Pledge gold at Ar-Rahnu when gold price drops
By pledging gold at Ar-Rahnu centre, we would be receiving additional funds. This can be used to acquire more grams of gold at a lower price.
Moreover, the risk with this method is that if the gold price stays low for more than a year, the strategy may not be fruitful. When this method is being utilised, it would be helpful to set aside funds to cover Ar-Rahnu fee. However, if the gold price stays low even after the first six months, we can utilise the funds to extend the duration to the subsequent six months.
When the gold price appreciates in the future, we should not wait any longer and proceed to sell off the gold. The funds obtained from the selling are then used to reclaim our original gold from the Ar-Rahnu centre. Any funds left after these transactions are our potential profit.
Increase the stocks of gold
For those who are business owners and gold savers, this is another opportunity to increase your stocks of gold. Since you are in the field, you know the high-demand items. You could sell them to potential gold savers when the gold price appreciates and pocket the difference. Via this method, not only do you enjoy the incentive provided by the company, but the capital gain is also realised through this activity.
Increase promotion to become gold agents
As gold agents, we have to share the potential of becoming gold agents with our friends, family, and our gold saver community. We can share via our social media and encourage them to buy gold. While they get to buy gold at a lower price, we also get our incentive as agents.
Typically, many people would come forward and take advantage of this opportunity when the gold price drops. When they do so, the incentives received would also increase. This, in turn, becomes a win-win situation for all of us.
To sum up:
From the situations above, we can be assured that gold price volatility can indeed be utilised to our advantage. We understand the demand for gold is not going off soon. The limited supply of gold and increasing demands in various industries would be the push factor to increase gold prices moving forward.
In addition, during critical situations such as economic downturns, price appreciation would be a matter of time. Gold has always been a safe haven among institutional investors.
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Your buddy on gold investing,
Naresh G