Friday, October 28, 2011
Many large and small investors are anxiously trying to find ways to protect their assets, and one way to do that in this volatile stock market is to buy gold. The sluggish American economy, broken economic promises by politicians and the effects of the European debt crisis on American banks has been driving gold prices up, what does that mean for the average American?
Is Now a Good Time to Sell Scrap Gold
Almost everyone has some old gold jewelry or scrap gold lying around, and if there was ever a time to sell it, now might be it. Banks, investors and countries around the world are scrambling to buy gold. Gold is just coming down from an all-time high, but it's still pretty darn high. No matter what state you’re living in, there are scrap gold dealers who are anxious to by your gold. Some of the best locations include California, New York, Texas and New Jersey cash for gold companies.
While there is no doubt that now is a good time to sell your scrap gold, despite the recent market upticks and bailouts, there is still plenty to worry about in the financial markets. The stock markets are still volatile and the European economic crisis keeps showing a lack of economic recovery. So it stands to reason that gold prices will continue to rise, and the shrewd holders of scrap gold may wish to keep holding on to what little gold they have, in expectation of the price of gold to go up further.
Why Hold Gold?
During a time of stock market volatility, many choose to hold their scrap gold as a backup plan. However, trying to play it safe may come at a cost. Over the long run, liquidating your stocks into cash or buying government Treasury bonds may actually be even riskier because of low interest rates and low returns.
Cashing out could do more permanent damage to your retirement objectives and hurt your money’s buying power. This is common advice from financial advisors everywhere. Disillusioned Americans and investors everywhere, who fear another financial meltdown, are chasing the illusionary so-called “safe havens.” The sad truth is that the safe heavens aren’t that safe anymore. The truth is that there are no safety nets left.
Cashing out your scrap gold or silver could make sense if you have a small quantity and want the money to pay down debt or fun the holidays. No one really knows where the price of gold is going, but if the economy continues to struggle as it is doing world-wide, the price is likely to rise. If you are holding a large amount of scrap gold, than selling may not be best right now. But if you have a few items and could use the extra cash, now is as good a time as any. The price of gold is still very high, despite recent market fluctuations.