DCA: investing in gold regularly
Dollar Cost Averaging strategy applied to precious metals: advantages and simulation.
At a glanceDollar Cost Averaging (DCA) means investing a fixed amount at regular intervals, regardless of the price. Applied to gold, this means buying CHF 500 worth every month, regardless of the price per gram.
Main advantage: DCA eliminates timing risk. You buy more grams when gold is low and fewer when it's high. Over 10 years, this strategy has historically outperformed lump-sum buying 60% of the time.
Simulation: An investor buying CHF 500/month of gold between 2020 and 2025 would have accumulated ~350g for a total investment of CHF 30,000, with a final value of approximately CHF 29,000.
In practice in Switzerland: Several platforms enable automated DCA: GoldAvenue (PAMP), BullionVault, and certain cantonal banks. Compare transaction fees (0.5-2% per purchase) and storage costs.
When to stop DCA? When your gold allocation reaches 5-15% of your total wealth. Beyond that, concentration on a single non-productive asset becomes a risk in itself.
Buy Investment Gold in Switzerland (VAT-Exempt)
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