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The best months to invest in gold

Historically speaking, there are some months of the year that are better to invest in gold than others.  Getty Images/iStockphoto

Following a year of stock market volatility, high inflation and other economic and world turmoil, it may be an appropriate time to reassess your investments. Regardless of recent developments, it's always a wise practice to reexamine your holdings periodically to ensure they still suit your goals and that you're not overexposed to risk.

Gold is one investment worth investigating, as the precious metal is often regarded as a hedge against inflation. If you're considering adding some gold shine to your portfolio, historical data suggests that specific times of the year may be better than others for buying gold.

If you think you could benefit from investing in gold then start by requesting a free information kit to learn more about this unique opportunity. 

The best months to invest in gold

Historically, some months of the year are better for gold investment than others. GoldSilver, a precious metals investment company, analyzed daily gold price changes from 1975 to 2022. According to their data, the first half of the year sees only a slight 0.6% increase on average. However, the third quarter averages a plus 3.6% price change and a 1.5% price increase in quarter four.

This data suggests the first half of the year is a better time to buy gold since the third quarter is when gold's performance is strongest.

If we break down the data even further, you can see that the gold price is usually the lowest in January before ascending in February. According to the site's analysis, the year's largest price drops on average take place in March (-0.8%), June (-0.2%) and October (-0.3%). As such, the best months and times to purchase gold are usually January, March, early April, mid-June and early July.

You can easily start exploring your gold investment options now

Other considerations

As mentioned, the price is lowest during January, preceding a price surge. If the pattern bears out, it would seem February is a bad time to invest right when gold prices peak. That may not be true, though, because, historically, prices rise again during the third quarter and toward the end of the year. However, if you can wait until March when prices decline, you may be able to "catch the dip" and secure a better price.

But as with any investment, timing the gold market is challenging, if not impossible. While looking at these historical trends can be helpful, always remember that past performance never guarantees future performance.

According to the data, January or late December has been the best month historically to buy gold, just before prices surge in late January and February. 

The lowest price of the year, historically speaking, is in January. But as the study points out, the price doesn't return to that gold cost at the start of the following year. That means the time leading up to January may also be advantageous for gold investing.

The worst month to invest is likely September, which experiences the largest price increase of the year (1.8%) on average. There is typically a slight correction in October (-0.3%) before the price slowly rises 0.7% and 1.1% for November and December, respectively. 

Don't try to time the gold market

The aforementioned trends are merely an analysis of historical data that is bound to change in the future. Like most investments, gold prices constantly fluctuate, reacting in real time to changes in the market. While you can use past trends as information to consider, monitoring the market movements, no matter the month or season, may be more useful.

Rather than trying to time the market, consider buying gold in small amounts regularly instead of making one large purchase. This strategy can potentially deliver a lower average price. Also, keep in mind that financial experts often recommend limiting your gold allocation to 5% or 10% of your portfolio. Of course, always seek the guidance of your financial advisor before investing in gold or other assets.

You should also request a free information kit from Goldco to learn more about investing in gold.

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