Getty Images/iStockphoto 
Investors who assumed that the price of gold would continue to grow unimpeded ran into some unexpected news in March – the price actually fell. And it wasn’t a marginal decline, either. Priced at $5,312.10 per ounce on March 2, according to a price chart from Priority Gold, the price fell to just $4,578.12 on March 31. That’s a 14% decline in just under a month, which can be stark for any investment but especially so for gold, which has experienced sustained, exponential growth in recent years. It was just last March, for example, when the price of the metal broke through the $3,000 per ounce price milestone for the first time.
With a new month starting and the potential for multiple market conditions to impact gold’s price further, investors should take pause and carefully consider their options. That starts with thinking through the answers to a series of questions, particularly those surrounding the price of the yellow metal. Below, we’ll detail three specific gold price questions investors should ask this April.
Invest in gold before the price spikes again here.
3 gold price questions investors should ask this April
To boost their chances of affordable, gold investing success both this month and in the months that follow, investors should carefully consider the questions to these three, timely questions:
Will the price continue to fall?
This was a question that seemed almost unfathomable in recent years, but it’s a credible one worth thinking through this April. Despite geopolitical tensions and market uncertainty often driving the price up, the opposite has taken place in recent weeks, and if these conditions continue uninterrupted, the price of the metal can potentially fall closer back toward the $4,000 per ounce mark.
That said, gold is historically known for intermittent price dips, and they usually (but not always) precede the next surge. So, if you can afford to get invested now, even if you need to be a bit savvier than usual, consider doing so. You never know when the price could reverse course and potentially become fully out of reach again.
Get started with a gold investment online today.
What are the risks (and rewards) of waiting for the price to fall further?
Waiting for the price of gold to fall further has an obvious benefit – a lower entry price point and more gold for your dollar. But is that likely to happen? And what are the risks you’re positioning yourself to absorb by waiting for an ideal, lower price? As mentioned, gold’s price can drop, but it’s typically not sustained, and it’s often not by significant margins.
In other words, waiting for a few dollars difference in the price of the metal may not be worth it if you can afford to get invested now. By doing so, you’ll still be getting in with a better price than many had been offered in recent months, and you’ll boost your portfolio protections right away, before any market downturns cause your other assets to underperform again.
How can you get affordably invested now?
The price of gold may be in the mid $4,000 range per ounce right now, but that’s not what you’ll often pay for bullion, which is marked up by dealers to account for profit-making and expenses. Expect to pay more, in other words, perhaps closer to $5,000 per ounce.
That said, there are still ways to get affordably invested now, with fractional gold amounts under a troy ounce being one of the better options. With gold types ranging from gold IRAs to gold ETFs and more, it pays to explore all before getting started. Some may come with higher prices and more investor knowledge, while others may fit your portfolio (and budget) well now, even with the price elevated. You won’t know which makes sense for you, however, until you’ve carefully evaluated all types.
The bottom line
Gold investing should always be approached strategically, but especially so this April, now that the price is sitting in a more affordable range. By evaluating the answers to the above questions (and being realistic about the answers), investors can start the work of building up their gold holdings in a safe, affordable and potentially lucrative way. Consider speaking, too, with gold investment companies directly, as they can answer your specific questions and better help you get started now, before the price potentially rises in May or June again.