The reason for this is that people are panicking now and think they have missed the big up move in recently seen in gold, but that is not the case. Gold does not move up in a straight line. It never has and never will. You have to be patient with such investments and you will eventually reap the rewards later.
The secret is to learn to be patience also. Here are the top 6 way to make money with gold over the next few years.
1) Learn how gold moves.
When the economy is in a good state, gold tends to move in a negative direction. When the economy sours gold is expected to move in a more positive direction. When people are in a bad financial situation they tend to scrounge around and save every penny to buy gold, for security, but daily movements in gold are not very dramatic, so be patient.
2) Go back and study historical charts.
As previously discussed, gold moves freely and in a specific pattern over a longer time period. You are wrong if you think you can make big money day to day. Study price, pattern and projection. Remember that history repeats and so do chart patterns.
3) Commonsense rules apply.
There are many ways to invest in gold and many strategies also. But there is an age old rule in investing which is “buy low and sell high” Normally you see the amateur traders and investors doing the opposite. So when you see this, look to be a contrarian, and buy when they are selling, and sell when they are buying.
4) Diversify your gold investments.
Just because gold is trading on the futures market does not mean you cannot buy it and trade it elsewhere. Diversify your gold holding by buying physical gold. You can purchase coins, bullions, junk, & scrap gold and hold it for longer term. Gold paper futures have a different worth to something that you can physically see and hold in your hand. It has actual real worth.
5) Economic timing.
The best way on to profit from physical gold is to buy it when the economy is good, as prices remain stable and low. Then polish off the dust and sell it when the economy turns sour. Realize that since day one the economy works in cycles of boom and bust. One can make good money with gold by preempting such events. It is not as hard as you might think.
6) Buy wholesale, sell retail.
Gold investors over the last year have seen so much supply and demand they have turned their hobby into a business by buying and selling gold online and dealing it to other investors. The easiest way to make money is by selling products that people crave for, and are addicted to. Over the last 24 months this seems to be the case for gold.