You really have to know when to buy gold and when to sell gold to make money in this market. There are many factors which influence the fluctuations in gold prices which in turn will motivate you to either buy gold or sell gold. The gold prices become volatile when major gold mining companies go in for hedging their gross sale of the yellow metal against future loss. Many of the companies suddenly increase their buying substantially and also start aggressively promoting retail sale.
You must understand that gold is not like other commodities. Not only is it the most precious metal, owning gold is also aspiration. Most of the gold is stored in bank vaults. Many countries peg their currency to the gold bullion they own. In the past 20 years or so, there has been a lot of fluctuations in the gold prices, as more people buy gold than sell gold.
Gold prices fluctuate according to the value of the dollar. In reality the value of gold has remained the same over the last so many years, but the value of the currency has changed. So you end up paying more when you buy gold and get much less when you sell.
One of the main reasons why people buy gold is bulwark to their assets. Gold is considered sound and safe investment and you if you require funding urgently, you can always sell gold.
Before you buy gold or sell gold you should study the market’s seasonality. Most commodities, including gold have a season. For instance, demand for gold goes down in summer and this is seen by many investors as the time to buy gold. Winter is seen as a high season when the demand for gold is higher.
There is no time like the present to buy gold. If you invest a small amount every month into bullion then you can safeguard yourself against inflation in the future.