For centuries, gold has served as a safe haven for wealth—an investment that commands trust especially during times of uncertainty. Nevertheless, the same question persists: when is the best time to buy gold?
The answer is not straightforward. The price of gold is influenced by both global economic cycles and an investor's personal financial situation. Niklas, an expert at Jalonom, points out that there is no such thing as a perfect moment—it is more important to understand gold’s role in long-term wealth preservation. The adage “the best time to buy gold was yesterday, and the second best time is today” sums it up perfectly.
Gold thrives amidst uncertainty
The price of gold reacts primarily to economic cycles and geopolitical tensions. When uncertainty grips the markets, both investors and central banks seek refuge in gold.
In recent years, loose monetary policy and an expanding money supply have eroded the purchasing power of currencies, driving up the value of safe-haven assets like gold. Simultaneously, central banks have been bolstering their gold reserves to strengthen economic stability and reduce their reliance on the dollar.
In today's environment of fluctuating interest rates and inflation, gold has solidified its standing among investors. It continues to play a unique role as an asset that preserves its value regardless of economic turbulence.
Long-term commitment beats perfect timing
Many investors wonder when the "right" moment to buy gold might be. In practice, however, timing the market is nearly impossible and often counterproductive. Gold's role lies in securing wealth, not in chasing quick profits.
The best time to invest in gold is when your own financial situation is stable and your investment horizon is long. Many take advantage of what is known as dollar-cost averaging—purchasing gold in smaller, regular installments. This approach smooths out price fluctuations and makes for a more disciplined investment strategy.
Niklas explains that one of the most common mistakes is buying when gold is rising and selling when it drops—reacting emotionally without understanding the underlying causes of price movements. When you grasp the reasons behind gold's volatility, investing becomes a matter of confidence and long-term strategy rather than guesswork.
Seasons and cycles – when is the price typically at its lowest?
Gold prices are also subject to seasonal trends. Historically, the price has been at its strongest during the early part of the year and late summer, whereas the market typically sees a temporary lull during the summer months.
International festive and wedding seasons, such as Diwali in India, drive up demand in the autumn, which is often reflected in global market prices. In Finland, seasonal fluctuations are more moderate, yet the same trends can still be seen subtly reflected in domestic demand.
Niklas notes that summer is generally a quieter period, during which prices may temporarily stabilize.
“Historically, gold tends to trade higher toward the end of the year, so summer often presents a favorable buying window before the seasonal uptick,” he explains.
Practical tips for buying gold
Physical gold is an ideal choice for investors looking to preserve the value of their wealth, regardless of which way the economy turns. Getting started doesn't require a fortune; even a small investment allows you to enter the market and begin familiarizing yourself with its movements.
Niklas advises that a good way to start investing in gold is to place a smaller initial trial order, which allows the investor to safely familiarize themselves with the service and the purchasing experience. A reputable dealer, transparent pricing, and certified products are the cornerstones of buying gold.
Niklas reminds us that the most important factor is purchasing gold from a provider whose products are genuine investment-grade and easily resalable.
“If you want to keep things simple and ensure that value is preserved, investment-grade gold is the best option—not specialty items sold for their collectible value.”
Jalonom’s selection includes bars and coins in various sizes, with secure storage solutions available such sealed vault storage and safety deposit box services.
Gold belongs in every portfolio
Investing in gold is not a privilege reserved for the wealthy. Physical gold can be purchased starting from just a few hundred euros. According to Niklas, it is an accessible and straightforward way to safeguard the purchasing power of your money
“It is often forgotten that money loses its value if it just sits in a bank account. Gold and silver, on the other hand, retain their worth and serve as an excellent hedge for the future. The 'buy and forget' philosophy works exceptionally well with gold—it takes care of itself regardless of what is happening in the world.”
