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The Beauty and Value of Gold During Market Disruptions

The Beauty and Value of Gold During Market Disruptions

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The Beauty and Value of Gold During Market Disruptions

While the pandemic has led to economic uncertainty, the price of gold hit an all time high in the summer of 2020. Gold has traditionally been the commodity that investors turn to when stocks and other investments decline or become too volatile.

As jewelry, the most adored shiny metal for several centuries still captivates the masses. Here are reasons why swapping cash for gold, especially during these times, can bring you beauty and value.  

Everlasting Beauty of Gold

Gold has been a supremely positive symbol since ancient times due to its scarcity and stunning beauty. Bright colors are often associated with happiness and energy. Many people still view it as the ultimate symbol of wealth, power, and success. Part of the appeal of this precious and prestigious metal is how its illuminated shine instantly captures attention.

When it comes to engagement rings, it's widely symbolic of long-lasting love and compassion. A gold ring can be paired nicely with a diamond or other attractive gemstones. 

How Scarce Is Gold?

In the late 19th century, South Africa was the leading producer of gold. Now China is the world's top producer, followed by Australia, Russia, the United States, and Canada. But as time goes on, explorers must keep digging deeper to find more gold, driving the price higher. That's great news for gold investors.

Gold is actually very abundant in bodies of water and in mines, but it's scattered and difficult to extract, which makes it rare to humans. It also has utility, since it's a superior conductor for electricity and used in industries such as medicine, dentistry, and aerospace. But it's much more widely sought as jewelry. In fact, nearly 80 percent of all gold purchased today is in the form of jewelry.

Why Gold Provides Relief During Market Disruptions

One of the reasons people flock to gold in times of trouble is because it's a hard, durable metal with a long history associated with holding or gaining value. It's been used as coinage because it doesn't corrode. For most of U.S. history, the dollar was backed by gold until 1971, when it was $35 per ounce.

Since then, gold prices have skyrocketed and have often risen as a safe haven investment when broader markets collapse. In 2020, the spot price of gold moved over $2,000 per ounce for the first time. If you want an accurate valuation of gold when buying jewelry, make sure it's done by a certified Gemological Institute of America (GIA) member. You'll get the fairest market price from experts.

Keep in mind gold prices can decline when the overall market recovers. So there's risk involved, as there is with any investment. But the outlook over the next decade appears to be more scarcity. For jewelry admirers of its brilliant shine, it can be thought of as priceless, especially if it's a gift from someone special.


Looking for fair deals on buying gold in the Phoenix area or beyond? Contact us at Ralph Mueller & Associates to learn more about trading your cash for gold as an investment, gift, or for your own collection. We have served gold enthusiasts with jewelry expertise for over three decades as members of the GIA Alumni Association.