Personal Finance 101: Is selling your GOLD the right thing to do?

Personal Finance 101: Is selling your GOLD the right thing to do?

I do not have the habit of buying and selling gold

I have friends who love gold trading. They follow the trending, they buy at the right time and sell at the right time. I mean that’s what they told me and that’s how they earn profits from it. I do not know how much they have gained but this is how gold has been trending for the past 10 years. Data Source: goldprice.org. Okay, if someone held gold for the past 10 years, their holdings would have now increased by 52 percent. In other words, 52% growth over 10 years and that’s a simple 5 percent up on average per year. PLEASE NOTE – THERE IS NO SUCH THING AS TREND WILL BE CONTINUING OR NOT CONTINUING yeah. Make your own decision and do not rely on any analyst or friends.

Article in nst.com.my The high price of gold which has been going on for slightly more than a month has driven many people to put their jewellery up for sale in order to make a tidy profit.

This matter was admitted by gold trader/dealer Amalin Syamsul Faizal, 22, who said that within the period of a month, many people have taken the decision to sell their jewellery.

He said, “Over the last couple of years, the price of gold at this point in time is at its highest so much so it has exceeded RM280 per gramme of 916 gold. Therefore consumers who are mostly women are taking the opportunity to sell their jewellery because of the current price.”

“They sell their gold because they want more cold, hard cash which they can use to buy all sorts of goods and necessities,” said Amalin when met at the Pasar Besar Siti Khadijah here. Please do read the full article here: Article in nst.com.my

It’s about WHY YOU SELL that matters more

If someone is selling their gold holdings for good profits and then keeping that money under their bed, then better not lah. Keeping under bed has no increase in value. The same as owning a fully paid RM1 million property. No difference from keeping RM1,000 inside your pillow yeah. Maybe better dreams but no appreciations…

If someone is selling their gold holdings and then use all the money to go vacation, then that’s a choice lah. Perhaps they just want to spend it all and then save again later and buy gold again later. I would not recommend it too but it’s not my gold and not my vacation too. Just need to note that vacation = expanses lah.

If someone is selling their gold because they want to use the proceeds to invest into another vehicle for value appreciation, then that could be a good choice too. Investment is always welcomed because this is how we earn more in order to have more when we need the money later in future. This is why it is not whether gold price is high or low yeah. It’s about what you intend to do when you sell the gold which should decide the decision.

Happy deciding or selling.

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