Now might be the time to get into gold

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gold nuggets
a mound of gold on a old wooden work table
gold nuggets
a mound of gold on a old wooden work table

Considering how badly oil has been faring recently, it is no surprise that the whole commodities sector, generally speaking, has been trending south. One thing I have learned in all my years observing financial markets is that when it comes to commodity pricing, too many investors never miss to miss an opportunity. Sure, the dollar has been on a tear lately and, save for a few commodities like coffee, the commodities market, precious metals and oils included, are rocking lower prices. This should be a golden opportunity for people to give gold another look.

Dollar cost averaging works for commodities and precious metals too 
The most common reason why many investors aren’t on gold like white on rice is because they suspect the shiny yellow stuff will keep sinking. I don’t get this reservation. I really don’t. I mean, if you are excited about a stock, you’ll know a thing or two about dollar cost averaging. This means you buy in at a certain price. The stock continues to crash and you buy even more at the new lower price. You keep chasing the stock downward buying more and more shares each time. The strategy being your volume purchases dilute the average per share price you bought. If you do dollar cost averaging right, it might not take much of a rise in your stock’s price for you to break even and start making a paper profit.

Most investors know about dollar cost averaging, why can’t they apply the same to precious metals. Gold will probably continue to slide downward with time. This shouldn’t hold you back from taking a position. Just don’t blow your wad all at once and keep loading up when the price keeps hitting new lows. Gold won’t continue to sink forever.

 

The fiat currency-based global financial system propped up by government ‘confidence’ and treasury printing presses won’t be able to run on the vapor of government guarantees for long.The system is bound for a hiccup or two. If you play your dollar cost averaging game properly, you’ll be positioned to not just survive a crash but profit handsomely from it. How? Scoop up temporarily depressed blue chips and ride the market back up as you cash out your precious metals positions.

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