Does this sound crazy to you? I am telling you that you should not participate in selling your gold jewelry or gold trading of any sort. So what if gold is $948 per ounce as of August 27, 2009, and so what if you have a bunch of old gold that you have been considering sending to cash for gold to make a quick couple hundred bucks. You must think I am an idiot for telling you not to sell your gold despite that it can make you a lot of money fast.
Well I’m not crazy or stupid, in fact what I know makes me a little smarter than those who sell their gold to cash for gold businesses. Unless you’re in a rut financially and have some gold jewelry ripe for selling or if you do forex gold trading I recommend holding on to your gold for as long as possible.
Before you rule me out as a lunatic for telling you to save your gold meal tickets ask yourself the following questions:
- Why is the price of gold so high these days?
- Why are companies forming that are going to extreme lengths to get you to sell your gold jewelry to them?
- What can you gain from not selling your jewelry?
The answers to these questions may change your mind.
Why is the price of gold so high?
For as long as anyone can remember gold has been a form of currency. The monetary value of gold has outlasted every other form of money besides other precious metals like silver. This makes gold the only currency accepted everywhere.
You can’t walk into a shop in Japan and attempt to pay with US dollars, you would have to convert that money to yen. On the other hand if you had nuggets of gold and proof that the gold was real you wouldn’t have a problem buying anything anywhere.
The price of gold rises in times of war, because of inflation, or if the government confiscates all your cash assets. If the time ever came when our current form of currency suddenly wasn’t worth squat, gold would be your saving grace. More people become gold buyers if they are worried about their finances during bad economic times.
Why are there so many cash for gold businesses everywhere?
The rise is the price of gold over the past few years is mainly due to the high demand of gold by consumers. More people in the US and Europe can’t seem to get enough gold. It was supposed to not be in style anymore but that’s hardly the case.
It’s very unlikely that gold can become a worthless commodity, even if the price of gold was to drop tremendously it would still be worth a lot of money. These companies, mainly pawn shoppes that you can sell your gold jewelry to just melt it down and resell it at a higher price to the consumer. That’s all they want. They take in your old gold, refurbish it, and resell it like it was new.
How do I stand to gain more not selling my gold?
Try holding off from selling your gold for a couple more years. The price of gold could continue to rise even higher, and then you could sell it. But watch out, there are many reports that some cash for gold companies are a scam so be wary of who to sell your gold to if you are.
Also think about this, what would you do if you woke up one morning and all the dollar bills you saved were suddenly worth less than a penny?
The answer is to pray that you’ve got some gold lying around to trade. I’m not saying that this will happen any time soon, but hey if it does and the dollar changed again, gold, silver, platinum are your best bargaining chips. Unless you have a lot of property to give up too.
Start buying more gold
Become a gold buyer. Buy it and stash it or You can open a jewelry store or a pawn shop if you would like or even become a day trader of gold.
As a gold buyer, you are helping increase the price of gold because you’re consuming it like every one else.
A tip, start buying uncirculated gold coins like the ones we see on television. Since these gold coins never reached the market other than as now limited collectors items, they will become worth more money as you collect more and the price of gold continues to rise.