For some time now, a lot has been covered about how central banks are buying gold or repatriating gold stored in foreign countries. We are at the end of 2020 now and things seem to have changed. According to recent reports, central banks have done an about-turn and instead of buying more gold or holding on to more gold, they are actually selling it. To soften the economic blow of the Corona virus pandemic, central banks have taken advantage of the high price that gold has been climbing to and selling more than they ever had since 2010.
The net sale of gold bullion by central banks came to 12.1 tons in the third quarter. Last year, central bank purchases around the third term totaled 141.9 tons. According to the World Gold Council, Uzbekistan and Turkey bought the most and Russia recorded its first quarterly sale in over a decade. Analysts predict that once mass vaccinations being, markets stabilize and the world returns to some semblance of ‘normal’, central banks will rebound and start buying again. It might take a while but it helps that most of the issues that created global economic and political tensions are being resolved, like the end of the Trump presidency and Britain’s move to work with the EU on trade deals post-Brexit.
Much like central banks, gold bullion investors have also been selling their gold either because they are cash-strapped and needed to or they too were taking advantage of the high gold prices.
The country of Uzbekistan has been isolated for a while. Not much has happened to warrant global attention, until now. This has been seen as a move by this Asian country to diversify its international reserves in a move to unwind years of isolation.
Besides central banks, a lot of Australian investors scurried to sell gold bullion when gold rallied above $2,075 in August. Gold dealers in cities like Brisbane had been experiencing shortages in previous months as many people bought gold as a hedge. However, it has become apparent that the Lockdown measures taken against the spread of the Corona virus has damaged the economy and left a lot of people jobless and uncertain of the future. The move to sell gold bullion Brisbane gave some reprieve for gold dealers looking to stock up. Because of the Lockdown restrictions on economic activity and cross border transportation, gold bullion dealers were finding it hard to deliver on purchases or to keep their inventory. However, with more sales of uncirculated and circulated gold bullion dealers can now increase their inventories.
If you own gold bullion and you are wondering whether you should sell or not, take your cue from seasoned investors – buy when the price is low and sell when the price is high. However, keep in mind that the price of gold is moved by different factors. There is usually a flurry of activities around the precious metal market when the economy is down. Many people chose to cash out when the fledgling economy pushed prices higher but some people choose to hold on to their gold to hedge against the fallout that comes after economic and political chaos. The decision to sell will depend entirely on how badly you need to liquidate your investment. Sell gold bullion Brisbane only when you need to, but do some due diligence. Know and understand the type of gold bullion you have – coins or bars and its purity. By definition, the purity of gold bullion should be 24k but it can be 22k as is the case with Krugerrands. Find a local gold dealer you can sell your bullion to. There are a number of precious metal dealers in Brisbane that you can take your gold to.
There are also a number of online dealers looking for gold bullion products but be weary of dealers who only have an online presence. It is always better to try a brick-and-mortar establishment when you want to sell gold bullion Brisbane. Dealers that have been around for years will have local customers who can vouch for their reputation. You can use the internet to find out more about gold and to access resources like gold calculators that can help you work out how much your gold might be worth.
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