Now is the Time to Buy Gold

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Gold climbed for the third session in a row, and is on track for its best weekly gains since April.  Gold futures for delivery in August rose 0.6% to $1,256 per ounce.

So is now the time to buy gold?

Many analysts say YES.  Here's why:

Buyers should look to the long-term, and see declines as an opportunity to purchase.

The best time to buy gold is when it hits a low, but is poised to bounce back up.

Well, gold has lost more than 30% of its value over the last 9 months.

And recently, other the performance of other markets are  bolstering precious metals – namely, the U.S. dollar index and price gains in crude oil futures.

As the dollar weakens, gold grows stronger.  David Meger, director of metal trading at Vision Financial Markets, tells Bloomberg, "The weakness in the dollar is putting some bid under gold."

Additionally, today (Wednesday) the U.S. central bank will release the minutes of its June meeting, and Chairman Ben Bernanke will speak on economic policy.

Some traders said gold will see some support if the Fed decides to taper its quantitative easing in December or later, reports Reuters, who also polled 9 fund managers on whether they believe bullion prices will recover.

Seven out of 9 expect that bullion prices will indeed recuperate.

So, it appears that the chess pieces are in place for a good, old-fashioned gold rush.

Still skeptical?  We will give you 7 Reasons to be Bullish on Gold here…

Join the conversation. Click here to jump to comments…

  1. Bill | July 11, 2013

    Whether gold is going to go up, down, or stay the same has a lot to do with time frame and how gold is being priced. I quit buying gold at $425 an ounce, but still have what I bought. Do I wish I had bought more? Not necessarily. My lifestyle would have suffered. You have to understand I was living in a trailer in the Southeast, with no air conditioning and working as a part time recycling and trash collector.

  2. Sahaj India | July 12, 2013

    Gold Silver do not corrode. The Bank Note, Currency, Politicians corrode faster. Buy Gold, Silver and Diamonds any time. It will save you during crisis of your life.

  3. H. Craig Bradley | July 12, 2013

    PERENNIAL GOLD RUSH

    Genuine Gold bugs are always in a rush. They rarely sell. They have extremely long holding periods if they own physical gold. In contrast, traders in futures or "paper gold" buy and sell madly, causing cyclical booms and busts galore. Gold won't reach bottom until its in the $550-$850/ounce price range.

    Nobody can precisely predict when a bottom will arrive or how high the next peak price will turn out to be. Gold is truly a speculative investment dependent on investor good will with plenty of discretionary money (cash) to gamble with. The game is simple: buy your Maple Leafs and hope the next guy is willing to pay more than you did. The last investor to the party is the big loser.

  4. Chad | July 16, 2013

    I don't think that with the way the dollar index is fluxuating that it is unreasonable to think that gold will rise to 1,350 an ounce or even 1,400.

  5. Brad M | July 19, 2013

    Gold may see a few "dips in the road" over the next 18 months or so, but I think it will rebound each time and the overall direction is upward due to Fed monetary policy. Also, fears of a stock market and/or bond bubble pop ( or it really happening ) will drive more investors into commodities, gold being many's favorite. Long term speculation on commodities is always a risky game though!

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