What do you plan on doing with your precious metals in 5, 10…even 30 years? We hope you plan to...
When is the best time to buy gold? Yesterday.
It is always advantageous to harness the powers of gold as a hedge against volatility in a diverse portfolio.
So, if not yesterday, the second-best time is today.
Yet, as a commodity, there are different factors that influence buying trends in gold throughout the year.
Are there seasonal trends in gold buying? Absolutely. And, while you can’t time the markets, there’s a way to buy gold strategically when you pay attention to these trends.
Summer Doldrums
“Sell in May and go away.”
This often-repeated adage speaks to the shift in priorities for investors over the summer months. As many Americans take advantage of the warm weather, their attention wanders from work and finances to surf and sand.
It is why oftentimes we see the summer as the “doldrums” for precious metals sales.
BUT not always… recent summers have been a time of upheaval for gold and silver. Summer 2020 saw gold and silver breakout with massive gains as the Covid-19 pandemic threw global economies into chaos. This year, gold and silver rallied in a major way through June and into July, although momentum has cooled slightly in the past month or so. So while historical trends provide valuable intel, it’s important to pay attention to the markets year-round.
While most people have turned their attention towards vacation, the short-term lack of momentum is actually a boon for savvy investors.
The best time to buy gold or silver is when the price and the premiums are low.
And a slower market towards the end of this summer provides an EXCELLENT opportunity to buy low. The presumed stagnancy in spot prices provides strategic entry points for investors who are able to take advantage and buy wisely. The contrarian approach means taking overlooked opportunities while most investors are looking the other way.
Fall Gold Rush
80% of the highs for gold have historically come in the period from September through February.
This should come as no surprise…
As attention turns back from surf and sand to the workplace and investments, it is natural for buying to pick up.
But there are more factors at play.
Fall and winter are times for many secular and religious holidays, so jewelers begin buying gold in the early fall to make it into the jewelry they hope to sell throughout the various holiday seasons.
Gold holds immense cultural significance in India. November through February is typically considered Indian wedding season, and gold consumption increases drastically during this time period as gold is gifted and purchased for jewelry used as part of traditional bridal attire.
The “January Effect”
We tend to see a slight surge in buying after January 15th… once the credit card bills are paid for all the holiday buying. At the end of the year, investors may have to sell assets to offset capital gains or lock in profits, so when the new year begins, investors re-enter the market and buy assets.
Gold also holds immense cultural significance in China. The gifting of gold as a traditional part of Chinese Lunar New Year celebrations also provides a slight boost around this time of year.
Tax Season
Tax season often provides an opportunity to take a hard look at finances and allocations.
While not as strong of a seasonal trend as the fall and early winter, we see a little buying prior to tax time to cover precious metals purchases with IRA contributions. We also see a little buying after tax time once tax bills and remaining funds are identified.
The Best Time to Buy is Now
In the end, the best time to buy gold or silver is when the price and the premiums are low.
Until Congress reigns in spending (and they have shown absolutely no will to do so), expect today’s prices to be lower than tomorrow’s prices in the long-term.
And premiums are the lowest we have seen in 30 years… and possibly ever. That may change come September, so don’t miss out.
Visit www.assestrategies.com to buy gold, silver, platinum, and palladium from us online directly. Or call 1-800-831-0007 to speak with a Preferred Client Representative to see what makes the most sense for your individual investing needs.
