Gold price is on the rise again. Over the last 3 months the spot price for 9ct gold has risen from approximately £8.45 /gm to around £10.15/gm at the time of writing. That's a 20% increase in less than 3 months.
WHY HAS IT RISEN SO SHARPLY?
I am not entirely sure to be honest but clearly there is more uncertainty out there in the global markets than there was 3 months ago and is understandable given the American presidential election, BREXIT, weak oil prices and global stock market pressures.
MORE IMPORTANTLY, WHAT DOES THIS MEAN TO YOU AND ME?
WELL, IF YOU HAVE SOME UNWORN OR UNWANTED GOLD, NOW MIGHT BE A GOOD TIME TO SELL IT.
Equally, if you are looking to buy some gold jewellery, buy it from a pawnbroker such as Brown and Gold as anyone selling new gold based on the world SPOT gold price will be paying and probably charging 20% more for it today than they were 3 months ago. A retailer that sells second hand, such as ourselves, tend to ride the rough with the smooth and only increase prices once the whole market has reacted to and accepts, a higher price overall, often months down the line.
A high gold price is a good thing for our market overall. Customers with pledges are happy that their asset is worth collecting and has not devalued since we lent on it. People move towards buying pre-owned gold chains and jewellery as it represents better value and it makes it attractive to sell the old scrap jewellery hidden in those drawers while the price is worthwhile.
Interestingly we also get a lot of customers who take this opportunity to buy gold coins and chains as many get reminded that investment into the precious metal is a way of storing their cash in something that they can enjoy which will always have a tradable value.
One area we have seen major investment into recently is ROLEX watches. I take my hat off to the way Rolex manage their brand as the value of these precious time pieces seems to increase unfailingly every year.
We buy a lot of Rolex. Some from the trade and many from customers. One thing they all have in common is that the amount we pay for them today is far greater than it was 3 years ago and it’s still rising. Every year Rolex seem to increase their RRP by up to 10%. This has an immediate effect on the second hand market and many customers that come in to us to part-exchange to a more recent model end up receiving MORE for their watch than they paid for it even after 20 years of wear!
I can’t think of many other items that can give so much use and pleasure and actually appreciate in value by the time you have finished with it!
Well done ROLEX. The more exclusive you make the supply, the more the public demand them – a complete lesson in brand management!
The only question remaining to be answered if you wish to own or sell your Rolex is why would you use a retailer when you could realise more value by selling or buying on-line?
The answer is simple. You will not get ripped off. Yes, you may have to pay a little more for it in the first place. However the retailer has to make a small profit to pay for wages, rent, rates, insurance and VAT etc. that a private seller on-line will not have to worry about.
However any reliable retailer such as Brown and Gold or Christopher Brown Jewellers at Shipley will also offer you a fully serviced and refurbished watch with 2 years of warranty, guarantees of provenance and expert advice that you are unlikely to receive on-line. A service alone on a Rolex can cost over £550 so its money saved not money spent!
On top of this the risks of buying from an unknown trader are easy for all to see as there are so many excellent fakes out there and worse still, goods that have been lost or stolen, one greedy mistake can cost you thousands. Remember, if the deal seems too good to be true, then it probably is!
Brown and Gold sell a large selection of quality preowned Rolex and are able to source most makes and models. We also buy and lend on preowned gold, jewellery and luxury watches so save yourself the hassle of looking on-line and ask one of our experts in store.
Chris Brown
