The best time to buy gold is not always so straight-forward.. No matter what assets you invested in, the only way to make money and become rich is to adopt a contrarian approach. Most investors understand the investment principle of “buy low and sell high” but when it comes to practice, most people will refrain from taking a position that opposes the majority. This trend is similar for any form of investments – property, equities, currencies and precious metals.
Currently the Wall Street’s Dow Jones is at a historic high of 16,200 points, recording a stock market bull run that stretched from 2009’s 6500 points. This represented an incredible 250% jump within 4 years for the United States’ stock market. A sensible investor would have refrained from investing in the stock market, given the bubbly state. Conversely, gold’s performance has been dismal this year.
According to BullionStar, gold prices have plunged more than 30% since the start of 2013. This puts gold in its first bear market after 12 consecutive bull market years. In my opinion, gold prices could slide further, reaching USD900 per ounce. On the surface, this may seem like an ominous news to gold investors, especially for those who had invested in paper gold, such as ETF and mining stocks. But if you are those who believe in bullion (gold bars and coins), this correction represents a golden opportunity to enter the market. This is because every market has their bull and bear runs, and it is perfectly normal to have major corrections of up to 80%.
Nobody can predict the future, so it is a question as to when the gold market will bottom out. But it should be noted that no asset with good fundamental will remain oversold forever. Just like equities, we should adopt a contrarian mentality and buy gold when low, and sell gold when high. Now is the time to buy gold bullion. Don’t wait until the rest of the herd start a gold rush, be ahead of the pack.
Now, the next question is whether to buy physical gold or paper gold. According to Nick Barisheff’s $10,000 Gold, the only safe way to buy gold is through the purchase of physical bullion. Arguing why gold price will soar to over $10,000 per ounce, he proves the case by applying the same principles and analysis that investors would undertake in any investment due diligence. $10,000 Gold is a positive book that reminds readers that they as individuals can have a positive financial future no matter what governments, Wall Street or foreign powers do.
For the individual investor, the benefits of owning gold are substantial, yet gold continues to be misunderstood. This book reveals the myths and offers them a course of action, Readers will learn how to think independently about gold, money and the geopolitics that affect its price. $10,000 Gold will provide readers a refreshing insight and a welcome relief in a time of financial turmoil. $10,000 Gold is now available. For more information, visit the publisher’s website athttp://www.wiley.com/buy/9781118443507.
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