Sell Gold vs Investing in Gold – Put it in Context

Gold is possibly one of the most sought after commodities on the market and whether it using it jewellery, investing in it, or selling it, there is no doubt that businesses and individuals the world over understand its value. Or do they? Many people know that gold is valuable and that means money for them, but too often they do not utilise the gold they have or the gold they want in smart ways that work for them. The question then becomes if you are not making your gold work for you, what other financial opportunities are you not taking?

Gold is without a doubt a valuable asset to have and those who do have it would do well to put it to work for them. The question in monetary terms then is whether it is better to invest in gold or to sell it. There are many campaigners for both camps and all of them would argue that their method is best especially considering that is has probably worked for them in the past. Those who sit on the outskirts of this issue however, would probably guess that there should be some balance of both, something which is explored herein.

Sell Gold vs Investing in Gold
Investing in gold is definitely a good investment if the gold price is anything to go by. This seems to increase on a regular basis and one can only assume that if this is the case, in the future, the price will continue to rise. Selling gold, however, means that the cash you get from it is immediate and can be put to use as soon as it is received, whereas the dividends yielded by an investment may take some time to accrue.

This brings us back to the point of determining which the best path to go down is. Ultimately, one could argue that it depends on your needs. Those who need liquid assets quickly that they can spend, such as cash, would do well to sell their gold while others who can wait for money to accrue should probably invest.

Sadly, this rather circular argument does not yield a particular answer in favour or against either investing or selling. One can only assume the best answer is one that takes context into account. The context of whether to sell or to invest includes the current cash situation of the investor or seller, the long-term goals of said investor or seller as well as many other factors including the gold price and the country’s economic and political climate. One would not have wanted to invest in gold in South Africa for example, during Apartheid, since the country’s supply of gold was be blocked by sanctions, and this money would then be tied up and unavailable. At a time like the one mentioned above, it would be much more convenient to sell gold, since there would be a shortage due to the lack of export.

Get Some Advice
When one asks the question of whether it is better to sell or invest in any commodity, the answer has to be influenced by context. As any good financial advisor will tell you, allowing for a contextual background to financial investment ensures you are making the best deal. For those who are not confident in their decision to either sell or invest, seeking the skills and objective advice of someone outside of the business or of the person’s circle of friends and family is probably the best decision to make. Objectivity in this regard is very important because without it, the investment in or selling of a product could go awry, leaving the person who is hoping to make money in the short or long term disappointed.

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1 Comment

  1. Natasha Barnes
    March 27, 2013 at 6:06 am — Reply

    Gold is a great investment!
    Smart and reliable – what more could you want?

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