One thing is for certain, those who want to sell gold will never find a shortage of buyers, in fact there are more people who want to or willing buy gold than there are willing to sell. So does this push the prices of gold up? No it doesn’t and the reason for it is because those who are willing to buy gold are only willing to buy it below market value, so there is no ‘price ups’ at least for now, but when economic uncertainty rears its ugly head, these buyers will scramble for gold and that is when the price goes higher and that is when people who intend to sell gold make their money. So why are these people scrambling? And why are you selling is the question that you should ask yourself!
These buyers scramble for gold because they consider gold to be a safe haven during economic crises, but therein lays the game – the early buyers make the best out of it while the late buyers end up with an overpriced amount of gold in their coffers, so if you want to come out on top of the game don’t sell or buy too quickly and do not sell or buy too late – middle ground is what you need to find. The math behind middle ground based on historical data is a 50 % drop from the increase, if gold prices rise by more than 2 % within a week, you can expect it to rise by 10 % in a month or even more, so the sell point should essentially be at the 5 % increase in margin sell half of your gold at that point and wait for another 2 weeks and if prices still go higher sell the other half. As for buying according to a trader who made a ton from Cash for Gold Coastareputable gold trading company, buying when there is a 0.5 % increase is a safe option and then buying again at a one % increase is still viable, but selling should come in at about the 5 % increase anyway. A lot of people who have had experiences with companies such as Cash for Gold Gold Coast during the incredible gold price rally made good profit margins at about 1600 dollars in 2011 after which prices continued to rise to 1,700 dollars.
Most of these buyers who bought gold at 1,600 dollars actually lost a lot of money when the prices fell below 1,500 dollars. Waiting for the prices of precious metals to hit ceilings or floors is very risky and that is the moral of the story. Gold has been and always will be a valuable item, regardless of economic conditions and as most investors will readily tell you that buying and selling gold is tricky as the timing has to be perfect if there is going to be a chance for you to make quick cash, otherwise its best to buy and keep gold and hope inflation does not snatch the money bag out of your hands and leave you high and dry with currency that has too little value. No matter how you look at it, gold is and always be a safe haven that will carry you through during recessions without hurting your purchasing power.