The best months to invest in gold

In light of recent stock market volatility, lingering inflationary issues and ongoing global economic uncertainties, now may be an opportune moment to reassess your investment portfolio. After all, regularly evaluating your holdings ensures they align with your financial objectives and risk tolerance — and that’s true in any economic environment.

Gold is one asset worth considering now, though, as it has traditionally been viewed as a hedge against inflation and a safe-haven asset during turbulent times. But if you’re contemplating adding gold to your investment mix, historical data indicates that certain periods within the year may offer more advantageous buying opportunities.

So what months have historically been the best for gold investing? Here’s what you should know about these trends.

Learn how to add gold to your portfolio today.

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. 

The bottom line

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.