The ultimate goal for investing in gold is to make some money. Gold is different from other asset classes in the sense that it is used to hedge against financial markets crashing. So, when the going gets tough in stocks and bonds, the price of gold goes up. Not everyone who owns gold is hedging his money, some people actually want to see big returns in their investment. If making a profit is your ultimate goal for owning gold then finding the right time to sell to buyers of gold Brisbane is important.
A good time to sell gold?
Gold has rallied past $1,280 and broke through the $1,300 mark. It is current rallying its way up to $1,400/oz. Analysts are now talking of a rise to $1,700/oz and this could happen if the following events take place over the next couple of months:
- The US political environment continues to push for tougher immigration laws and a protectionist economy that would push the global economy into a deflationary state.
- The global trade wars cause further economic contraction and disrupt economic activities.
- If the US dollar falls below its weighed basket of 94 points. It would be a sure sign that the currency is losing strength. The effects will be felt around the world.
- If the global transportation index falls back to 2007-2008 levels, it would mean fewer countries are trading and transporting goods to other countries.
- If the global demand for oil falls and the price of oil goes down to $45 per barrel.
- If Debt/credit issues start threatening the global Financial stability.
If such events do unfold, it would add more fear into the market and drive the price of gold higher.
Financial markets don’t operate in a vacuum. When things happen to destabilise the economy it affects everything and everyone. Housing prices go up, companies go under because they can’t stand the pressure and people lose their jobs, the price of food goes up and it becomes harder to make ends meet.
If you have some gold that you’ve bought over the years this would be the right time for you to sell to buyers of gold Brisbane. Selling your gold jewellery can help you get through an emergency rent situation, or help you get cash to get through the month. It depends how much gold you have and what its value is at the current spot price. If you have a couple of gold bars, they could help pay off your mortgage or take care of that car loan.
When should you sell gold?
No one really knows what the price of gold is going to be tomorrow or next month. This is because there are a variety of factors and events that can influence the price. Gold is a long term investment and you should keep in mind that fluctuations can take weeks or months to even out. Usually people wait for years to realise great returns, but sometimes time is not on your side.
With all that is happening in the world, we’vesee a global economic slowdown and the stagnation or drop of stock markets which is good for gold. Demand for gold is also rising.
The truth is: like every other investment, timing is important however, the risk lies with you. You can choose to sell now or sell later. The trick is to keep your eyes on what is happening in the world and in the markets.
