It’s well known that gold prices have soared recently, with the gold spot price setting multiple record highs during 2024. Gold futures have seen a surge since January 2024. The signs of a gold price pump were seen back in 2023 when gold investing hit a decade high level, as institutional investors turned to gold amid stubborn inflation and surging interest rates.
This price rise and teamed with the media coverage has resulted in a rush of activity in the markets, many of our clients have asked us “Is now a good time to sell my gold?”, the answer to this question is not straight forward as if we could predict the markets we would all be rich! Some sellers choose to transact during periods of strength. We will explore some of the points you should consider when making the decision to cash in your gold or hold.
Gold is often labelled as a ‘safe’ investment amongst times of economic instability, and political chaos. The rise in inflation of many leading global economies, the weakening dollar, and threats of war have caused investors to move funds into gold and drive up the price.
– Global Economic Instability: With many leading global economies still fighting inflation, and recession risks. The war in the middle east and ever increasing threats of war in other locations, investors are becoming increasingly cautious, turning to gold as a protective asset.
– Weakening Dollar: Gold and the U.S. dollar typically have an inverse price relationship. Central banks, are buying up gold at an extremely high rate which is growing each month. There are more investments led by central banks in gold as opposed to U.S. Treasuries. If the US federal reserve lowers interest rates in 2024 as expected this may weaken the dollar potentially leading to a further increase in the relative value of gold. Lower interest rates also increase the appeal of non-interest bearing assets such as gold.
– Market Speculation: Speculative buying by large institutional investors can also drive up gold prices, as they anticipate future gains in the face of economic uncertainty and potentially weakening dollar. Retail buyers can also cause a further price increase, as press publicise the news on the gold price surge, retail buyers often jump into investing on the fear of missing out on potential gains.
If you are in a position for financial gain as you purchased your gold at previous price lows, selling now could see you being offered higher per gram prices.
If you have not purchased your gold from an investment prospective, maybe you are just looking to sell some unwanted gold jewellery or sell some gold sovereigns you may now be presented with offers from buyers at prices not previously seen. It’s important to note condition, purity, and weight will still determine quotes.
Some say ‘Cash Is King’ and converting your gold into cash can help meet short-term spending needs. You can get cash for your gold with us in-store and online.
The gold market can be volatile at times, especially with the many economic and geopolitical factors at play currently. Some sellers prefer to transact during periods of strength rather than risk selling into a later dip.
Prices can continue to move positively after you have sold. However historic performance does not guarantee future rewards, so there is always still an element of risk.
Some people hold gold for diversification or as an inflation hedge. Some people hold onto gold to maintain a safeguard against the current economic shifts, particularly useful if you’re concerned about the stability of your other investments or cash value.
Well-kept coins and bars are simple to resell by weight and fineness; sentimental jewellery may be harder to replace once sold.
If your goal is to sell unwanted gold bracelets, necklaces and other scrap gold, there is no requirement to “time” the market; a fair price reflects the live benchmark at the moment of sale plus item specifics.
If you have purchased gold bullion previously as an investment and are wondering whether now is a good time to sell, then this becomes a more a more complex decision with multiple factors at play. This can include your financial situation, investment strategy, and your read on future economic trends.
Consider consulting with a financial advisor, or speak with someone who has experience in the markets and a comprehensive understanding of the current economic outlook. Their expertise can provide personalised insights based on your financial circumstances and objectives.
Record-level prices in 2024 mean offers for eligible items may be higher than in prior years, but prices can and do move. Selling those sovereign rings you have not worn in years can release some quick cash. At Cheshire Gold Xchange we provide an online gold selling platform as well as the ability to sell instantly in our high-street location based in Warrington, Cheshire. If you are wondering how much is your gold worth currently? Use our online guides and gold calculators to provide you with a rough valuation.
Receive your prepaid, insured envelope to send your gold to us. Find out more visit Sell Gold Online
