Everyone wants the easy money, a get rich quick scheme that requires little effort. Now there is one, in the form of precious metals. With the recession dragging on, only one commodity increases in value with a downtrodden economy – that of gold, silver, platinum, and any precious metals. A vicious cycle presents itself time and again when the economy goes down. The FDIC orders the printing of more money in an effort to kick start fiscal action. This in turn lowers the value of paper dollars, and works to drive up prices, otherwise known as inflation. Conversely, the value of gold, which backs paper money, rises at an unnaturally rapid rate. As such, the value of gold is now at all-time highs.
Trends in the market are proving this principle, and other precious metals follow the gold curve, albeit at a slightly lesser degree. When the recession began in 2007-2008, gold was priced at around six hundred fifty dollars an ounce. Within the last few years, as the recession took hold, gold rose to a record fourteen hundred U.S. dollars an ounce! So far in 2011, the economy has begun to stabilize, leading to some stabilization in the price of gold, but precious metals remain at extremely high prices. Some analysts say that as the recession nears an end, the price of gold will quickly return to normal. Others maintain that the recovery will take many years, allowing for a long period of high valued precious metals. Regardless, all agree that now is the perfect time to invest in precious metals, whether by getting cash for gold or buying, and taking the risk of holding onto it.
Although gold is the most talked about, and most dealt with precious metal, all precious metals are of high value now. Platinum, worth more than gold, is also extremely valuable, even though it is less publicized than gold. Silver is also at record highs, and a large profit may be earned when selling sterling silver.
When looking to sell gold, there are some important factors to be aware of. It is important to be an educated consumer, or in this case, retailer. The price of gold and precious metals fluctuates daily. The current price of gold should be checked in order to calculate its approximate value. A site that is useful for this purpose is Kitco.com, where the prices of precious metals are reported in various currencies.
Also, when selling private jewels or anything of value, it is advisable to remove stones that are set into the jewelry before selling. Most sellers will not return the stones. A local jeweler may perform this service for a nominal fee. It is also advisable to sell gold directly to a gold refiner rather than to a jeweler. Selling to a refiner eliminates the middleman, rewarding the seller with a greater profit.
Whether buying or selling, now is the time to look into investments regarding precious metals. This is the only industry that is benefiting, rather than losing, from the current economic recession.
Mark Rich is a precious metals expert, who deals with cash for gold transactions daily. He advises consumers to sell gold now, while prices and profits are high.