Strategy to Buy, Sell or Pawn your gold

WHEN IS THE BEST TIME TO BUY GOLD?

The first mistake in saving gold is waiting for the gold price to come down. The reality is, there has never been a time when people considered gold prices cheap.

The price considered expensive today will be considered cheap in a few years because gold prices are confirmed to rise in the long term.

So, the best way to start is to first buy the first 1 gram as a benchmark price. Later, we will understand when the gold price is high or low.

The best time to buy gold is actually when you have money for savings for at least 2 years or more and already understand the basic knowledge about gold.

WHEN IS THE BEST TIME TO SELL GOLD?

There are 3 best conditions for selling gold:

1. There is an opportunity to convert it into better assets, such as buying a house below market price, or for rolling business capital.

2. Have reached savings goals, such as reaching the time for Hajj, children going to university, or used as a deposit to buy a house.

3. There is an emergency, meaning when the emergency savings are already depleted.

WHERE IS THE BEST PLACE TO SELL GOLD?

The best place to sell gold is where we bought it.

If you buy gold from Public Gold, sell it back to Public Gold. If you buy gold from Poh Kong, sell it back to Poh Kong gold shop.

This is because the original producer will buy it at a higher price than if you sell it elsewhere.

SELL OLD JEWELRY TO BUY GOLD BARS/DINARS?

Not recommended. Selling old jewelry should only be done when you need money.

If you sell old jewelry to buy gold bars, you will incur double the spread (price difference). That is the spread of the old jewelry (25% - 40%) and the spread of the newly purchased gold bar (below 10%).

If you simply keep the old jewelry, you will only incur the spread once.

SELL OR PAWN, WHICH IS BETTER?

Ideally, dedicated gold savers do not sell their gold except in 3 situations:

1. To exchange for better assets,

2. Have reached savings goals, or

3. There is an emergency, while the emergency fund has been depleted.

Apart from these 3 situations, dedicated gold savers will pawn their gold if they need immediate cash. And they will redeem it as soon as possible within 6 - 12 months.