When buying and selling gold, we would recommend that you take some time to research the current state of the gold market, and the current price of gold, so you can identify the best times to purchase or sell the precious metal.
As a commodity, the price of gold is constantly fluctuating due to simple market forces, in short, supply and demand and this is further influenced by investors that speculate based on future fluctuations on the value of gold.
The value of gold is largely down to its use as a commodity and as an asset. Gold is commonly used in a vast array of consumer and industrial goods, from electronics to jewellery and due to the lustre and hard wearing nature of gold, we place significant weight on it from a cultural perspective, with gold routinely being prized throughout the ages.
Why does the price of gold fluctuate so much?
Gold is mainly priced in US Dollars, and the value of gold often influenced by the value of the US Dollar. If the US Dollar goes up, investors mark down gold accordingly. If the US Dollar were to weaken, however, that generally drives up the price of gold as people have a tendency to invest and trade in Dollars when the Dollar is strong, and when the Dollar is weak, they are more likely to trade in gold.
International gold pricing doesn’t just change daily; it constantly changes during market trading hours meaning its price fluctuates constantly throughout the day. In more local markets, the jewellers association or gold traders usually set a fixed price for the day unless there were to be a major change in the rate of gold in the international market.
World political and economic factors play a large role in the price of gold too. The volume of gold mining, consumption of gold by countries like India and China, major currency exchange rates (like the US Dollar), wars, and many more factors on a global scale will impact the price of gold in the international market, so just like any market, the gold market can be volatile.
Sell some gold with The Manchester Gold Exchange
If you’re looking at offloading some of your gold reserves in order to make some good money before the price of gold could drop again, then why not sell it to us at The Manchester Gold Exchange?
We offer competitive rates for any of your gold items, including jewellery, bullion, coins and even ornamental items. The Manchester Gold Exchange is conveniently located in the centre of Manchester and offers free on-site parking to all our customers.