BUYING GOLD: DECIDING WHEN TO BUY GOLD
Deciding the best time to buy gold is a very personal decision that individual investors must make for themselves. However, there are differing opinions on when to buy and how the market will affect those invested in gold. True gold aficionados will tell you that no matter what the market is doing, it is always a good time to start investing in precious metals. One thing to note is that gold rarely loses its value; the price will go up and down in relation to the value of the dollar, but the value of the metal in relation to the value of other things on the market has historically been fairly consistent. Learn more about the reasons why different experts advise investing during a bull or bear market below.
Investing in Gold in a Bull Market
During a bull market, the market trends upward, usually 20% or higher growth over a period of a year or more. During this time, people who might consider investing in gold are tempted by other investment avenues. The market is usually expected to continue its upward climb and those who bought stocks when the market was lower are reaping the rewards. Some investors claim that this is one of the most important times to buy gold. Because people will be seeking out the security of gold during a failing economy, bull markets are a great time to invest in gold when the demand is lower.
Investing in Gold in a Bear Market
A bear market for stocks is usually considered a gold bull market. This means that the demand for gold is very high and that those who invested in gold are able to sell and make a profit. It also means that gold is one of the most stable investments in this type of market and one that can provide a safe haven from the ups and downs of other investments. Because investors want to protect their assets during these markets, they will buy gold to weather the storm.
Gradually Investing in Gold
Investors who prefer a diversified portfolio will recommend investing in gold regularly, no matter the weather. Having a solid foundation of gold in their portfolio allows them to take risks during bear markets with other investments and enjoy a measure of stability during bull markets, when uncertainty runs as rampant as good fortune. These investors feel more confident in all of their investments knowing that each time they have the resources to invest, they put at least a portion of those funds toward a stable investment that will carry them through a variety of market situations.
Your decision to invest in gold will be affected by your resources, your strategy as an investor and your experience in the market. Whether you feel more comfortable investing during bear or bull markets, or making regular gold purchases, you'll be able to find the gold information you need -- from prices to gold coins and bullion details -- at Goldline.com
- S&P Capital IQ - Gold: $1,900 (in 2012) "Leo Larkin, metals and mining analyst at S&P Capital IQ, thinks that $1,900 gold might not be that much of a stretch [in 2012]. 'Gold has been ..."
- Citigroup - Gold: $2,300 - $2,400 (by end of 2012) "While we remain cautious on Gold in the near term...we continue to believe that the bull market remains intact...we believe that 2012 may be..."
- Leeb Capital Management - Gold: $2,500 - $3,000 (in 2012) "I'll give you my target for gold at the end of 2012, it's going to be trading somewhere between $2,500 and $3,000. This..."
- Global Hunter Securities - Gold: $1,800 (in 2012) "'What I am looking for is a gold price of $1,800 an ounce in 2012,' says Jeffrey Wright, senior research analyst at Global Hunter..."
- US Global Investors - Gold: $3,600 (by 2017) "'People get so caught up with the next three minutes for gold and they should really be focused on the next three years,' says Frank Holmes, ..."
- Goldman Sachs - Gold: over $1,900 (in 2012) "Wall Street investment bank Goldman Sachs predicts that gold's bull run will continue into 2012 with a low interest rate environment and..."
- CNBC - Gold: $2,400 (no period given) "Gold will top $2,400 an ounce. The long-term bull market in gold marches on. Gold won't make a straight shot to a new inflation-adjusted high. As long..."
- Nomura - Gold: $2,000 (by end of 2012) "Nomura has raised its forecast for gold prices to $2,000 an ounce by the end of 2012, from $1,800 earlier. The brokerage said the low-interest rate..."
- Morgan Stanley - Gold: $2,200 (in first half of 2012) "Gold will lead a rally in commodities in 2012 as Europe's sovereign-debt crisis continues to roil financial markets, spurring demand for ..."
- UBS - Gold: $2,050 average in 2012 "[Gold] remains one of the top commodity picks for 2012 as 'most of the factors that pushed gold higher in 2011 are not going away,' according to UBS..."
- Bank of America Merrill Lynch - Gold: $2,150 - $2,200 (average in 2012) "From a technical perspective we believe that the bull trend for gold remains intact… with gold having not yet met any of..."
- TheStreet.com - Gold: $2,500 (by May 2013) "I want to own gold here. I think gold is going to $2,500 eighteen months from now... Gold has been up for ten straight years and this going to be the..."
