What affects gold prices?
Gold has always been seen as a valuable asset in society, even before it became money in the form of coins, but what causes its worth to fluctuate?
The London Bullion Market Association’s (LBMA) ‘Gold Fix’ is what establishes the price of gold in the UK and this is based on a whole host of influencing factors such as trading behaviours. The main reasons for changes in the gold price includes the supply and demand of gold as well as political and economic circumstances. You should also bear in mind that the weight and purity of the gold being sold will also affect the price. Let’s discuss this in more detail…
Gold supply
Gold is retrieved through the process of mining and the amount of gold which is being mined at the time can affect the price of gold. For example, if any new laws preventing gold extraction are introduced or if a mine ceases to operate due to there being an insufficient amount of gold left (and therefore not worth the costs of extracting), gold prices could increase as there is less available.On the other hand, if new locations to extract gold are discovered or if there are improvements to gold mining processes (meaning more is retrieved quicker), the price of gold could go down.
Demand for gold
The demand for gold is always changing as a result of various social or financial factors. If the demand for gold rises and the supply cannot meet these needs, the price will also rise. If on the other hand the demand is less than the supply, the price of gold will fall. The LBMA changes gold prices twice daily in response to levels of trading through an online auction system.
Economic and political circumstances
When the economy is stable, gold prices are usually lower as there are more investments in stocks, whereas a high gold price indicates that the economy is not in a healthy state (i.e. it could be suffering an economic crisis or seeing a rise in inflation). As political changes can also impact the economy (such as Brexit), the price of gold can fluctuate as a result.
Weight and purity of the gold
When it comes to selling gold, the weight and purity of your gold will affect the price offered to you. Gold valuers will assess the gold by establishing its grade and weighing it to determine its total value. Here at Postgoldforcash.com, our trusted gold valuers have years of experience and price our customers’ scrap gold items fairly.
If you are selling to scrap gold buyers such as ourselves, you don’t need to worry about the condition of the gold items as they will eventually be melted down.
When is the best time to sell scrap gold?
If you have scrap gold to sell, you may be wondering when the right time to sell your precious metals will be. The best thing you can do is to keep an eye on the gold fixing price and aim to sell your gold items when it is high. Here at Postgoldforcash.com, you can send us your scrap gold safely for free and we’ll value it for you, giving you an offer which you can choose to decline if you are not happy with the price. That said, we pride ourselves on our competitive pricing and offer an online price match promise** so you can rest assured that you’re getting a fair price for your gold.
Is gold the same price everywhere?
Whilst the price of gold can be the same globally (as many gold markets use live U.S. gold prices), the price of gold can vary when there are changes in currency values as this can make gold more or less valuable for investors.
How to sell gold for the best price
It’s always worth doing some research to decide where the best place to sell your gold is. Whilst you have many options when it comes to selling gold, Postgoldforcash.com guarantees to give you the best price for your scrap gold online with our price match promise**. Why not take a look at some of our recent reviews from previous happy customers?
Looking to sell gold?
If you’re looking to sell gold to trusted gold buyers, why not order your free gold selling pack online today? Our gold selling process is simple, all you need to do is:
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Order your free gold selling pack
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Return the pack back to us via the post office with your scrap gold and completed gold selling form which provides us with details about your gold items - don’t worry, you won’t have to pay for postage!
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We’ll send you an offer and you can choose to accept or decline it
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If you accept our offer, we’ll send you the cash for gold within 24 hours* and if you decline, we’ll send you your scrap gold back to you free of charge.
If you have any questions about selling gold, please feel free to contact our friendly team who will be more than happy to help!