Wondering when is the right time to purchase and sell gold? People will tell you a lot of things based on their experiences but not all might be right for you. Plus, access to a lot of information — especially if it differs — can leave people confused.
On the-privateer.com website, it has been stated that,
"During any discussion about the future or the prices of gold, it is important to keep in mind that gold in actuality is a political metal. This means that its price is 'governed'. Because of this history as a political metal, gold is unable to fit into the modern system of finance."
Keep this in mind when thinking about when to buy or sell gold.
History of Gold
Experts have found a significant link between the prices of gold and paper money. This has been constant throughout history.
If we take an in-depth look at the history of this "political" metal, you will find that gold has been used as a currency during different periods in time. It still plays a substitute to paper money in different parts of the world. However, things radically changed in 1971.
Paper money turned out to be the only feasible option to measure value. However, paper currencies still come with high risks especially due to debts.
Importance of Gold and When it Should Actually be Purchased
Coming to the actual question at hand, is buying gold actually beneficial? If it is then what is the best time to sell gold?
Richard Russel, the main behind Dow Theory Letters, said:
"Quotes are only beneficial to those people who have a share in a renowned company or a big bull market. Amateur investors make a lot of money by simply holding on to their homes than they do by entering the stock market. The reason for this is simple, if their home is sensibly financed, they will not have to worry about the quotes during a bear market."
The same holds true for gold. Its prices change every hour or so and long-term investors have to neglect such fluctuations. You can't always buy or sell gold after a sudden shift.
The best option is to hold on to your gold and relax. The reason? Gold is the truest form of currency out there. It is the only form of money that does not lose its wealth regardless of the situation.
Gold remains valuable during both good times and bad times. So, instead of dwelling over daily quotes and the increasing and decreasing prices of gold, it is much better to simply hold on to it and continue accumulating gold in today?s unstable economy.
Think about when you intend to sell in terms of value and strike a deal when you reach that value. Don?t be greedy waiting for prices to go up unless you?re sure the market is in your favor.