Last month, the United States government announced it would impose “the strongest sanctions in history” on Iran.
And while a lot of the news coverage on this issue dealt with how the sanctions would affect oil and gas prices, it’s worth taking a minute to ask a question any Bucks County cash for gold business might ask:
What does this mean for gold prices?
It will most likely give them a boost, at least according to some analysts.
“The news should come as some welcome relief to anyone who owns the metal as its performance hasn’t been exactly stellar of late,” writes Simon Constable in Forbes. “The price of gold was recently trading around $1,293 a troy ounce, down from an average of around $1,332 in January, according to data from the London Bullion Market Association, a U.K.-based metals market trade group.”
The new sanctions make it illegal for anyone in the U.S. to do business with Iran, while also virtually prohibiting the use of any major bank for Iranian trade.
But what does that have to do with gold?
According to Forbes, the U.S. is trying to close a loophole that allows the use of precious metals to get around the sanctions. But Constable also notes that the government is unlikely to succeed.
“Part of the reasoning is that gold has a long history of use when other currencies are unusable,” he writes. “On top of that, gold has long been used in Iran, both by the government and the people, both to store value and to skirt sanctions.”
Gold is useful now for the same reason it was a few hundred or a few thousand years ago: it’s works as a form of currency when banks are off limits.
It’s especially valuable in Iran, Forbes notes: The country is dealing with substantial inflation and has a long history of selling oil for gold. All of this adds up to a situation where gold will be in greater demand.
Getting cash for your gold
Gold has always made a good investment, particularly for people who are focused on preserving their wealth. We like to refer readers to this quote about gold investment from our owner, Greg Glemser:
“It’s the idea that I want my $100 today to be worth $100 next year. You’re not really investing to make money, you’re investing to preserve the money you have.”
At the same time, you might be in a situation where you need cash and begin to shop around for Bucks County cash for gold businesses.
If that’s the case, we’d recommend taking these steps before you sell:
Know the value of what you’re selling
There are plenty of online sources that can tell you the current market price of gold and other precious metals. (We track precious metal spot prices on our home page.)
You should also know the karats of your gold jewelry before you sell. For example, something that was 14 karats would be 14 parts gold and 10 parts other metals (gold is too soft to be used in jewelry and must be combined with other materials in order to last).
When you know the karats of your gold, and the current gold prices, you’ll be in a better positioning when negotiating with a buyer.
There’s no rule that says you need to take the first offer you get for your gold. Shop around at different Bucks County cash for gold buyers and choose someone you trust.
Doylestown Gold Exchange has spent more than two decades establishing itself as a trustworthy buyer of gold. We don’t just aim for a one-time sale but look to build long-term relationships with customers who want to buy gold, sell gold, or have jewelry appraised.
Contact us today or pay us a visit to find out how we can help you get the best value for your gold.