It’s well known that gold prices have soared recently, with the gold spot price reaching record highs of over £1,900 per ounce. Gold futures have seen a 14.49% 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! Selling into a upward trending market is never a terrible idea, we will explore some of the points you should consider when making the decision to cash in your gold or hold.
Gold can often be 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 pump 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.
Selling any asset at a profit is never a bad idea. If you are in a position for high financial gain as you purchased your gold at previous lows, selling now could see a nice profit for you. Many of our customers will take profits and reinvest their initial investment back into gold.
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 now could be the perfect time for you to sell as prices are at an all time high, and where you do not have to consider any exact profit margin.
Some say ‘Cash Is King’ and converting your gold into cash will increase your liquidity. You can then utilise this cash for any financial emergencies, some additional disposable income, or invest in some new assets with higher returns. You can get cash for gold with us in-store and online.
The longer the gold price moves on an upward trend the more expected risk that a downtrend will soon follow. You can play the risk avoidance strategy and avoid panic selling into a price drop and sell while the price is high. The gold market can be volatile at times, especially with the many economic and geopolitical factors at play currently.
If you suffer from a classic case of “FOMO – Fear Of Missing Out”, you may find yourself holding your gold and realising new highs, the gold price has performed exceptionally well over the long-term, from 1971 to 2023, the price of gold has increased by approximately 5614.29%. If you are in no rush to sell and are willing to hold on for the long-term, this may not be a bad strategy. However historic performance does not guarantee future rewards, so there is always still an element of risk.
Gold is a hedge against inflation and currency devaluation. With the current economic status in 2024 holding your gold during these times may be a solid strategy. By holding onto your gold, you maintain a safeguard against the current economic shifts, particularly useful if you’re concerned about the stability of your other investments or cash value.
Gold retains value over time, serving as a long-term security. Selling your gold for immediate profit sacrifices this potential prolonged benefit.
With the current points outlined above, we believe if you have not bought your gold as an investment we would say now is a great time as any to sell your unwanted gold bracelets, necklaces and other scrap gold. With the price being at an all time high there has been no better time to cash in your gold.
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 complexed decision with multiple factors at play. This can include your financial situation, investment strategy, and your read on future economic trends. Here are a few considerations to guide your decision:
Consider what you aim to achieve by selling your gold bullion. If you’re aiming for immediate financial gains to invest in another asset or need the cash for other personal reasons, selling now might be the perfect choice for you. However, if you’re looking at long-term security, keeping your gold could be wise decision.
Finally, 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.
Now is the perfect time to sell unwanted gold from the bottom of your jewellery drawer. 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? Use our online guides and gold calculators to provide you with a rough valuation.
Selling investment gold can be more complexed decision that may require professional advice, your decision should be based on a comprehensive assessment of current market conditions, economic forecasts, and personal financial goals. Whether you choose to sell your gold now or hold onto it, you should ensure it aligns with your long-term financial strategy.
Receive your prepaid, insured envelope to send your gold to us. Find out more visit Sell Gold Online
