Four Things That Can Impact How Much You Get Selling Gold At A Particular Moment
The market value of gold is constantly fluctuating. The current market value of gold is probably going to influence how much you're offered when you try to sell gold jewelry.
It's a good idea to know what current gold values are and to understand what factors are influencing the price of gold at the moment so that you have a good idea of how much you're going to get for the gold that you sell.
The following are four things that can impact how much gold is selling for at any given moment:
The government holds gold to help stabilize the value of its currency and to protect against inflation. However, inflation still inevitably occurs despite the fact that it is minimized through the wealth and economic power of the government. When inflation does occur, it generally encourages gold investment and therefore raises the value of gold.
Activities of the central bank, or the Fed in the United States, can influence gold values. In particular, adjustments the government makes to interest rates impact gold values.
Increases in interest rates often encourage people to sell gold to invest in other opportunities. This makes the value of gold go down. On the other hand, a decrease in interest rates makes people want to hold on to their gold so that gold values increase.
Value of the US dollar
When you sell gold, you're being paid in US money. This means that the value of US currency at the moment could impact how much currency you are given for your gold.
Generally speaking, the US dollar and gold have an inverse relationship to one another. Whenever the US dollar goes up in value, gold tends to go down in value. Whenever the US dollar goes down in value, gold is then naturally worth more US dollars.
The strength of the economy at the moment impacts gold values. Anything that encourages investors to invest in gold raises the value of gold.
Investors often invest in gold because it is seen as a safe investment. This means that investment in gold and gold values goes up when the economy is unstable and the market is volatile. In these situations, investors want a secure investment.
On the other hand, investors are less inclined to invest in gold when the economy is strong and risky investments are more likely to pay off.