The obvious best gold investment timing is to buy gold bullion or certified gold coins when the price is low and sell when the price is high. Sound familiar? But how does the investor pick the right times?
Gold investing has to do with the economy, the dollar, interest rates, central banks buying up gold bullion, national debt, and more. Those are fundamentals of gold investing. Gold investing and prices also have to do with the market and what other investors and traders are doing. When gold is going up investors often buy with the expectation that there is a trend that will lead to higher prices and a nice profit in a few weeks or months. Reading the market comes down to technical analysis and is largely the province of day traders and technicians in the gold futures markets.
For the household or even institutional investors looking for short term profits in physical gold bullion over a span of 14 months two years there is time to choose when to enter and when to exit the gold market. For investors interested in certified gold coins there is more time to pick and choose the right investment.
Many investors are successful in timing the market and some are not. Those who decide that their market timing does not work will often invest smaller amounts every month over several months to average out their buying price. Likewise an investor call sell in the same fashion if unsure if the market has peaked or not.
Those with success in timing the gold bullion market will do well with short term gold bullion investing. However, an investor who wishes hedge against the long term effects of inflation may well decide to buy investment grade certified rare coins. Over the years this vehicle typically out performs gold bullion. With sufficient time and appreciation of an investment the matter market timing shrinks in comparison.
For advice on what kind of gold bullion and certified gold coin products are available for investment please feel free to talk to one of our gold experts at 1-800-300-0715.