28 Sep Measuring the Market via Gold Value
From Olympic medals to weddings bands, investments, and more, the world’s reliance on gold as both a formidable symbol and currency is unparalleled.
In fact, from 1990 up through the turbulence of 2020, the price of gold has consistently increased by approximately 360% according to Investopedia.
But what does that say, exactly, about the value of gold today? And how might you take that into account as we move steadily into the fiscal future?
Taking Stock Of Today
According to the World Gold Council, the current market value of gold has fallen since the height of the pandemic. Finally receding after an unprecedented high in August of 2020, gold today costs approximately $1,747.95 per ounce, or about $300 less than the cost compared to one year ago.
While some investors may crease their brows with concern at this potential instability, it’s important to acknowledge that the falling prices actually offer new opportunities for long-term investment.
After all, as mentioned previously, the cost of gold rose to meteoric levels over the last 30 years, rendering it increasingly difficult to pay and play in the arena or precious metals. However, as the prices now fall in the wake of the current bull market, new investors and gold buyers have the opportunity to enter the gold market.
After all, whenever the economy inevitably returns to a bear market in the future — or a market that is characterized by economic instability — the cost of gold will once more inflate providing financial security for those investors.
Forecasting Gold’s Future
Speaking of the current market, this bullish period is projected to continue for at least several years, meaning the price of gold will continue to deflate.
“Gold is expected to trade at 1732.59 USD/t oz. by the end of this quarter,” according to Trading Economics. “Looking forward, we estimate it to trade at 1668.90 in 12 months time.”
Again, for those looking to increase their gold investments or purchase their own for the first time, this means the coming year presents the ideal window of time to take action.
And for those wondering why, exactly, the cost of gold has plummeted within the last four to six weeks especially, analysts point to the strengthening U.S. jobs reports as well as a recent “rush to buy the dollar.”
“Gold prices and the greenback have an inverse relationship,” CNBC explained Aug. 11, 2021, just one full year following the historic height of gold’s price point. “As the dollar gets stronger against other currencies, gold prices will fall as it becomes more expensive in other currencies, driving down demand.”
When Your Options Are Golden
At the end of the day, whether you’re itching to buy gold for your investment portfolio or sell your own for an immediate boost of personal funds, the bottom line is that gold will forever remain a versatile commodity and currency in today’s market.
What’s more? You can always count on the reliability of your locally-owned and operated jewelers, such as with Hemming Jewelers come time to meddle with this metal.
Serving Northeast Florida as Jacksonville’s #1 independent jeweler, our team specializes in a variety of services, including gold-related transactions, jewelry appraisals, repairs, and more.
To learn more or to begin browsing our collection, contact Hemming Jewelers today by calling