Silver Jewelry

The web is packed with advertisements urging you to sell your old jewelry, pick up a newspaper or magazine and you will see more of the same and turn on the TV or radio and you’ll get even more – all saying the same thing – sell your gold jewelry now!
But is it truly the right time to sell you old jewelry pieces and if so, why?

To answer the question, we have to look at what determines the price of gold, and any other precious metals such as platinum and silver. The price is determined by what buyers are prepared to pay and if there are more buyers than sellers, in other words if there is high demand, then the price will rise and conversely, if there are more sellers than buyers, then the price will drop. Gold is also a very liquid asset and by that it is meant that it is easily converted to cash.

Now we are all only too aware of the effect of the current economic recession – the Great Recession, as some pundits are starting to call it. Stock markets have dropped, banks have failed and many more would have gone under except for the huge multi-billion dollar bailouts, courtesy of you the taxpayer. Because of the bad economic conditions, investors have looked to assets which provide a “hedge” against bad investment returns and to secure their assets. Gold is the traditional asset they move to when times are hard and they have not been as hard as the current situation for living memory for the vast majority of us.

Investors are looking to buy gold and demand has risen very dramatically as there has not been enough available on the market. In turn, the price which refiners and dealers are prepared to pay has risen to reflect this demand and this is why it is the time to sell your old jewelry – you will be selling at the high point of the gold market and the price has never been this high before!

The best deals are to be gotten from refiners; these are the firms which actually melt down your old jewelry and create new bullion for sale to investors and to be turned back into new jewelry or other products. By dealing direct with a refinery, you are cutting out the middleman who will be seeking to take a cut from the transaction as they will sell your pieces on. You can simply find out what the current price of gold is by asking the refiner what their spot price is, in many instances it will be displayed on their web site. If a firm is hesitant about disclosing the price they are quoting you should avoid doing business with them because this is standard practice amongst reputable companies.

The gold-selling process has also become very streamlined and efficient as more and more people take advantage of high gold prices to raise some extra cash to pay off credit cards and expensive debts, or simply to supplement a tight budget. You should look for a firm which will pay for an insured courier to collect your pieces and has a very strict procedure for evaluating them and providing you with a price. The web is packed with advertisements urging you to sell your old jewelry, pick up a newspaper or magazine and you will see more of the same and turn on the TV or radio and you’ll get even more – all saying the same thing – sell your gold jewelry now! The price is determined by what buyers are prepared to pay and if there are more buyers than sellers, in other words if there is high demand, then the price will rise and conversely, if there are more sellers than buyers, then the price will drop. In turn, the price which refiners and dealers are prepared to pay has risen to reflect this demand and this is why it is the time to sell your old jewelry – you will be selling at the high point of the gold market and the price has never been this high before!

You can simply find out what the current price of gold is by asking the refiner what their spot price is, in many instances it will be displayed on their web site. The gold-selling process has also become very streamlined and efficient as more and more people take advantage of high gold prices to raise some extra cash to pay off credit cards and expensive debts, or simply to supplement a tight budget.