The financial apocalypse has combined with high gold prices to create the perfect environment for scrap gold companies. But is it actually worth hawking your gold jewellery?
There is nothing new about people trading in their gold when in need of some quick cash. However, with the economy the way it is, the number of people short on a few bob has never been higher.
While the economy has nose-dived, gold prices have been very much on the up. In fact, they have trebled since 2002 with the current value, according to goldprice.org, set €31.35 per gram. And it just so happens that there is plenty of Celtic Tiger era gold knocking around the place.
As a result, companies have been springing up offering to buy old gold jewellery all over the place. They have been eating up newspaper space and even appearing on TV between soaps in the hope of catching housewives who might be into flogging their wedding rings. So, what sort of deal are they offering?
Well, one of the better-known companies, www.goldtocash.ie, is currently offering €14.01 for one gram of 24 karat gold. This compares quite poorly to the €31.35 per gram price currently being fetched on the markets. The rest of the company’s prices are as follows:
9 carat                 €5.25
14 carat               €8.20
18 carat               €10.50
22 carat               €12.84
24 carat               €14.01
Not great. However, this range is still better than some of the prices on offer from www.goldparty.ie:
9 carat                €5.00
14 carat               €7.78
18 carat               €10.00
22 carat               €12.22
24 carat               €13.33
Galway-based www.forgottengold.com however, are offering far more reasonable prices for your gold. While they operate on a scale based on the amount of gold you sell (with larger amounts attracting better prices) the bare minimum prices you can expect to receive per gram are as follows:
9 carat                 €8.30
14 carat               €11.39
18 carat               €16.63
22 carat               €20.31
24 carat               €22.16
There is a definite bubble element to gold prices right now. It has long been the go-to commodity when property and currencies are proving volatile. With growth returning to many countries, currencies such as the Australian dollar shoring up and even property due for an eventual bounce, demand for gold may well peak soon.
The arrival of that day will no doubt have been brought closer by the amount of previously dormant gold being drawn back into the market. Â So, if you are going to sell then now is probably the time. Just make sure you shop around and get yourself a decent deal.
