Waiting For the Bottom In Gold Is A Fool’s Errand! Dollar-Cost Average Instead – Here’s Why & How
As the dust settles and Trump’s victory is being digested, a sense of “normalcy” is returning to markets. Gold and silver have given back gains, and US stock markets have moved into positive territory although bond yields remain elevated, perhaps indicating higher inflation and interest rates are on the horizon. Two steps forward, one step back.
With “Brexit” earlier this year, constant messaging from the Federal Reserve, and now the presidential election, gold and silver have gyrated wildly. It can be a frustrating pattern in the precious metals market, especially when taking a position after a sustained rally but the only thing worse than buying the day before a down day, is not buying at all.
It’s very hard to buy only on down days and nearly impossible to pick a market bottom. It’s not necessary either. Plenty of investors who have been consistently buying all along are paying the same (or even less) in the long run for their metal. Why? Because they’re leveraging market volatility and external developments to dollar-cost average into a position.