When Is The Ideal Time To Buy Gold?

by Kyle Taylor on September 29, 2013

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Gold Bars

Gold is often thought of as the ultimate symbol of wealth. People have been chasing it forever, and wars have been fought over it. There is a reason that kings often had their castles made with a lot of gold accents and trims. It showed that they had all of the money, which also showed that they had power. They were in charge. Because of this history, it is natural to think that people would buy more gold when the economy is doing well, but you will actually find that the opposite tends to be true.

If the economy is doing poorly, people tend to purchase more gold as an investment. The reason for this is twofold. It starts with the fact that a poor economy means a poor stock market. If people still have enough money to invest, are they going to choose the stocks or the gold? In a time in which stocks are dangerous, they have to be avoided. These people still have money and they do not want to just let it sit around because everyone else is not doing so well, but they are not going to pour money into stocks unless they think that those stocks might rise.

The second half of the reason is that gold is a solid thing that you can own. It is a real material, a tangible good. Even if the economy continues to tumble and everything is worth less, gold will always have some worth, some value. There is not a chance that it will fall all the way to nothing, though that can happen overnight with a company. People like investing in gold because it is impossible to lose it all, so the economy is not as much of a threat to them, even if they are not going to make huge gains from it.

As you can see, there are some very reasonable explanations for why gold is viewed differently than you might expect. This is not to say that it is not going to be purchased in times of plenty, when the economy is doing well. People are always going to buy it. They just have other options when there is a strong economy, so it is not always going to be their first choice. If you are interested in how this works and you want to learn more, you can find gold and silver at HNEX.com.

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  • Mike GetRichWithMe

    Its always a good time to buy gold. Gold is a great portfolio diversfier and a good hedge against inflation.
    Maybe making small monthly purchases might work better than a lump sum investment at the moment. In that way you don’t have to try to “time the market”

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