If you have been watching the stock market and commodities, including precious metals, you can’t help but notice the “wild swings” in prices. It appears that volatility is the new normal. Many people are trying to understand the reasons for this volatility. One likely reason is the serious risk in current world events and the belief that we are at a “tipping point” in several world economies. Some experts believe the volatility is also due to buy and sell trading based on charting and price trends and then, of course, some blame market manipulation where traders move the market whenever they want.
No one wants a world economic meltdown and global governments and financial institutions are working hard to prevent that from happening. In times like these it pays to be defensive about your investments, just in case world leaders cannot solve these very serious problems.
Volatility can be a buying opportunity if you can keep your head about you and focus on your investment goals. Speculation is always risky, but when you have clear investment goals, buying on the dips and taking profits after strong upward moves can be a great way to achieve your goals more quickly. Gold prices have backed off recently and there is some talk that gold has topped out. Other experts believe gold prices will be significantly higher by end of year. You can find good arguments on both sides of that discussion. Let’s look closer.
Gold is a safe haven investment during turbulent times and when you keep current world events in mind, it is more likely than not that gold will continue its upward trend. Gold can be an insurance policy to protect your wealth and even make you richer in tough economic times. If one of your goals is a safe haven investment to protect your wealth, the current reduction in the price of gold is a clear buying opportunity.
If you are looking to create or add to a gold safe haven investment, here are some tips to help you buy gold wisely and profitably to achieve your gold investment goals.
Tip 1: Have clear goals, it’s the only way you will know if you reach them.
You might want to write down your goals and make sure they match your investment priorities.
Tip 2: When you buy gold, make sure you are buying easily traded types of gold.
Gold bullion is currency and as such is easily traded. There are other gold related investments that may not be traded as easily as gold bullion.
Tip 3: Buy at the lowest premium over the spot price of gold.
Purchase gold from a reputable dealer and make sure you are paying only a small premium over the spot price of gold.
Gold bullion comes in a number of currencies. You need to know the troy ounce of gold content often expressed as percent of purity. Gold bullion purity percentage is not the same for all bullion. Know what you are buying, that is the first rule of any investment.