Are you considering gold buying for the first time? If so, you might have noticed the price fluctuating every now and then. Gold is highly valued and is a worldwide symbol of wealth, which is why many central banks still hold it as a reserve. How much gold is worth, however, can vary at any given time.
Here are a couple of factors that can influence gold buying prices:
Supply & Demand: The price of gold is impacted by production costs and the demand. The World Gold Council estimates the total above-ground gold stocks to date are 187,200 tons. The supply grows approximately 2,500 to 3,000 tons each year while the demand is currently at 953.4 tons and rising. If there isn’t enough gold to satisfy the demand, prices will rise.
Jewelry Industry: Gold is a crucial element in the jewelry industry, which accounts for 47.6% of the total above-ground stocks of this precious commodity. Countries like India are key drivers of jewelry growth, with the biggest demand at 26%, followed by China and the U.S. The more gold used specifically to make jewelry, the higher its value becomes.
Currency Devaluation: The devaluation of currency has an immense effect on gold prices. It has two main causes: cost push and demand pull. The first occurs when the dollar loses its value, causing gold and other commodities to increase in price. Demand-pull inflation happens when manufacturers reach their maximum production limit. The theory is, when demand pull happens, banks and governments will stockpile gold to combat inflation, which will cause gold prices to increase.
If you want to consult an expert in gold buying, head down to your local American Coins & Gold retailer. This shop can turn your unused or unwanted gold, estate jewelry, rare coins, and more into fast cash. Visit their website today or call these numbers for more information: (908) 575-9400 for Bridgewater, NJ; (201) 628-4800 for Wayne, NJ; and (516) 742-0900 for Carle Place, NY.