3 Key Elements for Investment: Time, Tolerance, Speed.
Most investment decisions are based on buying low and selling high, very true but not as accurate as it sounds if you don’t factor in three key elements: “time, tolerance and speed”, meaning, am I buying at the right time?, do I have the tolerance to hold onto this investment through fluctuations? and can I act quickly when the opportunity to buy low arises?
Today’s news seems to reflect on the market like the wind on the sails of a boat. We see a teeter-totter of conflicting indications. On one side, the anticipation of another lock-down and the threat of the new Covid-19 variant seems to send people into a panic, rocking stock market prices trying to find their way back to stability. On the other hand, the US Federal Bank’s looming decisions drop like a hammer sending investors flocking to different directions.
If you remember, last summer, one hedge fund predicted an all-time rise for gold (up to two thousand USD per ounce) and confidently predicted that the price could climb to three-thousand to five-thousand dollars per ounce in the next 3-5 years. Time, once again, is playing a major role in these predictions, especially when the US federal reserve is already rolling back the purchases of bonds as well as signalling interest rate increases for 2022 to fight inflation. We know that a stop in stimulus and interest rate increase raises the opportunity cost of bullion.
“With the rising price of gold, Express Gold Refining is well-positioned to meet the increased demand of investors looking to purchase or sell gold. With rising prices, there is an increased demand for the asset.”
On the bright side, shortly after the US released its last retail sales index, a marginal increase in gold prices was noted, this brought the price of gold back to $1,766.70 dollars per ounce (at the time of this writing). This came after a two-week decrease.
On the same token, the Russian press released that Russia has been buying a high supply of gold since 2014. According to findings, they have purchased 4 tons of gold bullion and tokens in the last 9 months alone, an increase of 8 percent over 2020. As well, it seems that they have made their commitment to continue to stock up on gold for the next 8 years, at least.
Russians are not the only nation savvy to the power of investing in gold, Americans purchased 91.3 tons (up 79 %) between January 2020 and September 2021. Meanwhile, China and India have increased their investments in gold by 54 % and 24 %, respectively.
As we can see, interest to invest in gold, especially through current global upheavals, remains at an all-time high. People are not only looking to park their money away but are looking for ways to weather the storms of the market by properly managing the three: “time, tolerance and speed”. Have you caught your investment opportunity yet to follow the old adage, buy low and sell high? Considering the fluctuations we have been seeing, if you catch the wind at the right time and have the patience to wait out the storm, you will have played your cards right during this tumultuous time and for many years to come.