Wait until you know whether or not the impending sequester goes into effect before selling any gold. Here’s why…
I don’t write about the gold market very often, and even rarer do I make predictions. However, I see that many people stand to lose out on a lot of extra money if I don’t speak up.
Background info on Gold
The notion here is quite simple. Gold is a tried and true fallback commodity to counter economic instability. For centuries, when national economies face tough times, people buy gold to offset this instability. This causes the value of gold to go up because it is in demand. This is still true today, as seen in the huge climb of gold prices from 2009 (after the global recession started) to about mid 2011 (when consistent, sustained growth was observed for most major economies – slow growth, but growth nonetheless).
Sequester’s Effect on Gold Prices
Understanding this, let’s talk about the current time. The US economy is currently on the precipice of a huge and clumsy austerity measure being put into place. We’re not talking about right or wrong, left wing or right wing – just the facts here. Most major economists are in concensus that if the impending sequester becomes a reality, the US economy will see much smaller growth over the next few years and quite possibly another recession.
Economists know this and commodity traders know this. If the sequester happens, gold prices will go up.
When Should I Sell my Gold?
Wait until March! If the sequester is averted, things should go back to business as usual. Gold will probably remain a somewhat stable commodity and changes in the gold price should not be very volatile. However, if the sequester does go into action, gold prices will probably go up. They might go up a bit initially as a market response to the sequester. Over time, if poor economic indicators come out that confirm economists’ predictions (rising unemployment, reduced GDP growth, etc), prices will continue to rise.
These are just my predictions about the future. I make no claims to actually know what the future will bring. Follow the advice in this article at your own risk. At best these are my educated guesses. Please do additional research, weight the facts, and decide for yourself the best course of action.
- When you do decide to sell, be sure to read this first to get the most money for your gold jewelry
- To calculate how much your gold is worth right now use the handy Gold Value Calculator
Pass This On!
If you found this info useful please pass it on to your friends. Don’t let them make a big mistake when they just need to wait it out a couple of weeks.