Gold remains one of the most sought-after precious metals because of its versatility and value. If you’ve been planning to buy gold, you may have noticed that prices fluctuate regularly. This can impact the value of your existing gold and help you determine if you’re getting a good deal. Below is everything you need to know about how gold is valued.

What Determines the Value of Gold?

Global Markets

There’s a finite amount of gold in the world, and value is dictated by supply and demand. Many banks purchase large amounts of gold, which can drive public demand. The value may also fluctuate in relation to the value of the U.S. dollar and other currencies. The stronger the dollar is, the lower the value of gold. When the dollar is weak, more gold is available, which will eventually drive its price up.

The value of gold also matches the global demand for jewelry and gold to use in electronics. Many investors like gold because it holds value during recessions when stocks, bonds, and other investment vehicles crash. This is why the price of gold will often go up when the stock market goes down.

Quality Factors

If you sell or buy gold, the broker will further determine the value based on the quality of the piece. They’ll first measure the purity in karats. 24 karat gold is 100% pure and will carry the highest price. Brokers will couple this with the melt value, which is the value of the gold when it’s melted down. They’ll apply the melted weight to the current value of pure gold.

It’s wise to always buy gold through a trusted dealer, and residents of Cincinnati, OH, turn to American Trading Company. This pawn shop specializes in selling diamonds and gold and will offer fair prices to sellers. They’re backed by 50 years of experience, and you can discuss their current inventory by calling (513) 661-3633. Visit their website to learn more about this gold coin dealer.