When to Buy Gold?

Gold has firmly established itself as the preferred asset class of choice for precious metal investors. If we look at price charts for gold over the last 20 years, we can see that the yellow metal has consistently performed well and its price has never been down significantly in two decades. Most investors who regularly invest in gold are aware that the precious metal generates steady returns in the short term. However, the price of gold can rise or fall according to the market demand. In this article, we will discuss a few simple steps that any investor can take to purchase gold at the right time.

When to Buy Gold?
Investing in gold regularly can help even out the price points in the market

What is the right time to buy gold?

The ideal time to buy gold is when the price is low. This will enable you to obtain more gold for your money and hopefully sell your gold in the future at a higher price. But with gold’s vital role as portfolio protection against market downturns, waiting to buy gold can be a mistake. This is because it’s impossible to know exactly when the next market crash will occur. It’s best to purchase physical gold 6 months or 3 years before the crash than one day afterwards.


The gold market has never crashed completely in decades. Over the last 10 years, the world has seen economic recessions in quick succession. Due to the inflation-beating nature of gold, and its ability to provide investors with a safe haven for their money, gold is seen in rising demand during times of recession.

In 2020, the world was once again plunged into yet another economic recession due to the COVID-19 pandemic. In August 2020, gold reached its highest peak, crossing the $2,000 per ounce price barrier. Similarly, at the height of the 2008 economic recession, gold reached its previous peak of approximately $1,900 per ounce in 2011. Currently, gold has fallen from the levels reached in August 2020 and is trading at $1,789 per ounce. So, as an investor, it is important to regularly plan your gold investments at different price points. Buying gold regularly will ensure that the difference in prices is averaged out.

Divisibility is an important consideration

When buying gold, considerable advantage can be gained out of buying small amounts at one time. If you buy a 1kg gold bar at a particular price point, you have committed a large amount of capital into buying gold at one time. It is far better to purchase smaller amounts like a 10g gold bar or a few 1/10 gold Sovereigns. This means you can spread your investment and your risk by investing regularly at different price points. When selling, there is an equal advantage of owning small amounts of gold. You can gain price advantages by selling your gold at different price points in the market.

When to Buy Gold?
Investing in gold coins through a reputed dealer is ideal

Additional steps to ensure safe buying

There are a few more factors that you need to consider to ensure that your gold purchases are genuine. Buying gold from a reputed online dealer is always the best option. It is best to avoid buying gold from auction sites like eBay. This is due to the fact that there is no way to confirm whether the products are genuine. If you are buying gold from an individual or a dealer, you need to ensure that their reputation is impeccable. The British Numismatic Trade Association has a list of registered precious metal dealers on their website.

Insider's Guide to gold and silver

Get in touch with Physical Gold for your gold purchases

Physical Gold is one of the nation’s most reputed gold dealers with an impeccable track record. We are registered with the BNTA and our team of advisors offer free advice to customers at all times. Call us today on (020) 7060 9992 or visit our website, to get in touch with us online.


Image Credits: Wikimedia Commons and Public.Resource.Org

By Daniel Fisher

Daniel Fisher formed physical Gold in 2008, after working in the financial industry for 20 years. He spent much of that time working within the new issue fixed income business at a top tier US bank. In this role, he traded a large book of fixed income securities, raised capital for some of the largest government, financial, and corporate institutions in the world and advised the leading global institutional investors. Daniel is CeFA registered and is a member of the Institute of Financial Planning.

Leave a Reply

Your email address will not be published.