Record Gold Prices: Is Now the Time to Buy or Sell Gold Jewelry?
Nearly $2,450 per ounce, €2,300 in Europe… The price of gold exploded its previous record in mid-April 2024, even if prices have since subsided. In recent months, the yellow metal has appreciated rapidly, and to everyone's surprise. Which of course impacts the gold jewelry market .
The right time to sell your gold jewelry?
An antique piece of jewelry can appreciate in value regardless of its precious metal content. But of course, when the price of gold rises, its intrinsic value increases. Given current levels, individuals are entitled to wonder whether it is a good idea to sell a piece of gold jewelry.
In the US, private individuals are clearly sellers. In Minnesota, jewelry stores specializing in second-hand jewelry and pawn shops are increasingly visited. It is mainly sellers who show up. With coins, gold rings and even teeth! However, there are also buyers who believe that gold will at least stabilize compared to current levels.
The same is true in China, the world's largest physical gold market. There, consumers are favoring 24-karat gold jewelry as an investment in the yellow metal. The market is also buzzing. And while the Chinese are traditionally on the buying side, there are also sellers who are showing up given the record prices reached recently.
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Why is the price of gold so high?
The unbridled rise in the price of gold has taken almost all analysts by surprise . Traditionally, gold appreciates in conjunction with a weakening dollar . The lowering of interest rates by central banks also represents a favorable environment. Because the "opportunity cost" of holding gold, which does not offer a return, decreases compared to an investment that offers a return . For example, Treasury bonds or a stock that pays a nice dividend.
However, the dollar has not fallen substantially, and rates are stable. The appreciation of gold is therefore probably due to the deterioration of the fiscal situation of the economies of the United States and European countries. The market anticipates either a recession , or more accommodative monetary policies in a few months.
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Sell or buy gold jewelry?
At this point, it would be very clever to say with certainty what will happen to the price of gold. A correction is likely, given the significant increase in the last 2 months. However, we should not see a price of gold below $2,000 per ounce anytime soon. The indebtedness of developed economies, international tensions leading to sanctions that lead to forced de-dollarization and the drop in rates should allow the yellow metal to at least hold its own. Whether you want to sell a gold jewel or buy, Miller is always at your disposal.
