Due to its reputation as an inflation hedge, gold is one investment that is worth looking into.

If you’re thinking about increasing the amount of gold in your portfolio, historical data indicates that there may be particular months of the year that are preferable to others for purchasing gold.

When Is The Best Time To Buy Gold?

According to past trends, some months of the year are preferable for investing in gold. A precious metals investment firm called GoldSilver examined daily variations in the price of gold from 1975 until 2022.

Their data shows that the average rise throughout the first half of the year is merely 0.6%. However, the third quarter typically sees a plus 3.6% rise in price while the fourth quarter sees a 1.5% price gain.

The first half of the year is a better time to purchase gold because that is when the metal performs the best.

If we further dissect the data, we can observe that the price of gold often falls in January before rising in February. The biggest price declines of the year, on average, occur in March (-0.8%), June (-0.2%), and October (-0.3%), according to the website’s study. The greatest periods and months to buy gold are therefore typically January, March, early April, mid-June, and early July.

Although IRAs provide advantages, there are also drawbacks to these funds. They could be expensive to set up and maintain, and since they start requiring payouts at age 72, they might force you to sell your assets at a loss if the timing is off.

Finally, gold isn’t a high-growth investment, so an IRA is probably not what you’re looking for if you want something that will yield large returns.

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Things To Consider

Ask your tax preparer or an investment advisor if a gold IRA is a good option for your goals and financial situation if you’re thinking about getting one. To find out more, you may also ask for a free information kit.

The aforementioned patterns are only projections based on historical data that will undoubtedly evolve in the future. Similar to the majority of assets, prices are continually volatile and alter in response to changes in the market. While you can use prior trends as guidance, it may be more valuable to keep an eye on market moves throughout the year, regardless of the month or season.

Consider buying gold in little amounts frequently rather than all at once rather than attempting to time the market. This tactic can result in a reduced average price. Remember that financial professionals frequently advise keeping your holdings to 5% or 10% of your portfolio. Of course, before investing in gold or other assets, always get advice from your financial counselor.

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