When is the Best Time to Invest in Gold?

For anyone interested in the Krugerrand, the answer to the title question is just over fifty-four years ago. When they were first issued in 1967, these 22-carat coins, containing precisely one troy ounce of fine Gold, could have been purchased for just a tiny fraction of the metal’s peak value in recent years. They were initially produced to encourage private ownership and were only available to residents of the Republic. However, the coins quickly became a popular way to invest in Gold when the government eased export restrictions and permitted sales to international markets.

As is the case with any commodity, the price of the yellow metal fluctuates, driven chiefly by changes in supply and demand. However, although other Precious Metals, such as Platinum, Palladium and Rhodium command a higher spot price, their uses are primarily industrial. Consequently, they tend to drift in and out of favour as new technologies emerge. By contrast, the love of Jewellery is universal and enduring, prompting many to invest in Gold.  Its consistent and widespread appeal means it is far less prone to the wilder price fluctuations typical of these more costly metallic elements.

As one might imagine, it can often be a good move to purchase shares in the companies that mine these minerals. Many people do so and enjoy adequate returns. However, inevitably, ore reserves gradually decline, and the higher cost of refining often makes it uneconomical to continue production. At this point, a mine’s share price can plummet. By contrast, above or below ground, this Precious Metal will continue to exist, so people will continue to invest in Gold.

The truth is that timing one’s investment in this Precious Metal is less crucial than most people tend to believe. There is a wealth of accessible information regarding trends and the various factors that might or might not influence commodity prices. Alternatively, one can seek professional guidance from a broker. However, the bottom line is that the overall trend in the yellow metal’s price, generally quoted in US dollars per troy ounce, is upwards. Furthermore, it has been since records began in the nineteenth century. In practice, anytime can be a good time to invest in Gold.

Still, it is worth keeping in mind that your purchase of this Precious Metal will get you more for your money when the spot price takes a dip. Should you choose to buy on a peak, history assures us that, at some future date, the next peak will be higher. If you wish to build a share portfolio, do so by all means. However, you would be well-advised to diversify by ensuring that at least ten per cent of your total investment is in physical Gold. The move serves as a hedge against inflation and other adverse economic trends. Historically, those who embraced this practice and chose to invest in Gold have managed to prosper, despite hard times.

Krugerrands and Minted Bullion bars offer an exceptionally convenient way to purchase the metal. Unfortunately, this market has also attracted forgers who know the average consumer lacks the necessary experience to identify a fake. Naturally, purchasers require a guarantee of genuine certified products and ethical practices. There is no safer way to invest in Gold than purchasing it online from Mr K.

Disclaimer: The information above was derived from reliable sources and deemed accurate at the time of writing.  However, changes following publication may have affected its accuracy. Such changes may occur without notice and Mr K cannot be held liable for inaccuracies in this article’s content or how a reader may choose to interpret it.