Should You Buy or Sell Gold in 2017?

Gold has seen a large surge n value in the spring of 2017, following a steep drop in late 2016. However, now, in the summer, the prices are experiencing a drop once again. If you are interested to know how the prices will fluctuate in the near future, as well as if you should be buying or selling gold at this moment, read on.

Gold Coins and Jewelry Gold

This article does not apply to gold coins and jewelry such as rings. These items, although gold, hold a different kind of value, engrained into the craftsmanship needed to produce them, as well as the potential historic value. If you have this kind of gold and are looking to sell it, find a respectable gold coin dealer, such as San Diego’s Leo Hamel Fine Jewelry & Engagement Ring Store.

What caused the 2016 drop?

Gold was on the rise in early 2016, but then saw a sudden drop towards the end of the year. Experts at Bloomberg claim it can be linked to the state of US economy. The economy of the US had recovered more than it had been expected to. This caused the US Dollar to rise in value, making gold far less appealing to investors. This drop, however, did not last too long.

The 2017 Recovery

The slow and tentative recovery of gold prices came largely on the wings of the US government’s inability to pass reforms, thus shaking the trust of investors in the stability of the US Dollar. They once again turned to gold as a stable, if not very profitable investment. Through careful maneuvering and adjustments in interest rates by the banks, as well as new jobs, the situation has turned dramatically in the past month, and gold has once again dropped. In fact, it dropped to just $1200 per troy ounce, the lowest it has been this year.

What Can You Expect in the Future?

Based on the yearly fluctuations of gold in the previous years, you can predict with a degree of certainty that the current low in the price of gold is only temporary, with the potential to rise in the fall. In fact, the second half of July or the first part of August is the time when you can expect to see gold gaining value again. If you are planning to buy, do it now, and watch in real time as your investment gains value by the day over the coming months.

If You Have Gold

If you have gold you are looking to sell, this period is less than ideal. However, you can expect the situation to be far better in the fall. But, be careful not to wait for too long, since gold prices are traditionally the lowest in January.  Some people would suggest not selling gold at all since the shiny precious metal is the only constant currency humans have kept throughout the ages. These people do not believe in the contemporary economic models.

Whatever you ultimately do, it is always a good idea to do a bit of research before you jump into a big financial decision. This handy chart by CNBC may tell you a lot if you learn how to read it correctly.