Whether you’re a gold investor with a collection of coins and bars, or you have a box full of gold jewellery you’ve been thinking about selling, you want to get the best price you can when you go to sell.
Part of that equation is timing, but timing any market is a notoriously difficult thing to do. The right time to sell gold is often a mix of circumstances when both market and personal conditions align.
If you’re sitting on gold coins, jewellery, or bars, these are five signs that it’s time to sell to a gold buyer.
#1 You Discover You Have a Collectible
For the most part, gold coins and jewellery are going to be worth their gold content. But in some circumstances, you may discover you have a collectible that will be worth even more.
If you discover you have a collectible, be careful about where you take it to. Gold buyers like Muzeum in Toronto handle all kinds of jewellery and coins but also specialize in collectibles. They have a network of collectors that allows them to place highly valuable items, which will be a struggle to find with other buyers.
#2 Bond Rates Are High
Gold can be a great asset for lending stability to your portfolio, but it doesn’t generate interest or rent. Bonds also provide stability but do generate interest.
The problem recently has been that bond rates have been so low that they have not provided much in the way of growth.
As interest rates rise, the bond market is delivering better returns. The caveat to this is that high inflation means you’re likely still going to walk away with a net loss when you buy bonds.
#3 You Want to Pay Off Debt
The other side of interest rates is that when you owe debt, it costs more to carry. While gold can function as a great inflation hedge, you have more pressing concerns if you’re struggling with 20% interest on credit card debt. It will be a financially sound move to sell your gold and pay off that debt rather than wait for a possible, but by no means guaranteed, rise in prices.
#4 You Have Another Investment Idea
Gold is an excellent investment in times of economic turmoil, and it can preserve its value throughout a recession. But if you’re a more aggressive, risk-taking investor, you may see a recession as the perfect opportunity to buy the dip and take advantage of discounted stock prices.
It can be a risky investment move to make, but stocks have more growth potential than gold. If you already have a solid emergency fund, a diversified portfolio, and a high-risk tolerance, it has the potential to pay off.
#5 You Need Liquidity
Gold is not the most liquid of assets. Whereas you can sell most stocks with the click of a button these days, selling gold requires finding the right buyer and shopping around for quotes.
Keeping a certain amount of your portfolio liquid (i.e., in cash or in an asset that can quickly be converted into cash) can help you avoid going into debt when you have emergency expenses. When you have an expensive home or car repair, having an emergency fund to cover it will help you save money by avoiding debt payments in the long run.