You may think last week’s vote for the UK to leave the European Union doesn’t have much to do with the price of your old, broken and unwanted gold items.
But you’d be wrong. The Brexit vote has sent the price of gold – which was already strong – even higher and that means the money you can earn from your scrap gold has gone up too. There is demand for gold at the moment because investors are looking for somewhere safe to put their cash while there is turmoil in the economy.
Since the vote to leave the EU last week, the value of the pound has fallen and astronomical amounts of money have been wiped off stocks – although there has been some improvement very recently. That effects everything from how far your money will go if you’re on holiday abroad to how much your pension is worth if you’re retiring.
But gold has traditionally been the go-to investment in times of trouble. Investors like it because it is a solid form of wealth that won’t disappear in a puff of smoke.
The increased demand for gold means that the price rises as the market looks to meet that demand. Even small amounts of gold coming from people's old jewellery will be affected by this.
Much of the gold people buy for investment purposes, such as gold bullion coins and bars, is produced from recycled gold. The broken necklace or old ring sitting in your jewellery box that you no longer wear has a real market value. With investors’ thirst for gold continuing to rise, more scrap gold is needed to make the investment products they want to buy.
Now is a great time to sort through your unwanted items and take advantage of the strong prices. In the uncertain world we’re currently living in, you can at least be sure of getting a good price for it.