Regardless of what you like to invest in, every market is cyclical in that it goes through periods of peaks and valleys. Markets are always changing, and it is our job to monitor them. Of all the collecting trends we have witnessed, one has never changed since practically the beginning of time: People love gold.
While the value has changed drastically over the years, the demand never withers as people just cannot get enough. Whether it is jewelry, coins, or just straight bullion, collectors have always gravitated towards gathering as much as they can when the price is right. Why is that? Because it is almost always a sure-fire investment!
So how can you prepare for the peak to make sure you buy low and sell high? Most importantly, pay attention to current events. Historically, the value of gold tends to rise during election years and when there are political instabilities. This applies both domestically and abroad. Additionally, take into consideration the average growth experienced over time due to manufacturing and technology needs. Another factor to keep an eye on is the stock market; the best growth typically occurs when the stock market is down.
Now, contrary to the last statement, the stock market has been performing extraordinarily well in recent times – but so is gold. Over the past six months gold has risen from $2,000 to $2,390 an ounce. For gold this is a historic high, so what does that mean for the future? It means it is time to pay attention more than ever before!
If you are at home reading this and sitting on a pile of gold, either coins or jewelry, you need to focus. Take an inventory of what you have. While you can’t put a price on sentiment, almost everything is replaceable. Cufflinks and earrings without pairs, outdated hatpins and brooches, a random assortment of gold coins… all that can turn into a quick profit! Unless you are a true collector, do not be scared to sell when the time is right. There is no rush, but if prices start rising another 20% to 30% be ready to pull the trigger. Buy low. Sell high. Repeat. If you use this mentality, in the world of commodities you will be nothing but a winner for you.
