Are Gold and Silver Prices Going Down?

Written by Ian Davis – Bullion Manager • Last updated 5 Dec 2018

We are often asked:

Is Gold Going Down in Price? Or,

Is Silver Price Going Down?

People often tell us that gold is going down, or ask us if it is going down. Strangely as it may seem, we can't tell you the answer, but let's explain...

Everyone seems to assume that, if the price of a particular share or commodity, such as gold has gone down in the immediate past, that it is going down, whereas all that can be stated with absolute certainty is that it has gone down, or been going down. To be able to state that it is going down would require prescience. You may think it is rather dialectic (argumentative) of us to point this out, but many things which appear obvious are slightly less so if you make the effort to think them through clearly. The point we are making here is more about the clear and logical use of the English language than about the price of gold.

433pricedropWe can't predict the future, so we don't know whether gold will be higher or lower than now, at any particular time in the future. In actual fact, we believe gold will tend to increase in price over the long term, but we try to be conservative and honest in our advice.

Many people seem to buy gold only when it appears to them to be increasing in price, and often only when they see favourable press comment. Most of the time it would actually be more sensible to buy after gold had just gone down in price. Clearly this risks missing the boat if the price just continues to go up, but in gold as in most markets there are continual price fluctuations in both directions even when there is a strong trend in one direction.

Strangely enough, we tend to see favourable financial press comment about gold while it has been going up, and unfavourable comment when it has been going down.

If you found this page because you wanted to see advice about buying or selling gold, we would give you the following simple advice. Buy while gold is cheap, sell when it is dear. If you follow this advice coupled with the logic above, you will see that it is better to buy after gold has gone down or appears to be going down. Likewise if you are thinking of selling gold, you should sell when gold has gone up, or appears to be going up.

We hope this page has been useful. You may wish to see some of the other advice and information pages on our website:-

You may wish to view all of our articles on our gold guide