FOR THOSE of us who dreamed of becoming rich from finding hidden treasure, it’s time to live out those fantasies. Now’s a great time to look into selling your gold for high prices. Gold prices are reaching a record high (and so is the cost of living), turning a lot of people around to the idea of considering the value that lies forgotten in their jewellery boxes.

In this article, we’ll explore the potential benefits and drawbacks of selling your unwanted gold jewellery, so you can opt on whether it’s time to cash in on your hidden treasure.

An Overview of the Current Gold Market

What Influences the Gold Market

Gold has been highly valued for centuries and is a leading commodity. It’s especially valuable in economic instability because it hedges inflation risks and currency devaluation risks.

Things that affect gold prices include:

• Supply- How much can be found easily? This also taps into the reserve rates.
• Demand- What amount of people want to buy it? Many people are trying to purchase gold right now because of economic uncertainty.
• Investor Behavior- When inflation goes up, and recessions loom, you’ll often hear people talk about buying gold because it can help curb uncertainty because gold will not lose all its value even if the economy does.

How the Gold Market Currently Looks

Gold valuations are displayed as an amount per troy ounce. The price of gold fluctuates hourly, so it’s crucial to have a good source of information that will follow along with those fluctuations to give you the most up-to-date information. This Royal Mint live gold price tracker is a trustworthy source that will show live gold prices.

As of when this article was written, gold was valued at £1,581.46 per troy ounce. When you consider that the all-time high was £1,635.28, and we’ve been steadily climbing higher to that valuation, it’s easy to see that this is the best point to sell gold for a big payday.

Understanding the Value of Gold Jewellery

When it comes to selling Jewellery it’s important to know that while pure gold is weighed and sold by the ounce, jewellery is weighed and sold by the gram. So converting ounces to grams (one ounce=31.1 grams) helps you figure out the value of your gold jewellery.

Carats

A carat is the measurement of pure gold combined with other metals. 24-carat (also written as 24kt) gold is pure gold with no additional metals. Anything below that will contain less gold and other metals. So 18kt gold is 75% gold and 25% other metals, and 14kt gold is 58% gold and 42% other metals. The closer to 24kts, the purer and more valuable the gold.

Craftsmanship

Rare and special things are always going to be valued more highly, and that’s true for gold jewellery as well. Creative, unique, highly skilled and exclusive gold items are going to have a higher price attached to them because they’re harder to find. On the other hand, stock items, including engagement rings or earring mountings, will be lower because they’re easier to find.

How the Economy Impacts Selling Gold

Selling Gold has become more popular and common lately because so many people are falling under the stresses and pressures of the economy. Of course, reasons change from person to person, but some economic factors affect gold selling and buying.

Inflation and Cost of Living

The cost of living goes up as inflation does. So things become more expensive, from rent prices and groceries to the petrol we put in our cars. This added pressure of being paid the same amount but paying much more for our essentials can lead people to search for another way to make money. With gold quickly climbing towards another all-time high price, it’s easy to see how getting rid of old unwanted jewellery can be an answer.

Economic Uncertainty

With economies fluctuating wildly and current events such as war throwing uncertainty onto the global market, many people are reverting to a more stable currency. Gold has been viewed as a sure thing for thousands of years, and especially recently. Gold doesn’t lose its value even if a country’s currency does, and it stands against inflation. These reasons lead to people buying plenty of gold during economic uncertainty.

Selling your gold during economic uncertainty is a good idea because everyone wanting to buy means demand shoots up. Prices climb as demand increases.

Practical Advice for Selling Gold

Know the Gold Rate First

Before talking to anyone about selling your gold, it’s important to know your gold’s rate and value first. Gold rates fluctuate, so check frequently. Combine this knowledge with the knowledge of your value, and you’ll have a leg up when negotiating selling prices with buyers.

Choose a trustworthy Gold Buyer

It’s imperative that you select a reputable company when you’re looking to sell your gold. Regrettably, the industry is plagued with businesses that lack professionalism and engage in questionable practices, often exploiting the seller’s unfamiliarity with the sector. Opt for a gold buyer that boasts transparent pricing and favorable reviews. For instance, consider options such as Cheshire Gold Xchange, Bullion By Post, and Hatton Garden Metals. These are just a few examples of businesses with transparent pricing that you can conveniently find with a quick Google search.

Know the Value of Your Gold

You can determine your gold’s value by knowing the caratage and weight. Let’s use a real-world example to show how to calculate. You have a 14k gold chain that has a weight of 20 grams. Since 4k is 58% pure gold, and 58% of 20 grams is 11.6 grams, you have 11.6 grams of pure gold to sell. Convert this to ounces since that’s how gold is valued, and you have 0.409 ounces of gold. At a rate of £1,581.46 per ounce, your rough value is £646.8 for your gold chain.

Although it might seem complicated, knowing the value of your gold will help you be informed when dealing with buyers.