Tip 5/7: Timing your purchase is crucial – Never chase prices higher
Tips to increase your wealth by investing in Gold & Silver
Tip 5: Timing your purchase is critical. You should never chase prices higher.
Are you ready to buy gold or silver? Very good, one of the key things to do, is determine when you will do your purchase. You can get help from the long term gold price and silver price. The “golden” rule is to buy the dips (they always come) and avoid buying the peaks.
Gold price and silver price chart
Have a look at the gold price chart for the past 10 years. The move up is so perfect and it stays within a range of higher highs and higher lows. Don’t chase prices higher; just wait to buy the dips. Don’t be afraid of waiting a bit if prices are near an intermediate peak. You should welcome decreasing prices for the buying opportunity you get.
Ideally you accumulate physical gold and silver in your core holding over time. It means you buy more every time prices fall to intermediate lows. You should not touch this core holding. This principle applies not only to individuals and households, but also to private and professional investors.
Gold silver ratio
If you are looking for help in determining whether to buy gold versus silver, than you should carefully consider the gold/silver price ratio. In general, gold and silver follow the same pattern up or down, but they still have their own dynamics. In April of 2011, the silver price peaked while gold did so only in September (that’s more than 4 months later). The gold/silver ratio is a reliable indicator to estimate which of the two metals is expected to move the sharpest up or down.
Historically the gold/silver ratio has been on average 16/1. During the past decade (2001 till 2010) both gold and silver performed very well in nominal terms. When looking at the gold/silver ratio, most precious metals experts will tell you that the silver price is about to increase sharper than gold during the current decade (from 2011 onwards).
Higher profits with technical analysis
If you are willing to make even higher profits, then set up a separate portfolio of gold and silver assets, which you sell when prices are overbought and buy again when prices are oversold. You can do it by buying gold and silver with online services, gold and silver backed ETF’s, physical bars or mining stocks. If you need professional assistance, then consider the services within the recommended newsletters section. We have subscribed to all of these newsletters; the selection is based on years of research and it contains only the best in class services.
Read all the articles in the seven-part series “7 tips to increase your wealth by investing in Gold & Silver“
Tip 1: Gold and Silver is for everyone
Tip 2: Be sure to have physical gold & silver
Tip 3: We are in stage 2 in the long term gold & silver bull market
Tip 4: Be prepared to see sudden price drops
Tip 5: Timing your purchase is crucial
Beginners’ Guide – All Articles
INTRODUCTION TO THE WORLDS OF GOLD & SILVER
What’s This Financial Crisis About and What’s The Link With Gold & Silver?
Physical Gold: antidote against the ongoing global debt crisis
7 key benefits of owning gold and silver
7 Ways to Invest in Gold and 7 Ways to Become a Silver Investor
Is Silver a Safe Investment and Are Silver Coins a Good Investment
Buying Silver is a Volatile Investment and The Value of Silver
Why To Buy Gold Bars as a Gold Investment
Understanding Gold Coin Prices
Understanding Gold Price Per Ounce
7 TIPS TO INCREASE YOUR WEALTH WITH GOLD & SILVER
Introduction: Now is the time to invest in gold and silver – 7 tips to increase your wealth
Tip 1: Gold and silver is for everyone – You too should own it
Tip 2: Be sure to have physical gold & silver
Tip 3: We are in stage 2 in the long term gold & silver bull market
Tip 4: Be prepared to see sudden price drops
Tip 5: Timing when buying is crucial
Tip 6: This is the century of silver
Tip 7: Gold & Silver stocks can have high yields
IS NOW THE TIME TO BE BUYING GOLD & SILVER?
7 facts proving we are in a long term powerful uptrend in Gold and Silver
Is This the Best Time to Be Buying Gold and Silver?
THE BEST GOLD & SILVER INFOGRAPHICS
Is gold a bubble? Look at this Infographic for the answer.
Own physical Gold? This infographic explores Vaulted Gold as one of your options.
Infographic: all you need to know about Gold in the world