It seems that the price of gold seems to be constantly increasing… so why would you want to sell your gold now?
Why not wait to sell your scrap gold? Here are a few reasons why you should consider selling your scrap gold sooner rather than later.
More gold could be released onto the market
With financial instability of whole countries being a massive problem at the moment, a country could conceivably sell a large part of their gold stocks. Based on the basic principle of supply and demand, a surplus of gold would result in decreased gold prices for a period of time.
Scrap gold dealers are currently unregulated
The high prices of gold have attracted a huge number of gold dealers (good and bad) to the market. The UK government likes to regulate almost anything relating to money, so any regulation might make it harder to sell your gold. If any gold dealers need to pay for their regulation, then there might be a fee on any gold transaction, meaning you get less money for your gold.
There’s currently no tax on selling scrap gold
Since gold jewellery is typically considered a personal possession (rather than an asset), selling that jewellery does not attract a tax of any sorts. However, since the UK government like taxes, a tax on selling scrap gold could easily be introduced. This means you might need to declare the money you make from selling your gold, and pay tax on it. Neither are particularly desirable. (There’s already a tax on selling investment gold).
Gold prices do go down too
Like any market, gold trading is subject to cycles in prices. Prices are great now, but what will they be in a few months?
So should I sell now?
If you’ve got gold jewellery that you no longer want, yes, definitely sell it. You can make the money work harder for you, even if you put the money back into investment-grade gold or another investment vehicle. Selling scrap gold is easy at the moment, so it’s worth taking advantage of that.
