Some investors prefer to do their market research on a day-to-day basis, marking price trends and attempting to predict their next moves. Others look to historical basis and technical analysis, checking whether factors affect the price or not. Both are viable methods but are subject to change due to the volatility of the market we’re dealing with.
Gold is a safe haven investment that protects investors from prolonged risk in an ever-changing market. Its stable value and high demand mean that there will always be a customer for bullion products. However, how would an investor know when they should invest in gold bullion in Dubai?
APM Intl DMCC is here to tell you more about the cyclical nature of gold prices and how you can take advantage of it! We’ll also delve into some of the macroeconomic factors that play into how gold values can change over time. Leave it to our team and our founder, Rakesh Rajdev, to make sure you’re equipped to understand the value behind the luster of gold!
Signs To Look Out For When Investing In Bullion
There’s always an optimum strategy when looking to improve your investments in gold and silver. Studying available data and learning the proper timing can have huge advantages on the growth of your portfolio. Here are some useful signs that you can look out for when you’re eyeing a window to buy some bullion:
Cyclical Gold Prices
With gold being a safe haven during times of economic downturn, many look to invest in it to protect their portfolio’s value. Once the storm’s out, they then sell off gold stocks to diversify them into better-performing stocks. This could be seen as a sort of “gold cycle” wherein they react according to the results of stock market indices. Although accurate predictions are near impossible, we can at least guarantee its value in the long term.
Some sources indicate that the cyclic nature of gold lasts around 37 years. Specifically, it found that one factor that affected gold’s value was energy prices alongside other macroeconomic factors. This was according to data factoring in the 1970s Energy crisis wherein economic growth was stunted.
Those looking into the commodities market should watch this trend and invest accordingly. With the 2020s being host to a variety of different economical issues, the value of precious metals is seemingly on the rise. Increased demand and a global decrease in mining production have exacerbated this trend, placing bullion products on a path toward appreciation.
Other Market and Macroeconomic Factors
When looking at gold prices through a cyclic lens, it’s also important to factor in other causes of price changes. These might include the U.S. Dollar’s current value as it tends to affect gold prices inversely. A stronger dollar means gold prices will be kept low and vice versa. To make the most of this, you’ll need to pay attention to market uncertainties and plan how you’re buying into the market once the timing is right.
Supply and Demand is also another factor that can be extended to other investments you may have made. With shortages becoming common and our digital world requiring increasing amounts of gold, you can expect prices to have a generally positive trend as well when factoring this in. Of course, make sure to talk with a respected gold bullion supplier before finalizing any decision.
Why Many Look To Bullion During Economic Downturns?
Bullion isn’t just a store of wealth that’s to be exchanged. It can be crucial when protecting yourself from the effects of inflation. With a currency seeing devaluation, its purchasing power goes lower and access to goods becomes increasingly more difficult. Inflation also makes it harder for investors to save up, making gold a lot more lucrative thanks to its stable value.
There’s also the reasoning of there being limited supplies of gold, thereby keeping the value high. For individual investors, the few publicly available sources of gold are from refining projects, mining, and wherever a central bank sells gold bullion from their reserves. To save yourself from high premiums, you can buy in bulk but this requires a long-term goal to have already been made.
Trust Your Gold Bullion Supplier With Your Bullion Needs!
Whenever you’re looking to invest in gold products and gold bullion in Dubai, it’s best to consult with market experts. APM Intl DMCC, a part of the Rakesh Rajdev Family of companies, has been a lead gold bullion supplier for many enterprising clients. We offer a variety of bullion products that are sure to help you reach your financial goals.
Visit our official website to see our complete roster of gold and silver products alongside other services we can provide.Contact us for more information about how we can help you find the perfect bullion that’s worth its weight in gold.
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