The Amazing Value of Gold
Why 2021 is a great time to sell the gold jewelry you never wear
Gold is an investment opportunity not all that different from the stock market. Sometimes, the price of gold is up. Other times, the price goes down. On August 22, 2011, gold prices hit an all time hight of,917.90 per Troy ounce—a metric used in the weighing and measuring of precious metals. In the years following, from 2014 until early 2019 gold prices stayed significantly lower but that trend has changed. As of November 19, 2020, the price of gold was
874.59 per Troy ounce according to GoldPrice.org. With gold being on its upswing, this is the opportune time to do one thing: SELL! In this article Sal, our Southwest Florida jewelry expert at Judy’s Jewelry will explain why this is a great time to sell your gold.
Gold Price Predictions
If gold prices are rising right now, then why should you start selling? Why not wait to see how high the price goes? We know that selling now might seem counterintuitive, but remember gold is an investment. Capitalizing on any investment means knowing when you can get out ahead. You know… buy low, sell high? Whether you’re investing in gold, stocks, real estate, or even collectibles, the same rule applies—you want to sell the investment for more than you purchased it. Since 2011, gold prices have not been as high as they are right now and, statistically speaking, the price of gold won’t stay this way. In fact, according to Fitch Solutions, a company that does data, research and analytics on capital markets, the average price of gold in 2020 and 2021 is expected to keep rising and then fall significantly, dipping to
,700 per Troy ounce in 2022 and
,620 per Troy ounce by 2024. This prediction is based in part on the likelihood that mining will increase in 2023 and 2024, leading to lower prices for a significant time.
Influences on Gold Pricing
There’s certain things you just don’t see very often nowadays: people digging gold ingots up from a marked location on their land, prospectors mining gold out of a stream in the American west, or walking into a business and paying a bill with gold nuggets. What is common, however, is seeing the price of gold rise during times of financial uncertainty—such as what has gone on thus far during 2020. Whenever the value of the U.S. dollar is stressed, the price of gold rises. With the COVID-19 pandemic still wreaking havoc in many nations across the globe, the price of gold is still rising. As the pandemic wanes, and steady income becomes a regularity again for more people who are not experiencing disruptions in their employment situation, then the price of gold will sink into a more traditional price range.
In addition to the basic economic principles of supply and demand, gold prices are influenced by the following three factors:
- Inflation rates
- Interest rates
- Changes in currency value
