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How can someone know if it is a good time to buy gold?

Who do you really believe? You have so many reasons to think that the price of gold will continue to rise, printing money to get out of debt, the Chinese accumulating gold, national debt of many countries placing them near bankruptcy and the gold mints not having enough raw product to meet demand. See Report.  Then you have some powerful historic trends that show that when a country’s economy is going through a depression that gold typically doesn’t rise. See report.

This is where as an investor you need to evaluate why you want to purchase gold. If it is to trade the price swings and make money on its price action, then you are better off not using real gold bullion to do so. It is better to trade the futures or commodities.

But if you are concerned with making sure that your dollar doesn’t disintegrate into thin air then you really need to take advantage of precious metals. Historically it can always be used as money; in fact it is real money.

The point is the physical gold or silver that you own will provide you with an asset that you can convert to cash when needed. A bank account of 100 000 USD in the future will not have the purchasing power of 100 ounces of gold.

This is why between 15-25% of your savings should be in real gold bullion or silver.

This is why if you are not holding any gold assets you will want to start regardless of the price. But when the price is high it is wise not to make just one large purchase.

Make smaller purchases over the course of many months, or if you want to speed the process up make it over many days. This will dollar cost average the price that you pay. Take some time and look at the gold spot price and get a feel for the fluctuation. Maybe you are seeing a trend to the down side, make your purchase then.

Something to consider, let us say you have $100,000 in savings and you want to put $25,000 into a gold savings account, mark on a calendar when you want to have that money in gold assets set up. Then figure out how many days, weeks, months are left to get to your goal. Take that $25, 000 and divide it by the number of days or weeks that are left. $25,000 divided by 12months =$2083per month.

Now if you really want to improve you dollar cost averaging take that 2083 and divide it by 4 it will give you $520 per week. Or you could make $74 per day transactions.

I would tend to stick to weekly because of the transaction fees, which are small but they will add up if you do it every day.

Using the above scenario you would have reached you target in a year and dollar cost averaged your price. This will also give you some real assets that won’t vaporize into thin air based on some poor economic decisions.

You don’t have to be a gold broker today to take advantage of owing gold or silver. There are many companies out there that make it easy and safe.

So if you are like many people out there take advantage of this time to build a golden security net for your finances and future.

Whilst the recession may or might not be more than, most financial experts agree that this can be the best time to invest. Yes, the market could still decline, and there’s no indication that the the worst days are more than, however in general, this might be the best time to make investments – if you know the way to invest, that may be.

Knowing how to invest is not some secret formula. In fact, if someone does claim to have a secret the way to make investments and get rich quick formula, you ought to probably run the opposite way, don’t walk. Investment will always carry with it some chance. It is feasible to get rich overnight, however incredibly unlikely.

While you approach the question of how to make investments, you ought to be considering, first, foremost, and only, the long-term. Hot stock tips are useful for experienced traders, although those are as well the people you see bankrupt within the Wall Street Journal a few some time later. Make no mistake about it; the commodity exchange is gambling; unless you give in to the inherent nature of it.

Knowing the way to invest means believing in compound interest and long-term growth. Understand that you are looking for earnings 15 or 20 years from now; that’s how money can be made in the commodity industry for you and I.

Here can be the way I know the way to make investments; follow along if you believe it will be helpful. The first thing I do Previously I make investments is to save. Whatever percentage of my monthly income I devote to investments, I put half inside a CD, or other longterm, locked-in, savings account; whatever yields “high” insurance. FDIC protects that up to two hundred and fifty thousand dollars, so there is certainly no plausible way you could lose that money. After that, I tend to look only for indexes. Indexes minimize short term chance and reward in favor of growth over a 15 or 20 year period.

There are several methods how to invest , and no topic who you listen to, including me, think about what you want once you invest. It’s too simple to say, “I wish to make money and be rich”. What, exactly do you prefer to do with the cash? Buy a house? Retire? Send a kid to college? Set realistic goals, and it’s surprising how investments with realistic goals and risk-assessing will help you reach the life you want.