Gold Trading 101: Another Day of Buying Gold and Silver in Tokyo.

Today I went with another friend to buy some more physical gold and silver bars.  It seems that I have been quite lucky lately.  When the markets in Tokyo opened today, the price was at approximately $1,828 per ounce.  As I look at the charts and how the prices are going up in the US market ($1,878 as of this writing), I only wish I had bought more.  Is it my vast experience and knowledge of the precious metals market that helps me catch these trends?  Nope, it is just luck and knowing that the long term trend for gold and silver is up, up, and up.

Just for your information, did you know that starting from September, we historically see an increase in Gold prices to the end of the year?  Take a look at the data below:

2005  Sept. 1st = $439.60,  Dec. 1st = $513.60

2005  $Increase = $73.40,  %Increase = 16.70%

2006  Sept. 1st = $621.00,  Dec. 1st = $632.00

2006  $Increase = $10.95,  %Increase = 1.76%

2007  Sept. 1st = $672.00,  Dec. 1st = $833.75

2007  $Increase = $161.75,  %Increase = 24.07%

2008  Sept. 1st = $822.25,  Dec. 1st = $869.75

2008  $Increase = $47.50,  %Increase = 5.78%

2009  Sept. 1st = $955.00,  Dec. 1st = $1,087.50

2009  $Increase = $132.50,  %Increase = 13.87%

2010  Sept. 1st = $1,246.50,  Dec. 1st = $1,422.00

2010  $Increase = $175.50,  %Increase = 14.08%

According to my friend, the wait to sell scrap gold was 4 hours at a popular gold dealer in Tokyo.  But if history repeats itself (and we have the data to back it up), wouldn’t you want to go and “Buy” gold rather than “Sell” it?

By Mark Hiroshi Willis (Tokyo, Japan)

Specializing in 1 carat and up diamond engagement rings.

info@diamonds.co.jp