Many investors consider gold a safe investment, having been traded widely for centuries. If you own a couple of gold coins, pieces of jewelry, or perhaps a gold bar or two, you may be wondering when to sell gold. To get the most value out of it, below are a few instances that tell you it’s time to put up your gold on the market. 

5 Signs It’s Time to Sell Gold

1. Uncertainty in World Markets

Investors turn to gold because of its relatively stable value in the markets, using it as a hedge against political unrest and economic fluctuations. Even with volatility in its spot price, gold is an excellent source of value—it won’t crash as stocks and bonds do during financial crises. You’ll get the best price for your gold if you sell when there’s uncertainty in global markets.

2. Rising Real Interest Rates

Gold investors look at real interest rates—the difference between the nominal interest rate and inflation—when disposing of their holdings. When real interest rates near zero or fall into the negative due to inflation, you could lose money in a savings account or with bonds. But with gold, its value remains the same, even if it doesn’t pay interest for long-term holdings. Gold prices tend to move directly with real interest rates, so sell if there’s an expected rate hike.

3. Dow to Gold Ratio

Another indicator to look at when you are considering selling gold is the Dow-Gold ratio. It is a figure that correlates the Dow Jones Industrial Average to the market price of gold, and the lower it is, the better for selling gold. When stock prices are high because of overvaluation, gold prices tend to drop, and vice versa.  

4. Increasing Interest in Gold

If you notice a sudden interest in gold, you can expect its price to go up. Factors like media exposure and fashion trends can influence gold’s appeal to consumers. Since market pricing always follows the law of supply and demand, its a good time to sell gold when interest reaches a fever pitch.

5. As Needed

Sometimes, you don’t have to look at the market to know if it’s time to sell. If you want to capitalize on an opportunity but you’re short on funds or you have an unexpected financial emergency, you can sell gold for fast cash. Gold is a highly liquid commodity that could give you a quick boost in cash flow.

If you think it’s time to sell gold, visit American Trading Company in one of their two locations in Cincinnati, OH. As one of the most trusted pawn shops in the area, they buy rare coins, diamonds, guns, and other highly valuable items. This family-owned business has a reputation for offering sellers a fair price for their gold items. Get in touch at (513) 661-3633, or check out their FAQs online.