Best Time To Buy Gold And Silver

You want to buy gold or silver and can’t decide when? Read along.

Besides knowing who to trust when buying gold, every investor is eager to avoid unnecessary loss when purchasing precious metals like gold and silver. In order not to wreck your wallet when buying gold or silver, you need to consider your timing. The best time to buy gold and silver is what you should be capable of analyzing as an investor. Other times, investors also ask when and if they’ll receive reasonable prices later when they plan to sell.

Best Time To Buy Gold And Silver

The fact is, observing historical records of gold and silver performances each year is the primary way you can ascertain the best buying times for gold and silver. According to financial experts, there are hints from yearly records of gold and silver to aid you in making the best buying decisions. We’ll address these issues carefully.

While silver and gold are both liquid assets, both are commodities doomed to fluctuate in price. That’s why you should be careful to not buy at the worst times. The risk of huge loss is real- depending on how you invest in gold, precious either make you or break you. But do not fret- speculating the safer times to invest is almost effortless.

Gold & Silver – Best Buying Seasons

If you observe the historical performance of gold from 1975 through 2018, you’ll see that the price usually scales upwards during the first quarter of the year. Then during the summer, the price gradually falls. From late August to September, the price typically starts to rise continually to the end of the year.

Buying gold coins

According to records, March is when you can buy gold the cheapest. The price still stays low throughout the second quarter of the year, making it the best time to buy gold.

Here, look at the average performance of gold each month since 1975, when it was allowed to buy gold legally again.

Judging from the gains and losses gold mostly encounters each month, the best times to purchase gold are at the very beginning of the year, March, or late April. As winter approaches, gold’s price typically surges.

monthly avergae gold performance

We used the same approach for silver, and it turns out the results aren’t far from that of gold. However, the price of silver is more volatile, and it has the potential to move upwards in percentage than gold. Silver’s volatility contributes to its smaller market, demand fluctuations from stores and industries, and lower market liquidity.

The most dips in price happen in January, making it a good time to buy silver if you aim to spend little. After January, silver typically surges throughout the year. You can buy silver without pouring money down the drain around March and towards the end of June to July. These are the best times to buy silver.

Take a look at silver’s historical performance since 1975.

monthly average silver performance

The Best Month To Buy Gold & Silver Is…

There are many reasons to buy gold and silver, but don’t rush to buy because some moments can be unfavorable for purchase. Both gold and silver have a month in the year when it’s best to buy. Since it became legal to buy gold in 1975, on average, the month of March is when gold performs poorly on the market. This makes March the best month to buy gold.

Silver is highly volatile; its price trends upwards and downwards quickly and randomly, but there is a time the price dips more, and it’s in June. This makes June the best month to purchase silver, followed by early January and August.

silver coins and bars

More Factors To Consider

There are other times investors watch out for when deciding the best time to buy gold or silver. Apart from considering the time of the year, investors should pay attention to the trends in other investments, monitor the gold and silver ratio, and watch out for bullish trends.

Other Investments

Investors usually make the most buying decisions during unstable financial conditions, when other Investments are shaky. It’s only normal that this happens since silver and gold perform opposite to paper currencies. So, it’s best to buy at these times to avoid losses from other Investments. You also have to stay heads up on economic news and watch the market for instabilities to avoid missing out on gold and silver updates in relation with other investments.

Gold/Silver Ratio

In simpler terms, the gold/silver ratio is how many ounces of silver makeup one ounce of gold. Therefore, how much silver you can use to buy gold. When the gold/silver ratio is high, it’s a good time to purchase silver as it can prove valuable. Conversely, when the gold/silver ratio drops, it’s the right time to pile up gold for future returns.

Bullish Trends

The emergence of a bullish trend or bull run is a characteristic of foreign exchange and the stock market. Many investors buy gold and silver in a bull market, so demand overpowers supply, and prices constantly rise. After the price rise, the trend is likely to decline and come back up again more valuable. In other words, it’s advisable to watch out for bullish trends and buy right before it starts or when it starts.

When You Should Sell Gold & Silver

Some people enjoy the benefits of buying physical gold and silver, and some others have no intention of selling them because they see them as a huge source of wealth to pass on to the next generation. Well, gold and silver, when properly invested in, are hedges and a safe haven for financial needs, so it only makes sense. Unlike other paper currencies, gold and silver have their inherent values and are not confined to government laws. Investing in precious metals means that you can come back to reap from your holdings whenever you need cash.

Gold and silver bullion bars and coins shine amongst other investment assets due to their liquidity and universal acceptance. In times of financial emergencies or crises, they can provide a huge return when you sell them. Should it be that there is no crisis or financial difficulty, watch out for gold and silver worth in relation to other assets. If gold gets expensive, it’s a good time to sell your bullion.

For most investors, selling can be a way to balance their asset portfolio while lowering. Generally, you’re likely to lock in the most profit when metal prices are appreciated. In investing, the intention is to buy low and sell high. 

The right time to sell:

  • Desperate need for cash: As said before, gold and silver are excellent investment assets, so at bad financial times, selling them is the fastest way to raise adequate funds. In addition, when the economy is terrible, and markets and banks are inaccessible, gold and silver are one of the resolutions to get currency. 
  • Gold and silver form a large part of your portfolio: When gold and silver prices significantly increase, they form a huge part of your portfolio, tipping off the overall balance. To rebalance your portfolio, you might want to sell.
  • When gold and silver escalate: When gold and silver prices exceed the average high, there is a chance they will get overvalued. This is around the time you can earn a whopping profit and reinvest when the price corrects itself.

The Best Season To Sell Gold and Silver

Since the best time to sell gold and silver is when prices are high, it’s paramount to know the season of the year prices skyrocket. According to records, the price of these metals starts to grow and stays high during the start of fall and winter, respectively. 

Prathamesh Mallya, the Chief Analyst of NACCAB, said, “The best way to say this, ‘if a winter is coming, silver prices head north.” Similarly, gold prices also trend upwards around the same time.

The price of gold typically starts to rise from late July to the beginning of August and continually fluctuates till December. The best time in the year to sell gold is when the price is at its highest, which is in August or September.

Below is a diagram displaying the performance of gold’s price each quarter of the year.

quarterly performance of gold

Frequently Asked Questions

Should I buy gold or silver?

It depends. Both silver and gold have their quirks as the most valuable assets today. But, if you’re a first-timer or looking for the most affordable option, then silver may be your best grab. However, nothing is wrong with starting with gold- as long as you buy at the right time, they’re both going to yield profit anyway. Whether you invest in gold or silver, you’re off to a profitable investment.

Is now a good time to buy gold?

With the recent downward slope of the economy following the Coronavirus crisis, now is a good time to buy and secure your funds. As of January, the national debt was approaching $28 trillion, and topping it off; the Federal Reserve has spent trillions of billions into bringing back the economy after the pandemic hit. The dollar’s purchasing power is also low, and experts say it might even go lower, so you should secure your funds in gold and silver if you have the chance.

Is buying both gold and silver safe?

It’s okay to invest in both gold and silver as long as you can keep up with the two assets accordingly. Though it might be risky to invest in both at once if you’re a first-time investor, it isn’t always a bad idea. You can learn to manage the gold and silver you have in our portfolio with the proper enthusiasm, adequate management knowledge, and the help of a financial expert.