“[Now] is a big opportunity for bullion investors who want to cost average.”
– Precious Metals Advisor John Karow
Feedback following last week’s The Gold Spot episode highlighted our audience’s interest in learning more about dollar cost averaging. Although this tried-and-true investment strategy is easy to ignore, it’s one of the most effective ways for getting the most out of your bullion holdings.
Lowering Average Cost of Gold Bullion
The performance of gold has been a hot topic as retail and institutional investors alike have been flocking to the inflation hedge in anticipation of dire economic conditions. Since March 8, the spot price of gold pulled back by about $250. The precious metal broke records earlier this year but is currently in a correction.
This latest dip represents a perfect opportunity for investors to decrease the average cost of their bullion holdings. How?
Dollar cost averaging is a strategy for decreasing the average cost of your investments by taking advantage of dips. This puts you in a better position to get a better ROI when the precious metals market takes an upward turn in the future.
👉 Watch: In our previous Gold Spot Overtime episode, we discussed the different price actions between bullion and investment grade markets.
Redefining a Recession
The Federal Reserve never misses an opportunity to put its duplicity and fecklessness on full display. Just this week, Jerome Powell redefined the well-understood definition of recession by refusing to acknowledge the state of the economy even as GDP fell for two quarters in a row – the dictionary definition of a recession.
This further proves that the Fed doesn’t have the expertise or tools necessary to fix the rapidly deteriorating economic situation. Investors need to protect themselves against the rampant deceit and harmful monetary policies of the government. This is another reason all investors should take advantage of the opportunity to average down on their bullion holdings.
Ignoring Geopolitical Tensions
There’s been no shortage of panic surrounding Speaker of the House Nancy Pelosi’s recent visit to Taiwan. Given the closely intertwined economic interests of countries in the Pacific and the United States, it’s highly unlikely China’s reaction amounts to anything more than a temporary and meaningless tantrum.
With gold prices in a perfect zone for cost averaging, it’s time for investors to refocus their attention on their portfolios and away from frantic headlines. Take this time to act analytically and diligently instead of being swept up in the frenzy. Inflation is still raging, and economic indicators point to worse times ahead. Both of which are good news for gold investors.
Master Cost Averaging Investing
Dollar cost averaging is one of the strategies Scottsdale Bullion & Coin has implemented to help our clients secure an optimal return on their gold bullion investments. It’s a simple investment approach but requires some real-world explanation to drive the point home. Watch this week’s new episode of The Gold Spot Overtime to see SBC Founder Eric Sepanek thoroughly explain this powerful investment strategy.