Cost average purchasing, also known as Dollar-Cost Averaging (DCA), is a popular investment method where you invest a fixed amount of money into gold or silver at regular intervals—regardless of the market price at the time.
How It Works:
Rather than investing a lump sum all at once, you spread your purchases over time—weekly, fortnightly, or monthly. Since gold and silver prices fluctuate daily, this strategy allows you to buy more when prices are lower and less when prices are higher, which helps to average out the cost over time.
Example:
Let’s say you commit to investing $500 AUD into gold every month. Based on the current gold price of $162 per gram, your purchases might look like this:
Month 1: Gold is $162 per gram → you buy 3.09 grams
Month 2: Gold drops to $150 per gram → you buy 3.33 grams
Month 3: Gold rises to $175 per gram → you buy 2.86 grams
Over time, your average cost per gram balances out, reducing the risk of buying all your gold at a peak price.
The same principle applies to silver, which typically has greater price swings than gold. DCA helps take emotion out of the process by following a disciplined, consistent investment routine.
Benefits of DCA for Precious Metals:
Smooths out price volatility over time
Encourages long-term investment habits
Helps avoid emotional decisions like panic-buying or selling
No need to predict market highs or lows
Things to Consider:
DCA doesn’t guarantee profit or protect against loss if prices fall significantly
In a strongly rising market, a lump sum investment could yield better short-term returns
For many Australian investors, especially those purchasing physical bullion, Dollar-Cost Averaging is a reliable and steady way to build holdings in gold and silver without being overly exposed to short-term market movements.
Buy physical Gold, Platinum and SIlver bullion
Dollar-Cost Averaging
FirstGold™ stands as Australia’s pioneering platform dedicated to
Gold, Platinum and Silver accumulation through the cost averaging principle.
Designed with simplicity and flexibility in mind, FirstGold™ allows investors to choose the metal, amount, and frequency for their savings, enabling them to build wealth over time without the pressure of market timing.
Buy physical Gold, Platinum and SIlver bullion
Dollar-Cost Averaging
FirstGold™ Gold and Silver savings plan initiative that puts your financial future in your hands.
FirstGold is Simple to use, Smart to work with, Real to touch.
