The current price
The price of gold is skyrocketing like never before. As of August 6th, gold has been climbing up to historic prices. Now reaching an all-time high of $2060 per ounce, gold has been on an upward climb for several weeks now. With nearly a 40% increase in value in 2020 alone, it’s been an incredible year for the gold market. This climb in price isn’t a complete shock as some experts were expecting a good year for gold, but no one could have seen this level of growth.
Our experts here at Chrysella believe there a few potential variables that are playing a part in this rapid growth. Factors like the current economic uncertainty, the change in federal government interest rates, and fear of potential inflation have all played a part in golds record high prices were seeing today.
Current Economic Conditions: The global economy has been hit with unprecedented difficulties during the 2020 COVID-19 outbreak.The United States just weathered the worst quarterly drop in GDP since the Great Depression with a drop of 32.9%, and unemployment rates have been on the rise as well. COVID-19 has taken many people out of the work force and slowed down consumer shopping significantly, and the economy has suffered because of it.
Federal Government Interest Rates: In an attempt to hold off an economic recession at the start of the COVID-19 outbreak, the federal government’s interest rates dropped down to historic lows. Dropping about 1.5 percentage points to 0%. Doing this allows banks to borrow significant amounts of money from the government with essentially no risk, allowing the banks to cut some costs for their consumers on things like mortgages and car loans. While this move can help protect the American people and cause economic growth, and it can also lead to excessive growth and inflation.
Inflation: There was unprecedented government assistance offered to the American people earlier this year with the likes of the stimulus checks and the increase to unemployment benefits. These programs required a massive increase in printing of money into circulation, and this made investors uneasy. They saw this and the dropping of the interest rate as potentially increasing inflation and lowering the value of the dollar.
Prices in the past
The price of gold today is a little over 10x the price it was in 1975. Overall it has steadily risen over the decades, with occasional dips throughout the years. But this slow up and down has all been leading up to the record breaking highs we are seeing today. We collected this data from Macrotrends.net of the gold price over the last 45 years to give you a frame of reference of the price of gold over the years (Data as of August 6th)
In comparison to the slow growth in the price of gold over the past decades, 2020 has clearly been an exceptional year. Golds growth seems like it wont be slowing down anytime soon.
The last peak comparable to this current one was on September 8th, 2011 when the price of gold reached $1854 per ounce. This peak was the highest price gold had reached in the 2010s and held the record for the highest peak until recently. Many of the same economic conditions were experiencing today caused the 2011 peak. Recovering from a global recession, paranoia was running high among investors. Many rushed to invest into the gold market, and the price saw an explosion.
Why it’s a great time to sell
If you’ve been waiting for an ideal moment to sell any of your used or unwanted gold, now is a great time to make that leap. Jewelers’ offers on purchasing your gold is largely defined by the market value of gold at that given moment, and with these record breaking numbers you’re likely to get a higher value for your gold than ever before.
Now is the time to conduct some research and find the best location in your area for you to sell your gold. Find a professional to appraise your jewelry. Finding an expert in precious metals and jewelry is necessary when in the process of selling your gold. Look into local and family owned jewelry stores in your area. These smaller stores are able to give you a quality of experience that simply can not be matched by major chains, and they will likely do whatever they can to work with you to get you the deal you’re hoping for.
Chrysella is one of the Northern Virginia’s largest buyers of Diamonds and Jewelry. We take the time to guide you through the selling process as we understand many of our customers may be new to the process of selling their valuables. We make sure to explain to you exactly what you have and appraise it alongside you. If we cannot purchase your items, we will give you our expert advice on the best way to sell your items. Visit Chrysella.com or contact us to schedule an appointment today and make the most of these historic prices.