Gold prices have skyrocketed in recent years and experts are speculating that it is only going to continue to grow. As the economy, both in the U.S. and globally, continues to suffer gold continues to rise. Governments looking to rejuvenate the economy are introducing stimulus programs which in turn devalue currency and lead to inflation. Investors see gold as a safe-haven against inflation so as more stimulus measures are taken, gold is predicted to continue rising.
What does this mean for the non-gold investor’s trip to the jewelry store? Gold jewelry prices are not likely to climb at any extreme rate. When you buy retail you’re paying for design and manufacture as well as gold, which means gold price has a smaller effect on the value of the jewelry. When gold prices are high, gold jewelry designers will use less gold in a piece in order to keep prices affordable. This means that while prices won’t skyrocket, your piece may be smaller in weight.
It is tempting for many people to sell gold while the price is so high, however, this may not necessarily be the right time. Gold prices are high and you will get a good price, but keep in mind gold is expected to continue to rise and the value of your gold is likely to go up even more.
If you’re short on cash, it may be a better time to use your gold, especially if it has sentimental value to you, as collateral and take out a pawn loan. You can take advantage of the value of your gold to get the cash you need, and with the gold price so high your loan amount is likely to go up. More importantly you get to keep your gold and let it continue to gain value over time.