Should I Sell my Gold Now?

Should I sell my gold (gold sovereign image)As you may have seen recently the price of gold has been falling from all time highs of over $1800 per ounce, to it’s recent lows of under $1200 per ounce.

This creates a problem for those of you with scrap gold to sell, simply because your gold is now worth less than it was a few short months ago.

If you had been holding onto it for a rainy day, or had hoped it would go higher still, or simply didn’t need to sell it yet, then you most probably feel reluctant to sell it now, since it feels like it has lost value.

This is one of the most difficult concepts to come to terms with when dealing with any commodity, that the price is fluid, always changing, and there is no set or fixed price.

It isn’t that your gold has “lost value” it’s simply that the value of your gold on the open market is a different level now to what it was previously.

While it might be tempting to hold onto your gold in the hope that it will regain it’s highs, it may not be a good idea to follow this path, especially if you need the money, since the price may well fall even further meaning you’ll end up with even less cash in your pocket.

The last time gold prices surged to all time highs, and then fell back again was in the 1970’s, and it took another 30 years for the price to start going up again, so the reality is that if you sold it today, even though this might be less than you’d have got for it 6 months ago, in another 6 months time what you get today could be double the amount you’ll get then.

So it is a difficult call. I think that the obvious answer is that if you need the money you should not gamble on future price changes, but sell it and use the money, but if you don’t need the money and aren’t likely to, then holding onto it may be a better idea.

This is especially true if the items you have hold sentimental value, the emotional attachment may be worth more than any amount of money to you.

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