The Stock Market Free Fall of 2008 – Photo Courtesy: Mike McCune
How to Sell Gold in 21st Century – Investment Advice on Trading
Independent economic studies have, for a long time, showed that gold has been a safe investment, give or take a few market fluctuations, since the late 19th century. Typically, gold prices seem to be able to withstand high profile stock market crashes and falls. Particular note should be made of the stock market crashes in the years 1973, 1979, and 2008; during these periods gold still maintained its status as one of the best global investments in the medium to long term. Recent years have also seen some great investments made in gold. As an example, the price of gold (for one ounce or just over 30 grams) actually multiplied fourfold from the years 2002 to 2012!!
Gold Coins are Always a Wise Investment Choice
The French Paris Mint, which is a very prestigious institution, estimates that there are around one thousand metric tons of gold simply doing nothing and adding no value. Many people have gold simply lying around in their jewelry boxes or in bedroom drawers. Based on this estimate, it is reasonable to expect (based on the assumption of around 15 grams per person) that this would equate to about three years worth of gold mining production in China – and they are a market leader in gold production.
A lot of gold lies hidden and saved in the jewelry boxes of the world – Photo Courtesy: Cheryl VanStane
The majority of this hidden gold is held in the form of yellow 18 carat gold jewelry – this style of classic yellow gold contains around 75% purity with the other quarter being made up from copper. The reason copper is used is because it allows for better shaping by goldsmiths and can give the gold a more shiny and lustrous appearance.
2,500 Tons of Gold Held in Private Reserves
The estimates around private gold reserves held by individuals in ingots and coin form is a lot more confidential and difficult to arrive at. The numbers estimated by financial experts comes out at an amazing two and a half thousand tons. Most of this gold is most likely to be of 99.99% purity and will be locked into bank vaults and private holding areas.
Global Demand for Gold is Very High
The global demand for gold jewelry is still very high, and the supply and demand of gold can very much depend on mineral production capabilities at any given time during the year. Purchasing of gold by individuals via city brokers and internet-based trading tools is booming at the moment and shows just how the industry has changed over the years; using web-based gold traders is a great way in which you can get started with gold investment.
Calculating How Best to Sell Your Own Gold
However, we have a word of warning when trading in gold. You must be very careful when trading, especially when selling gold as you will need to appreciate and calculate the margins that are involved. To avoid making losses or only small profits in gold, always calculate your numbers when selling as follows:
- Weight in grams x 0.75 x price of gold ingot / 1000 – the broker’s margin
- This equals your optimum price of sale when selling gold
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