Many people have heard of the "Gold Standard" when talking about the value of currency, and most people know that the U.S. dropped the gold standard in the 1970's - but even then, the inflation and deflation of the U.S. dollar is still closely tied to the value of gold. 

Why does the inflation and deflation of the dollar matter for your gold if the U.S. is no longer on the "gold standard"?  It matters quite a bit.  The Gold Standard Act was passed in 1900 and things remained relatively unchanged until World War II, when there became a strong and definite need to give different world currencies different values according to one set standard.  The standard that the currencies would be compared to was decided on to be gold. 

When the demand for gold rose after World War II, countries learned that the $35 an ounce price for gold set back in the 1900's was causing world currencies to try and play "catch up" with an outdated system.  The gold standard was abandoned and the price of gold has fluctuated (sometimes very strongly) ever since.

Back when the Gold Standard was in place, the U.S. dollar became the "reserve" currency.  Claiming to be "as good as gold", this cemented the tight relationship between gold and the dollar. 

Generally, the two work opposite each other - when inflation is high, the price of gold is low, and when the dollar is weak, the demand, and hence the price, of gold goes up.

With the current economy sliding deeper and deeper into a recession, and the value of the U.S. dollar weakening against foreign currencies, the price of gold has steadily risen year after year.  This price changes daily, but gold currently sells between $850-$930 an ounce.  For the most part, the price of gold and the value of the dollar have remained relatively stable.

With gold values at near-record highs, many people have started to take a closer look inside their jewelry boxes and sock drawers to collect all that old gold jewelry they never wear.  You might be wondering "what's my gold jewelry worth?" and might be considering selling it to a pawn shop or consignment store to get some extra cash.

But before you do - realize that these stores will take an impressive cut for themselves before giving your unwanted or broken gold jewelry over to a refinery - which means you're getting far less than the actual value of your gold.  Ideally, you'll want to cut out the middle-man and work directly with the refinery yourself.

Many websites advertising "cash for gold" act as virtual pawn shops - so it's important to do your homework when shopping for the best place to sell your gold.  One website that has a refinery directly on their premises is Cash4Gold. This allows them to pay top dollar for your gold jewelry and lets you cash in while gold prices are still high.

Don't let your old gold jewelry take up space when you can capitalize on the gold value trend like so many others are doing.  By sending your gold to Cash4Gold, you're guaranteed to be satisfied with the money you get - or you can get your jewelry back.  The whole process is easy and takes only a few minutes to complete.  You might be surprised to learn just how much your gold is actually worth in today's market!