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    Should I Sell My Gold Now Or Bide My Time?

    Gold, as a tangible asset, can easily be sold or bought. You can simply go to the nearest pawnshop or jewellery store and get a piece, or to the nearest second hand dealer or gold buyers to exchange it for money.

    Whether you are looking to buy or sell a gold item, there is always a right time to do so. The price of gold often fluctuates. It is affected by many economic factors including supply and demand, inflation and gold reserves. Having some basic knowledge about these factors will help you determine the right time to sell your gold.

    Supply and Demand

    As with any commodity, the price of gold is affected by the laws of supply and demand. Australia is the world's second largest producer of gold, so you might think that there is a lot of supply within the country, and that gold should be cheap in Australia. The reality is that Australian gold production has been slowly declining for almost twenty years now, meaning supply has been decreasing.

    On the other hand, the price of gold in Australia has been on the rise. From just around 500AUD per ounce in 1998, it doubled in price in 2008, and has been hovering around 1,400AUD per ounce lately. To put it simply, if you are selling an unwanted gold jewellery and you don't really need the money just yet, you might want to wait a little longer.

    Gold and The US Dollar

    Investors and traders have long since used the strength of the US dollar to predict the price of gold. For us common people who are not so versed in financial and trading terms, it simply means when one falls, the other rises.

    When the US dollar is weak, the price of gold increases, and vice versa. If you want to get a higher price for your jewellery, you can try selling it when the US dollar is falling.

    Your Buyer's Offer

    Gold buyers will often have an advertised rate. After checking your merchandise, they will give you an offer. Even when you think your buyer's offer is good enough, try to get a quote from at least two other potential buyers.

    If none of them can meet your expected price, it might be better for you to wait until you find a buyer who can give you the price you need.

    The Buyer is Paying the Same Rate Regardless of Purity

    When you are selling more than one piece of gold jewellery in different carats but your buyer is offering the same rate for all the pieces, don't sell to them.

    Make sure you find out the price per gram per carat before dealing with a particular gold buyer Gold items that have higher purity or higher carats should fetch a higher price.

    Your Need

    Trading trends, interest rates and currency strength often do not matter anymore when you are in serious need of immediate funds. Depending on your need, you might want to sell when markets are low.

    However still shop around the gold buyers as different buyers may be offering different prices for gold based on local market supply and demand.

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