The Value of Gold and Gold Appraisals All Entries
During times of economic uncertainty, gold has attracted investors as a safe haven, despite the fact that the United States is no longer on the gold standard. But the value of this precious metal has only grown exponentially higher since the early seventies. Here are the factors that affect gold appraisals for jewelry.
Why Gold Value Fluctuates
A core fundamental that determines the value of a global commodity is its price on publicly-traded markets. After years of stagnation between $1,000 and $1,400 per ounce, gold's "spot price" hit an all-time high during the pandemic in 2020 and surpassed $2,000 per ounce before pulling back.
Professional jewelers and gemologists base a gold jewelry item's value on the current gold spot price, which is why it matters when you buy or sell it. Each day the value changes in unpredictable patterns, but generally stays within a certain range. Investors like gold because of its long history of being associated with wealth and strength, as it's one of the strongest metals for electronics or industrial use.
Gold prices, like stocks, change constantly due to supply and demand, as well as financial news and other factors. These prices can be a reflection of market activity among gold mining companies. The scarcity of gold is what drives its long-term value.
As long as it's expensive to mine for gold, scarity will continue even though the metal is very abundant in the ocean. But since it costs too much to search for gold in the ocean, in terms of ROI, it's usually not a financially-sustainable venture.
Other Appraisal Factors
Another significant element affecting gold appraisals is its collection of measurements determined by gemologists using specialized tools. Appearance definitely matters, as the more shiny the precious metal is, the higher price it can command. Gold rings and necklaces that look shiny and well preserved will definitely be worth more than gold that has lost its shine.
Over three-quarters of all the gold on today's market exists as jewelry. The demand for such products has grown over time, as they represent more than just escalating market value. Many people simply like to buy gold jewelry to wear or collect, then at some point use it to trade for cash.
In that vast market of offline and online gold vendors, there's a small segment of scammers trying to sell artificial gold at higher than fair market prices. The metal's purity is a big factor in its value, which is why it's wise to have it measured by a gemologist.
If you're trying to buy or sell gold jewelry, you need to find out from the gemologist its karat weight. Carats represent gemstone weight, while karat reflects the gold proportion of a 24-part alloy. So an 18K gold ring means it has 18 parts gold out of 24 parts.
Liquidating gold can put cash in your hands when you need it, but first you need a gold appraisal from jewelry experts. Contact us at Ralph Mueller & Associates if you have further questions about gold or our appraisals.