. One surefire investment that savvy capitalists can make, however, is in gold and precious metals.
Market conditions indicate that gold may soon be reaching the bottom of its potential valuation—this means that the coming weeks and months are likely to be one of the best times to begin investing in precious metals.
The price of gold sunk as much as 11 percent since April, in spite of rising economic uncertainty thanks to ongoing global trade disputes and an overly bullish stock market. This means that gold is likely nearing its lowest possible price. Rising trade tensions between the U.S. and China will likely contribute to a large price increase in the near future.
If you’re wondering when you should begin considering gold investing, here are just a few tips to follow that can help you determine the best time to jump into the gold market:
- Follow upward trends: It’s important to recognize when considering gold investing that the precious metal is in the midst of a long-term upward trend. While the day-to-day and month-to-month price of gold may fluctuate, these are just small distortions in a continuous price increase. Regardless of when you purchase gold, its value will likely increase over the course of the coming years.
- Purchase during uncertain times: Times of economic and political uncertainty are always the best times to purchase gold. Because the value of gold isn’t tied up by any government or central bank, its value continues to appreciate even when your local economy begins to tank. In fact, if the legitimacy of a government or economic system is called into question, gold quickly becomes more valuable, because of its independence from political whims.
- Buy when low: While gold is always appreciating over the long-term, daily price fluctuations occur almost constantly. Carefully observing the gold markets can empower you to make the most of your gold investment. Learning how to watch the markets will allow you to purchase at the best possible moment and price, ensuring that you reap the largest amount of gold for the amount of money you’re investing in the metal.
- Purchase whenever possible: While it’s certainly advantageous to purchase gold during times of market uncertainty or when the price of gold is substantially lower than it usually is, you should never hold off if you’re prepared to invest in gold. Because the price rises consistently, waiting to purchase gold may actually cause you to lose some of your purchasing power and result in your investment becoming less effective.
Gold Wealth Financial is a financial advisor providing valuable advice to first-time and experienced investors alike hoping to participate in gold investing. If you’re looking for an excellent way to make the most of your investments in precious metals, place your trust in the hands of one of the only precious metal investment advisors approved by Investopedia. We’re happy to help our diverse client base actualize their financial goals.
- by Steve Hunt
Categorised in: Gold Investing