It’s the summer holidays and that means lots of days out, shopping and trips away from home – all of which adds up to a lot of cash over the course of 6 weeks! So if you were thinking about cashing in your old gold jewellery in order to get additional funds to have fun with the family this summer, it’s a good idea to have a basic understanding of gold prices which can literally change in the blink of an eye. Understanding how to make an accurate gold forecast is important if you want to capitalise on the gold index and get a little extra spending money this summer.
Photo by Fernando Hernandez (Flickr)
Equity Market
The demand for gold is remarkable and lot of people feel that it’s a much safer investment than bonds and stocks. But you need to know that there is a valid link between the price of gold and equity market turmoil. One of the most important lessons an inexperienced investor often forgets is that gold, just like any other market or commodity, is subject to supply and demand. That’s why the market, just like any other, is unstable. Being able to monitor it is crucial if you want get maximum cash for gold.
Currencies and Exchange Rates
Another major consideration when it comes to determining the value of gold is any change to the exchange rate of a currency. All of this is pretty easy to keep track of using a trustworthy gold prediction website. These types of sites are perfect for keeping you up to date on the gold forecast and any changes in the market. Typically, the stronger the currency, the lower the price of gold. This is why the gold market has previously touched some historically high levels. Previous fluctuations in the US Dollar as well as the Euro Zone Crisis have driven investors towards gold. This is why the precious metal’s value continues to rise.
Global News
Another big factor for gold forecast basics is global news. We all know that troubling domestic or global issues tend to cause an increase in the price of oil. Gold has a really similar relationship (although not quite the same) to global turmoil. There are indeed political implications that can result in the price of gold increasing. Take the US situation, for example: when Congress failed to reach an agreement on the debt ceiling in time, the cost of gold soared.
Global Demand
Furthermore, if you want have the maximum cash for your contemporary or antique jewellery, you’ll also need to understand that the global demand for gold is dependent on the strength of the economy. So much so that 80 per cent of the precious metal is used in retail trade by manufacturers of jewellery. And the demand for jewellery is rather closely related to factors such as the unemployment rate, growth in GDP and the Consumer Confidence Index. Noticing favourable data in such important areas will certainly impact the demand for gold since these things influence the demand for jewellery purchases.
Inflation
The inflation rate also has a major impact on gold prices and the value of gold. The metal is thought of as an excellent form of protection against inflation. So when the inflation rate rises, so the demand for and price of gold rises.
The interaction dynamics between all these factors eventually creates varying waves of supply and demand which will overlay the long-term upward trend. In turn this creates the infamous saw tooth pattern of the ups and downs in the gold price.
To sum it up
So as you can see, selling gold watches, antique jewellery, and other gold items can be beneficial for you if you play the cards right. By carefully studying these different interactions and making use of number crunching algorithms online, you can not only predict future gold prices with a certain degree of precision but you can also get the most cash when selling your gold before the market rapidly changes.
