There are a number of locations that advertise, “We buy gold!” in Atlanta. Buying gold can make for a wise investment, but knowing when to sell gold ultimately determines how much money you make. Fortunately, there are a number of indicators that can help you decide. With a little bit of research and by listening carefully, you should be able to make a wise decision with your investment.
Dow Gold Ratio
This ratio is simply the Dow Jones Industrial Average, which is a measure of the U.S. stock market, divided by the price of gold. As a result, you can identify when the stock market is up and gold is low. This gives you the chance to invest in affordable gold. If you’re looking to sell your gold, you’ll instead want to look at the lower end of the graph. At these points, you can see that gold is high and stocks are low. When stocks dip and gold is up, you can sell your gold and make an excellent return on your investment.
Housing Gold Ratio
By looking at house prices and comparing them to gold, you can see when housing is undervalued or overvalued compared to gold. This ratio is something that you should check periodically. When this gets to around 100, it’s probably a good idea to exchange some of your gold for housing.
This can be tricky since it requires you to stay abreast of government spending on a global level. Generally, you want to look for taxes being cut alongside a significant decrease in government spending. During these periods, selling gold can be quite lucrative.
Real Interest Rates Rise
One common misconception is that gold pays out poorly as interest rates rise because gold investments don’t yield a dividend. Instead, the key is to look at real interest rates. Keep an eye out for when real interest rates become negative. During this time, gold tends to continue to rise in value, even until or after real interest rates become positive again. This gives you a valuable window during which you can sell your gold and earn a substantial sum.
Research is great, but people offer an excellent resource as well. Many of your friends or acquaintances may have gold or gold-related investments. Listen for when people outside of your usual network are discussing gold and beginning to notice its climb in value. Once it reaches the mainstream, it’s clearly worthy of common interest. Although it could still have room to continue increasing in value, it’s not a bad idea to consider selling, especially if it appears to be an excellent return on your initial investment.
Most gold kiosks sell gold. They don’t buy it. When this behavior changes, you should take notice. If gold kiosks are actively buying gold, there’s a reason for it. This likely indicates a significant change in the market. It’s worth considering selling your gold if even the gold kiosk at your local mall is happy to buy gold rather than selling it.
This isn’t as easy to track unless you keep tabs on popular gold buying and selling websites. When their traffic is growing exponentially, there’s clearly a rush on gold. A steady rise is common as websites grow and isn’t at all unusual. If Google Trends shows exponential growth, this is something altogether different and worth investigating further.
Atlanta gold can make for an excellent investment, but knowing when to sell requires some research and attentiveness. Contact Elan Diamond Group at 404-386-6009 if you have any questions or would like to learn more.