If you own precious metals, then it can be tough to know when to sell them. Now, obviously, most people are keeping precious metals as an investment. This means that their main aim is to purchase the metals at a low price, then sell them on as high as they can. This, of course, does not tell the whole story, however. It can be easy to say “yeah, I am about to make a profit if I sell now”, but what if you could make a greater profit just by holding onto your precious metals for a few more weeks?
These tips will help you to determine when the best time to sell your precious metals is.
Look at inflation
If you notice inflation rates are going down, particularly if they are starting to hit negative numbers, then it may be a great time to shift your precious materials. When inflation falls, people start to look towards precious materials as it is a much safer investment. Obviously, since everybody is trying to buy precious materials, it will become a seller’s market. Demand will outstrip supply, and the prices will rise.
Perhaps the best time to buy (or sell) precious materials will be shortly after inflation rates are announced for a major world economy. The price will often level out pretty quickly afterward, so you may need to act quickly if you want to make serious bank.
If you are going to sell your precious metals when inflation falls, then keep hold of your cash. Don’t use it to make further investments at the moment (unless it is in more precious metals), because falling inflation could signal an upcoming recession.
When the US Dollar weakens
When the US dollar starts to weaken, it could be a good time to sell your precious metals. Most of these markets are going to be tied to the $. If the dollar weakens, then people outside of the United States will find it a whole lot easier to purchase precious metals. The price will go up because, once again, demand will outstrip supply.
If the US Dollar is strong, it is a surefire sign to keep hold of your precious metals.
Watch the pricing trends
Honestly, one of the best ways to know when to sell your precious metals is to take a look at the pricing for the metals you own. Is the price constantly rising? It may do this for a while. However, at some point, it will start to level out. This may be the right time to sell. Prices are never going to be rising forever.
Remember; don’t just look at the charts. You may want to look at the reasons behind price increases and decreases. For example; if a hoarder has suddenly shifted mass quantities of precious metal, then this may force the price down for a while (supply outstripping demand), but the price is likely to recover. It may take a while, though.
Look beyond the precious metal market
Looking beyond the precious metal market may give you an idea about the right time to sell your precious metals.
A lot of precious metals are used heavily in certain industries. For example; gold is used in the electronics industry. Silver is also used there, but also heavily in jewelry. Platinum is used in car manufacturing.
If you notice any of these markets start to plummet, then it is likely they will be buying fewer precious metals, which can cause those markets to fall too. This means that it could be the right time to sell if you do not see a recovery in sight.
Check the ‘price ratios’
This isn’t something which is guaranteed to ensure you are selling your precious metals at the right time, but it can help:
Gold will traditionally sell for 30x the price of oilGold will sell for 16x the price of silver
If Gold is selling for more than either of these prices currently, then it could be the right time to sell. It will level out eventually. The same with silver. If it goes outside of this price, then it may be worth selling on.
When you need liquid cash
As valuable as precious metals are, they are not liquid. You can’t use them to pay your rent and bills.
If you need quick cash, and you have no other options available to you, then it could be the right time to sell your precious metals. Sure, you will probably not be able to score ‘peak’ value for them, but it is better to sell them than have them sitting around while the bills start to stack up.
Remember; even if you follow the tips on this page, you are not always going to get it right. There is no way to accurately predict the exact direction the precious metals market is going to go. If there were, then it would be ridiculously simple to make bank on the open market. What these tips will do, however, is give you the greatest possible chance of scoring the highest possible price for your precious metals. At the very least, they can help you to make a small profit or keep your losses to the absolute minimum.