Gold is not like shares or another short-term investments. You buy gold and hold onto it for years if you can, it is a long term investment and has shown that it will often increase in price when times are tough as it is often peoples hardship investment. That being said the spot or scrap price of Gold has changed a lot in the past few weeks and months. This is to let you know what has occurred and what is the best move for the savvy investor.
In the last year gold has risen in price from £950 a once (24k) to £1,130, an increase of around 20.80%. It reached an all-time high in September of £1,265.00 and is still very high and will likely stay high. There are many reasons for the increase, and it’s beyond the scope of this article to go into it, all you need to know is what to do now and how it affects you.
Scrap vs trade price:
When you buy a gold chain of 18k that weights 23 grams, its scrap price is now a whooping £631.37, this is 90% of the spot price. Which you can achieve with some haggling. Now if this chain is also very well made, signed and complete with makers marks and hallmarks, you might know it was crafted in 1973 and by Cartier Paris and thus worth a lot more than the scrap price.
Because the scrap price is so high, this is like a flood that raises all boats. The base price of all Gold Jewellery has risen by 20.80%, and it will affect everything made of gold. As a result, if you have some old necklaces, rings, earrings or anything, right now is the time to look at turning your old jewellery into cash. (link)
If you own something that is now worth 20% more, it is a perfect time to think about turning your gold into something else. This way you can get 20% more of it. For the last five years moving at a much more steady pace is palladium. The lovely luxury metal that looks like white gold and costs more than 24k white gold. The good thing about it is it can be bought the same as gold. In bullions, coins, chains. Yet unlike the go-to investment of everyone, it has increased in price consistently.
Over the last five years, it has risen in price from £496.50 to $1,360, an increase over five years of 173.50%. This whopping increase is on par with owning a start-up, having shares in Facebook or owning property. Right now if you have some value locked up in your old jewellery, I would suggest turning it into Palladium or another type of luxury investment that is always going to increase in value at a fast rate.
Because the price of scrap gold is so high, a lot of people are having things scrapped that really should not be. I have seen a lot of well made, antique, and quality pieces being melted down because right now it is easy money. I would suggest instead of scraping your gold jewellery and not claiming the full value, and you get a secured cash loan against it from a London pawnbroker like Hopkins and Jones who also know the antique jewellery market and the actual value of your items and are experts in luxury watches and pawnbroking jewelery.