Gold coin of the Chinese Year of the Horse, exclusive edition in red velvet box, recommended for investment and collectors.
How should you time your gold purchases to maximise your investment returns?
When is the best time to buy gold?
Several strategies exist. Some investors hunt for the annual lows (in recent years, a pattern of relatively lower prices around year-end and in the summer has been observable). Others rely on the averaging effect of monthly or quarterly lump-sum purchases. And there are those who buy gold immediately whenever they receive money they can treat as long-term savings.
Can you time gold purchases? Which season is best for buying gold?
In recent years, two distinct buying windows have been identifiable. The first falls right around the turn of the year (December 30 to January 3), and the second in the middle of summer (late June to early August).
The reason behind the first window is that the Chinese buying season typically begins at the start of the year, ahead of the Chinese New Year in February. The summer lull, meanwhile, tends to push the gold price lower, until Indian dealers begin their seasonal purchasing in preparation for the autumn festival season, which lifts prices again.
It is important to note, however, that awareness of gold's seasonal patterns is growing. More and more investors are timing their purchases for the summer window, which has a smoothing effect on these patterns.
For this reason, a strategy of spreading purchases into smaller regular amounts looks increasingly attractive. A gold savings account can be an excellent tool for implementing this approach.
