Is Now the Best Time to Invest in Gold and Silver?

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.