Gold continues to Shine

Gold has had a good run over the last couple of months. It has proven to be a great hedge of wealth and a great asset to have in inflationary times. The supply of gold has also been lower than the demand, especially when it comes to gold bullion products. It is a low risk investment compared to other asset classes, stocks and bonds.  

In August of 2020, gold peaked at $2000 leaving a lot of companies that trade in gold with an increase in their cash flow and more money to pay their shareholders. It also meant that anyone who held physical gold could sell and expect to make great returns. 

What you need to know from an investment perspective that unlike most investment classes, the yellow metal does not really generate an income but it has the great ability of being an excellent store of value especially in times of economic crisis.

Gold mining companies reported an increase in their revenue in 2020/2021, despite the fact that mining production had been declining. For instance, DRD-Gold reported a 56% increase in its revenue in 2020. This increase in revenue was not attributed to the mining or production of gold itself but to the incredible jump of the price of gold. Shareholders were paid 85 cents per share. That’s four times more than what the company was able to pay during the previous year. 

The gold industry as a whole has seen some significant changes even as the rest of the world tries to grapple with the economic recession. DRD-Gold isn’t the only gold mining company that has seen positive growth this year, AngloGold Ashanti also reported a four-fold increase in its revenue. Due to the lockdowns ordinary Mum and Dads are looking to sell their old gold jewellery and have also found out how easy it is to sell their gold online from the comfort of their home. If you have gold that you want to sell and you are wondering about the other options that are available that won’t require you to drive around your city looking for the best buyer with the best price just do a simple online search using the keywords “gold buyers mail Australia”. 

You can sell your gold from the comfort of your home to a gold buyer located hundreds of kilometres away. If you bought your gold online to begin with, or your preferred gold buyer has a physical as well as a digital store, then it is much easier. However, one has to consider the spread which essentially is the difference between what the deal charges when selling and what he is willing to buy it back for. The buying price is usually less than the actual market price of the gold. The spread also varies from buyer to buyer. 

Things are more convenient when you are dealing with someone you’ve had some experience dealing with before. There are other options that you can explore. Pawn shops are popular but they are only interested in specific type of gold products. Pawn shops are interested in quick turnovers and they often offer prices that are lower than other gold buyers. You can find “gold buyers mail Australia” that offer better prices than most. 

Hugh Hudson