Current price of Gold

 

 

 

Should you buy gold now, even if the price doesn’t look like rising?

 

The first couple of months of 2010 have shown a ragged series of jumps up and down in the price of gold.

 

Nothing terribly dramatic has happened to the price. It’s as if the market is checking out the lower and upper limits, and still unsure about which direction the price of gold should be taking – up or down.

 

At times like these many people hold on to their cash and wait. They don’t want to commit until they know which way gold prices will go.

 

That may make sense for people who are investing in gold.

 

But it is a different story for those of us who are buying gold simply to own it as a secure asset outside of the traditional banking and investment sectors.

 

For us, buying gold isn’t about making a quick dollar on the back of a change in gold prices. It’s about buying and keeping gold as a safe haven for at least part of our wealth.

 

This means that most times are good times for buying gold. Certainly, you want to avoid buying at the peak of a bubble. But that doesn’t seem to be where we are right now.

 

Buying gold to own it and keep it is a discipline, a little akin to buying into mutual funds on a monthly basis. The plan isn’t to strike it rich this month, or even this year. The plan is to create a longer-term asset.

 

And as many mutual fund managers will explain, it makes sense to invest on a regular basis.

 

It’s the same with buying and owning gold as a long-term asset. Unlike investors, we don’t obsess over every rise and fall in prices. For most of the time, it makes sense to buy gold coins or bullion on a regular basis.

 

By all means, pause when it looks like gold is at a peak it can’t exceed.

 

But for the rest of the time, buy to own...without counting the pennies.

 

So, in answer to the question, yes, now is a good time to buy gold, even if it doesn’t look like prices are going to take an upward leap in the short term