When Is the Right Time to Buy or Sell Your Gold?

“One day, this is going to be worth fortune”. How many can attest to saying this at least once in their lifetime about an item that came into their possession? As many people collect different kinds of items (some for hobbies), many collect with the hopes of the object gaining value so that they may re-sell the item for a higher price at a later date.

Items such as jewelry, or gold specifically, are more popular when selling back to stores or buyers for a profit. As gold is profitable and weighed more heavily depending on the geographical area, it is seen as a valued item for trade and sales, hence the many different pawn shops and locations across the nation. Though when is the best time to do so? When selling back your gold, the objective is to make the best possible profit from its original value when it first came into your possession. How can you make sure this happens?  

Statistics show (and it helps if you are an investor) that it is key is to look when the Dow Jones gold price ratio is between 1 and 2. Also keep an eye on the gold to silver ratio. Gold must be sold at a higher price than silver in order to be viewed as more valuable, so make sure the ratio is always in gold’s favor. Another tip for those who keep a close eye on the economy is to sell is when inflationary policies are at a standstill, although nowadays this is almost never the case.  Keep in mind that when selling gold for a profit, take a look and examine your personal and financial perspective. As mentioned earlier, the best time to sell is when inflationary policies are at a standstill.

Although this has not been the case in decades, it is important to sell back your gold and make a profit when you personally see fit. As the market prices will continue to go up and items will continue to lose their value, what may hold financial value today may lose its value and decrease tomorrow. If you have a mortgage payment or stock investment you need quick cash to meet, it is best advised to take the opportunity and sell as soon as possible as the economy is going up by the minute!

Key Components in Fluctuating Gold Prices

The key components of fluctuating gold prices include many factors and variables. When people start to lose confidence in their government or in the financial market, gold prices often rise, which is why gold is usually referred to as a crisis commodity. A global crisis or world events can also have an impact on gold prices as it is seen as a safety net when the economy is rocky. Inflation is another reason for the fluctuation of gold prices as the actual value of what gold can buy is more likely to stay stable in the long run even though currency values may fluctuate.

Gold is a solid investment to make as it is low-risk and will stay valuable when paper currency value declines. The value of the dollar along with central bank instability are also factors contributing to fluctuating gold prices. When the U.S. dollar is strong, selling gold may be more difficult, but it can also be seen as an opportunity to buy. This is also seen with central banks as some investors may want the security of having physical gold rather than relying on the bank, increasing the value of gold as well and further validating the term “crisis commodity.”

Interest rates also play into the fluctuating gold prices as current gold prices are reflected by the increases and decreases in interest rates. Lower interest rates means a higher attraction to gold. Although gold can be seen as a crisis commodity and safe investment, it is also very valuable for jewelers and other certain industries. More than half of the demand for gold comes from jewelry and another 12% of the demand for gold is generated from industrial applications. Gold is used by manufacturers in various devices such as electronics, computers, GPS systems, and medical devices. There will always be a need for gold, which will cause the price to fluctuate frequently, but it will still be an important staple in the economy.

Precious Stones

Precious stones, also called gemstones, are mineral pieces cut and polished for use in jewelry and other types of ornamentations. Gemstones are classified by their hardness, translucency, and color, and their value is dependant on these factors as well as how common or rare the mineral may be. Gemstones are formed below the earth’s surface and their characteristics usually develop when interacting with water and other rocks and minerals around them.

Rarity as well as supply and demand are the main driving forces behind the prices of gemstones. Gems are characterized by gemologists based on their chemical composition, crystal structure (e.g.: cubic, hexagonal, monoclinic) and optical characteristics as well as their hardness (using the Moh’s Hardness Scale). The precious stones are diamond, ruby, sapphire, emerald, opal, and pearl, and differ in price and rarity from semi-precious stones such as garnet.

Buying gemstones can be difficult because, unlike diamonds, no official system of grading is used. The most common way of determining value has been by eye using the four C’s (Color, Clarity, Cut, and Carat), and because of this, it pays to only go to a reputable dealer so you do not buy fake or synthetic gemstones. The Coin Galleries of Oyster Bay has reputable dealers and sellers who know the true value of gemstones and are easily able to tell a fake.

It is important to set parameters and do your research before going out to buy any jewelry or accessories containing precious stones. Price point should be your main concern as gemstones can range wildly depending on their characteristics and rarity. Color is usually one of the main characteristics people seek out when looking for gemstones and you can narrow down your search if you know what you are specifically looking for. Come down to the Coin Galleries of Oyster Bay and have one of our reputable dealers help you pick out the perfect gemstone!

History of Gold in the U.S.

Gold is considered one of the most valuable precious metals and has been praised around the world for centuries. In the United States, we first started seeing and using gold in the 1500’s, and the “gold standard” was set in the late 1700’s and remained the same until 1934. Between the end of the American Revolution and 1823, the United States purchased 20 million dollars worth of gold. Spanish soldiers were using gold as a means of barter in California around 1824 and the buying price for gold rose in 1837.

