If you’ve seen this morning’s financial news you probably saw that the market price of gold touched $1,300.00 U.S. dollars per troy ounce today and many of you have been asking me if it a good time to sell gold. The answer to this question is that it’s a better time to sell than when it was at $1,200 per ounce, but realistically, one can only speculate as to where the price of gold or any commodity will go in the future.
As a general rule, investors turn to gold and other precious metals when there is a great deal of uncertainty regarding the values of traditional currencies and investments. There is currently a great deal of speculation that the U.S. Government is trying to keep the value of the dollar low in order to make U.S. exports more competitive in a global economy in the hopes that it will help its economy and create more jobs.
The general state of the economy, low interest rates and overall anxiety related to government debt lead people to consider safer, more tangible investments like gold and silver. As a result, the spot price of gold has risen and some economists don’t see it stopping here. David Rosenberg for one has been quoted as saying “Forget Gold $1300, It’s Going To $3000.” See Business Insider.
Other economists subscribe to the theory that gold tends to be an investment that people turn to in uncertain times and warn that if the world economy stabilizes, gold will pull back.
So back the question of whether it is a good time to sell gold?
Since we refine gold and try to not get involved in speculating on gold prices, I would say that compared to historical prices, it is a good time to sell, but if gold prices to continue to inch upward you may want to wait. In other words…I don’t know.