COVID-19 Effect on Gold Price


How has the price of the precious mental been effected

Gold is not like shares or other
short-term investments. It’s a long-term investment that will often increase in
price when times get tough, so it’s advisable to hold onto it for as long as
possible. It is often called a “safe haven” asset, and in a time when many
blue-chip investments are losing value, holding Gold can be a good idea. That
being said, the spot or scrap price of Gold has changed a lot in the past few
weeks and months. Here we fill you in on recent events and provide our top tips
for the savvy investor.

Since Feb 2020, 24k Gold has
risen in price from £1,282 per ounce to £1416 per ounce. The price is currently
increasing every day and unlikely to stop any time soon. Of course, we see
people turning to Gold as classic blue-chip investments start to drop in value,
and currency feels the crunch. If you are holding a gold item, such as a ring
or necklace, here is what you need to know.

Scrap vs. Spot price

An 18k gold chain that weighs 23
grams currently has a scrap price of a whopping £853.10 – 90% of the spot
price. This can be achieved with some haggling. If the chain is very well made,
signed and complete with maker’s marks and hallmarks – for example, if it was
crafted by Cartier Paris in 1973, it’ll be worth a lot more than the scrap
price.

Because the scrap price is so
high, it’s like a flood that raises all boats. The base price of all gold jewelry
has risen by 43%, which affects everything made of Gold. Therefore, if you have
old necklaces, rings, earrings or any other gold items, right now is the time
to look at turning your old jewelry into cash.

Palladium

If you want more than one option,
now is the perfect time to think about turning your Gold into something else.
Moving at a much steadier pace for the last five years is Palladium, the lovely
luxury metal that looks like white Gold and costs more than 24k white Gold. The
appealing factor about Palladium is that it can be bought in the same formats
as Gold – in bullions, coins or chains. Yet, unlike Gold, it has increased in
price consistently.

Over the last five years, Palladium
has risen in price from £516 per ounce to £2165 per ounce, an increase of 320%.
This vast increase is on par with owning a start-up, having shares in Facebook
or owning property. If you have some value locked up in old jewelry, converting
it into Palladium or another type of luxury investment will increase the value
of it at an accelerated rate.

Pawnbroking

Because the price of scrap gold is so high, many people are having beautiful pieces scrapped unnecessarily. We have seen a lot of well made, antique and quality pieces melted down because right now, it is easy money. Instead of scrapping your gold jewelry and not claiming the full value, you could get a fast cash loan against it from a London pawnbroker like Suttons and Robertsons. We know the antique jewelry market, the actual value of your items and are experts in luxury watches and pawnbroking jewelry.