Gold VS Money
Gold has been known to be one of the best commodities in the past, as well as in recent months. In the wake of the 2008 crisis, greater demand and gold prices led to the discovery of new mines that in the last 10 years resulted in increased global productions. Over the past year, gold prices have risen about 16% to over $1,420 per ounce in July 2019, while the rise has been close to 20% since its latest low in September 2018. Despite the adverse effects of the US-China trade war, the rise in the cost of gold is driven by enhanced purchases from significant central banks and higher retail involvement in the face of increasing financial uncertainty.
Jewelry, medical/industrial applications and investment are the three main sources that drive the demand for Gold. Data and analytics have shown that in the last 8-10 years gold prices have fluctuated mainly along with the metal demand. While jewelry still ranks for the main contributor to gold demand, its shares has decreased to less than 50% from over 80% at the beginning of the century. In the same period, since the advent of the worldwide economic crisis, investment demand for gold (as a hedge) has gradually risen and rose in gold prices.
On a global scale, gold is acknowledged as a precious metal, and this global recognition means it can be easily exchanged between cultures and countries. It is highly unlikely to find a country that wont accept gold. This is one major reason why large organizations such as central banks retain gold reserves. Investors view gold as a hedge between economic instability and inflation. For example, if currency loses value, the relative value of gold will skyrocket, as demonstrated in that currency, allowing gold investors to profit. Some factors that can cause this to happen are natural disasters, political turmoil, etc.
In other words, gold can be looked as some type of insurance. It has been a way to store assets and safeguard cash for thousands of years, but it can be quite unpredictable as well.There are three common ways to invest in gold: Gold exchange-traded funds (ETFs), mining stocks and physical gold (e.g., gold bars, gold coins).
The price of gold fluctuates, one day it can go up and another day it could go down. There is no way to get an exact day or time as to when you should sell your gold. Usually, the best time is during a financial emergency, paying a debt, unexpected expenses or when you just want to take very well earned vacation. Either way you have no control over the price of gold, it is not always suggested to hold on to your gold waiting for the price to go up. Its best to sell when you need the cash.
If you decide to sell your gold make sure you have a good understanding as to what you have. You should know the karat value of your gold item, sometimes there is hallmark on the item that will give you that information. Most importantly avoid going to pawnshops and online selling apps. There are many gold buying stores as well but not all of them will give you the honest price that you deserve. One of the best reliable and trust gold buyers company is Global Jeweler. It’s a reputable gold buying business with years of experience. They have high ratings, great customer reviews and extensive knowledge in this field. They are known to be honest and give the best prices, as well as the fact that they always pay upfront. Definitely, check them out if you are looking to cash out on your valuables.