Gold Keeps Climbing: Why Dollar Cost Averaging is Still Your Best Bet
If you’ve been tracking gold prices over the past year, you’ve likely noticed a remarkable trend. Gold keeps climbing, breaking new barriers, and what was once considered a good buying price is now a distant memory. Let’s dive into how gold has surged over the last 12 months and why waiting for a significant drop might be futile. Instead, the best strategy would have been—and still is—to dollar cost average.
A Year of Unprecedented Growth
In the past 12 months, gold has seen an impressive rise. Gold has climbed from around $1,800 per ounce to over $2,500 per ounce. This is a significant increase that keeps pushing the bar higher and higher. Many people I spoke to at the beginning of the surge said, “I will buy once it gets back to $1900.” Which then became $2,000, $2,100, $2,200, etc. The bar kept getting higher and they still hadn’t bought gold.
The Changing Landscape of “Good” Buying Prices
As gold continues to climb and set new records, the benchmark for what is considered a good buying price keeps evolving. Just a few months ago, $2,000 per ounce was seen as a high point. Today, that price seems like a bargain compared to current levels. This constant upward movement has redefined expectations. We tend to have short memories as we will see the price drop 30 dollars one day and think “wow gold has dropped”. We forget and ignore the growth of almost $700 over the last year.
Breaking Barriers: A New Normal AS Gold Climb Continues
Gold’s ability to break through previous resistance levels has created a new normal in the market. Each time gold surpasses a new milestone, it sets the stage for further gains. Investors who were waiting for a dip at $2,000 are now looking at $2,500 and wondering if they should wait for another drop or jump in before prices climb even higher.
The Power of Dollar Cost Averaging
Instead of trying to time the market, a more effective strategy has been—and continues to be—dollar cost averaging. By investing a fixed amount of money at regular intervals, you can mitigate the risk of market volatility and avoid the pitfalls of trying to predict price movements. Instead of being paralyzed by watching the price and anticipating the next fall and subsequent rise, just plan to spend a certain amount at certain intervals. Over time, you will reap the benefits of investing in precious metals and accumulate the precious metals you want. As the gold price climbs over time, you will be able to realize that as you accumulate metals.
Conclusion
The past 12 months have shown that waiting for a significant drop in gold prices might be a losing strategy. Gold’s upward trajectory continues and shows no signs of slowing down. Instead of waiting for a dip that may never come, it might be wise to consider the long-term benefits of dollar cost averaging. You can take advantage of the climb without being paralyzed by watching the price movement.
