3 Factors That Affect the Price of Gold When Selling Gold Jewelry
Former Federal Reserve Chairman Ben Bernanke once famously said, “Nobody really understands gold prices, and I don’t really understand them either.” Gold is notorious for its constantly-fluctuating prices, and it can be difficult to comprehend the complicated logistics of pricing gold.
With that said, there are several key factors that any Orange, CA resident can look out for to help them understand the current value of gold. Armed with this knowledge, you can maximize the value of your item when deciding it’s time to sell your gold jewelry.
1. The economy
The price of gold is tied to economic data such as interest rates, so staying up-to-date with the current state of the economy can help you form an idea of how valuable gold is at that time.
When the U.S. economy is strong, gold prices tend to drop. As borrowing increases and interest rates go up, gold becomes a less popular investment, and, as a result, its price tends to drop. Conversely, when there’s negative economic news — think rising unemployment or a decreased GDP — gold prices tend to rise.
If you’re looking for places to sell gold jewelry so you can turn it into cash, it’s best to wait until a period of poor economic data. Waiting for a quarter in which the GDP has decreased or unemployment has risen will help you get the most money possible for your fine jewelry pieces.
2. The U.S. dollar
The price of gold and the value of the U.S. dollar have had a tight relationship for almost 50 years. This is because global markets measure the value of silver and gold according to the U.S. dollar.
The stronger the U.S. dollar is, the lower the price of gold will be. When the U.S. economy is weaker and the value of the dollar goes down, the price of gold will generally increase. This is because citizens tend to hold their money in the form of gold rather than a weakened currency.
If you have gold jewelry you plan to part with, don’t visit the best place to sell gold jewelry until the U.S. dollar is experiencing a weaker exchange rate. This will allow you to maximize the value of your gold jewelry.
3. Supply and demand
Like any commodity, gold follows the basic law of supply and demand: when supply is low and demand is high, an item’s value increases. When the demand for gold jewelry increases and the supply becomes more limited, the price of gold automatically rises in response.
Almost 50 percent of the world’s gold production is used in jewelry, so the values of these two items are very closely linked. If you have gold jewelry that you want to sell, wait for a time when gold prices are higher and the demand for gold jewelry is increased to receive the best value for your items. Jewelry-gifting holidays like Christmas and Valentine’s Day are often the most opportune time to sell gold jewelry.
Whether you want to wait for the best time to sell gold jewelry or you need to sell jewelry for cash ASAP, Watch & Wares can help you get cash fast for your estate jewelry and luxury accessories. We’ve been the best place to sell gold jewelry in Orange, CA for more than 30 years, so residents know that when they visit Watch & Wares, they’re receiving a fair and competitive appraisal value that directly reflects market prices. To find out more about our gold jewelry buying and selling services or to receive a free jewelry appraisal, call us at (714) 633-2030 or fill out our online contact form today.
