The Best and Worst Times of the Year To Buy Gold (Hint: Avoid December)
Gold is everywhere. Used in jewellery, technology and as an investment, the purposes and demand for gold are bountiful. For centuries, people have traded and stored gold, but for the modern investor, gold has been a safe haven, or hedge, against inflation.
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As an investment, gold has proven itself to be a trusted commodity and store of value, an effective portfolio diversifier and a successful short- and long-term performer independent of other assets. Gold is as relevant as it’s always been and has enjoyed a resurgence over the past couple of years, after a subpar growth rate during 2021 and 2022, per Forbes.
According to the World Gold Council, in the U.S., gold has moved away from being a big mass-market seller to being sought after by those working in high-end jewellery and gold designer brands. However, as gold’s value has increased significantly over the past year, investors of all kinds are looking to get on board the gold train.
Whether you’re looking to buy coins, bars or rounds — or invest in gold exchange-traded funds (ETFs) — there is a whole world of opportunity waiting for the new gold investor. Knowing when to buy gold can help you maximize your investing dollars and get the most out of owning this precious metal. However, as with any traded asset, you’ll be wise to exercise caution and buy gold when best fits in with your overall trading or investment strategy.
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When Are the Best and Worst Times of the Year To Buy Gold?
Gold is relatively scarce, which adds to its value. However, for a “safe” investment, gold is still influenced by real-time fluctuations driven by various global economic factors. According to MarketWatch, the price of gold increased about 10.08%, from $1,834.39 to $2,019.38 per ounce from Feb. 2023 to Feb. 2024.
Gold’s price is far from static. Despite its strong finish to 2023, it dropped a number of times through the year. In late February, gold was sitting at $1,811.06 per ounce and in October, dipped to just over $1,800 per ounce. It then rebounded to $2,079.47 per ounce on Dec. 27, 2023.
This lofty price at the end of the year runs in line with what many believe is the worst time of the year to buy gold. GoldSilver indicated that, over the long term, it might not make a difference — but there are times of the year you should avoid buying gold.
As the United States Gold Bureau reported, prices tend to rise from late August and September through December, then decrease over the first few months of a new year. Looking at its average performance since 1975, history tells us that the start of the year, March and late April are the best times to buy gold, per the Gold Bureau.
However, regardless of the month, you should zero in on gold when prices are low, when inflation is high, when the economy is erratic and when the stock market is underperforming. Experts are saying that it’s probably a good idea to buy this year, as opposed to next. And, as we’re in what is typically known as the best quarter to buy, you should start now.
With inflation and consumer prices still ticklish, having some gold in your portfolio is a balanced investment through any future market changes.
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This article originally appeared on GOBankingRates.com: The Best and Worst Times of the Year To Buy Gold (Hint: Avoid December)
