Welcome to the new CanadaGold.ca!
We are pleased to officially launch our new website full of great new features and information to help you learn more about the process of buying and selling precious metals including gold, silver and platinum, as well as diamonds.
Canada Gold aims to equip you with all the information that you will need to make an informed decision regarding the purchase or sale of your precious metals and diamonds. Whether you choose to do business with us or not, we are pleased to present you with the most relevant tools and articles to make your decision that much easier.
As always, if you have any questions regarding our company, this website, or precious-metals in general, we are always here to help. You can contact us through our website or visit one of our conveniently located offices in a neighbourhood near you.
The gold price has different meanings for everyone. For some, it is a source of wealth, for others it is the cost of fine jewelry, and there are many more who just don’t really care about it.
Is There Value in the Gold Price?
No matter what your opinion on the precious metal, gold is an important resource in our world and plays a significant role in our global economy. Even if it doesn’t interest you from an investment or fashion standpoint, the gold price is sure to affect you in some way.
With such a difficult to understand value proposition and tremendous economic weight, many ask “why?”.
“(Gold) gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.”
While this may be true, in most countries gold has a very important role to play through deep rooted cultural traditions and as a store of wealth. It’s true that the gold price is simply the value that we assign to it, but in reality this could be argued for just about any scarce resource or capital in a free market economy.
One of the best ways of understanding the gold price is to simply think of it as a currency. While most other commodities have very real and useful value as a source of energy, construction or as food, gold is quite limited in its general usefulness. Likewise, commodities tend to get used up, contributing to a certain amount of continuous demand regardless of the investment interest in it. Gold, of course is always there. Even if it ends up being used in jewelry you can always melt it down and reclaim it into its purest form.
Gold as a Currency
The reason we can equate the gold price to currency is because it really is just used as a store and transfer of wealth, just like cash. The difference is that cash tends to become devalued over time (inflation), whereas gold price almost always has a consistent value compared to inflation.
There are many economic factors influencing the gold price, but the same is true for currency. If all countries and businesses used gold price as the standard of currency it would lead to much more stable levels of exchange and contribute to an easing global trade. Currently, if a company manufactures a product in one country for sale in another, the fluctuations in exchange rates can lead to huge risks to profitability. The recent rise in globalisation has had more to do with the easing of import duties and the establishment of large-scale trade agreements.
A common currency would be the final consummation of true free trade between countries, also known as a currency union. While this has been tried with a certain level of success in Europe with the establishment of the Euro, the idea of using gold price as a common currency for countries in different parts of the world has been suggested as the next major push towards global free trade.
Just such a scheme has been floated as being plausible by an OMFIF report commissioned by the World Gold Council looking into the potential impacts of changes to China’s monetary policy.
While this type of move would be profound and extreme to say the least, it does show the sentiment towards moving away from currency systems that are easily manipulated by governments and towards a more inclusive system that offers greater stability for the businesses that ultimately engage in trade.
Given all this, it seems that there is a role for gold price as an international store of value and commerce, providing a common currency across international boundaries.
(Gold) gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.
Just about everyone has possessions with personal or sentimental value beyond what the market might say they’re worth. When you really think about it, that’s basically how we assign value to everything; I place greater value on a cup of coffee than having a spare couple of bucks in my pocket, so I buy a coffee. The coffee shop would rather have my change than the capacity to produce one extra cup of coffee, the beauty of the free market ensues!
Many people end up with old gold jewelry that has been inherited in some way or another, and most of it will be forgotten in a drawer somewhere. A good way to decide whether these items are worth holding on to or not is to separate them into three piles:
First Pile: These are sentimental items that have been handed down through your family for generations, or perhaps they have some very significant meaning behind them. These are items that you would never part with at any price. Keep them aside and make sure they end up somewhere safe.
Second Pile: These are items that you know have value, but you’re not quite sure how much they’re worth. They might have some sentimental value, but are likely worth a fair bit of money as well, and depending on how much you can get for them, you might consider selling them. It’s worthwhile having them evaluated so that you know what they’re worth, but don’t take the decision to sell lightly, once they’re gone, they’re gone for good.
Third Pile: This is the stuff you know that you want to get rid of. It’s that ugly old damaged jewelry that’s been sitting around collecting dust. You know that it won’t be worn and it’s just taking up space. These are the items that you just might be surprised by how much they’re really worth. Old ugly gold jewelry is often of high quality and heavy, containing a great deal of gold content. If you were to sell it to a gold buyer you’d be receiving payment based on that gold value, not the way it looks.
That’s it! Bring the second and third piles into a Canada Gold Buyer location to have them evaluated, ask for the two piles to be priced out separately so that you can decide whether it’s worthwhile selling one or both. There will be no obligation to sell and the quote you receive will be based on the best market price from the past three days.