In spite of the negative predictions, gold investments are still a reliable money maker and reports can confirm it. Investing in gold coins and bars is never a gambling game; there are rules and tricks that great investors use to maximize their gains. The first thing you want to start with is find out the best months for purchasing and investing in gold coins.
The gold market has been under a lot of pressure lately with prices going up and down from one month to another. Still, this instability should not be necessarily regarded as bad, there are rules that can be applied and thus, use price variation to your own advantage.
A retrospective look at gold investments
Gold assets were the first to govern commercial transactions, long before money were even invented. Their reputation as a safer and much more valuable replacement for regular currency has been preserved to this day. We all return to gold investments in times of economic turmoil, whether we do it for “fear trade” or for “love trade”.
Fear trade vs. Love trade
Trading for fear or for love are the two most influential principles that rule the gold market. Consumers return to gold assets every time world economies stumble and money begins to collapse because they are afraid of the unknown.
The fear trade usually sets in when there is a big federal deficit spending and the Federal Reserve’s interests are very close to zero. Inflation rates skyrocket and the only viable alternative for currency remains the gold market, considering that it is not influenced by inflation. Consumers start purchasing and investing in gold coins and assets because they are afraid money will lose its value.
The love trade, on the other hand, springs out of people’s love for gold adornments and accessories. Gold assets will never lose their commercial value simply because people are willing to spend fortunes on gold jewelry. The practice is even more pronounced among Asian cultures where gold is considered an aristocratic symbol. These cultures will never experience low gold prices simply because the demand is always on the rise.
Investing in gold coins and assets
There are many forms of gold investments, but only two main trends. Investors can either choose to purchase physical gold in the form of bars and coins or buy stocks. There are advantages and disadvantages on both sides. Owning physical gold can be cumbersome, but it also gives bullionaires more control over their assets.
Trading gold on the stock market does not force investors to have a gold vault, but it requires comprehensive knowledge on the matter. Buyers may even have to hire stockbrokers to represent them in case they do not know how to handle stocks on the market.
Choosing the right time to invest in gold coins
The first thing one should consider when investing in gold coins is price fluctuation. Much like currencies, gold assets, too, experience surges and drops that investors can exploit. Bullionaires have learned to do that by looking at the past reports of gold prices.
2013 has been a rough year for gold trading as prices have dropped significantly from one month to another. The gold market has, nevertheless, recovered in the past two years and we can now distinguish certain patterns.
The best months for purchasing and investing in gold coins appear to be the first and the last months of an annual year. Judging from the gold reports of the past ten years, prices seem to drop significantly in spring and autumn months.
The periods between February and May, as well as from October to December are generally the best months for purchasing and investing in gold coins and assets. Prices are smaller in this time of the year and investors can purchase larger quantities of precious metal for the same amount of price.
The summer and the winter months, on the other hand, have always had surges in point of gold prices. These are the perfect months to sell gold assets and they can bring significant gains, especially to those who have taken advantage of decreasing prices.
In addition, there are other aspects you can consider when estimating the right moment for gold investments. Bullionaires use past market reports to make predictions for the current year. There are always risks involved, but keeping a close eye on the evolution of the market can help. Make sure you check the gold prices registered in the past months to see whether the prices are going up or down.
Always stay up to date with recent economic events to determine consumers’ intentions. Economic instability inspires people to invest in gold and speculating these moments could, therefore, turn out very profitable.
To sum up, investors have to thoroughly research the market and to register records to find the best months for purchasing and investing in gold coins. Economic instability plays a major role because it can turn gold prices upside down in an instant.
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