The Economy and Gold Prices All Entries
The economy is a fickle beast. There are so many things that can affect it, causing it to rise and fall as time passes. It may leave you wondering what causes the prices to fluctuate and when the best time is to sell your gold jewelry. It's important to understand how the price of gold is not permanently set. Rather, it fluctuates in reaction to supply and demand, and has a prominent role in the economy's outlook.
No Straight-Forward Answers
“No one really understands gold prices.” This is what Fed Chairman Ben Bernanke told a congressional committee in 2013 after the precious metal’s prices took a mysterious dip. The sudden change had many worried, but the Chairman didn’t seem to have any comforting words for the committee or the public. Gold seems to set its own rules when it comes to its price--though there are some noticeable correlations between it and our constantly changing economy.
One of the most noticeable things about the price of gold is that the price seems to correlate with the economy. When the economy is doing well, gold prices tend to drop. When the world is approaching an economic crisis, they rise substantially. One of the main reasons for this is confidence in national currency... or, conversely, the lack of confidence.
Gold and Confidence
One reason that gold and bullion prices seem to act differently from the rest of the economy is that it's seen as a stable investment, and a good way of rounding out an investment portfolio. People tend to stockpile gold during times of instability, global crisis, and lack of confidence in centralized government. Gold is universally acknowledged to be valuable currency, and won't be devalued by inflation, or economic crashes. On the other hand, during times of economic opportunity, most people prefer to invest in stocks that will grow their savings.
Understanding Prices When Selling Gold
Although prices for gold jewelry and gems don't correlate exactly with gold bullion, there's a close relationship, and this can greatly influence the offer that you get for your gold jewelry.
At Ralph Mueller & Associates, we know how important it is that you get the best price for your gold jewelry, which is why we make it a priority to stay up to date on any changes taking place in gold prices. If you’re thinking of selling your gold or diamond jewelry, contact us or call 480.949.9299.