Precious metals are investments that are known for keeping their value and storing your wealth through good times and bad. Even when the rest of your savings may be struggling due to stock market crashes or a declining economy, gold and silver have a reputation for retaining their value.
Whether you’re an investor who has put your money into bullion products, or you know that you have old jewellery and heirlooms made from precious metals, deciding to hold onto the metal longer or sell now is often a question of context. A combination of personal and broader economic factors should be part of your decision-making process.
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#1 Bullion Prices Are Strong
Investing 101 tells us to buy low and sell high. When gold and silver prices are higher than average, it’s always worth revisiting the option to sell. In 2024, gold prices hit multiple record highs, and continue to show above-average strength. Silver prices have not been quite as robust, but they have not been low.
Working with a great bullion buyer will help you get an accurate prediction of what your gold or silver is worth. Buyers like Muzeum actually post their prices online. If you know the weight and purity of your items, you can estimate what you’ll get before you sell your gold and silver to Muzeum, helping you make a decision before you bring the items in.
#2 You Have a Great Way to Spend the Money
Even if your precious metals are in a jewellery collection, think of your gold and silver as an investment. You don’t liquidate an investment unless you have a great way to spend the money.
There are plenty of reasons why you would want to turn gold and silver into cash. This is not an exhaustive list, but you might consider selling if you:
- Have high-interest debts that you want to pay off.
- Want to start a retirement fund with higher growth potential, such as an S&P 500 ETF.
- Want to prioritize another financial goal, such as a down payment for a house.
#3 You’re Not Worried About Your Savings
One of the best qualities that gold and silver offer investors is stability in a turbulent market. Precious metals are known as safe-haven assets, and investors like to include them in their portfolios to hedge against economic downturns.
If you’re worried about the rest of your savings, such as mutual funds, stocks, or bonds, you may want to hold onto gold or silver for a bit longer.
However, if your other investments are in a strong position, they may grow much faster than gold or silver. Historically, stocks from companies on the S&P 500 index have vastly outperformed bullion investments, although they have shown more volatility.
#4 Inflation Slows Down
Inflation is another concern to keep in mind. Gold and silver are regularly used to hedge against inflation, so when rates are high, investors are more likely to buy than sell bullion.
High inflation rates may be a good reason to hold onto your precious metals for a later date. While inflation has been high for several years, economists forecast a steady decline in upcoming years.
Find the right time to sell your valuables or bullion investments. Whether you should depends on a mix of personal factors and larger economic circumstances.