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Gold Buying in a Choppy Market

Market volatility is the new normal. Gold has shown (and continues to show) more stability than many equities, but it is not immune to the daily bumps and grinds of US and international politics and economic news.  For example, one EUB official resigns and gold takes off, another EUB candidate steps up and gold backs off, China offers to buy Italy’s debt at a premium price and gold backs off.  How do you handle gold investing in this choppy market? Here are a few tips to profit from the dips in gold prices.

Profit Tip 1: Take a Longer View

If you are concerned about the short term price of gold, just expand your chart to a longer time period and you can see that gold prices are still very strong. It is normal for any investment to consolidate and have minor price fluctuations over the short term.

Profit Tip 2: Take advantage of the dips

Use the temporary price dips in gold to add to your position.  Nothing of substance has changed in the world or US economy and everyone is still nervous and maybe more nervous about PIGS and the US economies. These are strong indicators that gold is going to keep going up for some time.

Profit Tip 3: Understand Why You Are Buying Gold

In order to understand if buying gold is achieving your goals, you need to know why you are buying gold. Are you buying gold to protect your wealth? Are you investing in gold to make a quick buck? Are you buying gold as a hedge against inflation? When you buy gold to protect your wealth or as a hedge against inflation, it is like taking out an insurance policy against a financial disaster. If you are looking at gold as a speculative purchase, you will be much more aggressive in the amount of gold you hold.

Profit Tip 4: Be Smart About Your Gold Purchase

One of the best ways to buy gold is gold bullion coins. Bullion is currency and as such one of the easiest ways to purchase gold. When you purchase, make sure you are not paying a significant amount over the current spot price of gold.

Gold continues to be a safe haven investment that can be used to protect wealth, a hedge against inflation and has been a lucrative speculative investment. Invest today in the American Gold Eagle, the Canadian Gold Maple Leaf and the Chinese Gold Panda. Check out all our selection of Gold Bullion Coin Types for details.

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