When is the right time to buy gold?

When is the right time to buy gold? © Own image

Unfortunately, this question cannot be answered across the board - even by experts - as the gold price is subject to strong short-term fluctuations: It is said that the gold price is "volatile". However, quite consistent seasonal effects can be observed every year, which are mainly due to celebrations in Asia.

From the wedding season in India to Chinese New Year

Every year, the price of gold rises by an average of 6.9 percent in the fall months - according to a calculation by the World Gold Council. This is mainly due to the fact that most weddings in India take place from September to November. Marriages contracted in the fall - according to local opinion - are said to be particularly happy. The fact that this tradition has a noticeable influence on the price of gold is due to the fact that it is customary in India to provide brides with a lavish trousseau of gold. Families not infrequently spend a small fortune to ensure their daughter's financial independence in marriage. For this reason, 45 percent of all gold purchases on the Asian subcontinent are made in late summer or fall, especially since this is also when the Hindu festival of lights Diwali is celebrated.

As the wedding season in India draws to a close, the run on jewelers and gold dealers begins in the West: Christmas is just around the corner! In the U.S., for example, this industry makes about 50 percent of its annual sales before Christmas, which is why the price of gold - according to the World Gold Council - increases by about 5 percent every year from the beginning of November to the end of December. Shortly thereafter, demand for gold increases in China: As is well known, the Chinese do not celebrate their New Year until February, and traditionally they like to give gold jewelry as gifts.

So what is the best way to invest your money in gold?

As mentioned above: It is difficult to determine the optimal time to buy gold and to answer the question "When is the best time to buy gold" without further ado. It can be observed that the price of gold regularly rises markedly following a high in the U.S. dollar, but how is a layman supposed to know when the U.S. currency has peaked? What is certain, however, is that you should by no means invest in gold only when there is hype.

If you want to buy gold as security or for long-term asset accumulation, experts advise you to buy smaller amounts of gold at regular intervals. With this buying behavior you can - without having to constantly monitor the gold price - optimally compensate for price fluctuations.

So that you can always be informed about the daily updated gold prices, we publish them for you regularly under precious metal prices. If you have any questions, please contact us or come to one of our branches. We will be happy to advise you at any time.

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