Dollar Cost Averaging Gold and Silver: Does It Work?
6 min read • March 8, 2025 • GoldBuller Research
Dollar cost averaging — buying a fixed dollar amount at regular intervals regardless of price — is a standard strategy for volatile assets. Does it apply to physical gold and silver? The answer is nuanced.
DCA and the Precious Metals Premium Problem
DCA works well for assets with no transaction costs. Physical gold and silver have premiums of 3–30% over spot. This changes the calculus.
On a $500 monthly silver purchase of Silver Eagles (25% premium), you're paying $100/month in premium friction. Over 12 months, that's $1,200 in premiums on a $6,000 investment — 20% drag before spot appreciation.
The solution: buy lower-premium products for DCA programs. 100 oz silver bars (5–8% premium) or 1 oz gold bars (3–5%) reduce this friction significantly.
DCA Results: Gold 2010–2024
A theoretical $500/month gold purchase program from January 2010 through December 2024 ($84,000 total) would have purchased approximately 47.3 troy ounces at an average cost basis of approximately $1,585/oz. At gold's 2024 average spot of $2,300, the position would be worth ~$109,000 — a 29.7% total gain.
How to Automate Gold Purchases with Recurring Wires
- Set up a GoldBuller account with verified KYC
- Configure a recurring wire from your bank (monthly or quarterly)
- Funds are matched to your account balance automatically
- Contact GoldBuller's support to set up auto-buy parameters (product, amount, price range)