Investing in gold isn’t for everyone. For some, the extent of gold’s role in their financial life may go no further than selling gold jewellery that they no longer wear or want. But gold has the potential to serve a useful role in anyone’s portfolio, as long as you know how to sell gold and how to make it part of your savings.
How to Sell Gold
An important part of any investment is liquidity. Liquidity is how easily and quickly you can convert any asset into cash. Selling an illiquid asset will either take time, or the seller may have to discount the price to move it quickly. Stocks are usually seen as fairly liquid, but if you own stocks in a company that has been performing poorly or is going through a scandal, it can quickly become harder to sell and collapse in price.
Gold is a relatively liquid asset, at least as far as individuals are concerned. Though it may take longer to move than many paper assets, there is a robust market for physical bullion. Gold coins and bars are the most straightforward to move, but you can even sell scrap gold for cash relatively quickly.
Whether you’re cashing out an investment or you’re selling gold jewellery or coins that you don’t want any longer, most gold buyers will be interested. You should be able to get a free evaluation from a professional gold buyer, and if you’re not sure the price is right, you can get several quotes.
When you’re selling gold jewellery, it’s important to note that you’re not likely to earn back what you originally paid for it. There are some exceptions when it comes to designer jewellery or rare collectible pieces, but you will want to make sure you take it to a gold buyer that knows how to handle luxury and designer pieces.
How to Incorporate Gold into Your Portfolio
One of the reasons people like investing in gold is that it can protect their savings from inflation, and inflation has lately become a growing concern.
Inflation is rising worldwide due to a combination of global supply chain issues and low interest rates. When inflation is high, the value of your cash savings decreases. In order not to lose ground, your money either needs to grow faster than inflation, or you need to put it into an inflation-resistant asset. Historically, gold has been one of those assets, though like any investment, its year-to-year performance is never guaranteed.
Beginner investors would likely be best served by gold bullion coins and bars, as they’re the easiest product to resell.
Gold is often used as a defensive strategy for your savings. There are other assets that can accomplish similar goals, such as bonds, but gold has a unique history and performance as an asset.It can serve a valuable role in your bigger financial plan.