subject: Cash in on Your Gold [print this page] With the recent global financial crisis, it makes more sense than ever to take advantage of cash for gold offers since the price of gold is at an all time high. By selling your scrap gold from old jewellery or antique coins, you can make a quick profit that you can use for other expenses. Gold is a commodity that is in high demand for a number of reasons.
Gold and other precious metals like platinum, palladium, and silver are called monetary metals. Their prices are influenced by a number of factors like inflation, the value of the U.S. dollar, stock market sentiment, and international events. Depending on the conditions of the market at any given time, the value of these metals can change dramatically. Gold stands out among the precious metals in that the demand for metals like platinum and palladium are intrinsically linked to their value in manufacturing industrial items. For example, platinum and palladium are used in catalytic converters in automobiles. Metals like copper and silver are valued based on their consumption for things like wiring and jewellery. Gold's value, on the other hand, has always been intimately linked with money. It was not too long ago that most central banks hoarded gold and based their currency on the metal. Gold is the worldwide accepted standard for money and value.
Gold has been a traditional haven for investors to hedge their bets against inflation, the increase in the price of goods over a certain amount of time. The price of gold has a strong correlation to the price of petroleum. Traditionally, as the price of petroleum products increases, the price of gold gains as well. As prices go up, the buying power of paper currency goes down. However, having stores of gold helps to protect against this, since the price of gold goes up as well.
Currency investors also invest in gold if the U.S. Dollar declines. Gold prices are defined by U.S. Dollars and when the dollar is weak, the price of gold goes up. The dollar is at lower values than it has been in some time, causing investors to rush to buy gold to protect against the dollar's downward slide. If you wish to sell gold, now may be the best time since the dollar has been gaining ground on the Euro in recent months.
Also, gold is at an all time high demand for psychological reasons. In this time of global uncertainty in the markets, people recognise that gold has historically been a safe haven for their money, so they are buying it just to be buying it. Finally, demand for gold for industrial purposes is up in India and China, two emerging powers that are increasingly influencing the world economy..
Cash in on Your Gold
By: Gareth Hoyle
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