Should I wait for a Higher Gold Price to Sell my Gold?

GoldFellow.com wants you to be informed. Our Mr. GoldFellow blog is intended to help you make an educated decision regarding the sale of your gold, silver and platinum jewelry. Here at our blog you can find information on how to estimate the cash value of your old gold jewelry.

Today we will give feedback to a question that we have been hearing quite a bit at GoldFellow. Is now the time to cash in my gold jewelry, or will the cash value of my unwanted gold collection raise dramatically in the near future.

Analysts make a living predicting what will happen next, but what many people may not realize is that unless the future hold dramatic changes, the cash value of gold jewelry will not be effected in any amazing manor.

Recently the gold price has been trading in the $875-$935 per ounce range. While down from the mid-March ’08 highs of $1000 oz, the price remains at record levels. Many consumers are contacting us at GoldFellow™ to ask if they have missed the opportunity to sell their unwanted gold jewelry because the price of gold per ounce has come down a few percent. It’s a good question. So, how does a $50 per oz gold price change affect the pennyweight value of your old gold jewelry? First, let’s establish a few important facts allowing us to better understand the outcome of our analysis into the cash value of your gold jewelry. 14kt gold is the most popular jewelry type in the U.S.A. and therefore will be our benchmark. 25 pennyweight (dwt) of 14kt, a typical quantity we receive from individuals at GoldFellow.com will be the consistent quantity. Our example compares $935oz versus $875oz. So, how about we get started comparing the difference in cash value when the price of gold per ounce changes?

The general public is increasingly aware of the daily price of gold and how it fluctuates, but perhaps unaware that the gold price refers to the value of a single ounce of 99.9% pure gold. Since 14kt is only 58.3% pure, the impact of rising and falling gold prices are less severe on the cash value of 14k gold jewelry. For every $50 oz change in the price of an ounce of gold, 14kt gold jewelry cash value changes by only $29 oz!

Here is a video Damian Kidder utilizing GoldFellow for the first time to turn his unwanted 10kt class ring into fast cash. Watch his follow up videos to find out how much cash Damian got for his old 10kt class ring.




Now, back to our example; the lot of 14kt gold jewelry weighing 25dwt sold to GoldFellow.com at $935 oz (99.9% pure gold price) would be worth $475.00 as 14kt and the same 25dwt jewelry at based on $875 oz would bring $454.00, a difference of only $21. Each person should decide for themselves whether the cash difference of $21 is meaningful enough to warrant holding off from selling gold and hoping for a higher gold price to arise in the future. Whether the current gold price is at $875, $900, or $1000 an ounce, these are historic times for the gold market and gold prices at these levels are a new occurrence.

My professional belief is there’s always a greater chance of a deep drop than a steep rise.

Remember the old adage; “a bird in the hand is worth two in the bush”.

All the best,

Michael Gusky A.K.A. Mr. GoldFellow™ - http://www.goldfellow.com/