When is the Right time to Buy Gold?

There are many reasons to consider buying or selling gold. Gold can be a great asset in any kind of portfolio, and there are many good reasons and times to buy gold over other investment options.


Gold is an asset many different kinds of people value. While buying gold can sometimes have a negative reputation as something done by individuals who do not trust the market or the government, purchasing gold is actually very common. When it comes to having an investment portfolio, gold can be a valuable asset for any investor. Gold does not tend to depreciate in value in the same way stocks might, and it does not require the time commitment and complications of owning bonds. There are many questions a novice investor may ask, however. When is the right time to buy gold? Is there ever a right time to buy gold? Is gold the kind of investment that would benefit me and my portfolio? The answer is less complicated than one may think.


In a portfolio, gold is considered a natural resource investment and believe it or not, there is more than one way to invest in the gold market. For the savvy investor, gold can be a strong part of a natural resources portfolio. If an investor buys into a gold ETF or a natural resources fund that invests in gold, the time to buy gold depends on an individual’s preferred asset allocation. Investment firms often establish a ratio of fixed income to equity investments and buy and sell investments for a client to maintain this ratio. When an equity portfolio is low and an individual is looking to increase investments in natural resources, the time is always right to buy gold. In this kind of example, it is easy to do research on particular funds and investment options to know when and where to buy.


When an investor is looking to buy actual gold and not gold-related investments, the answer is more complicated. There are more variables to consider, such market conditions, the current price of gold, and an investor’s personal interests. Investing in gold alone may not be a strong investment strategy for those interested in pursuing an aggressive portfolio but it is an effective way of decreasing the risk of an equity-based portfolio. For those who have little faith in the market, gold is a solid and long-lasting investment that has the security that few other options can guarantee. For those who feel they need more security than is available in stocks, bonds or mixed funds, gold can be a great alternative. If the market has been low and gold prices have been on the rise, it could be the right time to purchase gold.


When to buy gold, when to sell gold, and whether or not to consider gold as an investment are often personal questions. Different investors have different levels of risk tolerance and ideas about what sorts of investments best suit them. When gold prices are solid and an investor is looking for security in their future, it may very well be the right time for an investor to buy gold. For those who have more questions about purchasing gold, consulting a Registered Investment Adviser might be the solution to calming doubts and getting started in the profitable and exciting area of investing in gold.

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