Selling Your Gold and a Flooded Market
Don’t fight it. Don’t even think about it. If you have old jewelry laying around collecting dust, get rid of it. That does not mean to put it in the mail to a company that is going to steal it from you or to someone having a gold party at their house. How about your local trusted jeweler? If you don’t have one, then nows the perfect time to develop a relationship with one as you shop your gold around for the best price.
The bottom line is, sell it before the gold bubble burst. And it will, just as the tech bubble and the housing bubble did. Could it go higher? Sure. But the difference between what you will get paid for a few rings and bracelets will be small. When gold gets back to reality, prices will plunge. I was in the jewelry business when gold was $250 per ounce back in the eighties. It's now, $1230 per ounce, at an all-time high. Wow, what a run :)
With the divorce rate at 51% these days and the world economy in molasses, pre-owned diamonds, Rolex watches, and jewelry are showing up for sale more than ever now. That's a great thing if you are looking for a deal on a pre-owned treasure.
On the other hand, if you need to sell now, you might not get as much as you would like. Its simply a supply and demand issue. Too many sellers and not enough buyers are causing the prices of pre-owned watches and diamonds to fall. So, if you need to sell that Rolex watch or diamond ring, be ready to get offers that are much less than a dealer would have paid 4 or 5 years ago when everyone was making more money and spending it.