How to profit from falling gold prices

falling gold pricesDo falling gold prices have you worried about the soundness of your decision to invest in gold? Stop letting falling gold prices deter you. What you’re looking at is in fact a golden opportunity.

When you invest in the stock market, you’re putting your money behind your confidence in a company, industry, or the whole economy. Buying a stock means you’re buying a share of the company (hence the alternative term, share) and becoming an owner. Companies fail, go bankrupt and leave their stockholders with worthless shares. They can fail because of mismanagement, changing consumption, an adverse business environment or changes to the industry. Shareholders have good reason to be worried when their stocks fall in value.

It’s not the same for gold investors. Gold has been valuable for millennia, longer than any company or government has been around. The value of gold has been remarkably consistent for centuries. Confidence in gold is enduring and its scarcity means it’s not going to lose value due to overabundance. The planet’s gold is finite, and as the world comes closer to extracting all of it, it will only become more valuable.

Temporary decreases in price can only benefit gold investors. Take advantage of lower prices and buy gold coins and gold bars from dealers like Silver Gold Bull online.

Gold will always have value and it will always be scarce. There are a number of elements that are both useful and seen as intrinsic stores of value, including silver, but their value has changed over time. For a brief period in the 19th century, aluminum was considered more valuable than gold – but aluminum is incredibly common in the earth’s core, it was simply hard to separate from other minerals. Gold is a comparatively rare element. When you invest in gold, you put money behind your confidence that people’s millennia-long attitudes toward gold (that it is valuable) won’t change in your lifetime.

If your goal is to increase your overall gold position for a long-term investment, dollar cost averaging is one of the safest ways to buy gold. Rather than dive into the market all at once with all the money you want to invest in gold, spreading that investment out with smaller monthly gold purchases makes the most of dips in gold prices. Let’s say you had $2000 to spend every month on gold. At $1,500, you would only be able to buy 1 ½ oz of gold, but at $1000, you could buy 2 oz. After two months, you’ve spent $4000 on 3.5 oz of gold at a price of $1,142.85 per oz. It’s a simple strategy that doesn’t require guesswork. It’s difficult or nearly impossible to predict where gold prices might be headed. Dollar cost averaging is a strategic way to buy and mitigate lost opportunities.

Don’t despair over falling gold prices. Now’s the time to buy gold from Silver Gold Bull or other gold dealers and increase your position. Enjoy the opportunity to build your wealth before prices go back on the upswing.

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