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The NEW Elephant In The Room

Posted August 18, 2020

This blog is long overdue. I had written a new blog entry during the initial weeks of Covid-19, and another during the height of the social unrest. As soon as I finished them, they seemed out of date. I decided to wait for a little while in order to get used to our new way of going about our lives, and to let things simmer down a bit. It seems those things have happened, so here I am writing again.

The new elephant in the room is GOLD. The new record high price for gold surpassed $2,000 per ounce in the last few weeks. It currently (at the time of this writing), is at $1,998 per ounce. This is outrageously high! We all know it is a coveted precious metal, but understanding why the price fluctuates is not the easiest thing to understand because many things combine to arrive at the current price of gold. Here is some basic information:

  • THE US DOLLAR. The strength of the US dollar is very important, because gold is traded around the globe in US dollars. When the US dollar is weak, the price of gold goes up because it takes more dollars to buy it. Conversely, when the US dollar is strong, the price of gold goes down because it takes fewer dollars to buy it.
  • INTEREST RATES. Interest rates are at record, or near-record lows right now, so the idea of leaving cash in the bank is not an attractive option. Those who invest their money are opting to put it into the stock market, or into gold. The stock market remains high as well.
  • DEMAND. There is also demand for gold outside of investment, such as the jewelry industry, the dental industry, the electronics industry, the automotive industry, and others. So, of course, gold is affected by supply and demand just like anything else.

Why is this important to you?
Just like in 2008, when the price of gold broke through the $1,000 per ounce barrier for the first time, many, many, many people sold their gold jewelry, and gold coins. Ever since that year, people have continued to sell gold. NOW, GOLD IS HEADING BACK UP TO $2,000 PER OUNCE TERRITORY, and there literally has never been a better time to sell your gold.

Can I spend my gold at Flora Gems as if it were cash?
YES! ABSOLUTELY!! Flora Gems Decatur, and Flora Gems Champaign take gold as payment every single day. Some of our happiest, most satisfied customers have left our stores with a brand new piece of jewelry without spending any money. They used their old chains, coins, rings, earrings, and other dated, damaged or worn out jewelry to purchase something brand new.

Do I have to use my gold to purchase something at Flora Gems, or will you just buy it from me?
We buy gold every day at Flora Gems Decatur, and Flora Gems Champaign. A buyer is available every day in each of our stores. You are welcome to call ahead, or just stop in any time during business hours. We will sort your items free of charge, and after sorting, we will evaluate your jewelry and/or coins, and write you a check. It's just that simple.

Now is the time to sell your gold jewelry and coins.

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