Selling Gold at The Right Time

How to Detect the Right Time for Selling Gold

They say buy gold because you never know when the prices will go up but what if they go down sooner than what everyone else is predicting? Nobody wants to buy gold only to have the price go down a day after. It’s always good to diversify into other assets such as gold. Whether it’s in the form of gold bullion or gold jewellery that you wear.

Gold is less scarier than stocks because the price fluctuates slower and less dramatically. Whether you buy gold at the right time or not, the prices do not fall too quickly.

What usually happens is that the price will fluctuate up and down with a general upward trend. However, when the price drops it loses it can lose up to 5% and then moves up again. This has been the case for the last decade.

Gold does not lose its value as spectacularly as stock prices do. If you buy some stock in the morning, its value can drop dramatically by the end of the day not only because of that company’s performance but the general movement of the market on a particular day.  If you buy gold today, the price drops can be slow and not as dramatically. If you have bought gold and the price begins to fall, you have some time to consider the different choices available to you.

If the timing is right you can make the decision to sell gold which you bought several years ago and go on a holiday or put down a deposit for a house.

It might be harder for young gold buyers to believe that this commodity hovered over $250 an ounce barely three decades ago. That might sound like a lifetime ago but it really isn’t. The yellow metal has gone through it all, recessions, stock market bubbles, wars, terrorists attacks and more and people who have held on to the gold they had through all of that are justifiably proud now that the price has rallied to $1,800. These investors have seen gold rise and fall so many times but still held on to their investment.

Whilst it remains true that the price of gold does not rise and fall as spectacularly as other asset classes, it’s movement conveys a certain message or information about things like investor confidence, the likelihood of stock or currency increases of decreases, etc. Wise gold buyers will recognise that gold is affected by the overall market and does not stand apart, which means, they will need to be aware of what is going on in the market to have some idea of how gold will react.

Covid-19 has shaken the world economy and brought uncertainty over the long-term value of the dollar. Gold investors and central banks often buy more of the precious metal when their confidence in the value of currencies is shaken. These alone do not guarantee that the gold price will continue to rise unabated, after all gold is a commodity that is affected by a plethora of other factors. Prices will go up and down, so when you are looking for the best time to sell gold take the advice fro the multitude of so-called ‘experts’ with a grain of salt – ultimately your decision should be based on your needs and objectives. Sell gold when YOU need to sell.