Time To Buy Gold

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Options Broker 2020!
    Ideal for beginners!
    Free Demo Account + Free Trading Education!
    Get a Sign-up Bonus:

  • BINOMO
    BINOMO

    2nd place in the ranking!

3 Charts That Suggest Now Is the Time to Buy Gold

Rising uncertainty about the future has investors across the globe concerned about growth of their investments. Many are in the process of seeking shelter from what could be another significant pullback, and traditional safe havens such as gold, related commodities, bonds and reserve currencies are gaining traction. In the paragraphs below, we’ll take a look at the charts of several gold-tracking exchange-traded funds (ETFs) and try to identify why now could be the ideal time to buy.

SPDR Gold Shares (GLD)

Followers of technical analysis will often look to long-term indicators such as moving averages and trendlines to gain insight about major shifts in the underlying fundamentals. These indicators can be used to accurately reflect investor sentiment and can provide clues as to future price action.

On the chart of SPDR Gold Shares (GLD) shown below, you can see that the 50-day moving average (blue line) has crossed beyond the 200-day moving average (red line) twice over the past year. The crossover between these two moving averages is one of the most common buy signs and is often used to mark the beginning of a major trend. Recent gains have triggered a bullish crossover, which suggest that we are in the early days of a long-term uptrend. Active traders will likely look to enter a position on any form of pullback toward the moving averages to increase the risk/reward of the position. Stop-loss orders will most likely be placed below the combined support near $118.

ETFS Physical Precious Metals Basket Shares (GLTR)

Investors who want to invest in gold but who are also interested in a broader holding in the overall previous metals segment may want to consider the ETFS Physical Precious Metals Basket Shares (GLTR). More specifically, this fund is often a favorite of traders who seek to own a basket of gold, silver, platinum and palladium bullion. Taking a look at the chart, you can see the pattern looks nearly identical to the one shown on GLD above. The bullish crossover between the long-term moving averages suggests that the uptrend is just getting started. From a risk-management perspective, stop-loss orders will likely be placed below $61.11.

VanEck Vectors Gold Miners ETF (GDX)

Investors who are willing to take on risk could also be interested in the VanEck Vectors Gold Miners ETF (GDX). Of the group, this fund currently offers the most lucrative risk-to-reward ratio and has been relatively slow to adjust to rising prices of the underlying metals since the rise has occurred quite quickly. Assuming prices of the metals continue to trend higher, the group that will stand to benefit most will be the miners. Some traders may want to consider staying on the sidelines until the 50-day moving average is able to cross above the 200-day moving average, or for the price to close above the swing high of $21.54.

The Bottom Line

In recent weeks, it has become increasingly difficult for active traders to find segments of the market that look poised for growth. Growing levels of geopolitical concern have some traders seeking shelter for their investments. Based on the charts shown above, it appears as though gold and related metals could be among the top choices to consider.

At the time of writing, Casey Murphy did not own a position in any of the assets mentioned.

Goldman Sachs says it is time to buy gold — the ‘currency of last resort’

Steve Goldstein

  • Email icon
  • Facebook icon
  • Twitter icon
  • Linkedin icon
  • Flipboard icon
    Print icon Resize icon

Referenced Symbols

The current coronavirus-induced economic and financial market turmoil is seemingly the perfect environment for gold.

“We have long argued that gold is the currency of last resort, acting as a hedge against currency debasement when policy makers act to accommodate shocks such as the one being experienced now,” said analysts at Goldman Sachs led by Jeffrey Currie.

Yet while the yellow metal GC00, +3.21% has done far better than other assets, it has slipped 2% over the last month.

The Goldman analysts, with a 12-month price target of $1800 an ounce, said that is about to change, thanks to the Federal Reserve’s aggressive bond purchase plan unveiled on Monday, in which the U.S. central bank said it would buy as many Treasurys and mortgage-backed securities as needed to keep financial markets running smoothly.

The Goldman analysts said gold has been weighed down by a world in need of dollars, requiring forced sales of liquid assets like gold. The downturn in oil CL.1, +22.45% as Saudi Arabia and Russia fail to agree on production cuts has also created dollar shortages for emerging market economies, which may have made Russia a net seller of gold, according to Goldman.

In 2008, the Goldman analysts noted, the November announcement of quantitative easing was a turning point.

“We are beginning to see a similar pattern emerge as gold prices stabilized over the past week and rallied [Monday] as the Fed introduced new liquidity injection facilities with this morning’s announcement,” they said.

