Time To Buy Gold Now
‘The currency of last resort’: Goldman says it’s time to buy gold as fear spreads across global markets
Goldman Sachs says now is the time to buy gold, the safe-haven asset, amid market panic over the impact of the growing corona virus pandemic.
The commodity, which is considered “the currency of last resort,” has slumped lately as investors sell the safe asset for dollars, according to a note from analysts led by Jeffrey Currie.
But Monday’s unexpected action from the Federal Reserve represents a turning point for the asset, as it “reverses these funding stresses and offsets the negative impact to [emerging market] wealth,” the note said. Goldman Sachs recommends buying gold at its currently depressed price.
Recognise the long-term upward trend
When looking to buy gold it is important to recognise that gold is on a long term upward trend, where prices have been increasing almost month on month for years. When you buy gold, be mindful not to panic if the gold price dips 5% a month later. This kind of movement is common and history suggests it would be likely to correct itself. The gold price is based up on a whole host of mini dips and increases; you just hope the underlying trend continues and that the rises are larger than the dips, as they have been for the last decade. Buying gold should not be seen as a short-term investment, we advise you look at holding your gold for a minimum of six months, ideally much longer. If you do return a healthy profit in a short space of time then great, that is your prerogative to sell and realise that profit, perhaps looking to reinvest in gold again when you spot the next opportunity in the market.