Investment gold can withstand the socio-financial crises and geopolitical conflicts that destabilise the world economy. Although the price is on a long-term upward trend, it does fluctuate, sometimes violently. These fluctuations sometimes cause investors to buy or sell too hastily. However, there are ways to help the decision considerably.

What are they? How do they help you determine the best time to buy or sell your gold coins and bars?

Buying or selling your gold according to inflation and global crises

The best time to buy is based on concerns about the global economy. As gold is inversely correlated to stock market assets, when inflation rises or a conflict breaks out, stocks fall and the gold price rises; this is an effective way to position yourself to buy.

Tip: Buy or sell your gold by calculating the Dow Jones/Gold Ratio

Also known as the Dow/Gold ratio, it tells you how many ounces of gold you need to buy one Dow Jones share. It is calculated by taking the Dow Jones quotation value and dividing it by the price of an ounce of gold in US dollars.

Historically, it has been found that :

• a ratio of less than 5 is unfavourable for buying gold,
• when it is between 5 and 15, it is best to do nothing,
• as soon as it is above 15, you can buy.

To find out the Dow Jones price, simply search for "Dow Jones price" on Google and it will show you the price in real time.

Example:

On Friday, October 22, 2021, Wall Street closed with the Dow Jones at 35,677.02 while the ounce of gold was worth $1792.82. The ratio is 19.90; this means that it takes almost 20 ounces of gold to buy one Dow Jones share; shares are overvalued compared to the price of gold, which is therefore cheap.

The advantage of this indicator, if you calculate it regularly, is that you can anticipate the trend in the gold price:

when the ratio falls, the gold price is rising. The lower the ratio, the more attractive it is to buy,
when it increases, the price decreases.

Tax advantages when reselling

Gold is a safe haven that protects your assets; it is a long-term investment. If you resell, there are tax advantages; for example, if you have proof of purchase of your coins and ingots, you can resell them without being taxed after a holding period of 22 years.