With price fluctuations and economic and political events, the question becomes about the appropriate time to sell gold, whether to reap profits or to direct the returns to other investments that provide greater opportunities.
Experts and specialists usually advise the necessity of “keeping gold” as an investment in the medium and long term, and not dealing with it with a “speculative” mentality or the desire to obtain a quick gain, especially since gold is one of the investments that generates a return only when sold, and in the event of a desire to obtain returns. Rapid or periodic, there are other investment channels and means that investors can resort to.
In separate statements to the “Eqtisad Sky News Arabia” website, specialists outline a set of tips related to dealing with investing in gold as a financial hedge, including:
Investment Objectives: Individuals should start by defining their investment objectives. Do they want to hold gold for the short or long term? Economic and political events: Economic and political stability affects gold prices. When markets experience volatility as a result of events such as economic crises or geopolitical tensions, this may be the optimal moment to sell gold at a profit if individuals need liquidity. Technical Trends: Analyzing the technical trends of gold prices can provide insight into when selling could occur. Chart patterns and technical indicators can be relied upon to make decisions. Effective portfolio management: Distributing investments in a balanced manner between different assets is also important. It is preferable to keep a portion of gold in the portfolio over the long term as a means of diversification, while speculation in gold can be a limited part of the strategy. Monitor news and developments: Economic and political news and developments are usually key factors in determining when the right moment to sell could be.
The right time to sell gold
For his part, the head of the Gold Division at the Cairo Chamber of Commerce, Hani Milad, confirmed in statements to the “Eqtisad Sky News Arabia” website that:
The longer gold is kept, the more valuable it becomes. We advise investors and individuals not to take the step of selling the gold bullion or jewelry they hold “unless there is an urgent need for financial liquidity,” but if there is no necessity, there is no need to sell. Ensuring financial gains from hedging gold can only happen by keeping it for the longest possible period, especially in light of expectations that its price will rise during the coming period.
It should be noted that the yellow metal is usually considered a long-term investment, and not to speculate on it frequently. Determining the appropriate moment to sell gold depends on personal goals and current economic and political conditions.
In addition, consulting financial experts before making a final decision can help you make an informed decision about selling gold and making profits.
A global trend for hedging with gold
This was confirmed by the head of the Gold and Precious Metals Manufacturing Division at the Federation of Egyptian Industries, Ihab Wassef, who said in statements to the “Eqtisad Sky News Arabia” website:
Buying gold as an investment is appropriate at all times, while when selling it you must be careful, especially since gold is profitable in the long term, indicating that it is the best investment in the world. The demand for buying and hedging gold has become a global trend, not only in the Middle East, in order to preserve the value of money. Lebanon, Egypt, and Turkey are the three countries in the Middle East that purchased large quantities of the yellow metal. It is expected that the price of gold will witness further increases, affected by the tensions the region is witnessing. Also, with no clear indications that the situation will witness stability in the near term, the price of gold will not witness a decline during the coming period. The only case during which it is expected to witness a slight decrease in its price is when the situation in the world calms down and global inflation rates decrease.
In this context, he provided a set of tips that he could provide to investors to reap more profits from gold, including that buying gold must be from a known source that has an existing entity on the ground, while staying away from buying gold from online pages of unknown origin, as well as buying less expensive gold. Workmanship (in the case of artifacts). In addition to recommendations not to waste gold and sell it except when necessary if there is a desire for financial liquidity.
Hedging method
In the same context, financial markets expert, Wadah Al-Taha, stated in exclusive statements to the “Eqtisad Sky News Arabia” website that:
Gold is always the safest haven, especially in light of crises, and this is what happened the past few days (in light of the current geopolitical tensions), as it revolves around $2,000 per ounce. This rise expresses the degree of fear and anxiety among investors, who consequently resort to a tool that preserves the value of money. Purchases by central banks achieved record numbers in the year 2022 and the first half of 2023, according to reports from the World Gold Council, which indicates that gold in the long term is considered a good investment.
The financial markets expert expected that the price of an ounce in early 2030 would reach unprecedented numbers, which may exceed $3,000 per ounce, and with the increase in sovereign gold reserves, after some countries purchased tons of gold (..).
Regarding the alternative investment channels that individuals can resort to to hedge in the case of selling gold, Al-Taha explained that in the case of selling gold there are some other tools, such as hedging with assets with limited fluctuations and less volatile currencies, and also for stocks there are what are called defensive stocks that do not It fluctuates with the level of market volatility.
Investment tips
The Egyptian financial markets expert and economic analyst, Dr. Hossam Al-Ghayesh, in exclusive statements to the “Eqtisad Sky News Arabia” website, also advised people or investors, when buying assets, whether gold or real estate, with the aim of hedging and preserving the value of the money, that the investment be medium or long-term, and not For speculation in a short period. He also monitored many repercussions that motivate investment in the yellow metal as a safe haven, including:
Geopolitical events globally and regionally. The situation is still tense, and therefore there is more capital hedging, whether for institutions or individuals, until the intensity of these events subsides. Inflation rates around the world are still accelerating and are expected to accelerate further with the increase in geopolitical tensions, and thus we may witness more hedging operations by purchasing gold and real estate in the short term.
The Egyptian financial markets expert and economic analyst advised keeping these tools until these tensions end and inflation rates decrease globally.
2023-11-04 10:32:58
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