Gold: What History Tells Us About Selling Gold

The price of gold has been hovering around the $1,300 for a stretch of time. The question that many have been asking is whether they should be selling their gold now. The simple answer is that sell gold if you need to. No one can really predict where the markets will go, no guru can predict with 100% certainty when gold will be at its highest or how low it will go.

Let’s look at the history of the price of gold

The average price of gold from 1833 to 1971 ranged between $20 and $40 for a Troy ounce. So if you bought ten ounces of gold at $35 in 1970 your gold would be worth $10,000.00. The price of gold began to climb between 1972 and 1978 and it ranged between $58.00 and $193.00. Things took a turn in 1979 -1980 went incredibly high when Nixon removed the gold standard. It hit $850 in January 1980. In the mid-1981, the price of gold cools and it averaged $460 – $278 until 2005.

Around September 2005, the price began to steadily increase. This was fuelled by political movements and world economics. Then the 2008 hit and the price of gold went through the roof. It hit the $1,000 mark and has not dropped below that mark. The world economy and unstable political movements have put a strain on the markets but they were good for gold.

Suddenly there was cash for gold businesses sprouting everywhere. So most people began to wonder what their gold would be worth at the current prices. If you have an ounce of Gold and the price of gold is $1,200 you won’t get $1,200. In fact, you’ll get far less than that. If you want to sell gold Brisbane there are a few things that affect the price of your gold: the weight, the purity and the resellability of the gold item.

How do you make money from selling gold

Gold that gold buyers buy is regarded as scrap gold. However, unique gold items that carry good brand names like Cartier and Tiffany may bring a good premium if they are sold to a jeweler or a gold dealer who buys gold to resell. Most of the gold dealers you will find to sell gold Brisbane to buy gold items for the gold content. You will not be paid for sentimental value.

It is important to note that there are no regulations on the buyer’s profit margin. This means gold buyers can pay whatever you accept. If you go to a high-end gold dealer with a ritzy office and flashy ads, then you have to wonder how they pay for all of it. They obviously make a lot of profit. A fair business should make an average of 5% on gold items like jewelry and about 30-40 percent on certain gold bullion items. Gold buyers also need to recoup refining costs, their overheads and pay their employees with the profit from the gold you sell to them. They make more by buying what you sell for a low price and selling to a refiner for a higher price. You need to be smart about selling your gold. Do as much research as you need to, ask around, make sure you have all the information you need to make an informed decision.