Between 2017 and 2018, the supply of gold increased but so did the demand for jewellery. All in all the recycling of gold jewellery rose to 1,726.6 tons.
Iran and Turkey were the biggest sellers of recycled gold in 2018. These countries turned to gold when their currencies weakened. This gold rally encouraged more recycling in a lot of Asian Markets. The tightening of supplies in traditional gold markets encouraged the rise in the number of Brisbane gold buyers appearing in Queensland Australia due to high prices and profitability.
Central bank buying
There was also an unprecedented increase in central bank buying from 2017 until now. Central banks have not bought gold in such large volumes since the Breton Woods agreement. They added 651 tons of gold to their respective countries’ reserves. That was 74% higher than what they bought in the previous year and it turned out to be the second largest yearly purchase of gold by central banks on record.
Many wondered why central banks seem to be in a race to get as much gold as they can? Is there something going on that most people know nothing of? We know that when there are escalating geopolitical tensions and economic uncertainties, investors, including banks, look for safe-haven assets like gold.
Central banks increase their gold reserves to stabilise their local currency and diminish their dependency on the U.S dollar. More central banks are expected to buy gold in the near future.
The global increase in the sale of gold
According to The World Gold Council, the Australian mint reported an increase of 7% in December. The amount of raw gold sold in one month increased by 0,88 tons. Jewellery continues to be the biggest consumer of gold with sales of up to 2,200 tons. India and China still remains the biggest consumers with demand rising between 1%-3%.
The dramatic increase in the sale of gold.
There seems to be no end in sight for the current geopolitical turmoil, in fact, things seem to be getting worse. One thing that is clear for sure is that gold is becoming more relevant and reliable as an asset for storing wealth. However, If you find yourself in financial difficulty this is the right time for you to unload that gold you’ve been storing for a rainy day, look for Brisbane gold buyers to give you a good price for your gold. Brisbane Gold Buyers will buy anything you have to sell from gold jewellery, gold coins or gold bars.
How do buyers of gold evaluate gold jewellery?
First things first, have your Government issued ID at hand. Gold buyers are required by law to ask for your ID. This helps dissuade criminals from selling stolen goods.
Gold buyers will also check for hallmarks and verify the quality, weight and grade of the gold item being sold.
Gold buyers know the daily market value of gold. It is a good idea for you to find out what the spot price of gold is before you sell to a buyer. Most reputable gold buyers have all the prices on their website. However, it always pays to give them a quick phone call before making the journey to go visit their shop.