We all spend a lot of time reading charts, and news updates when thinking of investing, and this holds true when we decide to buy gold. One thing that any experienced trader will tell you is it is just as important to know when to sell. JP Morgan once said he made his fortune by selling to soon. Now that Gold is easing back down to the $1100 mark, when is the right time to sell gold?
Societe Generale’s Dylan Grice has attempted to answer that question on Tuesday, and his conclusion was: not now.
“The reason I own gold is because I’m worried about the long-term solvency of developed market governments.”
According to Dylan the time to sell gold is when heavily indebted governments start to face up to their problems, and take true measures to repair their struggling economies.
“The political winds in countries with central banks are a long way from blowing in the direction of fiscal rectitude. And while it’s true that more people are at least talking about it, talk is very cheap and no one is yet close to walking the walk. Such steps remain politically unpopular because we haven’t had our crisis yet.”
According to Dylan now is the time to be thinking of buying gold not selling gold.
“Eventually, there will be a crisis of such magnitude that the political winds change direction, and become blustering gales forcing us onto the course of fiscal sustainability, and that is when we should start thinking of selling gold”.
John Halloran
Senior Gold Specialist - Buy-Gold.org
