A question we are asked a lot, is ‘When is the right time to sell my gold or silver bullion?’
While we can’t give you a definitive answer to that, as each investor’s reasons for buying and selling is completely different, here we’ll be looking at some of the reasons why, as well as when, people may choose to sell their precious metals.
There is an assortment of reasons why people may sell their gold or silver:
Some investors choose a personal goal, purchasing their precious metals at a certain price, whilst aiming to make a specific percentage increase on their original purchase. Once the spot price hits their anticipated level, they may then choose to sell on their bullion.
Us investors are no stranger to keeping an eye on the moving market. The price of gold and silver fluctuates constantly, and geopolitical events often affect the price greatly. Whilst this uncertainty can pull investors towards precious metals, it can also spark them to sell.
March is often a popular time of year for the selling of gold and silver. Why? Each year individuals have an annual exemption from Capital Gains Tax (for the 2019 to 2020 tax year the allowance is £12,000). If the ‘profit’ you make on disposables in the year exceeds this, you may be subject to Capital Gains Tax (CGT); hereby, planning ahead to utilise the allowance may bring tax benefits.
Although, many smart investors avoid this by choosing to buy CGT free products.
Some investors use the selling of their precious metals to pay off outstanding debts such as mortgages, or to help with things such as the cost of moving abroad, putting their children through education, or even to take early retirement.
Gold and silver are often given as gifts for births, milestone birthdays, and weddings, or left as part of a person’s will for another loved one to inherit. Those who inherit this gold or silver may choose to sell it on and use the value from it in a different way than was originally intended.
When to sell your bullion is ultimately your decision, but here are a few reasons as to when people may choose to sell their precious metals.
Gold & Silver Ratio
The gold-silver ratio shows us how gold and silver are performing against each other and is derived by dividing the price of gold by the price of silver per ounce. This calculation gives us the amount of silver ounces in value it would take to buy one ounce of gold. Investors like to use this ratio to assess whether they deem it a good time to sell their precious metals.
As a general rule, if the ratio is high then silver tends to be favoured and some look to sell off their gold. If the ratio is low, gold may be favoured, and some tend to sell their silver.
Gold & Silver Price
When the price of gold or silver is rising rapidly, investors may take advantage of this, and look to sell their precious metals. Some people may hold on until they see a long-upward trend, waiting for the price to reach it’s peak and then sell.
It’s Up to You
This blog lists just some of the main reasons why investors choose to sell their gold or silver, but ultimately the decision is always completely up to you. All investment decisions, whether buying or selling, must be your own personal choice, and it’s wise to do your own research on this matter.
Should selling your gold and silver be something you are thinking about, why not head to our ‘Selling to Atkinsons’ page? Here you will find all the information you will need to sell your bullion to us, as well as find out an idea of how much your gold or silver could be worth.
This blog represents one person’s opinion only. Customers should conduct their own research and take advice before making an investment. We do not offer investment advice.