How can you tell when it is the right time to sell your gold?

Most of us will invest in something in the hope that we will get good returns when we liquidate the investment. When it comes to an investment like gold is there a method to determine the right or wrong to determine the best time to get cash for gold.

Watch Technical ratios

Watch the gold/silver ratio

This is the amount of silver it would take to buy an ounce of gold. If it is 80:1 then you need 80 ounces of silver to buy an ounce of gold. A narrow gold-to-silver ratio indicates that the gold price is down whilst a wide ratio indicates the value of gold has gone up. The ratio is an important indicator of the right time to buy or sell gold.

Watch the Dow Jones Industrial Average (DOW) ratio to gold (DOW/Gold)

The DOW/Gold ratio is another important indicator. The ratio indicates the amount of gold it will take to buy the shares in the Dow Jones Industrial Average index representing 30 big publicly traded U.S based companies. It is one of the oldest and most-watched ratios in the world. When stocks are low, gold is high. For instance, if the ratio of crude oil to gold is 30:1 then you should sell your gold. That means it would take 30 ounces of gold to buy the Dow or share in a traded stock. However, if the ratio drops to 15:1, then you should sell your shares and buy gold. This is something that a lot of investors who are always looking to diversify their portfolios will be aware.

If you have a lot of gold but you are not sure whether you should sell all  of it, then don’t sell it all but keep some for later. Gold is real money, it is unlike paper currency.

Sentiment-based timing

You might want to go get cash for gold Melbourne when all the money experts and the television soothsayers are running breaking news segments on television about how high the price of gold is going.
Sell your gold when Bloomberg, Forbes, and Time Magazine run with a picture of gold instead of profiling rich business people and they have the caption “The Gold Bulls Are Out The Gate”.

Remember how many people hit the Bitcoin high when everyone from the Barber to the lady at the checkout counter at the local supermarket started gushing about how rich they suddenly got because of Bitcoin and how the Price is set to skyrocket. Where are those people now? They probably got to make their dreams come true. If someone starts gushing about gold, maybe you should listen.

Sell your gold to people who have finally come to realize that unbacked fiat currency is only money because someone decided that is what it was and it wasn’t really valuable. When people lose their faith in fiat currency, they may begin to see the value of gold. Sell gold when people like the Venezuelans are starting to buy something as simple as a cup of coffee with gold flakes.

The Bottom Line: The bottom line is to get cash for gold Melbourne when everyone is clamoring to buy. Use ratios as objective market indicators. It might be hard to understand but there is a lot that you can learn about these ratio and what they mean if you want to go that deep. Your gold is valuable, you should treat it as the important possession that it is.  You might not be able to pick when prices will go up or down but if you are observant you can back up your decision to sell with the right amount of intelligence.

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