The best months to buy gold and silver

Investing in precious metals is a great way to protect your assets against economic uncertainty and directly diversify your investment portfolio. Investors can invest in gold and silver at any time.
It is wise to consciously choose the time when you want to buy gold or silver. This is because the period in which you buy precious metals can make a big difference in the final returns. We will tell you more about the best months to invest in gold and silver and which factors influence these buying periods.
 

Influence of seasons on gold and silver prices

There are a number of seasonal factors that play a role in the price fluctuations of both gold and silver. Looking at an international level, we see, for instance, that public holidays have an influence, as well as wedding seasons. This is the case in countries such as China and India. Gold traditions are deeply rooted in these countries and during the wedding season and important holidays, such as Chinese New Year and Diwali, demand for mainly gold is extra high.
 
Gold prices often rise in the months preceding these important periods. In the Netherlands, we often see a spike in jewellery sales at the end of the year and in the summer months. This too can cause gold and silver prices to rise due to increasing demand. In January and February, i.e. just after the holidays, gold and silver prices are often at their lowest.
 

The impact of global events

Certain global events can directly influence buying moments for both gold and silver. One example is elections. The political uncertainty surrounding elections can make investors more likely to choose gold and silver as safe havens. US presidential elections are often accompanied by a rise in gold and silver prices and increased market volatility. 
 
Economic crises also have an impact. Investors look for safe assets in times of economic recessions and financial crises. This increases the demand for gold and silver, causing prices to rise. Therefore, investing in gold and silver during economic stability is often a good strategy.  
 

The impact of policy changes

 
Policy changes can directly affect gold and silver prices. These are policy changes by governments and central banks. One example is interest rate adjustments. When central banks lower interest rates, it becomes less attractive to hold cash. This can cause an increase in demand for gold and silver, driving up prices. Historically, low interest rates have favoured gold and silver prices. 
Policies such as quantitative easing, or bond buying by central banks to stimulate the economy, can lead to inflation. Investors then buy gold and silver as protection against the weakening of fiat currencies. This too leads to rising prices of gold and silver.  
 

Strategies for timing buying silver or gold

By understanding the above factors, it becomes possible to strategically choose the best months for buying silver and gold. There are a number of strategies to consider. You can apply trend-following techniques, analysing historical price data and seasonal patterns to identify trends. If gold prices are traditionally lower in January, this is a good month to invest in precious metals. 
 
You can also use economic indicators. Keep an eye on economic reports and forecasts. If an interest rate cut is announced or inflation increases, that could be a signal to invest in precious metals. It is also good to follow global events. These can give important signals about the right buying moment.