Good Time To Sell Gold Jewellery Or Will Prices Rise? Here's What Experts Advice

Gold prices have surged to an all-time high, reaching $3,450 per ounce in the international market and Rs 98,713 per 10 grams in the domestic market.

Stagflation fears in the US are extending the US dollar's downtrend that has also in turn supported the yellow metal's stellar rally. This is driven by several global developments, like escalating tariff tensions under Donald Trump fuelling inflation. Global cues, along with the performance of the domestic equity markets, have shifted investor focus on to safe-haven buying of the yellow metal, pushing appeal and prices higher.

Further, central banks' strong demand and inflows from gold-backed ETFs are expected to persist throughout the year. With gold prices at all-time highs, many take this opportunity to liquidate some of their gold holdings.

Clarifying that liquidations of old jewellery or other forms of gold do not account for one's gold allocation, planners say that the rising price of gold with no signs of a slowdown does guarantee some gains.

"Due to the difference in value, jewellery will have a difference in purity and loss of making charges. The full value will never be gained by the investor so my suggestion is if your allocation has changed, you can consider liquidating and bringing the allocation back to 10%," said Harshvardhan Roongta, chief financial planner at Roongta Securities.

Weighing in on the gains that can be made now, Santosh Joeseph, founder of Germinate Investment Services, said that gold's gains over the recent years have been noteworthy.

"Even if one sold their jewellery one year ago, they would have made gains. Prices are higher now so if your are looking to sell, profit is still on the higher end," he said. Selling will crystallise your gains or losses, said Joseph, because when one sells jewellery, there is a loss of making charges and similar charges.

This is a one-time cost that will incur any which way, he said. Echoing the view, Kaynat Chainwala, assistant vice president of commodity research at Kotak Securities, also notes that profit booking is happening.

"It's wiser to book profits, as waiting for a new peak will expose one to more volatility. The outlook still remains bullish; there is no change, as things are still uncertain," she said.