The best time to buy gold is always when prices are deflated due to a sudden increase in supply. That said, it is possible to buy gold at any time and it is a safe long term investment that accumulates value over time. One reason for appreciating gold prices is inflation, because money supplies increase and the supply of gold is largely fixed. Another reason is that demand is rising, because of greater consumption in the world as a whole.
High Prices But Lower Than Average
The price of gold is currently hovering between $1156 and $1170 per troy ounce. This is high compared to historic prices that have been under $600 per ounce. Current high prices are the result of individuals and governments retaining gold as a store of value in the face of volatile global markets. In a world where currencies can slide into double digit inflation, gold will rise as quickly as paper falls.
The current price is actually much lower than its high a few years ago, which was nearly $2000 per ounce for a brief period. These prices were the result of investor fear that neither stock or currency were safe. The stock market was volatile, and many Western countries was dealing with fragile economies as a whole. Any nudge could send the markets lower, and the presence of speculators caused stocks to sometimes rebound unpredictably.
Currently gold prices are drifting. Plenty of people still see gold as a life raft, but improving market investments are prompting many to move their assets back into the stock and bond markets. Good markets means a period of stable ups and downs for gold. It is unlikely that gold will slide dramatically, because governments and many institutions will likely hold onto their gold purchases for years.
This means that gold prices could jump up again the next time the market starts to feel bearish. The best time to buy gold is to wait for the price to dip slightly and then buy gold at today’s normal prices. Gold has a small probability of shedding value, but it will be temporary. Other investors will be there to snatch the surplus.
Gold Prices Expected To Rise
It can be difficult predicting a sudden dip in gold prices. A sharp dip occurs when a major holder decides to sell. This either dramatically increases supply by itself or else prompts other holders to engage in a selling frenzy. Sharp dips occur as different groups attempt to short sell each other, trying to recuperate value by being a buyer at the rock bottom price. It is equally difficult to be there when the up-tick happens, and then gold prices can rebound quickly.
It is more common for gold to slowly drop or rise over a few years. The current trend is downwards, because many investors in the world are transitioning back tot he stock market. This is expected to change, as consumption by the jewelry and electronics industry is set to increase with an improving economy. The price of gold is expected to rise in 2015.
The price has at least a 45% chance of rising above $1250 in this year. It has a further 20% chance of rising as high as $1750 per ounce. The average expected price is about $1550 for 2015, which is a significant profit over the current price of $1160 per troy ounce. Other investors act on good news, and there is good news from many sectors. A smart choice would be to diversify into gold and then to carefully monitor performance.
The point of gold is that it is safe as a long term investment. It can also be an excellent vehicle for short term wealth, because prices tend to transition wildly. Not even silver is this good, because silver is driven more by industry than fluctuations in consumer demand. Its price is nearly as stable as money. For one of the most dynamic investment opportunities on the planet, trust gold for your IRA and more.
Gold as an Investment – Tips for Gold Investors
If the financial meltdown of 2008 and the difficult years that followed taught us anything, it was that we need to take control of our own destinies when it comes to investments. Trust nobody and nothing, as even the most venerable of financial institutions can collapse under its own weight and that of a thousand investors, if the market is subjected to certain winds of change.It also taught us a lesson that the world leaders and captains of industry from hundreds of years past knew very well – that whoever possesses gold and precious metals holds the most valuable cards. Whether you are a seasoned investor or you are considering entering the gold market for the first time, here are some tips that you would do well to keep in mind.
Gold means gold
There are those who talk about investing in gold but actually mean putting some money into ETFs, assuming they are “as good as gold” in terms of their value, butdo away with the need for physically owning gold bullion or coins. The trouble is, in an extreme scenario, these funds are as vulnerable as any other and you could end up possessing worthless sheets of paper.Most investors agree that if you are going to invest in gold, do it for real. You can purchase 1 oz gold bars here, along with other forms of gold and precious metals.
Stick to your plan
Gold might be quite different from stocks and shares, but it is still an investment. To convert it into profit, you need to follow a logical and coherent plan, just as you do if you are trading the Forex market or dabbling in Bitcoin. Making refinements to your plan is fine, but don’t commit to wholesale changes on the basis of a sudden rise or fall in market condition. Gold is a long-term investment, and like anything else, it sees fluctuations on a day to day basis. Let it ride them out, and assess progress on a weekly or even monthly basis to get a true indication of how your investment is performing.
Protect your investment
Physical gold is a beautiful thing to own and enjoy. It is also imperishable, and can withstand extreme conditions. That doesn’t mean you don’t have to look after it, however. Keep your gold properly stored and secure, and if you are holding it at home, look into any reporting obligations you might have on your home insurance schedule. If in doubt, disclosure is always the safest option.
Diversify
Gold serves as a perfect hedge against market uncertainty. As such, it is important to get the right amount in your investment portfolio. Of course, we all know diversity is the key to risk mitigation, so there is a school of thought that keeping it as low as possible, and even diversifying with other precious metals such as silver and palladium makes sense. At any rate, a holding of 10 to 15 percent of your overall investment portfolio in gold is usually seen as ideal.