Is it wise to sell gold bullion when the economy is so precarious?

Is the world headed towards a total economic melt-down? Maybe we are already there but we cannot yet see how bad things are.  A lot of people have lost their jobs; others have seen their income shrink and most are just cowering under their mountain of debt. As things stand now, gold is still being lauded as the best way to hedge against catastrophe.

There have been thousands of predictions and a lot of doomsayers who have been predicting a global economic meltdown. Given the kind of news that have been coming out of Europe and the U.S, one can’t really blame them.

In the event that the economy does go into total meltdown, assets stored on paper will become obsolete. The first thing that loses value is paper money. When currencies no longer have the value they had, people tend to lose money. Now would be the time to evaluate hard assets like gold and other precious metals with innate value.

A lot of investors make the mistake of assuming that just because the price of gold has been going up for so long, it will keep going up. Gold might be a nice offset to stocks right now; it might not work out so well in the coming months or years. If the economic system does collapse, you still won’t be able to buy groceries with your gold bullion coins. Instead, you still will have to sell bullion coins and convert them to real cash so that you can pay for normal stuff and get on with life.

Being in possession of a valuable asset like gold bullion, presents its own challenges including security. But, if you want to survive a complete economic meltdown and follow the directives of the most pessimistic prognosticators, you should learn the right way to do it.

Decide when to sell

Deciding on a good time to sell bullion can be a financial decision or a personal one. Some people bought their bullion and others might have inherited it or received it as a gift. No matter how you came to acquire your gold, you still should ask yourself if you are ready to part with it. The common reason people decide to sell bullion is that they need cash for some reason or other. Whatever your reasons, there is never really a perfect time. Sell your gold when you need to.

What you are selling and who you are selling to

You should make sure that the person you are selling your gold has a good reputation as a gold buyer. There are a lot of unscrupulous people out there who will take advantage of you if you don’t know your gold and what it is worth.

Here are some things you need to know in order to tell whether you are getting a good price for your gold or not.

  1. Is your gold bullion or numismatic?
  2. Is your gold bullion from a sovereign or government mint or a private mint?
  3. What is the bid price or the price a gold buyer is willing to pay for it?
  4. What is the ask price or the price, the same gold buyer will sell it for?

Last but not least, learn about the popularity of your particular gold product. If the bullion is in high demand it is most likely to fetch more than just a fair price as dealers will be clamoring to get their hands on it.

 

 

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