Atmospheric Changes Affect Gold Prices – When to Buy

Supply and demand can clearly affect the price of any given commodity. This is also true for gold, yet in recent years we have seen tremendous atmospheric changes affect how gold behaves. Let’s look now at a few of these factors.


Recently you may have heard statements like “Gold has a psychological resistance of $1600”. This means that everyone is waiting for gold to fall below this magic number of $1600 per ounce. Many investors will wait to buy because they want to invest below this resistance number. Oftentimes gold will drop below this mark only to return to it very shortly after. However, this is only one factor of many you should keep an eye on.

Gold in the Media:

Prices in gold can change if there is suddenly lots of media coverage. When people like Suze Orman come on the Today Show and talk about gold, you can bet this will affect the price. Furthermore, when the media giant CNN has a weeklong special segment talking about gold, then you should take notice as well. Typically when gold receives lots of media coverage the price goes up.

The Stock Market:

When the stock market goes on a roller coaster ride you can bet it will affect gold’s overall performance. When the stock market is down you will find gold on the rise. Investors will typically run away from rocky investments and start diversifying their assets with gold when this happens.

So when is a good time to buy?

The short answer is right now.

Because we don’t have to worry about any of these factors driving the price of gold up, we can be assured that now is the time to buy. Think of it this way: no news is good news when it comes to gold.

Each of the above factors have been fairly quiet in the past month or so. Typically a snowball effect will occur when the atmosphere shifts. First, gold drops below $1600. Then the stock market starts to take a turn for the worse. After this the media talks about how much the price of gold is exploding.

Get in now. The price of gold is low, and the stock market has yet to take a turn for the worse. Buy your gold today before you have the media giants telling you “Imagine if you would have bought gold when it was below $1600!”

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American Bullion specializes in adding gold and silver to retirement accounts. If you have a question or would like to know more about your investment options, please call American Bullion at 1-800-326-9598 to speak with a precious metals specialist.