Take a look at the chart of the prices of precious metals over the last 100 years and see the trends. You’ll notice that in the long run, it never drops.
If you take a closer look, you’ll see there’s always a difference between the usual and the gold spot price. These differences are the ones that dictate people who trade when it is time to sell and when it is time to buy?
Some people make a real fortune out of trading. They don’t even own the physical shape of the gold. They’ve never seen what they own. The only thing they do is follow the market 24/7 and manage to act fast on the market. When the price drops they buy, when it is higher, they sell. The difference between the two is what makes them a real fortune.
If you’re about to invest or sell some gold, you need to pay attention to the actual spot price. This one is the momentary hypothetical price of the metal that is being sold over the internet. The term is carved that way because there’s no way for people trading with it to know the actual value of the metal in every moment. That’s why they made this name.
When you decide to sell or buy in real-life and not over the internet, it’s best to ignore the term we talked about and focus on the actual value at the moment. When you walk into the store that deals with this, you’ll see that they have an amount per troy ounce that is ready to give you on the spot if you give them actual gold in return. The same goes for vice versa or if you decide to buy some from them.
Of course, they live from buying and selling gold, so they’ll have two different numbers if you want to get some or if you want to hand over some. See more about this here.
How did people make fortune out of this?
If you take a look at the charts over the last 100 or more years, you’ll see that the graph only goes up. Some periods in history this line is very vertical and sometimes the rise is slower. Why?
Because there’s nothing in the world, and in this case, gold is not an exception, that always has the same line of movement and worth. In the past 100 years, there were so many political, socio-economical, and natural events that made great changes to the market in general.
All these affect the price of precious metals too. However, what’s more important is that in the long run, it never goes down. That’s why investors love it.
If you’re about to invest, all you need to do is wait for the right time. Of course, this is kinda gambling if you look at it better, because you may think that the value is the highest for that period of time and it will continue to rise for the next couple of months. You’ll feel sorry that you didn’t wait long enough.
Other times, you may sell it in the last possible moment and realize that you saved thousands of dollars because of the move made at the right time. It’s all a matter of how experienced and how good you read the charts. See what charts are here: https://school.stockcharts.com/doku.php?id=chart_analysis:what_are_charts.
The ultimate point is to buy for one price and sell it later for a higher one. What’s most important to know here is that you can’t lose money if you decide to deal with this market. All you need to do is wait patiently. Sometimes even years, but in the end, you can be sure that you’ll profit.
Conclusion
As you can see, there’s no great philosophy. Even if you’re not experienced, all you need to do is wait for the right time before you sell your gold stack. Buy for a certain price, wait for the market to become valuable for you. Once this happens, you’re ready to make the trade. Of course, if you want to earn more, you can wait for the next round of market fluctuations.