Gold has performed excellently in recent years and especially in 2024. Many investors are therefore wondering whether now is the right time to buy or whether it is better to wait for lower prices.
Of course, prices can still fall. In principle, any price movement is possible on the markets. However, this also means that they can continue to rise immediately. In this case, prospective buyers miss out on a very good long-term buying opportunity because they want to get in a few per cent cheaper. It is then usually very difficult to get in at higher prices.
The gold bull market is still at the beginning
Despite the recent rises, gold is by no means exaggerating its price. Let’s take a look at the chart to categorise the most recent price movement. The chart shows the gold price in US Dollar since 2000. The vertical axis with the price data shows a logarithmic scale. This means that the price movements are standardised in percentage terms and easy to compare. The area around the round mark of 2,000 USD per troy ounce is also shown.
It can be seen that the marked resistance area around the round mark of 2,000 USD per ounce has been clearly surpassed. The price is chart-technically free. The top right of the chart shows the most recent rises. Compared to the rise between 2001 and 2011 in the left half of the chart, the most recent rise is modest. Even if the recent rises in the gold price have been spectacular, from a long-term perspective we are by no means seeing an exaggeration. On the contrary, we are still at the very beginning of the gold bull market!
Investors are still barely committed
The recent rise in the gold price has also been accompanied by restraint on the part of private investors and asset managers. We can see this in the holdings of gold in the SPDR Gold Trust ETF. It is traded in New York, is not authorised for sale in most European counries and might also be problamatic for tax reasons. However, it is the world’s largest gold ETF, so its holdings say something about investor sentiment.
Since its launch in 2004, holdings have increased when the price of gold rose, and vice versa. Investors therefore invested in gold when the price rose – such behaviour is typical on the markets. But from autumn 2022, many investors continued to sell their holdings even though the gold price was rising! They were too pessimistic and missed the sharp rise in the gold price in 2024. It was not until the second half of 2024 that holdings in the gold ETF rose slightly. However, they are still far behind by historical standards. Investors are underinvested in gold.
But what does it mean if investors are still barely committed? John Templeton, the founder of the fund company of the same name, said: “Bull markets begin in pessimism, grow in scepticism, mature in optimism and die in euphoria.” Investors are sceptical, so we are still at the beginning of the gold bull market!
More and more of the many investors who have not yet invested will realise that they are missing out on the rise in the gold price. They will reorient themselves and buy gold in order to profit from the price increase. This will push the price even higher!
The precious metal boom is still in its infancy!
Compared to the bull market from 2001 to 2011, the most recent rise is still marginal. Back then, the price almost increased eightfold. The bull market that has now begun could be even stronger than back then.
After all, debt is at a record high, inflation has set in and there is a lot of buying by central banks. We are still at the very beginning of a major bull market in precious metals. Given the risk of missing out on great gains, it is not worth waiting!
How can you buy precious metals cheaply and store them safely?
Elementum Deutschland GmbH, based in Sindelfingen (Germany), specializes in trading physical precious metals. Customers who purchase precious metals from Elementum Deutschland (or one of the other national Elementum companies in five European countries) can store them in the renowned high-security vaulting facilities in the St. Gotthard Massif in Switzerland at Elementum International AG.
Of course, you also have the option of purchasing gold and silver directly and having it delivered to your desired address. However, storing silver in the so-called open duty-free warehouse (“offenes Zollfreilager”) at St. Gotthard offers decisive tax advantages:
- The 19% value added tax customary in Germany is completely waived on purchases and sales – a considerable price advantage that effectively secures you 19% more silver for your money.
- If you store your silver in this high-security vault, you can sell it back to Elementum Deutschland GmbH at any time – without any bureaucratic hassle and also without VAT, as the trade takes place within the duty-free warehouse. You will receive the funds via bank wire.
- VAT is only payable when you physically remove the stored silver – either by picking it up in person (after prior notification) or by having it shipped to your address.
More silver, more return
Thanks to duty-free storage, you receive 19% more physical silver when you buy. This additional amount also participates in the performance of the silver price if it rises – a leverage effect that significantly improves your return opportunities.
Secure your storage space now – free of charge and without obligation
Register now for a storage space in the St. Gotthard high-security vaulting facility and receive free access to:
- our General Terms and Conditions (GTC)
- current fee tables
- annual audit reports from the auditing company BDO AG
- transparent proof of use of funds
- family discount information
- the popular children’s program “Schatz4Kids” (“Treasure4Kids”)
- as well as numerous other documents and information on storage, purchase, and resale, as well as the ratio “switching” strategy.
Register now: https://silberbar.elementum.de/
Tip for discounted entry: Enter the promotional code “50” (“Aktionscode“) and the “Vermittler” number 1000166 when registering to receive a 50% discount on the storage space setup fee.
Important: Registration is non-binding and does not commit you to anything – but it is your first step towards an independent and crisis-proof precious metal investment.
Elementum is a second-generation, owner-managed family business. Trust, consistency, and long-term thinking are at the heart of our philosophy. The Board of Directors of Elementum International AG is composed of internationally renowned experts in the money and precious metals markets, including economists, analysts, university professors, and precious metals specialists. This in-depth expertise forms the backbone of our actions—for your security, your assets, and your future.
About the Author
Dimitri Speck
Member of the Board of Directors of Elementum International AG
Dimitri Speck specializes in analyzing the financial system and financial markets. He is the author of a stock market newsletter and the books “Geheime Goldpolitik” (“Secret Gold Policy”) and “Die größte Finanz-Blase aller Zeiten” (“The Greatest Financial Bubble of All Time”). His work on commodities, precious metals, and seasonality was awarded the German Precious Metals Association Prize in 2013 and the Scope Award in 2018. Mr. Speck is the editor of the website www.seasonax.com on seasonal studies.
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Disclaimer: This article does not constitute a recommendation to buy or sell. Elementum International AG is a Swiss company that specializes exclusively in the storage of physical precious metals in a high-security vault facility located in the St. Gotthard mountain massif in Central Switzerland. The Board of Directors and Executive Management of Elementum International AG have been selected solely based on their professional expertise and long-standing experience in precious metals markets. As these individuals may also be professionally active outside their roles at Elementum International AG, the company has no influence over their external activities and respects their right to freedom of expression. Therefore, the views expressed by persons working with or for Elementum do not necessarily reflect the opinion of Elementum International AG. Investments in precious metals are subject to risks, including those specific to the structure of this market. Please read our full risk disclosures and consult a licensed financial advisor before making any investment decisions. Neither the author, Elementum International AG, nor Elementum Deutschland GmbH assume any liability for actions taken based on the information provided. Past performance is not indicative of future results.
