Gold to buy expensive to sell: time will put a comma

Gold continues to rise in price. In the first quarter of 2023, its prices increased by 7%. At the same time, quotes twice overcame an important psychological mark of $2,000 per ounce. Stanislav Bovt, financial analyst at the CMS group of companies, told Moskovskaya Pravda how the situation will develop further and whether it is worth considering gold as an investment now.

Gold has always been considered an attractive investment asset. Since 1971, the main precious metal has risen in price by as much as 580%. And it continues to rise in price. So, investors who bought an asset six months ago, today have a profit of more than 13%, and invested a month ago – about 7% profit, said Stanislav Bovt.

– At the moment, gold is entering its third week in a short-term sideways trend, consolidating at 5% from its all-time high. It seems to me that April will be decisive in determining the trend for the II and III quarters of 2023,” he said.

According to the expert, in the context of continued uncertainty about the prospects for the global economy, high inflation and the appreciation of money in general, gold remains an attractive asset for the coming year. At the same time, the all-time high of $2,089.2 per ounce is strong resistance and will not be easy to break.

As for the optimal form of acquiring gold, Stanislav Bovt considers futures contracts traded on the stock exchange to be the most convenient way.

– Among the advantages of this form of acquiring gold are minimal costs, the ability to insure against falling prices with the help of protective orders, the simplicity and speed of transactions. So this is a much more acceptable option for buying an asset than, for example, purchasing ingots, investment coins or depersonalized metal accounts, the expert notes.

Of course, it is very important for an investor to understand when it is better to buy, and for this you need to learn how to conduct investment activities. As Stanislav Bovt noted, the important components of investment success are iron discipline (trading plan), loss minimization (using protective orders) and the ability to read charts (technical analysis).

By the way, you can check your level of investment literacy and take free investment courses at Moscow Exchange School.

Alena Bodrienko.

Photo from the site Freepik