Prices for gold are some of the highest they’ve ever been. In fact, the average price for an ounce of gold has risen nearly 600% over the past 15 years. It’s definitely a great time to think about selling your gold. But why are prices so high right now? It comes down to a combination of factors.
- Everyone wants gold. It’s been true throughout history. As the world’s favorite precious metal, gold has been used in opulent thrones, royal crowns, prized jewelry and even priceless paintings. Gold is the quintessential treasure — and everyone from Blackbeard to Queen Elizabeth has been mesmerized by its allure.
- Supply is down. Recently, South Africa — the world’s biggest exporter of gold — has reported a substantial decrease in supply. With supply down and demand rising, prices skyrocket.
- Demand is up. Gold works as a great hedge against inflation, which the growing economies of Asia are experiencing right now. Demand for gold is through the roof in countries such as China, which in 2012 imported more gold than the entire holdings of the European Central Bank.
- It’s the economy. The gold market is tied to the strength of the dollar. When inflation pushes the dollar lower, gold increases in price. Also, in times of economic uncertainty, investors turn to precious metals as a safeguard against further turbulence.
We’ve all got some unwanted gold lying around — now’s a great time to find out how much your gold jewelry or gold coins are really worth. Come see the experts at West Seattle Coins and Bellevue Rare Coins in West Seattle, Bellevue and Lynnwood. We’ll give you a free appraisal with no pressure to sell.
-Chris McCann
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