The gold and silver markets remain bearish, as prices tumble to their lowest points in several years. As of Sept.18, silver was close to a four-year low. Gold was in a similar position, falling a percentage point to an eight-month low.
The most likely explanation for the downturn is the strong U.S. dollar, which has climbed higher than experts predicted. Many investors hedge precious metals against the strength of the dollar. A lack of confidence in sovereign currencies (backed only by legal tender laws) make precious metals a more attractive investment.
Investors may also be concerned that the Fed will raise interest rates. Since gold is non asset-yielding and costs money to hold, it is considered a poorer investment when interest rates are high.
For those who think the economy will take another downward turn, this may be the time to buy gold and silver. But prices may continue lower still, offering the opportunity for larger profits in the future.
Be sure to educate yourself on how to buy gold and silver before jumping into the market, as terminology may be slightly different from what a layperson might expect. Gold, for example, is measured in troy ounces (31.1 grams) instead of Imperial ounces (28.3 grams), an important thing to know if you’re navigating small shops or large exchanges.
Jewelry Sales and Trade-Ins Still Strong Option
Casual sellers looking to offload old, broken jewelry or gold coin collections may still find the market suitable for those purposes, however. Many places that buy gold give the seller up to 70% of the gold’s market value, which may be a sufficient profit in exchange for items that have become essentially useless.
If you’re not sure of where to sell gold jewelry, check with the Better Business Bureau or similar organizations. Also ask that the buyer appraise it in front of you to ensure that you’re being treated fairly.