The gold market is influenced by governments, central banks, multinational corporations and wealthy individuals. Learn the following 3 secrets for getting the best price from your gold.
1) What is the Market Price?
Historically, gold's price has been controlled largely by governments. The World Wide Web has enabled a free market mechanism to develop for pricing gold.
The City of London and American Comex are the primary places where the price of gold is determined. You can search for what is called the "spot price" or "daily price" for gold based on the buying and selling of "paper gold."
Most "paper gold markets" do not involve the "physical delivery of gold" Thus, a gap between the "official paper gold price" and the "unofficial physical gold price" can result. When you sell your gold, check out whether premiums are being paid for physical gold.
2) What is the Market Trend?
Most gold investors buy when the price is increasing. Most gold owners sell their gold when the price is decreasing. According to gold buying experts in Columbus, this defies logic, but is based on two elements: 1) popularity and 2) resale value. When an item is popular, there are more buyers and more positive news leading to higher prices. It is easier to buy gold one day and sell it the next for a healthy profit.
It is important to consider whether there is an overall short, medium or long term bull or bear market. There is likely to be a premium either way up or down. If the gold price increased the previous day, those selling gold can tack on a premium because they know that demand is high.
3) What is World Supply and Demand?
It takes nearly a decade to get a gold mine fully functional. While South Africa had led the world, its mining production is declining and the nation has fallen to sixth place in the world. Less supply can help you get a higher price when you contact gold buying experts in Columbus.
If you sell water in the desert of Morocco, you can get a better price then if you sell it near a stream in Holland. The same is true for gold. India is one of the largest buyers of gold in the world. If you sell gold before an Indian festival, you might get a higher price.
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