Historically, gold has been viewed as a wealth creator and the faith in precious metals such as gold and silver has endured largely because they have given proven returns. Their value has only increased over the years, and they are the least volatile savings instruments. Whether you buy gold and silver coins or store some of your wealth in the form of bullion bars, you can be assured of a steady rise in your asset value.
As a display of wealth and prosperity, silver and gold are coveted all year round in the form of jewelry or collectible coins. However, as an investment option, it is important to ascertain the gold bar price by tracking the bullion market rates so that you get the best value for your investment.
The period when gold rates are low
A study of gold prices since 1975 has shown that each year the gold prices have experienced a dip or a rise around the same time. In the US, gold prices have been at the lowest for that year in the months of early January, throughout March, and early April. The next phase of dip comes between mid-June to early July. Though prices have gone down in these periods for the year, it has also been observed that the lowest price of gold and silver have been higher than the lowest price of gold and silver in the previous year. So, the gold bar price in mid-June 2022 will still be higher than the price of gold in mid-June 2021.
The best time to buy gold in 2022
The year 2022 began with the US exiting Afghanistan, the pandemic slowing down, and the war in Ukraine which is affecting the global oil prices and US Dollar rates. Historically, the stock market and US Dollar have shared an inverse relationship with gold. However, this year too, continuing the trends of the previous years, the precious metal market prices have reflected the same behavior of dips and rises in the periods mentioned above. Thus, one can follow the rule of thumb and buy gold and silver coins in these periods.
Investing in silver
Silver has a more volatile price rise and dips as it has demand in various industries too. Thus, its price is more volatile compared to gold. if you have a low budget, and you are looking for healthy returns, then silver is also a good buying option. You can purchase silver coins or bars at a lower rate and enjoy a similar percentage of returns on investment.
The price of physical gold and silver in the form of bars and coins is closer to the commodity market rate. This is because they are of .999 purity and carry a premium amount charged for minting, packaging, and selling costs. In any case, gold and silver are the best hedges for your investment and offer the best protection for your wealth in the long term.