Gold is up today. Silver dipped yesterday. Should you buy now, or wait for a better price? If you've ever stared at a price chart trying to answer that question, you're not alone, and you don't have to answer it at all. Dollar-cost averaging, or DCA, takes the guesswork out of buying precious metals.
Here's what it is, why it works, and where you'll see it in your online account.
What is dollar-cost averaging?
Investopedia describes dollar-cost averaging as an investment "strategy that can make it easier to deal with uncertain markets by making purchases automatic." Meaning it splits a total investment into smaller, periodic purchases to reduce the impact of volatility on the overall purchase.
Applied to precious metals, DCA means buying a fixed dollar amount of gold, silver, or Goldbacks at regular intervals, no matter what the market is doing that day. When prices are lower, your dollars buy more metal. When prices are higher, they buy less. Over time, your average cost per ounce smooths out.
The result: you steadily grow your holdings without ever needing to predict where prices are headed.
Spread your risk over time
Putting all your money into metals on a single day ties your entire purchase to that one day's price. If the market drops the next morning, your whole investment feels it. DCA spreads your purchase across several days instead. Each buy happens at a different price, so no single bad day defines your cost. Think of it like crossing a river on stepping stones rather than one big leap: each step is smaller, steadier, and easier to recover from.
Here's a simple example. Say you put in $400, and it's spread over four purchases of $100:
| Purchase | Price per ounce | Ounces bought |
|---|---|---|
| 1 | $25 | 4.00 |
| 2 | $20 | 5.00 |
| 3 | $25 | 4.00 |
| 4 | $32 | 3.13 |
| Total | Avg. $24.81 paid per oz | 16.13 |
The prices swung between $20 and $32, but your average cost was $24.81, below the $25.50 average market price over those four buys, because your dollars bought more ounces when prices were low.
*Prices are for illustration only.
Built-in FOMO protection
Precious metals prices move every day, sometimes sharply.
When gold spikes in the headlines, it's tempting to rush in before it climbs higher. When it dips, it's tempting to hold off and wait for it to fall further. Both reactions are driven by the fear of missing out, and both can lead to buying at the wrong moment.
DCA takes emotion out of the equation. Because your purchase is spread across a set period, a sudden spike only affects part of it, and a sudden dip works in your favor on the days it happens. You don't have to watch the market, react to the news, or second-guess your timing. The process does the steady work for you.
Where you'll see DCA in your online portal
You'll come across DCA when you make deposits, including recurring monthly deposits into your Trust account. Those deposits can follow a DCA process, which means you can opt to have metals purchased gradually over a set number of business days.
While that's happening, your funds will show as Pending in your account. That's normal. It simply means your DCA period is still underway. Once it completes, your metals are fully reflected in your account. The DCA period is counted in business days, starting the day after your funds clear.
You can choose the duration that fits you:
| DCA option | Length of Pending period |
|---|---|
| One-day or next-day | 1 business day |
| One-week | 5 business days |
| Two-week | 10 business days |
| One-month | 20 business days |
A shorter period gets your metals into your account sooner.
A longer period spreads your purchase across more days, giving you more of the smoothing effect DCA is known for.
Steady wins
You don't need to be a market expert to build a meaningful precious metals position. With dollar-cost averaging, consistency does the heavy lifting: spread your risk, skip the FOMO, and let your holdings grow over time.
Next time you make a deposit and see funds marked Pending, you'll know exactly what's happening behind the scenes. Questions about choosing a DCA duration? Contact a member services representative.
This post is for educational purposes only and is not financial advice. Dollar-cost averaging does not guarantee a profit or protect against loss in declining markets.
