Gold is good and for the longest time in history gold served as currency, something you can give and get something for it- the best thing about gold is that it, it is a gift that keeps on giving. The gold jewellery that you have stashed aware some place may turn out to be the very thing that may help left you get out of a financial hole.
Gold was used as currency before dollars, yens, euro and even pesos were conceived. For years, the yellow precious metals was a global default currency. It is said that gold coins were first minted in 550 B.C.E. However, countries began creating their own currencies to distinguish themselves but even then this paper currency was backed by the “gold standard” until the 20th Century.
Modern-day investors still regard gold as the ultimate safe haven asset, a tangible commodity that retains its value above that of fiat currencies or stocks. It does well in times of economic turmoil and political uncertainty which is why there always seem to be a proliferation of gold buyers urging you to sell gold jewellery anyway, they can – in newspapers, television, online, on radio and with blinking neon signs whenever there are fears and uncertainties about the future. You can be sure that when the demand for gold by gold dealers increases then the price of gold goes up.
This explains why the gold price skyrocketed in the first ten years of the 21st Century. The year 2000 brought the dot-com bubble and gold traded $272.65. 2001 brought along a recession and the September 11 attacks on America brought a new reality that saw stocks plummet and investors scurrying to buy more gold to safe-guard their wealth. Gold skyrocketed to $1,917, a high that had never been before or since.
So the question on everybody’s mind is : “should I sell gold jewellery now or should I wait?” Things could get worse before they get better and the price of gold will keep going up. No one can predict the future with certainty. It is all speculation at the moment. If you had gold to sell back in August 2011, would you have sold or held on for the precious metal to reach $2,000 as everyone was predicting? If you had waited and held on to the hope of a big payday, then you would have missed the boat because instead of climbing higher, the price plummeted.
Unlike paper currencies, gold is not affected by inflation, it holds its value for a long time. The price of gold is not impacted by just one thing, it is also affected by economic conditions, political conditions, investor sentiment and the behaviour of other commodities on the market.
Let’s look at what occurred between February and March of this years. Whilst fears about the spread of the coronavirus and the effects of government response to it, investors turned to gold as everyone expected. By March 4, the gold price had gone up to $1,700 and everyone expected the supply and demand factor to drive the price even higher. Predictions of the price hitting $2,000 became less fanciful but more likely instead something unexpected happened, the decade-long bull market that has been pushing gold prices turned into a bear market leading to the Dow Jones Industrial market to fall more than 20% in just a couple of days. Investors seeing huge losses in their stocks had to resort to margin calls to cover the positions they had leveraged and to do this they needed cash and the fastest way to get cash was by selling their gold – not just bullion but precious gold jewellery that is easier and quicker to liquidate.
Jewellery and gold coins are the easiest gold products one can buy. They are tangible assets that happen to be easy to sell for quick cash. The price of jewellery will fluctuate with the ever- changing price of gold. When you sell gold jewellery, there are other factors that can improve the amount of money you get for it like how old your jewellery is, if it was designed by a famous jewellery designer, if it is fashionable or once belonged to someone famous. The point is: know your jewellery, know what it’s worth, find the best buyer who will give you more than a fair price.