Gold in times of economic turmoil

A lot has happened in the last couple of years and all of it seems to have been very good for the price of gold. We’ve weathered some major crises to get to where we are but there are always threats and wars and geopolitical tensions and they all affect money. If anyone learned anything from the last global recession in 2008 it should be that it’s not a good idea to be heavily invested in stocks and bonds but to keep some of your money in gold. We are already in the second quarter of 2022 and the question of whether people should buy gold or sell bullion has been many people’s minds.

People invest in gold because it is a safe haven asset that doesn’t lose value because of market whims inflation. So, you may have bought your gold when it was still low and now that the price has gone up, you are thinking of selling it for a good amount. Finding the perfect time to sell can become complicated and daunting. The good news is that with a little research and answers to crucial questions, you may begin to see how easy the process is.

You might not be an investment guru and all those graphs in industry publications might as well have been doodles that mean nothing to you but this should not stop you from investing in gold. You might be surprised and how easy it is to sell gold if you pay attention to what everyone is saying about the yellow metal. If you want the best price for what you have to sell, you need to have some idea of what that price should be. Of course, you don’t want to sell gold only to watch it spike after your sale. You could avoid missing significant market movements. These fluctuate so often that predicting the next rise in the price of gold is virtually impossible. However, by using true and trusted ways, you can have a fair estimation of what your gold is worth.

There are five key factors you need to consider when selling gold

  • High economic uncertainty
  • High-interest rates
  • Mainstream market trends
  • Dow/gold ratio
  • The need for cash

These indicators can help you find the most opportune time to sell bullion.

Reacting to gold in times of high uncertainty

Gold is a good store of value. It can withstand the worst economic and political uncertainty. You might not have a crystal ball to look into the future but you can look at what happened to the price of gold during uncertain times. For instance, during the 2009-2011 global recession, the price of gold rose. It did the same in 2016 when Britain voted to exit the European Union and then recently at the onset of the COVID-19 pandemic. Whenever something happened to spark concern about the economy, investors would go on to gobble up the gold or any gold reserves and the value of the yellow metal exploded.

How does this history fit into the current worldview? The current conflict between Russia and Ukraine has played into the rise of the price of gold. It has raised tensions between Russia and the U.S and the rest of the European Union. It has also caused the murmuring of tensions between China and Taiwan. With so much going on it is important to keep your eyes on the prices until you find an opening for you to buy or sell whatever gold you may have.

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