Skip to Content

How to Know the Right Time to Buy Gold and Silver

Precious metal trading is one sure investment that can fetch you high returns if done well. The two popular precious metals people trade on are gold and silver. You buy at a low price and sell off at a higher price to make profits. Whether you are buying the silver and gold in bars or you are trading online via a broker, one good thing that you need to look at for is timing.

The question now is, when is the perfect time to buy silver and gold to enable you make maximum profits from sales in the future? This article will look at a possible answer to the question of perfect timing. There are however some advantages of investing in gold and silver.

One of its advantages is that it is used as a hedge against inflation. Its high liquidity causes an ease to convert an investment to cash. Investments like real estate have a low liquidity level; but precious metals especially gold can easily be converted to cash at anytime. So when is the right time to invest? Here are tips to guide you too decipher when the best time possible is.

6 Signs to Know the Right Time to Buy Gold and Silver

1. When the Prices other Investments are Unstable

When other stocks and investments are undergoing a period of gross instability, know that it is a good time to take advantage of the market and purchase gold. Why you may ask? Simply because during the unstable period, investors use the opportunity to invest in gold and silver to cushion the effect of losses they made in other investments.

To know when there is instability in the price of other investments and stock, you have to be up to date with happenings in the countries. Be abreast with economic news about Stock exchange market, unemployment rates, happening in Wall Street, debt and Forex market.

2. Gold Ratio to Silver

Another tip to know the right time to purchase silver and gold is to compare the ratio of gold to silver. When the gold ratio is higher when compared to silver, then it is the best time to purchase silver because silver is cheaper than gold. But when the gold ratio when compared to silver is higher, then it is a good time to purchase gold and stock for the future.

3. The Exact Spot on the Moving Average

Another way to determine the best time to purchase silver and gold is to checkout the price of gold for the last 200 days. If the price is at the moving average or below the moving average, then it is time to buy gold. Moving averages is gotten by calculating the closing price of the security for the total number of period and divide it by the number of periods. To get the price of gold for the last 200 days to help you calculate the moving average, you may need to use charts from online brokers

4. Fall in Price

This tip is for investors who are already into the business of buying and selling silver and gold. Anytime the price of gold falls below the price it was the last time you purchased it, that is a good time to buy gold in anticipation of a bounce back in price.

5. When the Price of Gold takes a Bullish Trend

For those in the stock and Foreign exchange market, a bullish trend is an upward trend. That is when more people are selling their stocks and forex, then the price tend to go higher; likewise in the gold market, when you notice that there is a bullish trend, that is when more people begin to sell their gold metals. It is the right time to buy; because there is likely going to be a bearish or downward trend after which a major reversal will take place that will get price of gold to a higher price.

6. Hold down the Ones You Have

Most times, it may not always be about when to buy precious metals; you may have to consider holding down the ones you have for a longer period to enable you make massive profit for sales; patience is a virtue when it comes to the business of buying and selling silver and gold.

in conclusion for the last 10 to 15 years,, that is from 2001 to exact, there have been an upward trend in the price of gold; in fact, each year the price goes up with at least 10% increase and financial experts are predicting that this upward trend will continue for a long while to come, until at least 2041 to 2050. So, now is the best time for anybody that wants to invest in gold to get started.