Find the Right Time to Buy Gold

Success in the gold market is all about timing, but maybe not the way you think. Don’t buy gold at any time or any price and hope that you can cash out when prices shift into another record-breaking market. Those are unpredictable and you don’t know when prices are going to peak.

Successful timing has more to do with when you buy and there is no single answer for when the right time is. Your decision should be informed by both broader economic trends and context, as well as your own personal finances and life.

Buy gold

The Personal Side to Gold

The best reasons to buy gold are personal, based on your income, age, risk tolerance, and finances. Gold should be part of every portfolio, though it may not be the first thing you want to invest in. That’s because the metal is primarily about protecting investments you already have. When you bu, you’re hedging your bets. Here are some of the top personal factors that should influence when you buy gold:

  • You are no longer in credit card debt. The interest rates on credit card debt are astronomical compared to the returns you can usually get on gold, because it produces no interest. It always makes sense to pay down high-interest debt before you buy gold. Other debts like student loans or mortgages have lower interest rates and longer terms, and as long as you are meeting payments, it makes sense to invest.
  • You want to take money out of the stock market. Avoiding volatility and market crashes can put in a vastly stronger retirement position than simply riding out recessions. You can always sell gold again to fund your participation in the recovery, a chance to buy depreciated assets.
  • You have already have a large amount of wealth and you want to preserve that money for decades down the road or even future generations. Gold is one of the safest ways to beat inflation long-term.

The Economic Side to Gold

On the economic side, gold prices are complex, but it can be a good idea to follow the central banks when they start increasing their bullion purchases.

There are certain economic trends to watch. These are some of the signs you should look for when you’re finding the right time:

  • Stock markets are heading into periods of volatility that scare investors into “wealth preservation” mode.
  • You’re concerned about currency debasement due to governments printing excessive amounts of money (to pay off debt and/or stimulate recessionary economies).
  • When the U.S. dollar and other haven currencies (like the yen or euro) are down. Right now, the U.S. dollar remains strong, but that’s not necessarily good for the global economy. A strong U.S. dollar put a tight squeeze on emerging economies which have to use the USD for trade, and these are the countries driving global growth right now. If they slow down, the rest of the world will inevitably follow.

There dozens of other factors that can impact gold prices and it’s difficult to make accurate predictions. Your personal reasons for buying gold should take priority over economic reasons, except in extreme circumstances (such as peak prices).

Can A Minimalist Lifestyle Help You Achieve Financial Freedom?

Minimalism has been gaining traction among Americans. It is, as The Minimalists describe, a tool to finding freedom. This includes freedom from fear, guilt, depression, and consumerist traps.

financial freedom

Not all people may have those problems. But there is one kind of freedom that most want: financial freedom. Is it possible to achieve that with a minimalist lifestyle?

Having the Right Mindset About Minimalism

This lifestyle is not about living in a shack and letting go of all human desires that money can buy. It just focuses your awareness on what gives you freedom. And freedom is not some abstract idea here. It all relates to time.

You need to devote time to making money, right? So by extension, what you’ll buy with the money you earned is yours in exchange for a piece of your time. This kind of awareness allows you to consider a purchase, no matter how small: is it worth toiling an hour for a cup of fancy coffee? Joshua Fields Milburn, the other half of The Minimalists duo, explains it more poignantly in this article.

You Will Be Forced to Spend Less Than You Make

Not to sound sadistic, but minimalism entails some sacrifices. That could mean leaving your day job to build a business, teach kids, or write a blog. It would not always be as lucrative as your previous source. But it could be more fulfilling. The thrust of minimalism is for you to try living without making money the first priority.

Now that you’re probably bringing home half of what you used to, you can be forced to live for less than what you make. That includes not incurring debt. That involves curbing impulsive shopping tendencies.

Clearing the Clutter Provides Perspective

You can definitely devise a plan, create a budget, and achieve financial freedom without minimalism. So there are other ways. But the benefit of minimalism is perspective. By clearing the clutter, you’ll be able to see how much of what you own do you really need.

It’s time to allow Marie Kondo in your head, but not just regarding personal belongings. It also touches on your need for a car, a TV, etc. What exactly in your life is adding value to you? What is the purpose of having this or that? Do your stuff bring you joy?

Conclusion

Minimalism enables you to take stock of what you have, get rid of what’s burdening you, and determine what truly adds value to your life. It echoes of mindfulness, which eastern religions have been putting forth for centuries. At the same time, its point is not to devoid yourself of earthly desires. You still need to own things, pay your bills, and participate in society.

At the end of the day, however, minimalism wants you to contribute in a meaningful way by looking inward. And this includes spending your money with intent and determination. You’d defeat the purpose of this lifestyle if you continue getting into debt. So, if you follow the philosophy and practices that make up minimalism, it’s not actually far-fetched to achieve financial freedom as a result.

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