Welcome to GuruFocus Investment Space.

Please Join Us to share your investment ideas with more than 100,000 GuruFocus users.

Join      Log in

investmentcontrarians Blog

investmentcontrarians's Space » All Blogs » View Blog

Investing in Gold Bullion Is All About Timing—Here’s How to Do It Right

104 views  2013-07-05 23:41   Tagsinvestment  wholesale  blank  believe  factors 

People always ask me about gold bullion. They want to know if it’s the right time to get back into gold bullion as an investment. While many other advisors are advocating a wholesale abandonment of gold bullion, I believe the time to buy is close.

Finding the proper entry point in the market is never easy, but there are several factors that combine to indicate an ideal investment opportunity. The first step to recognizing when the investment opportunity arises is to understand some gold bullion fundamentals.

Also Read: NYSE Holidays 2013

While most people are aware that the retail public has been buying gold bullion in huge quantities (as seen by the record sales from the federal government through the U.S. Mint), they may not know about the profound demand from nations like India and China. And even that level of demand still has been far less than the amount of gold bullion sold by investors in exchange-traded funds (ETFs). With ETFs selling close to 600 metric tons so far in 2013, demand for gold bullion far outweighs supply.

Recent price action is indicating that a short-term bottom is close at hand. Price action is extremely important when it comes to determining how good an investment opportunity really is—whether for gold bullion or any other asset.

As an example, just a few days ago I wrote the article “Are You Missing a Great Investment Opportunity in Precious Metals?” in which I discussed the investment opportunity in platinum. While there will be a deficit for platinum, it’s important to watch the price action for indications that the price of platinum is getting close to a bottom—the most favorable investment opportunity.

This article Investing in Gold Bullion Is All About Timing—Here’s How to Do It Right was originally published at Investment Contrarians

Comments Comments (0 )

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)