Should We Sell Gold Now?

Economic analyst Tarek Morsi emphasized that the recurring question during every gold rally—“Is it time to sell?”—is misplaced and can even be misleading, particularly for those who purchased gold as a safeguard against the erosion of local currency value and rising inflation, rather than for speculation or short-term investment.

Morsi explained that selling gold at any high level does not signal the end of inflationary pressures or the recovery of the purchasing power of paper currency. He noted that the yellow metal often resumes its upward trajectory, since the fundamental drivers behind its demand remain unchanged and are unlikely to shift in the near term.

He posed the question: “Would it be easy to buy gold again at a lower level?” His answer: the probability of a significant decline is far weaker compared to the likelihood of the upward trend continuing, given the current global economic conditions, which lean heavily toward further increases.

He added that selling gold at this stage involves high risk and could ultimately lead to losses, even if prices retreat temporarily, as the potential gains from buying back at lower levels may not be worthwhile. He advised those holding gold as a hedge against inflation to treat it as they would their bank savings, describing gold as the safest equivalent of such reserves.

Morsi stressed that gold should only be sold in cases of absolute necessity and when there is an urgent need for liquidity. He pointed out that professional speculators never raise such a question, as they have the tools and expertise to time their buying and selling decisions precisely.