Things are pretty exciting for those with precious metals in their portfolio right now.
Gold is at new all-time highs above $3,600 an oz., up 38% for the year so far.
Silver is above $40 an oz., with $50 not too far off.
Have you considered selling your precious metal lately?
You’re not alone.
The Caveat: Core Holdings
It is essential to maintain an allocation of gold as part of your core holdings. Gold’s key role is as a strategic long-term investment in a well-diversified portfolio.
We believe that a well-balanced portfolio should always include about a 10% investment in gold as a store of value to combat inflation and preserve your spending power. In order for gold to do its’ job, do not trade in and out of your core holdings. Only sell that material if you have a financial crisis. Economic and political uncertainty is a given, so you absolutely cannot risk giving up your core position.
However…
Is Selling the Right Choice for You?
Here’s why so many of our clients are selling right now:
- To Take a Profit. Many of our long-term clients have enjoyed the rise of gold and silver spot prices over time. When markets are favorable, there is opportunity to rebalance and take profits.
- To Play the Gold-Silver Ratio. The Gold-Silver Ratio (GSR) is the number of ounces of silver it takes to purchase one ounce of gold. The current GSR shows that silver—despite being at 14-year highs—is still highly undervalued at current prices, and arguably, investors are missing out on potential gains. With the entry point to purchase an ounce of gold so high, many investors start by stacking silver and then selling that silver when they have enough to buy gold. When the ratio starts to narrow, silver investors rush to sell in favor of flipping their gains into gold.
- To Cover Margin Calls. When the stock market drops quickly and causes the underlying value of leveraged accounts to fall below the loan value, investors might choose to liquidate some of their precious metals holdings to meet the margin call. Traders treating gold as a store of value are happy to take advantage of the fact that there is always a two-way market for gold to hedge their riskier assets. And when they’re able to meet these short-term needs, they typically buy back in.
- To Pay Bills. Inflation remains high, and projections of economic growth are subpar. With personal finances tightening and low growth set to impact your financial stability, you always have the option to sell some of your gold and silver in emergency situations to take care of your family.
- To Pay Off Credit Card Debt. With inflation still at untenable levels for the average consumer, Consumer Credit jumped from $9.6 Billion in July to $16 Billion in August… nearly doubling in one month. U.S. consumers are strapped. Gold is there in case of crisis, as many found during the 2008 economic crash, and can be used to pay off debts that are starting to pile up in the current volatile economic landscape.
- To Simplify Estate Planning and Inheritance. Many store their wealth in gold over a lifetime, then prepare to pass that inheritance on to their children. Some chose to liquidate as part of their end of life estate planning in order to make it easier to transfer to their heirs. Or, if they choose to pass on their gold in bullion form, the heirs may sell the gold they received when parents passed away because they do not understand gold as an asset, nor do they share the same affinity for gold as their parents did.
To Sell or Not to Sell?
Despite precious metals surging right now, retail demand still remains low, meaning that low premiums on bullion bars and coins are providing an undeniable opportunity for investors to buy during this bull market.
Our core philosophy that you Keep What’s Yours means we believe that investors should still be buying at these levels as the bull market is nowhere near the peak.
And we still believe that gold is meant to be held for the long-term.
But, there’s more than one way to take advantage of the power of precious metals in this favorable market.
If you need to sell your gold and precious metals for any of the reasons listed above, then consider selling to ASI! We are here to make the process easy and safe, and clients can expect the same trustworthy service and attention to detail as they receive when they buy from us.
We make the process easy from locking in your price to getting paid.
As a matter of fact, we buy back even if you did not purchase the metal from ASI.
Start the process today by requesting a quote. Call 1-800-831-0007 to speak with one of our preferred client representatives.
Or, if you’re looking for more information, download our FREE guide on How to Sell Precious Metals.