Finance

Gold: Don’t get caught in the confusion, sell now!

If you ask gold buyers Brisbane who have been in business for a while they will tell you how many times the price of  gold goes up and crashes and how many who have been in the game for a while they’ll tell you that the price of gold goes through a lot of ups and down. They have probably lived through a lot of crisis that have affected the gold market and seen prices soaring or falling. 

Experienced gold buyers know that crashes happen, as do experienced gold investors. It can be a bit confusing for someone who is new to the gold market to discern what is happening and what their next move should be.

What we are experiencing now is an unusual gold market and the overall economy is at its lowest. There is a lot of uncertainty and everyone is either clamouring to buy more gold or to sell whatever gold jewellery they can.

The market conditions and the economy were at their worst was in the 2008 financial crash. However, there is something distinctively different this time around. In 2008, the speed at which stocks were rising or falling was not as fast. There were short periods when they would go up a bit, or move sideways before they really tanked. This means that the price of gold was also rising steadily. However things are different now. The speed at which the market conditions have been changing and stock prices falling has been fast.  

Over the last three months, investors have been waking up to news of asserts falling off with no warning. Headlines invade thoughts and the influx of gold buyers Brisbane and all over the world wanting to buy old and broken jewellery can be bewildering. The constant analysis can be paralysing. Should you sell now when the price is $1,700. Will the price go down, when and why, will the price of gold rise in the next couple of days or weeks or months or start dropping? These questions can make it hard to make a decision. 

Gold is known as the precious metal you invest in in times of crisis. It is a safe haven. So when the prices go up, and the economy does not look as good as it should, people start buying to protect their wealth at the same time, those who have gold to sell see the rise in price as a good indication that they should sell. The basics of investing in anything are: buy when the price low and sell when the price is high. The thing is gold always play by the same rules as other asset classes. 

It can be dangerous to allow yourself to be caught in the daily price movements of gold. If you are not a bullion trader, moving gold by the tons, the daily price movements of gold are irrelevant. If however, you are just an ordinary person who wants to make some cash to pay off the electricity bill, buy groceries for the month or pay for your car’s instalment then there is no best or worst time to sell gold. You should collect all your gold jewellery and take it to a gold dealer who can give you a fair price for it and the cash you need. Right now, gold is doing great and if you need money right now, there is no logic why you should wait until next week in case the price goes up. We don’t know what tomorrow or next week will bring, so sell now and get the money you need.

 

About the author

Paul Teresa

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