Elementary, My Dear Investor: Is It Time to Pawn Your Granny's Gold?

The Golden Goose and the Geese Who Lay Them

Good heavens Watson have you seen the price of gold lately? It's enough to make one consider melting down Mrs. Hudson's silverware – not that I would of course. A detective must maintain a certain level of decorum even when faced with such glittering temptations. Apparently the common man unlike us discerning detectives is indeed succumbing to the allure of lucre. Tim Schmidt a man of some apparent acumen from Gold IRA Custodians notes an "increasing number of people" are parting ways with their old trinkets. Urgent expenses you see or the sudden realization that dear Aunt Mildred's gaudy necklace is now worth more than a small cottage in Sussex.

Fear is the Mind Killer (and Gold's Best Friend)

As Kathy Kristof aptly puts it "Gold tends to trade on fear." And fear my dear Watson is a commodity in abundant supply these days. The utterances of President Trump and the specter of a global trade war have sent the markets into a state of delightful (for the seller at least) trepidation. "If you can find a moment when people are the most fearful that's an ideal time to sell your gold," she says. A rather astute observation wouldn't you agree? Strike while the iron is hot indeed!

Elementary Calculations: The Devil's in the Karats

Before you rush off to the nearest pawnbroker remember my famous dictum: "Data! Data! Data!" Check the spot price of gold weigh your baubles and understand their purity. As Kristof wisely states "Do the math before you even go." Fools get creamed as the saying goes and we wouldn't want you to be taken for one would we? Keep in mind that 24 karat gold is pure while lower karat pieces contain other metals. A little arithmetic can save you a considerable sum.

The Waiting Game: Patience or Procrastination?

Ah the age old question: to hold or to fold? Experts are divided on whether gold has peaked. Roy Byrne believes it may have hit an "interim peak," while others see room for further gains. Ultimately the future is as murky as the Thames after a downpour. Assess your return weigh the risks and decide if holding out for a better price is "wise or foolish," as Kristof so elegantly puts it. Remember Watson "There is nothing more deceptive than an obvious fact."

The Taxman Cometh: A Golden Snare

Here's a little wrinkle that might wrinkle your brow: the taxman. You see the IRS considers gold like your Great Aunt's brooch a "collectible." This means you could be slapped with a capital gains tax rate as high as 28%. A rather unpleasant surprise for the unwary wouldn't you agree? Troy Lewis a certified public accountant sounds the alarm. Forewarned is forearmed my dear Watson.

Heirlooms or Here today gone tomorrow?

Finally a word of caution from Schmidt: Proceed "thoughtfully." Not every piece of gold should be melted down especially those with "historical or artistic value." Family heirlooms and antique jewelry may be worth more in their original form. Consult a reputable jeweler or appraiser before making any rash decisions. After all as I often say "It is a capital mistake to theorize before one has data."