How to Determine the Price of Gold

We are the highest-reviewed gold and diamond buyer in Atlanta — The Gold ATM. Our mission is to keep all of our customers informed regarding every aspect of the gold and diamond buying process.


Today, we want to teach our customers about the factors that affect the prices of their gold.


What Affects the Price of Your Gold


We are certain that the vast majority of our customers understand that the price of gold can fluctuate. However, not many people actually understand why this happens.


There are three main factors that affect the price of gold:


1. Supply and Demand


This basic economic principle is one of the most powerful influencers of all commodity prices. When it comes to gold, its quantity on the market isn’t inexhaustible. That means that supplies also aren’t unlimited.


When the supply of gold is low and the gold demand is high, the prices of gold will rise. On the other hand, when we are witnessing a high supply and a low demand, the prices will decrease.


2. Political and Economic Conditions


Gold is a safe haven investment. No matter what is happening in the world, the gold market will keep existing.


In case a country is experiencing a violent or sudden change, the stock market starts fluctuating, or the economy is in a downhill trend, gold instantly becomes the most sound and reliable investment.


Therefore, if a country is experiencing any of the three problems that we’ve mentioned, gold will become a sought-after commodity.


3. The Federal Reserve


Interest rates, which have been generally low for more than 20 years, are set by the Federal Reserve. And since the rates have been continuously low, the so-called concept of “opportunity cost” has developed.


When we give up a secure investment return because of the promise of greater gains in a less secure investment, that’s opportunity cost. For example, bonds and CDs have become unattractive to investors because they yield a small return on the initial investment.


And since the price of gold has the potential to increase and exceed the low yields of CDs and bonds, that can persuade some people into investing in gold rather than in the other two.


Sell Your Gold Jewelry at The Gold ATM


With more than 300 five-star reviews on Google, we are Atlanta’s most reputable gold buyer, diamond buyer, and estate jewelry buyer. Furthermore, we are an A+ accredited business with the BBB (Better Business Bureau), which makes us one of the safest places where you could sell your gold jewelry.


We operate out of safe and secure high-rise office settings, ensuring a safe and pressure-free environment for our customers. On top of that, we offer the best rates in Atlanta and we are willing to match any offer presented by our competitors. As our customer, you can be sure that you will be getting the absolute best value for your gold and gold jewelry.


Visit us in Buckhead, Roswell, or Hartsfield.


For more information please visit our website.