This year’s pandemic has been tough on everyone around the world, and it has forced many of us to wonder how we can find extra cash in this bruised and battered economy.
That’s where selling your gold bullion comes in.
You’ll first want to understand where the price of gold is going, why it’s been increasing so often in the past several months, and how its impressive rise may not abate anytime soon.
It’s also important to recognize the various facets of finding the right buyer for your gold bullion in a market ripe for both sellers and collectors.
Where is the price of gold going?
It comes as no surprise to precious-metals observers that the gold price shot up remarkably since March 2020. So what are the factors influencing gold’s 2020 bull run? They include:
- The summer run-up to the U.S. election, and the expected chaos on Election Day, and uncertainty about the outcome.
- Plummeting global bond yields.
- Injection of liquidity by global central banks, including the U.S. Federal Reserve, and the resulting weakness in the U.S. dollar.
- Global trade tensions and geopolitical risks.
- Surging COVID-19 pandemic.
We saw signs in the summer this would be a year unlike any other. As the Guardian notes, one week in July saw more gold being traded every day than ever previously recorded – by a long shot.
Around 89.36 million ounces, valued at $174 billion, had changed hands, the article states. In value terms that was more than 50% higher than the previous record.
A weakened dollar has given gold, as it often does, the appeal of being a safe haven asset. The Washington Post writes, “Gold is typically insulated from inflation and generalized uncertainty. The precious metal is relatively stable over the long haul, and its value isn’t easily depreciated by outside factors or other currencies.”
It’s projected that where the price of gold is going will only be skyward. Phillip Streible, an analyst with Blue Line Futures, predicted gold would hit $2,500 by December 2021, as that Post report noted.
Goldman Sachs analysts told Mining.com that gold prices are expected to break out of the “current narrow trading range and soar through 2021 as the coronavirus recession gives way to higher inflation.”
Steve Land, vice-president and portfolio manager for Franklin Templeton's Franklin Gold and Precious Metals Fund, is bullish about the path ahead for where the price of gold is going. “There's still … a lot of work to be done and that probably is going to require a lot of stimulus. As we look forward, there's certainly potential for inflation. There's potential for currency devaluation. That will be positive for gold.”
Although the process may take a little longer than first expected, Land contended that he envisions gold prices may have the ability to reach all-time highs above $2,000 an ounce.
What does this mean for someone interested in selling gold bullion? As Max Smirnov, general manager of Global Bullion Suppliers, says in an interview, “It’s a good time to sell physical gold. There is high demand, low supply, and companies like ours are paying record-breaking prices for bullion.”Book your FREE Bullion Consultation Today
What you need to know about selling your gold bullion
What you should do first is learn if the gold bullion you have is indeed real. In a previous GBS blog post, we interviewed an expert in counterfeit gold and learned what to look for to determine the real from the fake:
“First of all, you should pay close attention to the details and always have a photo of a genuine coin at hand or on your digital device using Google or the website of your local bullion dealer. Most counterfeits have slightly exaggerated or disproportionate detail; certain areas of the coin have a ‘cartoonish’ appeal. For example, if you take a look at a Canadian Bullion coin depicting a Bison, the blades of grasses on the meadow look much more realistic when minted by the Royal Canadian Mint. The Asian fraudsters did not use the time to imitate each piece of grass, so this is a good way to detect a counterfeit coin.
And you should always have a magnet at hand. While a pure silver coin is not attracted by a magnet, most counterfeit bullion coins contain magnetic metals such as iron or nickel.”
If you found out your bullion is the real deal, now you want to investigate the right buyer for your items. Smirnov says you want to approach a gold bullion buyer who advertises their prices transparently online. “We can also give you quotes over the phone and we honour those quotes,” he adds, unlike some shady buyers that are as vague as they can be about the value of your gold bullion.
GBS is built on a reputation of trust and integrity, two important characteristics of any reputable gold buying firm. As well, GBS has employed dozens of precious-metals experts and collectors who have seen it all in the industry. That kind of experience can’t be bought or faked.
When you bring your gold to Global Bullion, you are guaranteed to be able to sell it. Why? We have amassed an extensive network of collectors, so that even if we are unable to buy your item we can find someone who will.
The pandemic has brought new challenges to the gold buying and selling process, but Smirnov says GBS has long been prepared for remote sales and conversations. “After a phone conversation with us, we can send you an insured shipping label in order to send your bullion to us and we’ll clear the transaction within five to 10 business days,” he says.
If you have any questions about the gold bullion you’d like to sell, or if you have questions about the services GBS offers, contact us anytime.