For as far back as civilization has stood, gold has been the epitome of luxury and class. Its durability and luster have made it an integral part of the economy for thousands of years. However, gold’s reputation precedes it, and in an economy like ours, you need to live up to the reputation. While gold holds all the same traits it did when it was first discovered, those traits no longer carry the same value they once did. Consumers are getting more savvy, leading to a shift in popularity from gold to silver. This will affect how investors buy and sell their gold bullion.
Gold is Too Expensive
The risk vs. reward of gold bullion is becoming too unbalanced for many buyers. The price of gold continues to skyrocket, making it the perfect time to sell gold bullion. However, fewer people are looking to buy something at such a price. Buyers don’t want to invest in an item they won’t be able to sell back at a heftier price. Plus, as the price of silver goes up, its perceived value makes it more appealing to investors.
Gold Jewelry isn’t in Demand
The fashion industry has always been a significant influence on the prices of precious metals. As the rate of gold increases, fewer fashion companies like Tiffany & Co. and Pomellato want to work with the material. It’s a risky investment to create gold jewelry that nobody will buy. Plus, as Millennials begin to outweigh baby boomers in the consumer market, gold becomes less profitable.
There’s an age-old saying that gold and art are the only substantial investments one can make. As the price of gold bullion continues to increase, this saying earns a bit of dishonesty. The law of supply and demand is pushing silver into the spotlight once help by gold on the consumer and stock markets. Luckily, there is always a good time to buy and sell both gold and silver. For the best bullion dealer, contact Boston Bullion at 781-710-8419 or visit us online.