Tips and Tricks to Assess The Value of Gold During Market Fluctuations
In India, the value of gold jewellery is close to no other. Not only does it hold emotional value for people, it’s also a good investment. However, gold market fluctuations can be unsettling for many. Fret not, there are several factors behind its dynamic nature.
We’ve got you some tips and tricks for tiles when you must assess the value of gold during the highs and lows in the market. But before that, let’s look at what influences the value of gold.
What determines
the value of gold jewellery?
There are several factors that are at play:
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Global economic conditions: The ongoing uncertainty in the global economy can drive up the demand of gold and in turn, its price.
Strength of the US dollar: Another crucial factor that determines the value of gold is the US dollar’s strength. A stronger dollar can make gold more expensive for foreign investors.
High interest rates: Higher interest rates also influence the value of gold. This can push investors away from relying on it, turning to other forms of long-term investment.
Rising inflation: Last but not the least, inflation is one of the biggest reasons leading to an increase in gold prices. That’s also because it acts as a hedge during uncertain times.
How market fluctuations
affect gold jewellery value
Market fluctuations, particularly in the price of gold, have a significant impact on the value of gold jewellery. When there’s an increase in prices, the cost of manufacturing jewellery goes up. This, in turn, leads to higher retail prices and lower demand, especially when it’s not the festive time. On the other hand, gold market fluctuations that cause a decrease in price translate into better sales.
Calculating the approximate value
of your gold jewellery
Wondering how to calculate the value of gold jewellery? Worry not. Here’s all that you need: gold value today, weight of the gold and if there are any making charges or taxes. First, check the weight of gold in grams and then find the gold rate live today. Multiply the weight by the gold price to get the value of gold.
The last step is to add any making charges and GST to get the total value.
Tips for getting a fair valuation
Here are a few tips to keep in mind:
Check the purity of gold: Each of your gold pieces will have a purity level. It could be 18-karat, 22-karat or 24-karat. If it’s higher karat, the purity of gold is higher. This also means its value is high!
Weigh the jewellery:The weight in grams is crucial since gold is priced per unit weight.
Know the current market price of gold: The price of gold fluctuates daily based on global markets. Check the gold rate live today to find the latest information.
Check the melt value: You can do this by multiplying the weight by purity percentage and then by the current price per gram to get the melt value.
Evaluate its condition: Make sure you assess it properly. Any damage can bring down its resale value.
Things to watch out for in a fluctuating
market for gold
Here are some key things to watch out for in a fluctuating gold market:
Price volatility: The value of gold jewellery can be impacted due to geopolitical events or even changes in currency values. Keep track of this.
Global economic parameters: Everything from inflation rates to interest, and the strength of the US dollar can increase or lower the value of gold.
Market sentiment and speculation: Investor psychology can cause prices to overshoot or fall sharply.
Liquidity and trading volume: In times of uncertainty, there could be lower liquidity, which makes it challenging to buy or sell gold.
Regulatory changes: Any change in tariffs or taxes, or even import and export restrictions can lead to changes in the value of gold.
When is the right time
to buy or sell?
If you are planning to buy gold, do it during market dips when gold prices have dropped due to short-term panic or overreactions. You could also do it when inflation is high, since it serves as a hedge against it.
At the same time, remember if the strength of the US dollar is weakening, the value of gold rises.
On the other hand, selling gold should be done if it has reached its peak and is overvalued compared to historical levels. Also, if the economy is in a stable position, the prices of gold are likely to come down, making it a good time to buy the yellow metal.
Lastly, if gold is dominating your investments, selling some of it to rebalance is a good idea.
A smarter financial choice
Exchanging gold is another good idea. At Tanishq, our transparent and flexible process accepts gold from any jeweller in India, prioritising customer convenience and peace of mind. Customers can seamlessly transition their old jewellery into latest gold jewellery designs, reflecting current tastes and preferences.
The benefits of Tanishq’s program extend beyond financial gain, allowing customers to rejuvenate their jewellery collection with contemporary designs and superior craftsmanship. Our year-round exchange services provide flexibility, enabling customers to capitalise on favourable gold price fluctuations and maximize the value of their assets.
With high gold prices, the Tanishq gold exchange becomes the most economical way to acquire new jewellery. It’s like using your old gold as a form of down payment on a brand-new piece.
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