Is it ever a good time to sell gold and silver? Yes, but it depends on your reasons. You invest in gold and silver to make money, and it makes sense that sometimes you want to cash in. These are the 5 leading reasons investors sell their gold.
1. Reinvest Your Profits
When one part of your portfolio makes significant gains, it makes sense to rebalance the numbers. This can help you protect yourself from overexposure and protect the gains one part of your portfolio has made. Due to the cyclical nature of markets, rebalancing your portfolio can have spin-off effects. Gold often benefits from stock market losses, so you can take gold profits and use it to buy stocks at lower prices.
2. Cash in Your Gains
Once your gold or silver has appreciated significantly, it may be time to cash out completely. You may not want to reinvest your profits but use your gains to help with a major purchase – a house, a car, or even just some cash to spend on yourself. Gold and silver are both assets that tend to keep up with (or outpace) inflation. They can preserve wealth until you’re ready to spend it.
3. Repay Debt
Should you invest at all if you’re in debt? The consensus from investment pros is that if you can gain higher returns from your investments than the interest charges on your debt, you should absolutely invest. Your money will grow faster than you can make your debt shrink, so it makes sense to carry debt even as you invest.
However, if you have urgent debt repayments to make and you’re not seeing returns that make it worthwhile, it could be time to pay off the balance. Since gold and silver tend to be conservative assets that grow more slowly except when markets are down or the economy goes into a recession, it may make sense to turn your gold and silver into cash to pay down debt. Pick assets with slower growth rates to sell off first.
4. You Need Money Quickly
From avoiding bankruptcy to snapping up a real estate deal in escrow, there are plenty of reasons you need money quickly. Gold and silver are easy assets to sell. You can go to any gold dealer and get a decent price for gold and silver coins and bars but be careful you don’t sell too low. You may be better off selling gold and silver online. Online dealers such as Silver Gold Bull operate with lower overhead and can often offer better prices.
The process is simple. Fill out a form that accurately describes your gold and silver coins and bars to get a quote. Mail the product insured and get paid. You can get paid in just a matter of days from dealers like Silver Gold Bull.
5. Inflation Is Low
Gold and silver prices, like all commodities, are highly influenced by inflation, with high inflation pushing gold and silver prices. Gold and silver tend to protect your money from losing value due to inflation.
Right now, it looks like inflation is on the rise. Inflation, along with interest rates, have held record lows over the last decade. But major price hikes in rent and gasoline pushed consumer inflation up to 2.8% in between June 2017 and June 2018. As inflation picks up pace, gold prices tend to follow, and it could be a good time to buy gold.
There are plenty of reasons it makes sense to sell gold and silver. Do your research and get quotes from several sources to make sure you get the best price for it.
4 Responses
I like that you recommend completely cashing out after significant appreciation of your gold or silver so you can reinvest the profits. In order to do this, it would probably be a good idea to research online to figure out the best company that can provide cash for your silver. This could help you get the best profits and ensure they’re reliable so you can be comfortable working with them.
I like what you said about gold being a conservative asset that you can sell easily if you need money quickly. My brother has been telling me about some debts that he needs to pay off, and he needs a little extra cash to help with that. I’ll share this information with him so that he can look into his options for selling his gold.
I like how you advised people to sell off their gold and silver assets that have slower growth rates first when trying to pay off debt. This way you can hopefully pay off your debt and still have other assets that are increasing rapidly in value. I feel like this is a fast and effective way to be debt-free while also growing your investment continuously.
It’s good that you point out that selling your scrap gold is a great way to raise money to pay off debts. I have a lot of credit card debt, so I’m considering selling some of my gold to help pay it off. I’m going to look for a good scrap gold buyer in my area.