Currently Viewing Posts Tagged stock markets continue to fluctuate

When Should you Invest in selling and Buying Gold

The stock markets continue to fluctuate and, depending on the industry, can crash overnight, never to recover those high peaks. So, investing in reliable assets like gold or silver bullion is a safe haven and the way to go.

But then again, when should you buy bullion, and when is the right time to sell. Yes, it is easy to get confused if you are new to buying and selling bullion. However, the sooner you start to invest, the better your portfolio.

Start With Investing in Gold Bullion

Historically gold retains its value for a long time. Hence, you can buy gold to hedge against inflation or downtimes when the paper currency has no value. Moreover, it is a legal tender when you invest in gold bullion coins. It helps to evade inflation as it is liquid.

You can offload bullion fast if you need cash to sell it to a gold dealer using gold as an investment. Also, investing in bullion in the form of gold or silver is a way to protect yourself from a deflationary market.

Even though deflation in inflation is rare, it is devastating when it happens. You find prices decreasing with business activities slowing down, leading to excess debt in the economy. Once this happens, gold’s purchasing power increases, and paper money purchasing weakens.

Hence gold or silver bullion retains its value. If the gold prices fall, you should not invest in the metal. The best time to buy gold is when the economy is doing well, and the gold price is lower. If there is a turn in the economy, you find bullion prices high.

Thus, keep checking the market and buy bullion when the economy is doing well by visiting a bullion dealer near you.

When Should You Sell Your Bullion

The rule of thumb is to buy bullion when the price is low and sell when it is high. As soon as you notice an economic uncertainty or a financial crisis, the gold prices soar, and it is best to sell your precious metal. Therefore, if you are a newbie investing in precious metals like gold, it is an excellent choice when the economy is strong.

Buy Your Bullion at a Gold Buyer

Buying bullion in gold or silver is a great way to evade inflation and deflation when you can make a purchase. The price you will pay for gold depends on the daily spot price plus the premium on top depending which bullion product you buy.

For example, if the spot price of gold is $2500 and the 1oz gold sell price is $2550, this is a 2% premium on top of spot. Furthermore, it all depends on the weight of the gold bar you buy as the general rule is the larger you buy the closer to spot you will pay. So, to receive the best prices, visit a bullion dealer to help you determine what you can expect to pay.