When Is the Right Time to Buy or Sell Your Gold?

“One day, this is going to be worth fortune”. How many can attest to saying this at least once in their lifetime about an item that came into their possession? As many people collect different kinds of items (some for hobbies), many collect with the hopes of the object gaining value so that they may re-sell the item for a higher price at a later date.

Items such as jewelry, or gold specifically, are more popular when selling back to stores or buyers for a profit. As gold is profitable and weighed more heavily depending on the geographical area, it is seen as a valued item for trade and sales, hence the many different pawn shops and locations across the nation. Though when is the best time to do so? When selling back your gold, the objective is to make the best possible profit from its original value when it first came into your possession. How can you make sure this happens?  

Statistics show (and it helps if you are an investor) that it is key is to look when the Dow Jones gold price ratio is between 1 and 2. Also keep an eye on the gold to silver ratio. Gold must be sold at a higher price than silver in order to be viewed as more valuable, so make sure the ratio is always in gold’s favor. Another tip for those who keep a close eye on the economy is to sell is when inflationary policies are at a standstill, although nowadays this is almost never the case.  Keep in mind that when selling gold for a profit, take a look and examine your personal and financial perspective. As mentioned earlier, the best time to sell is when inflationary policies are at a standstill.

Although this has not been the case in decades, it is important to sell back your gold and make a profit when you personally see fit. As the market prices will continue to go up and items will continue to lose their value, what may hold financial value today may lose its value and decrease tomorrow. If you have a mortgage payment or stock investment you need quick cash to meet, it is best advised to take the opportunity and sell as soon as possible as the economy is going up by the minute!