Investing in gold for returns is a poor decision. However if you feel like you want a hedge against inflation then yeah, fair enough. Eitherway, never put all your eggs in one basket.
that is what I meant and that is why I said that unless you have a solid plan of how you are going to re-invest your money, I say that dont sell it.
Well I think it's pretty obvious that TLK meant just as a "savings" type investment, since right now interest rates on savings accounts are low in most places and of course, riskier than precious metals like Gold. No one invests in Gold for the returns, the ROI doesn't exactly make it a cash crop but definitely a safe place to have your money.
As for Gold being high or low... that's kind of subjective and hard to say. Gold will probably tend to go up for the most part (in the long run) so... no it's not at it's highest... and you can't exactly say it's low either since the rate at which the price of gold is rising is considerable at the moment. I'd agree with TLK and say unless you need the cash for something or have some other investment plan... probably don't sell your gold. I wouldn't.
Gold rates go up and down in line with the markets, its been the lowest rate all this year (when i wrote the original email), checked it yesterday and it has gone up, with news about the new plan for Europe from Sarkozy.
If you look at the price of gold since say 2002, you will find it had risen in a straight line from $250 an ounce to $1900 an ounce. So the fact that when you looked at it, the price was lowest for the year 2011 does not mean the rate of increase was low. The lowest gold price this year was around 1580, which is still 6.5 times higher than year 2002 values. Question to ask is, what is the main driver for Gold prices to continue their upward trend and why is everyone bullish after such a huge move up.
Gold is at a high, has gone up 7 fold compared to 7 years ago. If OP can find a reliable dealer and get cash at close to fair price, I dont see why OP should not sell the Gold she does not need or use. Historically, Gold has barely kept pace with inflation. From these levels, the rate of return would logically be even lower.
As for if $20-30K would make a difference in buying a house, sure it will. with current housing prices being much lower than they were in 2005-2007, and Gold being much higher, this seems like sell high and buy low situation.
There are always investments that are attractive - right now the European stock market looks attractive. Or just buying CDs or bonds with laddered maturity - 6 months, 1 year, 2 years, 5 year - could also be a good strategy. If rates go up, you can put the maturing CDs or bonds in longer terms ones.
I would say to sell it ... having to pay zakat on it every year must also be difficult. I have about £30,000 worth of gold which I never wear apart from diamond earrings ... I am also thinking of selling it and using it to extend my kitchen :)) ... I have three girls buit I seriously don't think they will ever wear gold ... these days people hardly wear real gold anymore ...
Gold is at a high, has gone up 7 fold compared to 7 years ago. If OP can find a reliable dealer and get cash at close to fair price, I dont see why OP should not sell the Gold she does not need or use. Historically, Gold has barely kept pace with inflation. From these levels, the rate of return would logically be even lower.
As for if $20-30K would make a difference in buying a house, sure it will. with current housing prices being much lower than they were in 2005-2007, and Gold being much higher, this seems like sell high and buy low situation.
There are always investments that are attractive - right now the European stock market looks attractive. Or just buying CDs or bonds with laddered maturity - 6 months, 1 year, 2 years, 5 year - could also be a good strategy. If rates go up, you can put the maturing CDs or bonds in longer terms ones.