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Monday, February 19 2024

Gold is generally considered a time-tested safe-haven asset, the price of which has historically held up well in times gold nuggetsof high inflation, market volatility and geopolitical uncertainty. Gold is a finite resource, and therefore increases in value over time. Knowing this, many investors turn to the precious metal in an effort to protect their money. And those holding it in their portfolios were rewarded in December 2023 when the price of gold hit an all-time high of $2,135 per ounce! Analysts say that record price was driven largely by a weak U.S. dollar and expectations the Fed will begin lowering rates.  

For those of us afflicted with gold fever and who enjoy prospecting and mining as a hobby, the price of gold doesn't make much difference. Most small-scale prospectors seem to get much more pleasure from the process of finding the gold rather than selling it. It's the thrill of the hunt! And, of course, all the great memories you make. Plus, it's just plain old fun buying a new highbanker or gold wheel.  Even if you have no intention of selling any of the nuggets or fine gold you recover, you still might be wondering where the price is going from here. Whether or not gold has reached its peak is a point of contention.What drives the price of gold can be confusing and conflicting. While other commodities are mostly driven by supply and demand, gold is often affected by the psychological effects of economic downturns. Gold prices are affected by numerous economic factors such as:

• Value of the U.S. dollar
• Demand for gold
• Gold production
• Interest rates
• Geopolitical factors

Numerous factors influence gold pricing, so no one person or organization is fully responsible for setting prices. However, the London Bullion Market Association (LBMA) publishes gold prices twice a day via the ICE Benchmark Administration (IBA). The IBA consists of multiple banks, an oversight committee and a panel of internal and external chair members. The IBA sets gold spot prices and gold fixed prices based on supply and demand as well as the gold futures derivative markets.

If you do want to sell your gold, you can sell to a variety of buyers, including precious metals dealers, refiners, coin dealers, and jewelry makers. Research potential buyers and compare prices before selling to ensure you receive the best possible price.The amount of market value you can get depends on several factors:

• Quality and Purity: The value of gold is determined by its weight and purity. Higher-quality, purer gold is worth more than lower-quality, less pure gold. A gold prospector will typically have their gold assayed to determine its quality and purity.
• Market Conditions: The price of gold is subject to fluctuations in the market, and the value of gold can change over time.
• Selling Method: The method used to sell gold will also affect the price received. For example, selling gold to a refiner or a bullion dealer will generally result in a lower price than selling to a collector or jewelry maker who is willing to pay more for unique pieces.

Overall, the price of gold is not all that important to the average prospector, however it might be important for attracting new treasure seekers and keeping today’s old-timers interested in the hobby. After all, at today’s prices, you don’t need to recover much gold in order to cover the cost of investing in your necessary equipment and supplies!  Shop here.

Posted by: Denise AT 02:50 pm   |  Permalink   |  Email
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