According to the World Gold Council and the broader gold market, gold’s standing as a high quality, liquid asset in the second quarter of 2016 took a considerable upswing. Geopolitical and economic uncertainties fuelled western demand for gold over the last 12 months, while weakening consumer demand in the east. The Chinese gold market struggled as jewelry demand dropped by 15% due to sharply higher prices at a time of continued economic slowdown.
Moreover, Indian consumers’ demand fell by 18%. This led to US demand in the first half of 2016 almost matching the record full year demand of 2009.
During this period in the gold market, investment took the largest share of gold demand in two second quarters, with demand reaching 48% in Quarter 1 and 43% in Quarter 2. Other percentage share of gold demand was distributed among jewelry, technology and central banks as well as related institutions.
Here are a few quick insights from Quarter 2 of 2016 of the world’s gold market
- The US gold price climbed 7% in Quarter 2, but the rise was punctuated by one or two minor dips.
- 448t of demand was made in Quarter 2, which is the highest second quarter demand since 2010.
- A wave of recycled gold flooded the market, drawn out by the higher gold price.
Gold’s value in light of the US presidential election
The surprise result of the recent US elections has contributed to a surge in gold prices, which was an unforeseen event for many experts in the gold market. The precious metal saw a surge of 4% to $1,316 an ounce during election day, which was off the charts for the usually stable commodity. Analysts from BMI Research think that the upswing will continue in light of the current uncertainty within the US political landscape.
BMI asserts that, “The victory of the Republicans at the November 8th US Presidential and Congress elections will buoy gold prices in the coming days while dragging on other commodities. Looking longer term, this poses upside risks to our already bullish gold price forecast in 2017, but it does not materially change our views for other commodities.”
It’s always a good time to sell your gold with Ross & Simons
While following gold market fluctuations and keeping tabs on global influencing factors can be time consuming and fairly complex, this shouldn’t dissuade prospective gold sellers from entering the gold exchange market. At Ross & Simons, we make the process as transparent and seamless as possible.
The amount that you will be paid for your gold items is based on the daily Gold Fix value, which guarantees that you will receive the best prices for your gold. Also, we pay our customers according to the precious-metal content resident in their jewelry, which makes our assaying process one of the most accurate systems on the gold market.
The factors that are used to determine the value of your items are precious metal purity, weight and market-based pricing. Items are melted down for refinement only after customers agree to and accepted payment for their goods.
To learn more about how we make the process of selling your gold safe, swift and transparent, contact us today.