Gold price at historic highs, is it worth selling now?

There gold price it’s ai historic highs: it exceeded 2,400 dollars an ounce and came close to i 75 euros per gram for the first time in history.

The rise in the price of the precious metal to date is mainly due to geopolitical situationto the propensity topurchase by central banks and to the expectation linked to the rate cut of reference interest.

As anticipated, these are unprecedented highs, the price of gold is breaking one record after another. So much so that many private individuals wonder if it is the right time to sell your goldthe so-called “physical gold”, taking advantage of a price that has never been so high.

In the past, demand for gold increased when interest rates were low and the dollar was weak, but currently it is quite the opposite. So why are so many people buying gold? Because for those who want to take advantage of the market situation by evaluating see your physical gold Does this seem like a good time?

There is no single answer, but three factors in particular help to explain why the price of gold continues to rise, marking new historic highs and why the price could increase further.

Selling gold, is it the right time to make money with used gold?

The price of gold continues to rise on the market. Who is in possession of gold objects – received as an inheritance or kept for years awaiting best time to monetize – could therefore consider sell their own jewelsbut also coins And ingots.

This is a completely personal choice that should be based not only on future prospects for the price of goldbut also on the need – or not – to get hold of a bit of additional liquidityperhaps in view of summer holidays or the purchase of a new car or, simply, for the need to cover ordinary expenses.

Gold is notoriously seen as a safe haven asset. With the worsening of geopolitical tensions, it is reasonable to think that the price could rise further, but this is not certain. Selling in a month could be more convenient than today, but also more inconvenient. Nobody has a glass ball to predict the movements of the financial markets.

For this reason it is useful to rely on the few certainties we have: those who decide to sell their used gold today can enjoy the maximum price ever applied. Which means that he can earn an amount of money that has never been offered by gold buyers or companies specializing in the buying and selling of the precious metal.

Another – sad – certainty is that the geopolitical tension is not destined to ease soon, leaving us to think that those who decide to wait to sell gold may be making a wise move.

Why is the price of gold rising?

Gold has always been considered a crisis-proof investment.

The recent ones tensions in the Middle Eastwith the Iranian drone attack on Israel and the increasingly precarious situation in Ukraine, pushed the commodity higher.

The central banks most powerful in the world are buying gold like never before, increasing their reserves every month for almost a year, as confirmed by the data from World Gold Council. There China it is the country that purchased the most gold in the period under observation, but India, Brazil and Kazakhstan were also strong buyers. The reason these countries are buying gold is to diversify their foreign reserves. Furthermore, China has been experiencing an economic crisis for some time. People no longer have faith in the real estate market which was once the basis of citizens’ investments and are taking refuge in gold.

Me too’expectation of an interest rate cut of reference by ECB and Fed is fueling demand for gold, thus increasing its price. When key interest rates are high, market participants are more likely to invest in safe but interest-bearing investments (the precious metal does not generate any periodic returns, one can only benefit from increases in its price).

At least in Europe, the era of high interest rates may soon end. The European Central Bank left its benchmark interest rate unchanged at 4.5% last week, but most experts expect a cut of a quarter of a percentage point in June.

In the USA, inflation began to rise again in March (from 3.2 to 3.5%), a figure that destabilized expectations for a change in monetary policy by the Federal Reserve. Until then, it was assumed that interest rates would be cut soon, but many market observers now believe this is unlikely. The Fed keeps the reference interest rate in the range between 5.25% and 5.50%. A cut already at the beginning of May is considered practically impossible. Even an intervention in June is now considered rather unlikely on the financial markets.

According to the world’s largest investment banks – Goldman Sachs and UBS first and foremost – the price of gold will continue to rise.

Demand will continue to strengthen, especially when rate cuts are actually implemented. The widespread expectation on the market is that the hourly price can reach i $3,000 an ounce.