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Has The Time Come To Sell Your Scrap Gold?

Has The Time Come To Sell Your Scrap Gold?

Record and record has been shattered as the price of gold continues to surge skyward. Though all precious metals experts have an opinion regarding the future price, they seem to disagree with each other. Half the analysts claim gold will rise further, and half argue the bull run has all but ended. If you own broken or outdated gold jewelry, or other pieces of scrap gold, you’re likely wondering whether you should lock in the current price. The answer depends on the direction you believe the economy will move.

Below, we’ll offer insight regarding the historical movement of gold prices. The following is not meant to prompt you to sell immediately. Instead, our goal here is to give you the tools you need to make an informed decision.

Making Sense Of Conflicting Signals

The spot price of gold typically moves in the opposite direction of the value of the dollar. The U.S. dollar is known as a fiat currency. The inventory can be inflated or contracted, both of which cause changes in its value. When the monetary supply inflates (i.e. there are more dollars floating around), its value predictably declines. Conversely, when the supply contracts, the dollar’s value rises.

From the above, you’ll note that the spot price of gold rises when the currency inflates, and declines when it contracts. Over the last couple of years, the stimulus and policies of monetary “easing” pursued by the U.S. Federal Reserve have caused the price of gold to rise dramatically. The question is, in which direction will the economy, currency, and spot price head.

There are mixed signals in the market, and some of the indicators seem to be lagging. For example, the National Bureau of Economic Research recently said the recession ended in July 2009. Nevertheless, the price of gold remains at an historic high. If the economy is due for rapid growth, it is reasonable to think the monetary supply will be contracted. This means the price of gold will likely plummet.

Locking In The Current High Price

Many stock market investors lost vast amounts of money over the past few years. They watched the value of their stock portfolios dip, drop, and suddenly crater as the recession began. Those who locked in their profits at the top of the market were able to leave the arena relatively unscathed. Those who held their investments too long lost fortunes that required years – in some cases, decades – to build.

If you suspect the price of gold is about to falter, now is the time to sell. Given the mixed signals of the market, and the disagreement among veteran precious metals experts, there is currently a high level of uncertainty. By selling your gold jewelry and scrap gold items today, you can lock in a price that was considered unfathomably high twelve months ago. In another year’s time, the price may be cut in half (or worse).

Finding A Reputable Online Gold Buyer

You have likely noticed there has been a surge of gold buyers over the last three years. The reason is because so many people who own broken gold chains, watches, and other pieces have begun to sell them to lock in the high spot price. Bear in mind, however, that some buyers are better than others. They are reliable; they’ll offer a better price for your scrap gold; and they’ll do everything they can to make the transaction as smooth as possible for you.

Most of the gold buyers you’ll find online are brokers. They’ll buy your items, and sell them (sometimes immediately) to refiners in order to make a quick profit. While there is nothing wrong with this process, there is no need to sacrifice your profit to the broker. You can work directly with an experienced refiner.

If you’re thinking about selling your gold jewelry and scrap gold, avoid waiting too long. There’s a good chance the spot price of gold will plunge.

Tags: Gold, Scrap Gold, Sell Gold