Do you have trouble understanding when you should actually sell some of your gold? There might be many circumstances where you feel like you should or you’re not sure. Keep reading to learn what seven of them are so you can recognize the right opportunities and time things the best you can:
1) When Prices Are Going Up:
When gold prices go up, you can possibly sell off at higher prices than you bought for, netting a profit. Always remember to take care of your taxeswhen you sell.
2) When Prices Are Going Down:
When gold prices are going down, you might want to sell off to avoid more losses.
3) Quarterly Rebalancing:
If you invest in gold as part of a broader investment portfolio, then commodities growth might mean gold becomes too much and you have to sell some off to put your excess into growth opportunities in other sectors.
4) Portfolio Rebalancing:
If your gold is part of a larger portfolio of various investments, then quarterly rebalancing isn’t the only time to sell off excess. You might also choose to reallocate how your portfolio is balanced at any time, whether it’s based on a change in your risk exposure, your age, or your target you’re saving up for.
5) When Your Advisor Says To:
If you have a seasoned financial advisor that knows money matters better than you do, follow their advice when you’re comfortable with it.
6) When Your Gut Tells You To:
Sometimes, you just have to go with your gut instinct. It might seem like the smartest or wisest way to invest, but it can also prove the most successful and profitable way to do it, depending on who you ask.
7) When It Is Time To Cash Out:
If you’re investing in gold and other things in order to save up for something, the day will hopefully come that you attain your goal and it’s time to cash out and pay for it. That might be retirement, someone’s college education, a dream vacation, or just a new vehicle or home. Whatever it is, when you’ve saved enough or hit the right year or age, it’s necessary to sell off your investments in order to have the funds you’ve saved for.
As mentioned in the introduction, understanding when to sell your gold can prove tricky. However, these seven scenarios outlined by the Gold Money Shop UK are the most likely situations in which you might do it, so recognize when you’re in one of them so you can do things right.