Is it a good time to sell gold?
Alan, I got a recommendation from a friend that you represent a reliable gold buying company. I inherited some gold and selling these items wouldn’t be that bad for me. I got two coins, some jewelry, gold teeth and some broken gold pieces that you probably would call scrap gold. I know a couple of friends and mates who have sold gold during the last years. Is gold as hip as it was at the peak and is it a good time to sell gold? My amount is insignificant and I can postpone my plans to sell. How would you describe the situation on the gold market at the moment? I would appreciate if you could dare a forecast for me? Thanks!
George from Atlanta in Georgia
George, I really like your question. Regularly we receive countless questions about the current gold price and questions about gold price forecasts from our customers. Americans are concerned because from time to time news agencies announce heavy gold price fluctuations. Many consumers don’t know how to decide when serious selling plans are made and others rather keep their property than selling it. Personally, I think the agitation is news-made and there is no reason to stop selling gold and other precious metals as long as you aren’t a speculative gold investor. But let me explain you some things to understand my point of view.
reDollar expert, Alan Jensen
Is it a good time to sell gold?
George: I inherited some gold. It’s not a big deal but valuable for me as a hard worker. It would be nice if the gold pays for my next recreation getaway. I got two gold coins, some gold teeth, jewelry and broken necklaces. I sent you some photos because I hope you’ll find something of special value in it. One gold coin is interesting to me because it’s in a very good condition and the rings look exceptional. Can you find a treasure and can you tell me if it’s a good time to sell gold?
Alan: I received all your photos. Thank you, that’s very helpful when evaluating a customer’s gold from afar. Let me say some words about the gold you own, before we talk about the gold price and a gold forecast. Your gold coins are nice. The coin you describe as “in very good condition” is a very common US gold coin. We know this coin as “American Eagle” weighing 33.93 gram, reflecting 91.67% pure gold and containing exactly one once of fine gold. It’s a bullion coin and sells for the current gold price. Your rings are really exceptional but sadly nothing uncommon. Tons of rings like yours are in circulation and undergo a melting process when they get sold to a gold buyer. Let me classify your gold, trading for some percentages below the current gold price. It depends on the gold buyer but our company philosophy regulates the gold selling circumstances precisely to serve Americans with a transparent system. We pay for gold between approx. 90% and approx. 95% from the current stock price. For your coin some percentages more because it hasn’t to undergo the costly smelting and refining process.
George: It’s very interesting to learn that you distinguish between coins and jewelry but I understand your explanation. I don’t have any emotions to sell my gold and it is ok for me when you classify my gold as scrap gold, except the coin you have mentioned. For me it’s important to find out if the time is good to sell this gold.
Alan: Honestly, it depends on your personal situation. Let me talk about various circumstances – probably your personal ones but also fictive ones. Let’s assume you’re an investor and you bought some gold coins two years before. These days, can be an unfavorable point of time to sell, because you probably sell your gold coins for less than you bought them. A gold investor has to keep an eye on the performance, to make a selling decision. People with inherited gold shall also keep an eye on the performance, but not solely. I recommend to sell gold already a couple of months before you get into the demand of money. You can sell your gold distributed over months instead of selling at once. Sell your first coin in March, the second coin in May, the rings in June or July and the rest of your gold in fall-season. You can also do so over years. That way you can get a very satisfying median selling price, if you structure your selling plans with a partitioned scheme. This way of selling gold doesn’t work, if you need the money instantly, due to an emergency situation or to pay for bills, for example. If you come to the point of instant demand in money, selling is unavoidable. You have to accept the current gold price. What I want to tell you is that you are able to prepare your selling plans timely to achieve a proper price. Selling your gold in parts over months or years is the best way to get out. Don’t look at the gold price. It drives you crazy to follow the fluctuations of 5 bucks plus today, or 10 bucks minus tomorrow.
George: That’s very, very clever Alan. Probably I should sell my gold in parts for the upcoming months?
Alan: It can make sense and it helps you to benefit from different price situations. What I really can’t do is making a gold price forecast. Over years I thought to have a clue about the gold price trend and the market trend itself. Until 2012, I was more or less very close with my personal ideas of how the gold price develops but since 2012, the gold price is unpredictable. For 2015, 2016 and probably 2017 prices will stay volatile, I think so. It wouldn’t surprise me if the gold price raises up to $2,000 an ounce again as well as it wouldn’t astonish me if the gold price hits the $1,000 mark for an ounce of pure gold. We’ll see.
George: I thank you for your kindness. I’ll start selling with you today and will try your suggested concept to sell every 4th or 5th week.
Alan: Thanks, George. It was a pleasure to talk with you. Have a great day.
George: Take it easy.