Investors looking to buy gold are surely wondering “When is the right time to buy?” particularly because over the past 15 months its price has experienced exceptional movement. Trading at $2,600 an ounce at the beginning of 2025, gold rocketed above $4,500 in December, and then exploded the following month to nearly $5,600, a burst triggered, in large part, by Chinese speculation. No investment can maintain such momentum. Several months later, the price had reset to its December levels.
Long-term investors are able to keep these swings in perspective, as they are still looking at huge gains on their purchases.
Whether gold will resume its rapid climb in the near-term or if the price will drop a bit more, no one can predict with certainty. For those seeking to add to their gold positions, though, it can be helpful to look for a basing process—a period of relative price stability where buying and selling are nearly in equilibrium. This often happens after an asset has declined in price and before a “breakout,” which is a significant upward movement. In November, gold established such a base, just below the $4,000 level, before driving higher. In late March, gold generated buying support near $4,300 and demonstrated potential for building a base.
Ultimately, though, determining a purchase price should be less important than one’s holding period. It’s not so much when you buy, but how long you hold. Gold is a universally respected asset that, over time, will increase in value. So, the smartest and safest way to ensure new purchases fulfill your objectives is to maintain your gold holdings for the long run, as a key component of your investment portfolio.
