When is the best time to buy gold?November 26, 2019 12:52 pm
One of the most frequent questions that we are asked by our customers is knowing when to buy gold. There is no definitive answer, but let’s look at some indicators as to when gold may be on the rise.
You only have to look at events of the last few years to see how politics affects gold! In the UK, the gold price has surged since June 2016 as the GBP price dropped. Brexit is a divisive issue, but the one thing it has caused is uncertainty in the markets as investors don’t know whether to back a country going it alone. All of this has forcibly kept GBP at a low price against the dollar, and so in turn gold has hit record highs here before dropping back over the last couple of months after the Brexit talks were put on hold. (Our live charts are refreshed every minute and give you real-time access to gold performance – Live charts)
Gold has traditionally been seen as a safe haven investment. When other assets are struggling, gold comes to the fore, as investors look to move funds into bullion. The lack of trust in banking that grew from the last recession in 2007/2008 encouraged many investors to change tack. Interest rates are still historically low, and with low premiums on gold coins, bullion became an attractive investment opportunity.
Another contributing factor to the recent gold price rise is the breakdown in relations between the world’s largest economies. The China-USA trade disputes combined with a more aggressive US foreign policy has stoked tensions worldwide. Recent wars in Syria and Iraq have previously pushed the gold price up, and Middle Eastern wars bring oil into play. The US dependency on oil becomes jittery when the likelihood of conflict increases, and recently we have seen the hardline tactics taken against Iran cause ripples in the markets.
These three factors are some of the main causes of movement in the gold price. In answer to the question when to buy gold, it’s down to personal circumstance. In truth, all of the above will continue going forward, so when the price is right for you, then that’s the right time to buy gold.