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The last year or so won’t be remembered fondly – the global pandemic has affected the economies of just about every country in the world, and we’re just barely starting to see the light at the end of the tunnel. However, not quite everything that’s happened economically has been terrible. Just as with any time of crisis, the value of gold is experiencing the kind of surge that hasn’t been seen in years. In fact, the value of gold reached an all-time high in August, when it hit $2,075 per ounce. Gold buyers spent $50 billion more this year than they did last year, apparently undeterred by the rising prices. For the next few months at least, gold prices should remain at fairly high levels.
What causes something like this to happen?
It’s possible to look back at how gold has been bought and sold historically. For nearly as long as gold has been considered a precious metal – which is a pretty long time – times of unrest and uncertainty have coincided with a spike in the price of gold. When people aren’t confident that their assets are safe, it’s a smart move to convert some of that wealth into something that’s easier to protect and will never lose its value. This leads to an increase in demand for gold, which leads to an increase in the price of gold.
Due to the current economic downturn, people are falling back on gold as an investment that will never go sour. It’s something that they can see and touch; it’s reassuring to know that no matter what the stock market does, the gold will always be there, and will always have considerable value. Cash is also physical, but certain catastrophes can completely erase the value. Virtual currencies like Bitcoin have been going strong for several years, but what’s that compared to the economic pedigree that gold can offer? There just isn’t the same stability with a virtual currency.
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Gold is also limited in its supply, which rules out the possibility of inflation. Even if someone discovered a gigantic untapped source of gold, there’s no way it could hit the market fast enough to cause a disastrous drop in gold prices. Sure, it might drop a bit, but nobody would be ruined because of the news. People will never stop wanting gold, and that’s what makes it valuable.
How has this played out during the pandemic?
If gold prices go up during a crisis, it shouldn’t surprise anyone that the value of gold broke records over the summer. Investors watched as increasingly strict measures were put in place to slow the spread of the virus; businesses closed, some of them for good, and the economy entered the kind of slump that could take years to recover from. Industries of all descriptions were reporting severe financial losses month after month, but gold only got stronger. It peaked in August, and didn’t start going back down significantly until November, when a successful vaccine was announced – and even then, it stayed fairly high at $1,850 per ounce. One specific circumstance that seems to go hand-in-hand with rising gold prices is lowering interest rates. The American government decided to cut its interest rates to help mitigate the effects of the pandemic, and that seemed to have an immediate positive effect on the value of gold.
How does all of this apply to me?
The pandemic hasn’t just affected businesses, it’s affected all the people who used to work in those businesses. Millions of people are out of work and having a hard time making sure the bills are paid; they’d probably be open to alternative sources of income if they could think of any, but so many jobs are off the table for the foreseeable future.
That’s where gold comes into the picture. This isn’t a last-ditch effort like selling off random household items for a few extra bucks; if you’ve got just a few pieces of gold jewelry or other items, you could sell it for enough money to give your personal finances a real boost. It doesn’t even have to be in good condition; it could be a watch that hasn’t worked in years, a single earring, or a scratched-up souvenir spoon. This wouldn’t just give you some financial relief; it could also be some much-needed proof that positive things can still happen.
In other words, this trend is good news for anyone who has gold they could sell. You don’t have to get into the world of investing, or find someone to help you navigate complex market strategies – you literally just have to find someone to buy your gold. And, as luck would have it, this is actually pretty easy thanks to online gold buyers.
Selling gold online might sound like a great opportunity to get scammed, but with a little common sense you shouldn’t have any problem at all finding a reputable buyer. Stick with bigger businesses – if you can see that they have years’ worth of positive reviews online, that’s a good indication of quality. Since a lot of these buyers will pay for shipping and give you a free quote, take your time and get estimates from a few different buyers. That way you can get an idea of the precise value of your little stash of gold, and sell for the best price.
Given the high infection rates of COVID-19, personal safety has become a high priority; if you’re taking care of the transaction online and through the mail, there’s only a miniscule chance of infection if you take the proper precautions. Now that the vaccine is on its way to full distribution, businesses should start opening back up, jobs will return, and the country’s economy will start to recover. But in the meantime, remember that high gold prices usually only stick around as long as the crisis does. If you want to take this opportunity, then now is the best time to do it.
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