Why It Is Important To Not Wait To Sell Your Scrap Gold…
Find Out Why You Should Sell Your Scrap Gold Before It Gets Harder
If you haven’t been bombarded by the TV adverts on selling your gold, or pestered by the ‘sell your scrap gold for cash’ adverts in the high street, then you’ve probably been in a cave. The financial upheavals since 2008 have certainly made investing and money a lot more interesting (and volatile). As a direct result, the price of gold has rocketed due to its perceived nature as being a more stable form of currency.
That means now is a great time to sell your scrap gold. A very obvious question comes to mind though. If the price of gold is currently increasing, why should I sell my unwanted jewellery now? A very good question. One that we’ll answer now.
Sudden Finds of Gold Deposits
As a world we’ve largely found most of the gold that there is to find. But there still remains the possibility of finding a significant deposit of gold. Mining techniques now involve extracting traces of gold from soil and rubble, rather than finding nuggets as in days gone by. If a large deposit of gold was found, this would depress the selling price of gold for a long while, i.e. you’d get less money for your unwanted gold items.
Sudden Liquidation of Gold Stocks
Since world currencies are unstable, it’s completely feasible that governments could sell their gold reserves to help their economies. Selling a large quantity of gold is subject to the usual rules of supply and demand, and therefore would decrease gold prices.
Potential Changes in Regulation
Generally speaking, the gold market is pretty free and open, with little regulation. If major countries around the world began to implement the regulation of selling scrap metal (e.g. such as the plans in the UK), then the selling price of gold is likely to decrease in those countries. Even if the price did not decrease, you want to be able to sell your gold easily and quickly to get the best price.
Potential Taxation for Selling Gold
Given that many governments around the world are heavily in debt, many of those debts are being paid for with increased taxes. Governments are being seen to only increase taxes for the wealthy, rather than the everyday person. Since profit made from selling gold is based on wealth accumulation, then this would be an easy target for a new tax. Although there’s generally no tax for any gold you sell that’s a piece of jewellery, there may be in the future. That tax is not likely to be cheap, so it’s best to avoid it by selling gold before any such tax is introduced.
Highly Competitive Markets
Since there are so many businesses jostling to buy your gold, the market is very competitive, and great prices are being offered when these businesses buy your gold. If regulation and licensing was introduced, that competitiveness would decrease. You can get up to 95% of the actual weight in gold as cash due to this competition. If there was less competition, you’d get a lower price offer for your gold irrespective of current scrap gold prices. Less competition means that gold buyers don’t need to work very hard to buy your gold, so they’re not incentivised to offer you a good price on your gold.
Fundamentally, selling your scrap gold now is a good idea as it’s so easy to sell your gold. The lack of regulation or taxes in combination with strong gold buyer competition is worth enjoying, before it’s all taken away.
This is a guest article by Mike Stirling, who regularly tracks the prices of precious metals for investing purposes.
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