1.Buy the Dip: The Oversold Case
RSI has fallen below 30, a "Extreme Fear" signal that historically precedes a sharp capitulation bounce.
Current spot prices near USD4100 are testing YTD lows. Historically a 15% decline from peaks has been a Buy the Dip zone for long term investors.
The risk is it may drop further.
2. Waiting for USD4000
If you wait for the USD 4000 level, you risk missing the recovery if geopolitical de escalation sparks a sudden rally.
3.Dollar Cost Averaging
My favourite approach is to dollar cost average.The DCA mathematically lowers my average cost during a decline. My favourite Gold ETF is $Gold Trust Ishares(IAU)$ . That way I buy more when Gold is cheap or less when it is expensive. DCA takes the emotion out of investing.
This allows me to never interrupt compounding unnecessarily, something that Charlie Munger believed.
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