Considering Selling Your Gold?

Planning to liquidate some of your precious metals holdings? Wait! Here’s what to consider FIRST.

Why, When, What, Where, and How are all things you must consider before making the decision to sell your gold or silver bullion.

But what are your reasons for owning precious metals in the first place? The World Gold Council, among others, has conducted a number of surveys where they included various percentages of gold in portfolios with various stock, bond, and currency mixes. What they found is having roughly 8% to 12% allocation to gold tends to increase overall portfolio performance while decreasing overall portfolio risk.

Core holdings should (hopefully) remain untouched for the remainder of your life. Your core holdings should be primarily gold, and some silver. Your core holdings should be close at hand in case of crisis.

Once you’ve filled this quota, any additional funds you allocate towards precious metals typically are purchased for profit potential, ready to liquidate when the time is right.

Why: Reason for Selling
While your core holdings are meant to remain intact to do their job as wealth insurance for as long as you live, there may come a time when the reasons are right to sell some of your precious metals. Here are some common reasons why it might make sense to sell your gold:

•    The market is high, so you’re looking to maximize the profit potential in the gold or silver you own beyond your core holdings.
•    If you’re tracking the Gold-Silver ratio, there may come a time where you’ve accumulated enough silver and want to flip it to purchase one or several ounces of gold.
•    You’ve inherited gold or silver from a relative and have no idea what it’s worth or how it works as an asset.
•    You’re in a crisis and need to liquidate so that you can use the proceeds of the sale for an emergency.
•    You’re ready to retire and want to use the metals you’ve accumulated to fund your golden years.

There are also some reasons that are not quite as sound to sell your metals. Namely, allowing the fear/greed cycle to rule your decisions. Panicking when spot prices dip or cashing out of your core holdings when prices appear to be nearing a high is a sure way to lose the benefits of owning gold and silver in the first place. It should be treated like wealth insurance, not traded like a stock. 

Ultimately, no one can tell you that you can’t sell your precious metals for any reason that makes sense for you. But, if you sell for the right reasons, then you are able to make sound financial decisions to protect and grow your wealth. Rely on logic, not emotion.

When: Timing
Most precious metals owners plan to hold on to them as long as possible since it's the best way to diversify your portfolio and protect it against inflation and economic volatility. Gold can only do its job if it's in your possession!

However, if time comes to liquidate some or all of your holdings, when you sell is another crucial element in your decision-making process.

It is impossible to time the markets. No one, not even expert analysts, can tell you exactly when the market will reach its next peak or hit its next low. However, you can arm yourself with data to make an informed decision on when to sell.

First, start tracking the spot price and regularly read precious metals news to understand what is going on in the markets right now, and check out historical data charts to understand the patterns of the market cycle. Gold and silver spot prices fluctuate constantly, but looking at the long-term trends will enable you to develop a basis for understanding more favorable conditions for getting the best price for your liquidation.

If markets are at a low and you’re not in urgent need of liquidity, keep an eye on the spot price and wait for it to rise. Bull market cycles tend to be around 10 years, so it takes some patience, but your portfolio will thank you for it.

Another thing to consider with timing is not timing at all… if your reason for liquidation is not urgent, then dollar-cost-averaging can also work as a method to slowly sell your assets and get out of the market without as much risk. It is nearly impossible to time market dips and buy at the lowest possible price every time, but purchasing at regular intervals makes it easier to liquidate consistently, with discipline and a long-term mindset.

What: Premiums & Products
Primarily, how much you get when you sell if going to depend on where spot prices sit now versus when you bought, and what you bought in the first place.

However, certain products tend to carry a higher premium and always be in demand whether buying or selling, like 1 oz. Gold American Eagles. Other times, you might only get at or below spot price for certain bullion products when you sell your gold and silver coins and bars. 

When fabricated supply shortages are afoot, like we saw throughout the Covid-19 pandemic, dealers are willing to pay a little more for many products just to make sure that they have enough stock keep up with the demand.

Alternatively, during the bearish cycles of the precious metals market, fabricated products are overly plentiful and the lack of demand means dealers aren’t willing to pay quite as much in order to preserve their margins. 

There are many factors at play when it comes to supply and demand, and this could definitely impact how much you get back when you sell your bullion.

Where: Seller Beware
Before you even buy… the best advice any investor can follow is to make sure, up front, that a viable exit plan exists for any asset you purchase.

Whenever you make a purchase, it’s imperative you know you’re able to liquidate your assets if necessary. Knowledgeable investors always ask one important question before buying…

“When I am ready to sell, will you buy it back?”

If the answer is no, then it is likely that you are being charged unfair premiums for the products in question.

Assuming you did your homework when you purchased your gold, silver, platinum, or palladium, you can approach any reputable dealer who buys back. 

How: The Liquidation Process
Here’s where we come in.

Once you decide you’re ready to sell, just give us a call. The process is incredibly simple and includes the following:
•    An indicative quote.
•    Instructions to deliver the merchandise to us.
•    Options for paying you once you agree to the price.

We buy back:
•    Gold coins and bars
•    Silver coins and bars
•    Platinum coins and bars
•    Palladium coins and bars
•    Rare, Numismatic and Graded coins

Who: Who is ASI?
We’ve been in this business for over 40 years. Our highly trained and educated Preferred Client Relations representatives can answer all of your questions, discuss your options, and buy your bullion back (even if it wasn't purchased from us). ASI Preferred Client Relations representatives do NOT work on a commission basis.

Please call us at 800-831-0007 or email us for your FREE appraisal. Regardless of where you purchased your gold, silver, platinum, and palladium, we’ll buy them back at highly competitive rates, given there is a market for your merchandise. We’ll even give you an appraisal if you’re not looking to sell quite yet. We're here when you're ready.