Gold Investment Strategies

At Indigo Precious Metals, we are passionate about gold, and strive to help our clients make the best investment decisions. There are many reasons why gold is the world’s most sought-after and lucrative precious metal.Gold’s durability make sit an ideal material for use in medical equipment and electronics. Similarly, its natural luster earns it the title of most popular material in the jewelry industry. While palladium may be just as rare, if not more, who wants a palladium engagement ring?

Gold is mysterious and exciting. Don’t settle for less. Investing in gold can secure your financial future or provide short-term profits if you’re looking for a quick return. With numerous approaches to take when investing, which one should you take? Today, we look at some of the strategies you can take to make the best investment in gold.You can learn more about investing in gold, silver, platinum and more at

Fundamental analysis

Are you familiar with fundamental analysis? It’s essential for investors to know all the options available to them. Fundamental analysis works by analyzing the current macroeconomic situation and annual global gold supply versus demand. This allows investors to determine whether or not investing is feasible at any given time. FA typically considers features like GDP growth rates, inflation, productivity, energy prices, and interest rates. All these factors add up to create a comprehensive forecast of whether the market is ripe for investment or better off waiting. They would also analyze the yearly global gold supply versus demand.

Bullion or Stocks: Which is Better?

Investors tend to buy gold as a store of value (without growth) as opposed to stocks in gold which are more likely to deliver a return. Growth from anticipated real price increase plus dividends equals investment return, making stocks the preferred investment strategy for some buyers. But don’t disregard the benefits of buying bullion. Stocks and bonds tend to perform best in environments free of turmoil.They rely on strong property rights and stable political landscapes to see a benefit, whereas some investors consider bullion the more reliable option. Physical gold makes an excellent store of value, especially considering today’s uncertain future.

On the other hand, in the long-term, gold’s extremely high volatility can sometimes affect its market price. Especially when compared to the relative safety of stocks and bonds. Take the following example. An investment totaling just one dollar in 1801 would have been worth close to a thousand in 1998, whereas a dollar invested then would be worth over 500 thousand today. Compared to a dollar invested in gold, which would equal about 78 cents come 1998, stocks and bonds seem the best strategy. Investing in gold need not be an unprofitable affair. Take the right approach, and you can make huge returns on your investment.

Leverage Your Investment

Savvy investors like to use leverage to maximize their investment returns. They do this by taking out loans against their current assets and purchasing gold on account. While leveraging can increase your investment gains in the short-term, it also runs you the risk of lost capital when market trends double back. We advise only experienced investors take this approach as you often have more to lose than to gain.