Suppose you've recently been doing some spring cleaning and discovered old jewelry or coins that you're not using anymore tucked away in a drawer. In that case, you may be sitting on some very valuable precious metals. Have you ever considered that your old jewelry might serve you better in the form of cold hard cash than forgotten about in a drawer? Throughout 2022, the prices of gold have reached relative record highs and are expected to stay high throughout the year. While the high prices are certainly enticing, it can be hard to determine the perfect time to sell your gold.
What Impacts Gold Prices?
To better judge when to time the sale of your gold, it's helpful to first understand what factors impact gold prices. Economies can be volatile in times of crisis, such as the escalating conflict between Russia and Ukraine. Investments in gold and silver can be beneficial in offsetting the potential risks posed by traditional investments, such as the stock market. Buyers appreciate the stability that precious metals offer.
During the pandemic, the prices of gold continued to climb. Current fears, such as the rise of inflation, have driven up the price of gold. In general, anything that poses a threat to the economy's health on a global scale is a contributing factor to the rise in the price of gold. Overall, the cost of gold has risen over the last fifty years, but it has not been without its peaks and valleys. The best way to time the sale of your precious metals is by staying informed about the news and market prices.
Where to Sell Gold
Picking a great place to sell your gold can be just as important as timing the sale. It’s helpful to understand what to expect from your sale before you begin to shop your gold around.
Unless you are an institutional seller, you most likely will not receive "spot price," or what the market determines gold is worth. You are not likely to receive spot prices because buyers need to be able to make a profit when they resell the gold that they purchase. If you're selling gold bars or coins, you should expect 90-95% of the spot price. For jewelry, which requires a little bit of extra effort to melt down, you should expect below 80% of the spot price, depending on which way the gold market is leaning.
You can either sell your gold online or to someone local, like a jeweler. It almost goes without saying that the advantage of selling in person is that you will receive your payment directly and instantaneously. The buyer can inspect the product right in front of you and assess its worth in real-time before making you an offer.
Alternatively, you can sell to an online buyer, which, more often than not, are companies that send you a prepaid box or envelope in which you will ship them your gold. When they receive your items, they will inspect them and make you an offer that you can accept or decline. If you choose to take the offer, you'll generally receive a check in the mail, and if you decline, your items will be shipped back to you. Be aware though, often times you are expected to front the cost of shipping and insurance.
Selling online also presents the opportunity for scammers to take advantage of you. Make sure that you do due diligence before sending your items out. Research different companies and read customer reviews.
The truth is that whenever you are ready to sell, is likely the best time to sell your gold. Gold prices are essentially as high as ever, so keep your eyes on the news to anticipate the normal day-to-day fluctuations. Ultimately, 2022 is the perfect time to exchange your old gold jewelry, trinkets, and coins for cash.
