Investing Speculation

Why 2023 Could Be the Time to Sell Your Gold and What You Should Do With It

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If you invested in gold in the past, this year could be a great time to cash in and lock in those profits. Remember, an asset is only profitable once you realize those gains. Otherwise, prices can always go down.

After a couple of years of steady growth, buoyed by concerns about pandemic-related lockdowns, supply chain problems, and high inflation, gold prices in the last year seem to be hitting some stubborn points of resistance and seem to have settled into a kind of plateau.

The good news is that the plateau is higher than where prices were just five or six years ago. The bad news is that no one is sure where prices will go in the years ahead. It looks like rate hikes are working in the fight against inflation and that could take the wind out of gold’s sails.

Given the current situation, it can make a lot of sense to sell your gold and realize your price gains. This is even truer if you have competing financial goals. Instead of committing fresh capital that could be better used in an emergency fund or keeping up with the cost of living, selling gold will let you shift your investments around to work better for you.

Why Sell Your Gold Bullion in 2023?

Whether or not you should sell your bullion depends on the price at which you purchased it and the target profit you had in mind. If gold prices have grown to a point that gives you a healthy margin on your investment, now could be a great time to cash in that investment and put the profits to good use.

There is no way of predicting where prices will go in the future. They could continue to rise, or they could fall. While many economists are predicting recessions around the world in the near future, and recessions usually benefit gold prices, they could be moderate and short-lived.

Depending on the size of your investment, you don’t need to sell your entire position. You can always adjust your portfolio to capitalize on present-day profits while retaining a smaller position to see where future prices go.

Get the Best Price When You Sell Gold

In order to get the best price, you need to find the best place to sell your gold. A bullion dealer is usually going to be the best bet for gold bars and bullion-grade coins. Bullion dealers work with high-purity gold and silver on a daily basis, and you likely also purchased your gold investments from one.

When you want to sell to a bullion dealer, you can usually get an estimate either in-person or via mail-in evaluation. With a mail-in evaluation, the dealer will typically evaluate the material they receive and provide a quote. Some will even let you pre-lock a price for gold and silver prior to sending the metal in case you’re worried about prices falling during the delay.

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What Should You Do with Profits from Gold Investments?

Gold is a good asset to have if you are trying to preserve wealth over a long period of time, whether it’s for yourself or to pass on as part of your estate. Its effectiveness as a hedge against inflation can make it tough to part with, but other financial concerns can be a good reason to adjust your portfolio.

#1 Invest in Dividend or Interest-Generating Assets

The one big issue gold has as an asset is that it does not generate interest or dividends. It is a historically reliable store of value and a good hedge against inflation, but it is very speculative.

As investors come closer to retirement age, one of their investment goals should be to shift toward income-generating assets. Creating retirement income in your portfolio will make sure that your retirement fund lasts longer and that you have a fixed income that you can you can rely on for basic expenses.

Selling a non-income-generating asset when its value is relatively high can free up some cash to invest in dividend stocks or bonds.

#2 You Need to Pay Off Debt

It’s no secret that the cost of living is on the rise. Everything from groceries to rent to mortgage payments is increasing, and for many, costs are rising much faster than wages. That’s led to some significant financial anxiety at a time when people’s savings were already razor thin.

Budgets have gotten so tight that many families are turning to their credit cards when they have unpredicted or emergency expenses.

Credit card debt that you can’t pay off will quickly become expensive. Interest payments will eat deeper into your budget each month, and paying it off right away should be a priority.

It can make sense to sell off a non-interest-generating asset like gold first, although any asset that generates less interest than what your credit card charges will make sense.

#3 You Need to Rebalance Your Portfolio

Rising gold values during a difficult stock market may have tilted the balance of your portfolio in a way that over-exposes you to gold.

Maintaining the right allocations in your portfolio is about managing risks and capitalizing on potential gains. Gold is a good defensive asset, but as a rule, stocks have historically shown more growth, even though they also have sharper losses during recessions and market crashes.

#4 You Need a Down Payment for a House

Getting on the property ladder is one of the biggest things you can do for your overall finances. It is a major financial commitment when you need to put together a downpayment, but when you own a home, you go from paying rent each month to paying down debt. While a major part of your mortgage payment may go toward interest, you also build equity with each payment, and that’s an asset you can tap into later in life.

Selling gold can make a lot of sense when prices are high, and you’ve earned a significant margin on your investment. Find the right bullion dealer who will give the best price for your investment, and you can put the funds toward other financial goals.

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Editorial Disclaimer: The editorial content on this page is not provided by any of the companies mentioned and has not been endorsed by any of these entities. Opinions expressed here are author's alone

The content of this website is for informational purposes only and does not represent investment advice, or an offer or solicitation to buy or sell any security, investment, or product. Investors are encouraged to do their own due diligence, and, if necessary, consult professional advising before making any investment decisions. Investing involves a high degree of risk, and financial losses may occur.

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1 Comment

  1. Thanks for sharing this insightful article! As someone interested in the precious metals market, I found your perspective on selling gold in 2023 quite intriguing. It’s important to consider trusted platforms like Apmex, JM Bullion, SD Bullion, and Bold Precious Metals when making such decisions. Their reliability and reputation make them great options for those seeking to maximize their returns. Looking forward to exploring more of your content!

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