Thursday, March 15, 2012

When is the right time to buy gold?


We would say anytime is the right time! There is a good reason for this: gold is in limited quantity. You can be sure that the price you pay today will be lower than what your children have to pay in the future. That is a long term outlook....

In the short term, there are daily fluctuations in the price of gold. These fluctuations are also precisely why gold is a good investment. You should buy when the price is low. However, let me say that NO ONE, including ATLAS, can predict these changes in the price. Anyone who claims they can is ... well, you get the picture!

However, in order to mitigate risk, our suggestion (follow with caution) is to watch the gold price. You will see peaks and valleys. Buy when you see the first upward trend after reaching a low point. In order to be successful at this you need to monitor the price over a relatively long period. The longer you scrutinize the price, the more successful you will be. Please do note that this will not guarantee you will get the lowest price, only that you will get a reasonably low price.

Also note that in reality the gold price changes by the second. If any of you have visited our main shop in the Gold Souq in Dubai you can watch this for yourself on our monitors. My point here is that the jumps in the price could be very significant. So today, the price is AED 184.50. Tomorrow, it could be AED 202.00. And this strategy will not serve you well. You would have been better off buying any day the price was below AED 200.00.

Ultimately, when to buy will be a very personal decision, as well it should be. The only certainty is that over a long period (10 years or so) your investment WILL appreciate in value. And these small changes won't matter!

Good luck everyone!

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