The Current Gold Price, and a Look to the Future(s)
Last time on the Stewart Kuper Jewelers blog we talked about why selling gold jewelry made sense (and cents). We wanted to touch on that once again by looking at the current gold price, the trends the market is predicting for the future, and what that might mean for you!
What Affects the Price of Gold?
This isn’t a college economics course so we’re not going to dive into it too deeply, but for a basic understanding here’s what affects the price of gold.
Like most things, supply and demand are the big drivers of gold prices, but investor behavior is equally powerful. Studies by the National Bureau of Economic Research show that gold prices have a positive price elasticity (this means that value increases with demand). The other key thing is that since gold doesn’t get consumed or used up when it’s bought, it’s always around and the supply doesn’t fluctuate much from year to year. Because of all this gold is often turned to when the economy worsens.
There is a ton more to know about what goes into making the price of gold what it is, and if you’re interested you can find out more elsewhere.
So, if those are the basics of what affects the price of gold, what are we looking at today?
The Now – the Current Gold Price
As of this writing, (late July) the current price of gold is ~$1800 ($1829 to be precise) per ounce. This is down a bit from the high point of 2021 thus far, on January 5th it was $1,953 per ounce, but it’s an uptick from where it has been for a bit. Right now gold is doing well.
The Future – The Potential Gold Price
Before we look to the future, let’s quickly look at recent history. The last 18 months have been an interesting time for gold prices. In 2020, gold averaged $1,775 per ounce, increasing from $1,479 to $1,858 by the end. Thanks to the drastic shifts in the economy and the ongoing pandemic, gold prices have surged, at times of economic insecurity gold prices fluctuate drastically. With that in mind, what does it look like in the future?
The global economy still hasn’t fully recovered, so chances are the price for gold will remain high for a time as people look for stability. Experts are predicting that following this uptick, the gold price is expected to drop, potentially to $1,400 by 2030. It’s not a certainty of course. These markets are dynamic, and no one could have predicted the last year, but the experts are looking at other key indicators and signs and that’s what they’re expecting.
What that Means For YOU
So what does that mean for you exactly? You’re not in the business of buying and selling gold. You just happen to have some extra, unloved gold jewelry and you want a good price.
For you, this means you want to sell sooner rather than later. While there’s a potential for gold to rise or spike randomly (not really randomly of course) the odds are on it continuing to decrease in value over the coming years. So strike while the iron is hot!
Ready to sell your gold? Work with a local jewelers who will give you the best price out there on your gold jewelry – work with Stewart Kuper Jewelers! Our gold buying pricing is very fair, we do not play games. We evaluate your gold pieces and pay up to 80% of the spot gold market that day.