In 1842, the gold rush saw its beginning when Francisco Lopez stopped for a rest in San Feliciano Canyon and dug up onions to eat. In the roots of the onions, he found particles of gold and discovered gold deposits nearby as well. Locals came in search of gold and within the year, experienced miners had been coming from Mexico in order to extract the gold for profit. Excitement over the gold had not been generated as there was not a lot of publicity regarding the gold. In 1848, gold was discovered on the South Fork of the American River and it was intended to be kept a secret, but in March, the newspaper The Californian published an article about it. With this article, the news of the discovery of gold became known worldwide and led to the beginning of the Californian Gold Rush.

By 1852, the amount of people that were engaged in mining had gone from 4,000 to roughly 100,000 and had stayed that way for a few years. The Gold Reserve Act had been put in place after the Great Depression in order to encourage people to spend their money to improve the economy rather than hoard it and damage the economy further. Throughout the following years, the price of gold had increased with the economy and in more recent years, it has reached an all time high price, showing the true value and importance of gold in the United States today.

Gold and Silver Outlook for 2016

The questionability of the market today has lead to questions regarding precious metals and their worth in the upcoming year. The predictions and forecasts for 2016 have been made in order to determine the strength of the gold and silver market. The time seems right to sell your gold. Silver, on the other hand, has a higher industrial demand and can be used as an electrical conductive in all kinds of electronics. Silver is also used in solar panels in order to create electricity out of the solar cells, which is growing in popularity, in turn increasing the value of silver. However, there are different predictions regarding silver, which is why it would be wise to sell precious metals early in the new year!  

On the fashion side of things, gold and silver will always be trending. We will see the classic combination of silver and turquoise being paired with gold, pearls, and diamonds in 2016 as gold will be seen in more dramatic designs such as shapely cuffs, intricate bib necklaces, and chic collars. Bold and simple gold jewelry designs will definitely be the dramatic staple piece for everyone’s wardrobe in 2016. Stackable gold and silver rings will be seen more and more this upcoming year and are the perfect accent to any outfit. Even mixing and matching the precious metals is recommended! You can never go wrong with multiple pieces of strong gold or silver jewelry.

To either buy some new gold and silver jewelry to stay ahead of the trends, or to sell your old gold and silver items, stop by your Coin Galleries of Oyster Bay today!

What Makes One Gold Buyer Different from Another?

Selling your gold can be an overwhelming process if you have never done it before. Who can you trust to tell you how much your gold is really worth?

These questions, among many others, are the most common concerns when selling your gold. The following tips will help you to be mindful during the process and help you rest easy once you have hauled off what you are selling.

One of the first criteria people consider is selling local or online. Working with a buyer in person is a no-brainer as it will allow you more control over the sale as well as the opportunity to have instant cash. If you meet the gold buyer in person, you will have the opportunity to meet and build a rapport and hopefully make the process a little easier.

A major factor to consider is the experience of the buyer. Do your research before meeting someone or visiting a storefront! A buyer with decades of experience will be more trustworthy as opposed to someone who is new to industry as the former will almost always know the true value of your gold and will hopefully provide you with the best fair offer.

Establishing trust should be top priority once you select a gold buyer. You should understand their weighing system and the gold should be weighed in front of you. It would be best to go elsewhere if you feel the gold buyer isn’t be fully honest with you.

A trustworthy gold buyer should be willing to put their offer for your gold in writing. This is a good sign that their pricing is transparent and consistent. Keeping this in mind will be extremely beneficial to your prospective gold selling as a good relationship between the buyer and seller is key to a successful long term relationship.

What Are the Most Sought After Coins?

Coin collecting is an enduring pastime in American culture. Whether you're a novice or a veteran, you always know the money in your pocket could possibly be worth more than it’s traditional value, and because of this, buying and selling coins can be an exciting hobby.

Several aspects should be considered when it comes to hunting down new coins. Coins that either had a short run of production or a batch that had an error are considered rare and often offer the highest value yield. Also, coins with historical significance, such as circumstantial creation, are highly sought after as well.

Each currency denomination contains series or batches of in-demand coins. For instance, Lincoln pennies were first produced in 1909 have had a long history of value. While the value of the basic penny is less than the costs required to make one, some of these historical cents can earn you a pretty penny!

In 1955, a Philadelphia mint factory made an error in the creation of a dye used to create the penny. About 50,000 pennies were created with the year 1955 printed twice, overlapping each other. The value of this penny ranges for hundreds of dollars to thousands depending on the condition.

During World War II, copper had to be conserved for military use, and the production of pennies in steel occurred between 1943-1944 with limited circulation. Coins in this time frame range from the hundreds to hundreds of thousands. There also were some bronze pennies created accidentally in 1943 which have sold for over $1 million previously.

Similar scenarios have yielded high value returns for collectors in other denominations. State quarters from the early 2000’s with idiosyncrasies, such as misspells for the 2005 Kansas Quarter or issues with the artwork like the 2004 Wisconsin Quarter, have yielded for collectors at least twenty times it’s worth to date. A dime from the year 1873 has provided sellers with almost $2 million dollars.

Examining your everyday change can bring you much fortune, if you are lucky, and this is a great way to get started if you are new to the coin collecting hobby. By visiting a local collecting shop, such as the Coin Galleries of Oyster Bay, you can also educate yourself on other coins that are valuable.