Gold Price Now at All-Time Highs, is it Time to Sell?
The price of gold is now at record highs of nearly $2000/oz. I have seen considerable increases in the amount of gold each client is bringing me. Not only do I have more sellers, but much higher totals in each sale. I think people are noticing the record high prices and deciding it’s time to sell their hoard. And now clients are coming with not only jewelry but gold coin collections they’ve likely held since the 2008 financial crisis. Here are the approximate gold prices in January for the last ten years:
|2011: $1,400||2012: $1,600|
|2013: $1,700||2014: $1,200|
|2015: $1,300||2016: $1,100|
|2017: $1,150||2018: $1,300|
|2019: $1,600||2020: $1,950|
As you can see from the last ten years, gold started moving up but got knocked down after 2013 and then struggled in the $1100 to $1300 range for five years. Finally, in 2019 gold began its run-up to the all-time high prices we see today.
Here is a great detailed article about the history of gold prices if you want to check it out, it gives the price of gold every year since 1929.
But I’ve summarized the main points below:
When the United States started the gold standard against the dollar in 1900, it set the price at $20.67/ounce. It remained relatively stable until 1934, when the Gold Reserve Act passed, which prohibited the private ownership of gold and forced Americans to sell their gold to the Fed. Next, President Roosevelt raised the price of gold to $35/ounce.
Again gold prices remained relatively stable until 1971 when President Nixon told the Fed to stop honoring the dollar’s value in gold! By 1976 gold had more than tripled to $120, and by 1980 it was at nearly $600/ounce. As the economy began to stabilize, the price of gold fell back to around $300. It remained in this range for the next 20 years.
With every major crisis in our country, people flock to gold as a safe-haven. During the 2008 financial crisis, gold quickly approached $900/oz. And ever since, it has continued to reach new all-time highs. 2020 is likely the most devastating crisis the world has ever seen. With all the uncertainly around Covid 19, again, the price of gold has responded as expected.
With interest rates at zero percent, folks are looking for places to store their money and hedge against inflation. That is why gold has climbed so high, and I feel it will continue to rise through 2021 and beyond. Maybe once the world has defeated the virus, and everything returns to “normal,” gold will come back down. It is uncertain how far it could fall. Prices today could very well be at a ceiling.
Do you have gold that you have been sitting on for some time? Your coin and jewelry collection has nearly doubled in value in the last five years. With gold approaching $2000/oz, now may be a great time to sell.
Cook County Buyers is here for you, conveniently located in downtown Northbrook by appointment. Please call or text now for a free instant quote and same-day appointment. (773)490-9828 –Mike