The Truth about Diamonds and Gold in Today’s Economy
In a recent report by Fox Business, the value of diamonds and gold was analyzed with the goal of revealing which of the two holds more value in today’s economy. This is important to consumers for a number of reasons as we navigate through the maze of trying to figure out which valuables to keep and which to sell for top dollar. The report indicates that selling or pawning gold will bring more cash in today’s market than selling or pawning diamonds.
Here are a variety of reasons as to why gold is more valuable than diamonds today:
- Gold has soared in value by 26 percent this year alone, while diamond values have dropped by 9 percent in 2011.
- The diamond market isn’t currently as liquid as gold. This doesn’t mean diamonds aren’t positive investments; however, they just aren’t as in demand.
- Diamonds are a luxury item, while gold is more of a commodity.
- Gold is a hot item because of global uncertainty. Instability in Europe and in the US causes the price of gold to rise exponentially.
- The weak dollar directly affects gold prices by driving them up, but doesn’t have as much of an effect on diamonds. In fact, because diamonds are considered a luxury item their value can be driven down when currencies weaken.
The report also mentioned more and more Americans are turning to pawn shops for loans because of lost wages and difficulty gaining access to credit lines. It also makes the point that just because gold prices are soaring and diamond prices dipping doesn’t mean pawnshops won’t offer solid loans with diamonds as collateral. It all depends on the value and quality of the piece.
In the case that you hold gold and are looking to find a gold pawn or sell to a dealer, you are in a power position. With gold prices just above $1800, this is a perfect time to leverage the precious metal’s worth. The secret to your success is finding Huntington Beach pawn shops that you trust and making the best deal possible.