At the end of every year, economists try to make predictions about where the markets or the price of commodities is likely to go. Sometimes they get if right, sometimes theyget it wrong. 2020 was supposed to be a good year but it is turning out to be the worst – and we’ve just barelystartedthe second quarter. Six months ago, investors were casually buying gold for because of its characteristic of being a safe-haven against global uncertainty. Back then the uncertainty stemmed from geopolitical tensions brought on by events such as Brexit, trade wars, hyperinflation in certain LatinAmerican countries, ongoing wars in the middle east and the election of new heads-of-states and then the biggest one of all – a global corona virus pandemic.
The spot price of gold reacted to these uncertainties and since January 2020 it has risen by as much as 8.13%. This has spurred the growth of Brisbane gold brokersbusinesses. So if you find yourself in a financial bind because of these uncertainand turbulent time and you have a bit of gold, this might be the right time for you to consider ways of selling it.
The COVID-19 pandemic has affected the most important aspects the economy, the most noticeable one to be hit hard is crude oil. The price of oil, also known as“black gold”, tanked below zero. This unprecedented wipe-outwas as a result of people adhering to lockdown regulations and staying home. Fewer cars on the road means less petrol being sold. People fear a total collapse of financial markets and a situation far more serious than the 2008 global recession. Events like these have a huge knock-on effect on the price of gold.
COVID-19 stealthily moves on
It has been a little over four months since the virus was first tested in China but as of the 25thApril, Australia had 1,198 active cases, 5,431recoveries and 82 deaths. Compared to other countries, Australia seems to be faring better than most countries. However, according to scientists this is the beginning and with a vaccine still months away there’ll be plenty of economic storms we will come across. For one thing, a lot more assets will be negatively impacted because of a dwindling economy. Unemployment will go up, people will find it harder to access cash when they need to. This is the best time to collect all the old, broken, unused scrap gold and visit Brisbane gold brokers, you might be pleasantly surprised by how much your scrap gold is worth.
The Beauty of recycling gold
You might be surprised at how much the gold you thought should be thrown away is worth. Gold is recyclable. The amount of gold that can be mined is finite so recycling is an important part of the gold industry’s value chain.It is estimated that between 2005 and 2010, 35% of the gold in the market was sourced from scrap gold that had been melted down and refined. All that sounds good but it does not diminish the importance of mining gold out of the ground because if we did stop mining for gold and relied on the gold we can reclaim from electronic products, jewellery etc, we would run out of it in 23 days.
To demonstrate the importance of recycling gold: The Japanese government recycled more than six million devices to produce 5,000 gold medals for the Tokyo Olympics. This just goes to show that no matter how small the gold is and what its condition is, it is valuable and it should neverthought of as rubbish. It’s unfortunate that used gold would is referred to as scrap because if is not like any other kind of used metal. Your used or scrap gold can help meet your immediate needs better than anything else you own.