Stock markets are continuously fluctuating, and depending on the industry, a stock you've invested in could crash overnight and never recover its peak highs. Investing in safe and reliable assets is a must for any Australian. Since the dawn of civilisation, gold coins and other forms of precious metals have been considered a safe haven and reliable assets to own. So, what are the best times to buy gold or best time to sell the precious metal? If you're new to buying and selling gold, it's easy to get started investing and the sooner, the better for your portfolio.
Gold historically retains its value over the long term. Mostly, people invest in gold as a hedge against inflation and downturns in the value of paper currency. Most gold bullion coins are recognised as legal tender, making them an ideal inflation hedge that is relatively liquid. Unlike real estate, using gold as an investment lets you offload the bullion rather quickly when you need fast cash.
Buying gold and silver bullion and gold coins is also a way to protect yourself from deflationary market action. Unlike inflation, deflation is rare, but devastating when it happens. The Great Depression of the 30s was a deflationary depression, where prices decreased, but business activity slowed, and the economy was hampered by excessive debt. In some parts of the world, deflation was also seen after the 2008 financial crisis. When deflation occurs, gold's purchasing power rises while paper money's purchasing power weakens. If inflation hits, the same type of phenomena occurs. A paper dollar won't buy as much as before, while gold's purchasing power will still retain its value.
During the good times of economic prosperity, gold prices tend to fall, since investors aren't flocking to the precious metal as a hedge against economic problems. When gold prices are low, that doesn't mean that gold isn't a good investment still. When is it a good idea to buy gold or buy silver? The best time to buy gold or buy silver is when the economy is doing well, and gold prices are naturally lower. When the economy is bad, the price of gold bars and gold bullion is quite high, and economic uncertainty tends to heat up the gold market. You don't have to hold physical gold when you buy it. It's possible to purchase gold certificates or keep your gold or silver in deposit boxes.
The rule of thumb is to buy low and sell high. When gold prices soar during economic uncertainty or heaven forbid, a financial crash, that's the best time to sell your gold.
For newbie precious metal buyers, investing in gold is a great choice when the economy is strong, but it's never a bad idea to hedge against inflation and deflation by buying gold and silver when you're ready to make a purchase. Stop in and see us today at Gold Buyers Melbourne. Invest in gold and silver or get access to quick cash when you sell your precious metals to us for as close to the spot price as possible.
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