With the stock markets and commodities alike doing frequent fluctuations, investing in gold is probably the smartest step at this point in time. Over the last seven years, this precious metal has nearly doubled in value. Hence, it proves to be a suitable option to put your money on for both long as well as short term investments. However, blindly indulging in gold investment can lead to hasty steps that prove to be fatal eventually. Hence, it is important to keep in mind a few basic rules of the thumb before deciding to take the plunge.1. Currently, gold is on a bullish trend. Hence, if you see a slight, or seemingly significant, dip in the prices and decide to go for it, chances are few that you will get the exact bottom. There can also be a case wherein the price falls even more. However, you must not get disheartened by this, and continue to hold on to the decision you have taken. Gold has proven to be a worthy performer earlier as well, so high chances are there that it will continue the trend.
2. The next tip is while selling, don't be too greedy. If you seem to be riding on a wave of gold price rise, it is often better to book whatever profits seem to be reasonable and exit, rather than waiting for it to rise higher. Another case for waiting would be when you are absolutely sure that the price is to rise higher, but such tips, if genuine, are very hard to find.
3. ACTION is the most important thing while dealing in gold. Until and unless you actually SELL your gold, there is no point being elated over its increased value.
4. In case you are planning to buy gold bullion, the most essential and recommended tip would be to simply hold on, since the US government is currently not very strong in terms of fiscal responsibility, and the price of gold would continue to rise for the next 2-3 years due to the same.
