Best Time To Buy And Sell Gold

By Author: Raza
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Gold is shiny, metallic, and can easily melt into bars, coins and jewellery. Gold is valuable both in terms of global store of value and medium of exchange. The importance of gold investment can be gauged by a fact that it has high liquidity, decreased liability and no counterparty risk. It can also act as an effective diversifier. The best time to buy Gold lies in analysing the histroical trend of Gold which shows that January, March, April or late June are best months to buy gold. In order to sell Gold at good prices, one must equip oneself with the capability to analyse events that are crucial to gold prices' fluctuations.

Gold is a unique asset because it has high liquidity which means that it can easily be converted into cash. This factor of liquidity makes this luxury a good investment for the investors. Gold is no one's liability and it has no counterparty risk. As a result, it can play a crucial role in an investment portfolio. Gold Investment can greatly ease market stress because it can act as a diversifier and vehcile to lessen losses during the market stress. The investors should know few things about the ...
... Gold Investment: it offers downside protection and it provides competitive returns as compared to other financial assets.

While Gold has long lasting qualities which other investments don't; investors seek a time that is conducive to buying gold at good rates. The historical data provides empirical answer for that. By calculating the average gain and loss for everyday of the year since 1975, it shows a fact - gold somewhat intensifies during the first couple of months of the year, then the price decreases, and takes off again in the fall. Therefore, the best time to buy gold is early January, March or April, and late June. However, you should remember that gold is inversely correlated to other investments, including stocks.

Selling gold relies on two factors: neccessity and the price of Gold. A change in circumstances such as holiday vacations, retirement or other initiatives can compel you to sell Gold in uncertain times. However, gold has an intrinsic value that has persisted throughout human history. The second and one of the important factor is price. A slogan 'buy low - sell high' remains true for selling gold. Nonetheless, there is always a difficulty lurking in order to correctly predicting the rise and fall of prices in Gold. Two major events - The Financial Crisis 2008 and Brexit 2016 saw the spike of Gold prices and investors flocked to Gold. Therefore, you will need to analyse the major events affecting United Kingdom's economy in order to predict the prices of Gold in future.

Gold investment will remain a robust and important investment for the investors. Higher liquidity, decreased liability and no counterparty risk in Gold investment makes it one of the crucial investment in portfolio. Mostly, investors see it as a diversifier which eases the market stress and because it offers downside protection and competitive returns. Buying gold at good times is crucial for the investors to gain maximum return, and historical data provides us the months of January, March, April and late June to buy gold at lower prices. Equally important is the time to sell Gold which is solely based on the analysis world events potentially affecting the UK's economy in order to predict the rise and fall of gold prices.