There are a number of factors to consider when determining whether to buy more gold or sell your current holdings. The majority of analysts speculate that gold has not yet reached its peak, which means that investing now would still give you room to earn a profit. Even so, if you bought your gold 10 years ago, selling now wouldn’t necessarily be a bad thing, as you’d still earn a hefty profit. But, what if you stand to earn even more by holding onto it for just a couple more years? If you’re not sure whether you should be buying or selling gold in 2013, consider the following:
Weighing Your Options
Of course, if you’re not a big time investor and would simply like to know whether it would be advisable to sell the small amount of gold bullion or jewelry you have tucked away, selling next year won’t have you taking a loss. Ultimately, your decision should be based on your current financial status and future goals. If you want to maximize the chances of earning a higher profit through your gold investments, the most logical thing to do would be to wait for the price to peak and sell at that moment. But how do you know when that will happen?
Don’t Miss the Peak
A year ago the price of gold hit record highs of close to $2000, and many analysts started questioning whether the value would ever be higher in the near future. However, brighter minds prevailed and it became apparent that the current state of economic global affairs, combined with adjustments for inflation, would likely have the price of gold peaking somewhere between 2013 and 2017. The risk associated with investing in gold right now is not that you could take a huge loss, but that you may make a less-than-optimal profit if you choose to sell too early or buy too late. If the price of gold peaks next year and you sell your gold then, you’ve made the right decision. If the price of gold continues to rise and peaks in 2015, you’ll probably feel as though you made a mistake.
Since the value of any commodity can be unpredictable, it’s advisable to keep a close eye on expert analysis and economic conditions in order to determine the most profitable time to sell your gold holdings. It is impossible to predict the future of gold prices to a tee, but when the majority of experts are expecting a peak within the next 5 years, it would be wise to consider expanding your gold portfolio in 2013 while attentively monitoring any news related to gold prices.