Sopela Business Market

Top Menu

  • Home
  • Mail us

Main Menu

  • Home
  • Advertising
  • Business
  • Corporate
  • Entrepreneurs
  • Industry
  • Marketing
  • Media
Sign in / Join

Login

Welcome! Login in to your account
Lost your password?

Lost Password

Back to login

logo

Sopela Business Market

  • Home
  • Advertising
  • Business
  • Corporate
  • Entrepreneurs
  • Industry
  • Marketing
  • Media
  • How to be a Hospitality Industry Training Teacher

  • We Have To Bring Industry To The U . s . States

  • Envisioning the way forward for the Mining Industry

  • Technological Advancements within the Automobile Industry of america

  • Ruggedized Computers for Multiple Industry Needs

Business
Home›Business›When is the best time to invest in gold?

When is the best time to invest in gold?

By Flavio Otis
March 13, 2023
40
0
Share:

There are usually several types of assets for your investment portfolio that you need to be aware of. These are stocks, bonds, real estate and commodities. These are cash or they act as cash equivalents. In addition, an investment portfolio can be further divided into subclasses. For example, commodities can be divided into 3 sub-classes of precious metals, energy and other commodities. They are defensive strong dividend paying stocks, growth stocks, high risk speculative new venture stocks. For a balanced portfolio, it is always advisable to buy gold bullion and hold some gold in your investment portfolio.

The nature of gold as a precious metal

The most important characteristic of the commodity class is that it does not pay anything for its ownership. It brings no interest. It also pays no dividends. You earn primarily on the difference between the price you buy gold bullion and the price you sell it for.  Another characteristic is that value is primarily driven by market demand and market supply. For example, in the case of soybeans, when demand rises, the price rises. And if there is a supply shock, such as a natural disaster affecting a soybean plantation, the price also rises.

However, gold is also part of the Precious Metals subclass, which is available in a limited amount. Since it is mined, there is a limit to how large the supply can be. You can see that this is especially true for the gold case. Thus, in the case of gold, the price is determined on the demand side rather than on the supply side.

The Nature of Gold as Forex

On the other hand, its value is also determined by the production of other currencies. This means that if there is a crisis in Japan, gold denominated in Japanese yen will rise even higher.

Trend behaviour to determine when is the best time to invest in gold

Gold will react to certain factors like political or economic crises, currency devaluation and high inflation periods

  1. Crisis

In times of severe crisis, their safe harbour profession can lead to a rise in the price of gold. This is because it is accepted by all and cannot match what is happening in the world. That in a crisis where confidence is lost, a safe flight means that funds start to flood into gold.

  1. Currency depreciation

At a time when currencies are devalued, gold will rise automatically against that currency. This is the best way for those in countries where their money is devalued to preserve their wealth through gold.

  1. High inflation

You will also find that Gold does very well in times of high inflation, especially due to supply shocks.

How it fits into your overall portfolio

You should have exposure to gold as part of your portfolio. Gold is usually counter-cyclical. If the price of stocks is high and the price of gold is low when the economy is improving, you need to balance your portfolio. This is done by pulling out some of your other investments that seem too large and putting in gold. This is to protect your overall investment portfolio, if problems arise and stocks lose money, your gold investment can help.

When is the best time to invest in gold?

For long-term investors, the best time to invest in gold is the calm before the storm. This is the time when the price of gold will be the lowest. During this time, slowly collect gold. Stop or postpone your purchases when the storm clears. If the storm seems to have cleared, you can decide to sell some of your assets to include the gains, or wait for prices to drop and then rebuild.

For medium-term investors

For medium-term investors, the best time to invest is at the first sign of trouble and the release of the first sign of resolution.

Previous Article

Fundamental Analysis in Stock Trading: Understanding Financial ...

Next Article

VAT on Superyacht Rentals in France

Share:

Related articles More from author

  • Business

    How to Build Your Credit Score for Availing a Home Loan

    May 18, 2021
    By Flavio Otis
  • Business

    Nine concerns when choosing a professional answering service

    June 15, 2021
    By Flavio Otis
  • Business

    Ways SEO Can Harm Your Business Growth

    November 2, 2020
    By Flavio Otis
  • Business

    How To Choose The Right Oilfield Services Company

    January 15, 2022
    By Flavio Otis
  • Business

    3 Growth Strategies to Elevate Your Subscription Brand

    July 1, 2022
    By Flavio Otis
  • Business

    What To Consider Before Leaving For Good

    August 17, 2021
    By Flavio Otis

Comments are closed.

  • Media

    Effective Integrated Media Buying Strategies That Actually Work

  • News

    Celebrating Europe Day 2021 during COVID-19

  • Business

    6 Quick Tips About SEO

  • Recent

  • Popular

  • Comments

  • Natixis & John Hailer Instill Disruptive Services in the Investment Scene

    By Flavio Otis
    March 23, 2023
  • How to Become a Successful Business Insurance Agent

    By Flavio Otis
    March 21, 2023
  • Surveying a yacht in La Spezia

    By Flavio Otis
    March 20, 2023
  • Should You Buy An Individual Health Insurance Or A Family Floater Plan?

    By Flavio Otis
    March 15, 2023
  • Key Parameters Which Will Help You To Choose The Right Car Insurance Policy

    By Flavio Otis
    March 15, 2023
  • Natixis & John Hailer Instill Disruptive Services in the Investment Scene

    By Flavio Otis
    March 23, 2023
  • 5 Affordable Marketing Tactics That Actually Work With Smaller sized Budgets

    By Flavio Otis
    October 16, 2019
  • Marketing for Professionals

    By Flavio Otis
    October 16, 2019
  • What Drives Entrepreneurs to produce Something From Nothing?

    By Flavio Otis
    October 20, 2019
  • The advantages of Learning What Effective Entrepreneurs Do

    By Flavio Otis
    October 21, 2019

Recent Posts

  • Natixis & John Hailer Instill Disruptive Services in the Investment Scene
  • How to Become a Successful Business Insurance Agent
  • Surveying a yacht in La Spezia
  • Should You Buy An Individual Health Insurance Or A Family Floater Plan?
  • Key Parameters Which Will Help You To Choose The Right Car Insurance Policy
  • VAT on Superyacht Rentals in France
  • When is the best time to invest in gold?
  • Fundamental Analysis in Stock Trading: Understanding Financial Statements and Ratios
  • Take Help from Event Video Professional for Your Next Event

Archives

  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • May 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • Mail us
Copyright 2020 Sopela Business Market - All rights reserved.