With Prices Increasing Should We Sell Gold Jewelry?
Selling Gold Jewelry
In my neighborhood little gold buying shops are opening up everywhere, even in grocery stores. People (mostly women) are taking in their gold jewelry to have it appraised to see if they want to sell it. If you are considering selling your gold jewelry, be aware that you won't get anything close to the market value of the gold.
The Value of Gold
What has been happening to the value of gold?
- In 2006 an ounce of gold cost $479
- In 2008 an ounce of gold cost $900
- At the end of September in 2010 an ounce of gold cost $1300
- In March of 2011 an ounce of gold cost $1437
Selling Gold Jewelry
For the past 20 years gold has not appreciated in value. Few people were interested in owning gold. The most recent financial crisis shook investors to recognize that our money might become worthless. Historically, gold has been around as a commodity whenever dollars or currency can no longer be used as a medium of exchange.
Fears of the long term strength of the dollar are fueling increases in the price of gold. According to Dan Parsons, president of the Houston branch of the Better Business Bureau, in a statement in March, 2011, consumer interest in gold fluctuates with the price of metals and has been moving up for the past two years. So, now is a good time to sell gold jewelry.
The strength of gold is boosted by the weakening of the dollar. “The biggest single factor that drives gold and silver is monetary inflation.” How to Prosper During the Coming Bad Years in the 21st Century by Howard J. Ruff p. 145. With high inflation, stocks and bonds go down, and hard assets go up. Gold is a hard asset since it has intrinsic value.
Who is Buying Gold?
“China is among the countries buying a lot of gold.” Ronnie Crocker, Houston Chronicle, pg. D2, 3/27/2011. If the dollar collapses, China has a lot to lose since their financial health is tied to the U.S. because of all of the loans they have given us.
Investing in Gold
Gold is considered a good inflation hedge. Rather than sell your gold, maybe you want to be thinking about investing in gold. If investors think our money is going to collapse, we all might want to just hang onto our gold or invest in more of it.
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