Gold has only as much value as they money you can get from it. But with prices going up and down endlessly, is it a good time to sell gold? If not, when will it come? And finally, should you actually sell your gold?
We are answering these and more questions in this article!
First of all – what to look out for when selling gold
If you thought selling gold is just about as easy as walking into a store and buying yourself a drink, you’re kind of wrong. Kind of, because you can go to any dealership and sell your gold there straight away. By doing this, however, you risk losing money, as you haven’t spent time prior to the sale making sure you can get the most out of your precious metal. Here’s a list of things you should do before selling your gold:
- Know your gold
What fineness your gold is? What other metals, if any, are included in your piece? How old is it and does it have any value as a collectible? How does your gold compare to others of the same kind (if it’s a coin) – are there any blemishes, scratches or damage? You need to know all these things before walking into a dealership. This knowledge will give you an edge during negotiations
- Compare prices
If you have the possibility to do so, always compare prices. Whether that’s going to a few different dealerships or looking up several online buyers,
- Always look at the spot price
Spot price is the price of gold before any fees were deducted by the dealership. It simply is a price for a piece of gold. At Spot4Coins, we always pay you the spot price for your gold! Unfortunately, many dealerships don’t do it, which only costs you money. That’s why, before selling, you need to familiarize yourself with the current spot price, so that you can avoid being ripped off.
1. The gold market is constantly fluctuating
Gold has retained and will most likely retain its value for years. That, however, does not mean that gold is outside of market principles – it is far from being an exception. It is an asset and fluctuations of price are a common feature of all assets. Check out any gold price chart that spans the last ten years – the value of gold has jumped up and down in a matter of months, years and even days. It depends on many minor factors – supply and demand, inflation and deflation, but also major ones, such as economic crises (the crash of 2008 is the most recent example) and huge political shifts (the 2016 Brexit vote).
All these factors make it really hard to accurately predict the price of gold and you should avoid listening to the ‘so-called’ experts telling you what the value of gold is going to be in months to come. It’s not only easy to make a mistake – it’s also probable that, for example, a sudden change in supply may occur, which would impact the prices greatly.
The best thing you can do to make sure you are on top of gold price changes is simply to follow live price charts with frequent updates.
2. Real change happens slowly
While the price of gold changes all the time, the hourly or daily changes are not that significant. They usually oscillate around $10-50. Unless you’re looking to make as much profit as possible and as soon as possible, this are not huge numbers. The real changes in gold prices occur over longer periods of time – months, or even years. That’s why gold is a long-term investment. You can ‘sit on it’ for years, track the changes and sell whenever the price is right for you.
That’s unlike other popular type of investment asset – cryptocurrencies. Their prices change rapidly and randomly, jumping up and down by thousands of dollars, because of seemingly unimportant events such as a publication of an article criticizing Bitcoin or an addition of cryptocurrencies as ecommerce payment methods.
Gold remains relatively stable, shaken up or down by major events that affect global economies as whole. Most recently, these were the aforementioned economic crash of 2008 and the Brexit vote of 2016, both of which, by undermining people’s trust in conventional currencies, have increased demand for gold, which in turn, caused a gradual rise in prices.
Gold is a secure investment method. Its price changes in a stable, sinusoidal fashion and while it may be hard to predict when exactly a rise or drop will occur, you can rest assured that it will happen.
3. Gold is valuable at any time
The thing about gold is that it carries no value by itself. You cannot use it to purchase any goods, you can only exchange it for currency. Yet, gold is always in fashion. It always has a price and you can always sell it. Whether you will get any return on your initial investment and actually profit from your sale is another thing. However, if you need cash quickly, do not hesitate to sell your gold. Its value is only determined by the money you get from getting rid of it.
Sometimes it’s not worth sitting on your gold, waiting for the prices to bulk up. A new car, house payment, kid in college, and any other urgent or sudden expense often cannot wait. In such situations, we advise you to sell your gold and not to look back!
4. Is today a good day to sell my gold?
What if you were to go to the dealership today? It’s hard to say, and the answer is going to depend on the day you’re reading this article at. Since around October 2018, the price of gold has been on the rise, peaking in the second half of February 2019 – since then, it decreased in, what seems like, a regular fluctuation. It might decrease to a certain point and then increase again.
While gold prices are hard to predict, you may follow the simple stock market fluctuation schemat to advise you. If you’re looking for profit, you’re going to be better off holding on to your gold for some time, until the prices start rising again. When will it happen? Well, it’s hard to tell! All we can advise you is to keep on checking the price charts!
Where to sell your gold
1.First of all – know the value of your gold!
When it comes to gold, you need to know a bit about it in order to sell it. Having information about its fineness as well as any damages or, in case of coins, the historical significance of a piece, is vital to you getting the best price possible. It will give you an edge during negotiations.
If you’re not sure how to find out information about gold, you might want to check out our article on DIY coin grading methods! [LINK]
Yes, that’s us! Who doesn’t love a shameless plug after all? Especially if it comes with plenty of benefits for you. Namely, at Spot4Coins, we always pay you the spot price for your gold. That means the actual price of gold, without any interest. Most dealers charge a percentage fee, which might look small on paper, but turns out to be quite a huge sum, especially if you’re selling a lot of gold or coins. At Spot4Coins, you’ll always get the full price!
3. Selling gold in person
Sending gold to an online service such as hours can be nerve-wrecking and we totally understand if you opt for a more hands-on option, which is going to a dealership and negotiating a price. In that case, make sure to have the prior knowledge of the item you’re going to sell – it will give you several irrefutable arguments during negotiations. Secondly, a good practice is to visit as many dealerships as possible in order to compare the prices. The bravest of negotiators will use the price differences to their favor!