Before opening Doylestown Gold Exchange in 2011, you started to see the landscape of what a traditional jeweler was begin to change as the economy hit a down ward turn and effected the buying habits of its’ customers. There were always local competitors, it was generally a family business serving a large, primarily wealthy multi-generational customer base that routinely purchased luxury jewelry. Then, the 2008 financial crisis hit, and a seismic shift in buying habits occurred. While some people continued purchasing new pieces, others were looking to liquidate their precious metal assets like gold, silver, diamonds, and coins. However, many jewelry stores didn’t buy these items and stuck to their traditional model, so their customers were forced to sell them elsewhere. That’s when we knew a new kind of jewelry store had to emerge.
If there’s one thing that’s true about gold and silver prices, it’s that they’re always changing. As we write this, silver is up and gold is down, yet by the time this post is published on our blog about buying and selling gold, the reverse may be true. That said, what factors influence gold and silver prices? Let’s take a closer look.
Until 1964, quarters had silver in them. Fifty years ago, a quarter would have been worth, well, a quarter of a paper dollar.
But because of the silver in the coins, quarters from that era have grown in value. A dollar will buy you half a gallon of gas these days. The money from a silver quarter will fetch you nearly twice that amount.
If you’ve been thinking about investing some of your hard-earned money into gold, as so many people seem to be doing these days, you may be wondering what form of gold bullion you should purchase. That is, should you buy bars or coins?
Ultimately, the decision is up to you, although there are a number of facts and details that may inform your decision, and that will likely make it an informed decision.
But first things first: It’s crucial to understand that while most people think only of gold bars when they hear the word ‘bullion,’ gold bullion coins certainly exist as well. Bullion, just to be clear, is simply a refined and stamped weight of precious metal.
So if you’re planning on purchasing gold primarily as an investment—and assuming you prefer coins to bars—you’ll want to steer clear of ‘collectible’ gold coins, and instead make sure that the coins you’re buying are indeed actual bullion.
Here are a few questions to ask yourself and mull over if you’re not sure whether the bullion bar or bullion coin route is the best for your situation:
According to Michael J. Kosares, one of the country’s foremost gold experts and the author of numerous books on the gold market, gold should essentially be thought of as ‘wealth insurance.’
“You cannot approach [gold] the way you approach stock or real estate investments,” Kosares says. “Timing is not the real issue. The first question you need to ask yourself is whether or not you believe you need to own gold. If you answer that question in the affirmative,” he goes on to say, “there is no point in delaying your actual purchase, or waiting for a more favorable price which may or may not appear.”
In other words, gold is one of the most secure financial investments available, and if you’re ready to diversity your investment portfolio with the addition of gold, there’s not much point in waiting for prices to fall, which tends to happen during times of economic crisis. There were periods during the height of the 2008 financial crisis, for instance, during which demand for gold was so great that actual shortages occurred.
So yes, now certainly is a good time to buy gold, which, aside from its positive relationship with the US dollar, has been performing well in other currencies for a few months now.
You’re probably familiar with the Tupperware parties your mother or grandmother may have had in the 1980s, or perhaps the more modern Pampered Chef parties. These events were designed to get friends together for fun, food, and some profit for the hostess.
The newest twist on these entrepreneurial efforts are gold parties. With these parties, guests can make some money rather than spending it, so they’ll be eager to attend.
Hosting a gold party is simple to do. Just get a group of friends together to come to your house with their unwanted gold. Most people have old or broken pieces of jewelry tucked away in a drawer or jewelry box and forgotten. If they bring these items to your party, not only will they have a good time getting together with friends, they could also leave with extra money in their pockets. People are often surprised at how much they’re able to receive for their gold.
Gold is a great way to get ahead financially, and it makes a marvelous investment that you can appreciate wherever you are. For a lot of people, owning gold can be one of the most satisfying types of investments, bar none. When you want to get ahead and grow your wealth, gold can be a great way to do so.
The Price of Gold Generally Rises
The biggest problem with a lot of “investments” over the past few years is that their prices have fallen instead of risen. This isn’t so bad when you’re ready to buy them. But when you’re looking to cash out and use some of the money you’ve waited so long for, this can be a serious heart breaker.
The big problem with investments that tend to stay where they are—or worse, go down in value—is that you might actually need that money someday for something important. Your kids need to go to school, and you need to retire some day. It almost seems as if some investments assume you just want them for fun, instead of as a way to grow your wealth.
If you’ve lived in the Bucks County or Montgomery County areas for any length of time, you’re probably familiar with the Best of Bucks readers’ choice contest that’s organized annually by the Bucks County Courier Times. Our local Doylestown newspaper, The Intelligencer, runs its own readers’ choice contest each year as well — it’s known as the Best of Bucks-Mont.
Every autumn, both papers list the community’s favorite businesses, products and services, and this year, Doylestown Gold Exchange & Jewelers came out on top in not one but two different categories. To say that we’re both humbled and incredibly grateful would be a huge understatement.
In The Intelligencer’s Best of Bucks-Mont poll, we were honored as “One of the Best Jewelry Stores” in the two-county region. Which isn’t bad for a shop that’s been in business for less than three years! Some of you may remember we actually won the very same honor in last year’s contest.
But much to our surprise, both papers awarded us the top prize in a brand-new category, Best Gold & Precious Metal Buyers.