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How to Determine when to Sell Old, Broken, Unwanted or Unused Scrap Gold in a Wild Market
In the midst of the current economic crisis, a lot of people are selling scrap gold and gold jewelry as a way to receive some extra cash in their pocket. But with the gold market reaching all time highs, is it better to sell now or wait until the gold price goes even higher? In the midst of this wild market, how much should your timing depend on the current price?

These can be challenging questions. The gold market is a lot like the stock market in that it fluctuates from minute to minute, so trying to time a sale can be a real exercise in frustration. As an example, on October 8, 2008, the price for an ounce of gold was $913 per ounce, but by mid-November the price had dropped below $710 per ounce. Now it’s back up again, well over $1000 per ounce. To get a visual picture, a website that I often use to check the current price can be found at Kitco.com. They also have a wealth of other information as well as historical charts.

But there are two factors that really need to be taken into consideration when we look at the question of timing as it relates to selling gold.

First, the value of gold tends to fluctuate in the opposite direction of the value of the U.S. dollar. What that means is that, generally speaking, when an ounce of gold has more value, the dollar is worth less. So, while waiting for the scrap gold price of gold to go up means more dollars in your pocket, each dollar you receive is going to buy less. All we have to do is look at our bills to see that our money doesn’t go as far as it used to. So, much of the gains we receive by waiting for gold to go up are offset by our loss in buying power.

Second, most of us don’t have enough old, scrap gold for a few dollars one way or another to make much of a difference in the price we are going to receive. Since most of us don’t have pure gold laying around in large quantities, a few cents or even dollars either way doesn’t really make much difference to our bottom line.
These can be challenging questions. The gold market is a lot like the stock market in that it fluctuates from minute to minute, so trying to time a sale can be a real exercise in frustration. As an example, on October 8, 2008, the price for an ounce of gold was $913 per ounce, but by mid-November the price had dropped below $710 per ounce. Now it’s back up again, well over $1000 per ounce. To get a visual picture, a website that I often use to check the current price can be found at Kitco.com. They also have a wealth of other information as well as historical charts.

But there are two factors that really need to be taken into consideration when we look at the question of timing as it relates to selling gold.

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