5 Recent Trends in the Price of Gold

Learn how the pros predict price changes

Learn about the factors that bear on selling goldWhen was the last time you checked the spot price of gold? If you’re like most folks, you probably can’t remember. That’s because gold and other precious metals are traded by highly paid professionals who use many factors to determine prices for these important commodities. However, laypeople participate in the gold market on a daily basis. As someone who’s thinking about selling gold in the near future, you should know about five recent pricing trends.

1. Gold Is Well Below Its Historic Highs

The price of gold has recently traded well below the historic highs that it reached during the early 2010s. Since the economic uncertainty that caused it to reach these highs—just short of $1,900 per ounce on the open market—has yet to fully dissipate, this suggests that future price action could be positive. If you’re looking to sell gold in the near future, that may be good news.

2. Gold Has Been a Superior Investment Since 2000

Although it has fallen somewhat from its recent highs, gold has still outperformed other indexes since 2000, including broader stock indexes like the S&P 500 and Dow Jones Industrials. As such, many investment experts recommend owning some as part of a diversified investment portfolio.

3. Gold Tends to Increase in Value During Economic Uncertainty

The price of gold is often driven by economic indicators. In particular, it tends to rise during periods of inflation and general economic uncertainty. For example, its recent highs have been attributed to political and economic instability in the European Union.

4. Gold Will Always Have Value

As a physical commodity, gold has intrinsic value and can’t become worthless. This is in sharp contrast to individual stocks: When a company goes bankrupt or ceases its operations, its stock may become completely worthless and wipe out the funds of those who invested in it.

5. It’s Tough to Predict the Future

Although gold has historically been a solid investment, it’s tough to predict the future with any clarity. As such, it’s important to keep your investments diversified and consult with a financial expert before making decisions about what to do with your money.

Selling Gold in the Buffalo, NY, Area

Whether you’re thinking about becoming a seasoned commodities trader or simply wish to know how much you’ll get for your old jewelry or family heirlooms, it’s critical to understand how the price of gold can fluctuate on a daily basis. If you’d like to learn even more about buying and selling gold at a fair price, Premier Gold, Silver & Coins can help. Drop by our store to consult with one of our seasoned experts today, or contact us online.