Gold has been the standard currency for thousands of years, and it is could be the only currency that matters in the event of a serious disaster. If you want to buy gold, but feel unsure of when to buy, then you should know that anytime is a good time to buy gold. Here is how you can maximize your investment in gold.
How Gold Is Sold
Gold is commonly traded as bullion (bars that are at least 99.5% pure) or coins in a bullion exchange market. You can also buy shares of a company that mines gold, so that when they make money you do also. If you want to invest in gold, you will need to open a trading account and start buying shares of gold.
A share of gold may cost $1200 this morning, but cost $1250 or $1100 this afternoon. Timing can be everything, but consistent investing offers the biggest advantages. There are no guarantees that your gold will continue to be worth what you paid for it this morning or last month, but you can make a lot of money if the price of gold goes up after you buy it.
When Gold's Up, You're Up
If the price of gold goes up, your previously purchased shares continue to increase in value. You can cash out your gold for a profit, or you can hold onto your gold and hope it continues to rise in value. You can buy more gold with gold is on the rise, but proceed with caution. Investing a fixed amount of money can help protect your investment, because your fixed dollar amount will buy less gold when prices are high, and more gold when prices are low.
Here's how it works:
You invest 3000 a month in gold. If gold costs $1500 an ounce when you buy (high), then you only get 2 ounces with your money. If gold were to drop very low (like $750), your $3000 would buy you 4 ounces of gold.
When Gold's Down, It's Time To Stock Up
Plenty of investors get nervous when the price of their investments drop, but gold is not going anywhere. If you see the value of gold drop dramatically, you know you want to buy as much as you can. And if the gold drops even more, then you buy even more.
Although it is very unlikely, but for the sake of this example, consider that the price of gold drops to $500. That would seem like a nightmare if you just bought gold for $1500 an ounce last month. The key is not to sell your gold, but buy more while it is at a "66%" discount.
The Best Way To Invest
Investing consistent amounts of money in consistent intervals can help you safeguard yourself from fluctuations in the market. It is important to understand two things when you invest in anything:
- There are no guarantees with investments; though some investments are safer than others. (That is why you should choose products and services you believe in.)
- Never invest money you may need to liquidate right away. This will help you prevent financial losses by selling shares when they are down because you need money right away.
When you buy your gold in regular intervals (daily, weekly, or monthly) you can enjoy maximizing your investment. Determining a set dollar amount to invest each time will help you buy less when prices are high and take advantage of when prices are low. Talk to your local gold experts, such as Rocky Mountain Coin Inc, for more information.