Historically, an investment in gold has generally paid off during times of crisis here in the U.S. and around the world. During this year’s global pandemic, that history has continued, with the price of gold reaching over $2,000 an ounce for the first time ever earlier this year. As markets fluctuated around the world and businesses and governments shut down, the price of gold was one thing that stayed on track.
The global funds that track gold trading showed a record increase of $50 billion this year, according to the World Gold Council. In addition, in the U.S. the American Eagle, one of the country’s top selling gold coins, saw a 400% increase in sales in 2020 over last year.
Why Does Gold Pay Off During Times of Uncertainty and Upheaval?
One of the biggest reasons why gold has throughout history been a good investment when times are tough is that gold is a “real” commodity that you can touch, buy, store and sell. From gold bars to gold coins and jewelry to luxury home goods, gold offers people a tangible investment – rather than a crypto coin that you can’t see or feel – or even stocks, bonds or cash whose value is impacted by many different factors outside of our control.
The generally held idea around the world that gold, which has been thought of as a luxury item for decades, also has a finite amount available that doesn’t fluctuate too much in the short term, makes it a safe purchase for many. Compared to stocks, bonds or crypto currencies that are harder to get your arms around, gold is a common and safe purchase. And when times are tough and markets face uncertainty, throughout history the value of gold has increased because investors keep coming back to it.
COVID-19 Impacts Gold Prices in 2020
One very stark reminder of how valuable gold can be for buyers and sellers during a time of crisis is the price change of gold globally in response to the news of a COVID-19 vaccine breakthrough in late 2020. After climbing 24% earlier this year and setting a record price of over $2,000 an ounce, the price of gold decreased 5% to $1,850 in November when the vaccine news broke. It was the first time gold has reached below $1,900 an ounce this year.
Another trend we saw come into practice this year is the price of gold responding in the opposite way of U.S. interest rates. In response to the economic shutdown in the U.S. this year due to COVID-19 restrictions and business closings nationwide, the U.S. government slashed interest rates to historically low levels. In response, as it has done in the past, gold priced soared.
Cashing in on Gold Prices by Selling Your Gold Items Online
What does that mean for individuals who own gold jewelry and other items and those who have invested in gold bars and coins? It means it’s a sellers’ market for those looking to make money from selling gold items. Just like a buyers’ market in real estate means the time is right to purchase a home for the lowest cost, a sellers’ market for gold means it’s a great time to sell gold items, bars and coins to make ends meet.
In the U.S., employment rates have hit record lows across the country as millions of Americans were laid off throughout 2020 during the pandemic. From restaurant workers to artists and childcare workers to hospitality staff, many families across the U.S. are struggling to pay bills during the pandemic. One way to earn a little extra cash before the end of the year in a safe way (from your own home), is to find your own unwanted gold and other jewelry items and sell them online. While many local jewelers and pawn shops are still shut down, selling used items online is a safer bet for a variety of reasons.
One reason selling gold online is less risky now than in the past is you can do it from the safety of your own home. Large trusted online gold buyers like SellYourGold.com will ship you a sales kit directly to your home, with a free envelope to send your items back for review and pricing. Online gold retailers can help you understand how much your gold items are worth (and they’ll usually send you a quote for free). Most will even take broken or unmatched items (think one earring from a pair) and will return your items back to you if you don’t accept their offer.
If you have jewelry you no longer wear, selling it online for cash may be a great option for you – especially when gold prices are hitting record highs. As the COVID-19 vaccination process begins and the country gets back to normal, with many residents going back to work and the economy fluctuating less in the future – the price of gold will most certainly go back down to pre-COVID-19 levels.