The analysts that said with the Fed easing funding stresses, focus will likely shift to the large size of the Fed balance sheet expansion, increase in developed market fiscal deficits and concerns about the sustainability of the European monetary union.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Options Broker 2020!
    Ideal for beginners!
    Free Demo Account + Free Trading Education!
    Get a Sign-up Bonus:

  • BINOMO
    BINOMO

    2nd place in the ranking!

“We believe this will likely lead to debasement concerns similar to the post [Global Financial Crisis] period,” they said.

In electronic trade on Tuesday, gold futures rose $97 an ounce.

Stock gains leak oil Thursday afternoon as doubts about Trump’s Russia-Saudi tweet seep in

Stocks gave back morning gains in late Thursday trade as investors grew skeptical about the specifics of a claim by President Donald Trump that Saudi Arabia and Russia have forged a deal to substantially curb oil production to stabilize prices.

[ Updated ] The Best Time of the Year to Buy Gold & Silver in 2020 Is.

Jeff Clark, Senior Analyst, GoldSilver

Can’t decide if you should buy gold now or wait?

Even though gold and silver have long-lasting qualities most other investments don’t, we all want the best price we can get. It’s only natural, and any good consumer will consider the timing of their buying decisions. It’s a question almost every investor asks: Even if I get a good price now, will I be able to get a better price later?

Well, history has an empirical answer for you.

I looked at the historical data to see if I could identify the best time of the year to buy. I suspected January would be best, but what I found was interesting.

We calculated the average gain and loss for every day of the year since 1975 (when it was legal to buy gold again in the US) and put it in a chart. Here’s what it shows:

You can see that on average, gold tends to surge during the first couple months of the year. The price cools down through the spring and summer, then takes off again in the fall. This means that on a historical basis, the best times to buy are the beginning of January, early April, or from mid-June to early July.

You can also see that the price of gold, on average, does not historically revisit its prior-year low. The low of the year is indeed in January—but it’s the low of that year, not the prior year. Obviously, there were years when the gold price did fall—but there were more years it climbed. Smoothing out all those surges and corrections and manias and selloffs, investors will get their best price at the very beginning of the year, or the year before.

We ran the same data for silver and here’s what we found:

It’s easy to see silver’s higher volatility. What also sticks out is that historically, silver doesn’t come close to touching the January low. The only other best time to buy is in June.

As with gold, you’ll notice silver typically doesn’t come close to revisiting its prior year price (though there were certainly years when the price of silver fell below where it started). The historical data says that on average, investors will get their best price in early January or the prior year.

Best Month of the Year to Buy Gold

If you missed buying gold in January, when is the next best time to buy?

We broke the historical data down into months, and here’s what it shows:

Since 1975, the gold price has dipped the most in March. The daily chart above shows the price in April might offer a slightly lower price, but history shows March is the month gold falls the most and is thus one of the best times to buy.

This trend does not apply to silver:

Unlike gold, March is typically flat. The best month to buy silver is June, followed by August and September. Buying in June is further supported by the daily chart above.

Best Quarter to Buy Gold

We also looked at which quarter of the year is the best time to buy gold.

Since 1975, the second quarter (April through June) has clearly been gold’s weakest and is thus the best time to buy. The third quarter (July through September) has been gold’s strongest.

The Best Time to Buy Gold Is…

There are a couple conclusions we can draw from the historical record. When buying gold and silver…

  1. Early January, March or April, and late June is when gold and silver tend to be at their lowest prices of the year and are thus good times to buy. The data show that you want to be fully positioned before August.
  2. You are likely to get a better price this year than next year. Whatever amount you want for your long-term holdings, buy it this year, not next year.

In the big picture, however, it’s less about snagging the exact bottom and more about how many ounces you own. Remember, gold is inversely correlated to other investments, including equities, so you want to have a meaningful amount of bullion before a stock market selloff takes place. If you don’t, the price of gold could very well leave you behind, forcing you to pay not just a higher price but a higher premium.

(If you’re not sure where to start, try the tips in this article.)

Mike and I and everyone else at GoldSilver continue to buy gold and silver regularly. We’re not waiting. We’ll buy more if it falls, but the point is, we’re prepared now for whatever the future may hold.

I hope you are, too. If not, I encourage you to buy physical gold and physical silver now to protect your family’s wealth. And if you’re concerned about how much you’ve got stashed in or around the house, think like Mike and consider our surprisingly affordable storage program.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Options Broker 2020!
    Ideal for beginners!
    Free Demo Account + Free Trading Education!
    Get a Sign-up Bonus:

  • BINOMO
    BINOMO

    2nd place in the ranking!

Like this post? Please share to your friends:
All About Binary Options Trading
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: