Gold is the most popular of the precious metals as a vehicle for investment. Gold prices today are driven by supply and demand and speculation. Investors generally buy gold for its stability in economic and political crises. The history of the gold standard suggests that gold behaves more like a currency than a commodity.
The Gold price today as well as other commodities such as silver and oil is always fluctuating. Many people are wondering when the best and right time are to buy or sell gold?
Before we decide to buy or sell gold we have to know some factor which influence commodities especially the gold price today.
With all the fluctuations in the gold prices today someone can sometimes wonder when is the right time to buy gold and when to sell gold? One of the most influential factors for gold prices today is currency value. The other factors could be forward hedging by gold mining companies to protect their gold sales, massive buying and selling by institutions, as well as other variables that can all affect the gold prices today too.
So when is the right time to buy gold?
Gold is not only a commodity, it’s also money. Gold does not get used up like silver prices today or agricultural commodities. All the gold in the world is still there. It is just moved around or is stored. Gold is used as storage of wealth and as a replacement for currency when the confidence in currency is wavering. It is used, not just to buy and sell. In Addition gold has continued to increase in value over the past 20 years or more. There have been peaks and valleys and regular drops, but even with the drops it has always like a phoenix, raised again to newer and more spectacular heights.
Same case in stock, most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well. And so do with buying or selling gold.
As I’ve stated above that the main factors which influenced gold price is the currency value. And we know that many factors that can caused the falling of the currency, if a currency decreases in value it takes to buy more of the same over time. For example with a simple logic, one time we buy an A product with the price of $100 and after a couple years the price become $130. . Over the past 100 years the dollars has dropped in value to around five percent. What you could buy for 5 dollars a hundred years ago now costs 100 dollars. Yet this is not the case with gold prices today. Once ounce of gold still purchases exactly the same quantity or goods or quality of services as it did one hundred years ago. Other factors such as short selling, hedging, and the periodic Asian demand for example, all affect the price to some degree.
Therefore, Even the gold price sometimes falls we can do nothing on that time, but it must be sure that eventually the gold price will be raised again. So it’s mean that the right time to buy a gold is Anytime.
Then, when is the right time to sell gold?
That really depends on the purposes for which you are holding gold and your individual circumstances. One of the purposes for holding gold is to retain your asset value. Of course a time may come when you may need to utilize some of your asset at which point you sell some gold. Selling gold does not have to depend on the price of gold. Only on the use to which one puts the asset.
A falling or rising price of gold is not a reason for selling gold. Only the utilization of the asset contained therein for a purpose.
Buying gold can be done any time. That also does not depend on the gold prices today. It only depends on the ability to buy and retain gold as an asset.
One can buy large amounts or small amounts on a regular basis. It is the steady accumulation of gold that increases ones asset, not waiting for gold to ‘come down’ in order to buy it. The upward trends of gold are far greater than the downward trends so, in the long term, anytime is a good time to buy gold. The gold prices today are great!