Buy Low, Sell High but When Is A Good Time To Sell Gold?
Do you have gold that you are thinking of selling? Maybe you’ve inherited some hold bullion or coins or have invested your money in gold bullion over the years and you are wondering when you should sell to get the most returns. The important thing that you should consider before you sell is not where you should sell your gold but rather when. As you do that, there are a couple of things you need to know about the gold market.
The value of gold
Gold is one of the most valued metals in the world. Gold has been valued for centuries as currency. What makes it more valuable is that it is a rare metal that is used in a host of industries from jewellery to tech and medical applications. This is because gold has properties that are not found in almost 120 elements that are found naturally on earth. These properties include:
– It is incredibly stable. It does not rust or corrode like most metals
– It is malleable which makes it easily confirm into a variety of things from coins to jewellery
– Although it is rare. It is also one of the easiest minerals to mine
– Gold is aesthetically pleasing which is why people use it not only to make jewellery but fashion religious iconography and adorn their homes.
While it may be easy to see why gold has retained its value over the years, how valuable is it today?
This is where things get tricky. Gold in itself is not money bit it has a monetary value that is constantly fluctuating. When you sell gold bullion, you should be concerned with the spot price. This is different from the futures price which is based on the predicted value of gold in the future. The spot price is the current price at which gold can be sold or bought. This price can fluctuate from day to day due to factors like demand and supply, inflation, interest rates, geopolitical tensions as well as economic fears. These factors make it hard to predict the future price of gold.
Buy low and sell high, This is a universal truth for investments in general. But how low is low and how high can gold actually high. There are some indicators that you can keep an eye on to figure out if the time is right to sell gold bullion.
– You should buy when the Dow Jones to gold price ratio is between 1 and 2.
– Sell your gold when the gold price to the price of crude oil is around 30 to 1. In 1980, when most gold investors made a lot of money from their gold, the ratio was 25 to 1.
– When the government relaxes its inflationary policies then it’s time to sell gold bullion Brisbane. This doesn’t always happen. When we look at the gold to silver ratio, it has historically stood at 16:1. Currently the ratio is 55:1. It might be a while before it reaches 16:1.
When you need money, that is the best time to sell gold bullion. Gold will be of no use to you if it’s just sitting at home or in some safe. You cannot realise the value of gold until you sell it. If you think about it, keeping your gold in a safe deposit box will cost you money. If you sell gold bullion today, you can take that money to spend where it is needed the most