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Has the Gold Bull Run Come to an End?

Has the Gold Bull Run Come to an End?

For many people, answering this question has about as much relevance as wondering whether they should consider herding cats as a job!

But for many people, most of us, it has a very direct relevance when we are sitting on a horde of unused and unwanted old jewelry which is gathering dust while we struggle to make a mortgage payment or are in desperate need to pay off some bills and ease the pressure on very tight household budgets.

Gold hit an all-time high of just over $1,000 an ounce late last year and has bounced around the $900-$960 mark for much of 2009.  Looking at a basket of precious metals and there is a definite plateau of pricing levels for platinum, palladium, rhodium and silver.

What on earth has this got for those considering selling their old jewelery?
Simple.  The price is an all-time high and it looks like it has peaked – now is the time to sell because if the recovery signs start appearing the price will drop almost overnight and the fall will be huge.

Let’s look at platinum as an example.

In December 2008, platinum traded at $2,200 an ounce – the $700 billion dollar stimulus plan was announced with the election of President Obama and platinum prices dropped to sub-$1,200 by the end of January 2009 – a 50% drop in 30 days.
That’s how fast the precious metals market reacts to good news.

Now take a look at gold.

The one year spot price for gold has remained fairly stable at the $950 level and doesn’t know which direction to go.  Over 2 years, it has seen excellent growth rising from a $680 level in September 2007 as financial recession started to bite, and over 5 years from $410 and over 10 years from $280 level.

What does all this mean?

Since 1999, gold has risen inexorably and in a fairly smooth growth curve but at the height of the current economic recession, in 2009 the growth has stalled despite breaking through the psychologically important $1,000 mark.
The gold bull run is now over.  Uncertainty reigns and the market does not know what is happening next.

This is the sign to those of you with gold jewelry and items to look to sell at these historically high prices.  The likelihood of holding out for a slight increase in gold prices is now a very risky strategy.  If the current earnings reports continue to turn in on target or better than expected results, then the institutional and professional investors who have been using gold as a safe haven are going to dump their holdings on the market, take their profits and get liquid for the stock and bond market recoveries.

Today the price for gold is around $960 an ounce – tomorrow it could be half that.   Don’t take the risk of losing your profits and make it a priority to get your gold valued and find a buyer today.  Finding a buyer is easy – there are numerous online gold and precious metal buyers who are eager to buy your old gold items and will take care of the shipping and appraisal as well as making a speedy offer and fast payment.

Tags: Sell Gold, Sell Gold Jewelry, Sell Scrap Gold