Do you have gold you’re thinking about selling? Maybe you’ve inherited a collection of gold coins? Perhaps you’ve invested in gold bullion over the years? Or you might just have a few pieces of gold jewelry or a gold watch?
Before you start thinking about where to sell your gold, you need to decide whether it’s the best time to sell your gold. In today’s post, we’ll talk about the gold market, explain how gold is evaluated, and help you decide whether (and how) you should sell your gold.
Understanding Gold’s Value
Gold has been one of the most valued substances for thousands of years. There’s evidence that gold was first used as currency as early as 5000 B.C.– that’s over 7,000 years ago! What makes gold so special that it’s still so highly valued today.
First, gold is rare. All of the gold ever mined could be formed into a cube about 65 feet on each side. To put that in perspective, that cube could easily fit on a tennis court!
There are also scientific reasons why gold has had such enduring value. Of the nearly 120 elements found on Earth, only gold has properties that make it truly valuable. Gold is:
- Stable and doesn’t rust or corrode like iron
- Malleable and can be easily shaped into coins and jewelry, unlike platinum which is difficult work with
- Rare but relatively easy to mine and can be found all over the world
- Useful! Over thousands of years gold has been used in jewelry, religious symbols, and in more modern times as an important part of computer circuit boards and other technology
Plus gold is just plain beautiful!
The Gold Market
Now you can begin to understand why gold has been valuable for thousands and thousands of years. But how valuable is gold today?
That’s a tough question to answer because the price of gold is constantly fluctuating. Gold is traded on a variety of financial markets. If you’re thinking about selling gold today, you need to be most concerned with what’s known as the spot price.
Gold’s spot price is the current price for which gold could be bought and sold. It’s different from futures prices, which are prices based on the predicted value of gold for some time in the future. Here’s the current spot price:
Gold price by GoldBroker.com
Together those factors make it very hard to reliably predict the future price of gold. If you could do this, you’d be rich! Unfortunately, many people believe they can predict the price of gold, but these systems often fail spectacularly.
Let’s look at the history of gold prices over the past 50 or so years:
Just like the stock market, there are peaks and valleys, some higher than others and some unbelievably high! If you were lucky enough to buy gold in one of the down periods and sell at one of the peaks you were just that: lucky.
It just isn’t possible for an individual investor to time the market. In other words, you can’t know if you’re selling at the best possible time or not.
So, how can you decide when to sell your gold?
When Should You Sell Your Gold?
At Samuelson’s Buyers, we’ve been buying and selling gold for nearly a century. We’ve worked with thousands of people throughout Baltimore/Washington D.C., Maryland, and Virginia and here’s what we’ve learned:
The best time to sell your gold is when you either need cash or don’t need or want the gold itself. It sounds simple, but it’s true.
Think about it: Gold that you have sitting at home (or in a safe deposit box) has a value, but it’s subject to the whims of the market. Until you actually sell your gold, you haven’t realized its value.
In fact, just sitting on gold can cost you money in the long run. Imagine you have a few gold ingots stored in a safe deposit box (which costs money). If you sell that gold today, you get cash for it that you can spend or invest elsewhere for a potentially higher return.
Let’s look at the Dow Jones Industrial (DJI) Average:
Over the same period as the gold spot price chart we looked at earlier, the DJI has increased by nearly 10 times, compared to gold’s value which increased about 5 times (and was subject to much more variance).
So you can see that there might be better ways to grow your wealth than holding on to gold.
And of course, there’s something to be said for simply having cash on hand for unexpected expenses or to buy a home, pay off bills, or even take a vacation!
The bottom line is that you should sell your gold when you have a plan for the cash you’ll receive or for when you simply need the cash value of that gold.
Who Should You Sell Your Gold To?
Once you’ve decided to sell your gold, you need to make a smart decision about who to sell your gold to.
You’ve probably seen Cash 4 Gold ads on television or at kiosks in a local shopping mall. While these options will allow you to receive some value from your gold, they’re never your best option. They rely on customers’ ignorance and desperation to get cash.
When many people think of selling gold, they think about pawn shops. Pawn shops have significant drawbacks. Just like those mall kiosks, pawn shop owners know you want cash now and offer a lower price accordingly. Also, many pawn shops rely on fast turnover. The longer they have to wait to sell an item, the less they’re likely to offer for it. This means that selling your gold to a pawn shop will net you less of the gold’s true value.
The best way to sell your gold is to a local, trusted, and experienced gold buyer. Like I mentioned earlier, at Samuelson’s Buyers we’ve been buying and selling gold for almost 100 years. It’s our experience that allows us to offer the best prices when buying gold from our clients. Here’s why:
- Over the years, we’ve built up a worldwide network of jewelers and other gold buyers. When you bring us gold, we often have a good idea of how much we can sell it for. The more we can sell a piece of gold for, the more we can offer you for it!
- We know that all gold isn’t created equally. If you bring us a gold Rolex or American Eagle coins, we can evaluate your pieces’ value as a collectible, not just the value of the gold it contains. This lets our buyers make higher offers than those who simply look at the gold content.
- We’re patient. We’re not necessarily in a rush to sell the gold we buy. Because of our experience we’re willing to work to get the highest possible price for gold, even if it takes a bit more time. Because of this, we’re able to offer more for gold than buyers interested in quick turnover and fast profits.
Are You Ready to Sell Your Gold?
If you’re thinking about selling a piece of gold jewelry, a gold watch, gold coins, or gold bullion, read more about how our trusted, expert buyers evaluate gold. And if you’re in the Washington D.C. area, give us a call at (301) 263-7971 to schedule an appointment and find out how we might be able to help you get the best price for your gold!
Do you have gold jewelry, watches, coins or scraps?
We buy all yellow and white gold. Find out how much your’s is worth. Schedule an appointment today to meet with one of our expert buyers.