Since the 1850s, gold has played a prominent role in the American economy. Gold has been valued throughout the ages because of its beauty and scarcity. Until 1971, paper currency was backed by gold or silver. Nowadays, most countries have fiat currency. Still, people love gold and silver. But when is the best time to buy them? If they’re interested in correctly timing their purchases of precious metals, including gold and silver bars, Scottsdale residents might benefit from the following advice.

Buy Gold & Silver When Other Investments Are Unstable

During unstable financial periods, investors turn to gold and silver to protect against losses from other investments because precious materials such as gold and silver usually perform opposite to paper currencies. Pay attention to economic news and unemployment rates and watch the Forex market for instabilities.

Watch for a Bullish Trend in Silver and Gold

In the stock and foreign exchange markets, a bullish trend is an upward tendency. Monitor the prices of gold and silver, and when you see them trending higher, it’s time to buy because there’s likely a bearish, or downward, trend on the horizon. After the downward trend, gold will usually make a major reversal and become more valuable than when you originally purchased it.

Look for Falling Prices

This is a good tip for those who are already buying and selling gold and silver. When the prices of gold and silver fall below the prices you paid the last time you purchased them, it’s a good time to buy because prices are likely to bounce back.

Monitor the Gold/Silver Ratio

The gold/silver ratio represents the difference between gold and silver prices. Simply put, it’s how many ounces of silver it takes to purchase one ounce of gold. When the gold/silver ratio is high, it’s time to buy silver because it may offer better value. However, when the gold/silver ratio falls, it’s time to purchase gold and stockpile it for future events.

Consider the Time of the Year

If you look at average gold prices from 1975 through 2018, you’ll see prices usually surge during mid-January through the start of February. Through the summer months, the price of gold typically falls. Around September, it usually starts to skyrocket and continues to do so through December. Historically, the cheapest prices for gold have occurred in March. The second quarter is historically the worst time for gold prices, so it’s the best time to buy.

Silver is more volatile. There are lows in January and price dips in June through early July. If your practice is to buy silver at its lowest price, you should buy in June, with the next most favorable months being August and October. 

Whether they’re looking for expert advice on precious metals or they want to buy gold, Scottsdale residents should work with trustworthy precious metal dealers who offer high-quality service and have years of experience. Call on the industry-leading professionals at First National Bullion when you’re ready to invest in precious metals, including gold, silver, platinum, and palladium. Give us a call today at 480-546-8928.

The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.