After the record increases in gold prices, investors have taken action to realize their profits. Citizens converting their gold into cash have overwhelmingly turned to car dealers. With the sharp rise in sales, some models are not found in the market.
Milli.Az reports that many citizens who see the peak levels of gold prices as an opportunity prefer to sell the gold they have been saving for years to buy real estate or vehicles. Especially recently, there has been a significant increase in demand in the second-hand car market and for new model Chinese cars.
Why are investors moving from gold to cars?
Profit realization: Investors who think gold has risen enough want to convert the money they earned into a physical asset.
The car's necessity and investment function: The car is both a daily need and seen as a means of preserving value amid inflation.
Campaigns: Discounts and favorable credit terms offered by dealers create additional incentives for those selling their gold.
According to information obtained from dealers, the number of customers coming after selling their gold has doubled in the last month. Especially, cars belonging to the middle segment and chosen for their price-performance balance are sold on the day they arrive at the dealer.
Not only new cars but also there is a serious revival in the second-hand market. Citizens immediately shop with the cash they have, accelerating turnover in the market.