On September 3, the international precious metals market showed a mixed situation, among which COMEX gold futures rose 0.16% to close at $2,531.7 / ounce, while COMEX silver futures fell 0.73% to $28.93 / ounce. While U.S. markets were lackluster due to the Labor Day holiday, market analysts widely expect the European Central Bank to cut interest rates again in September in response to a continued easing of inflationary pressures, which provided support for gold in euros.
Meanwhile, the World Gold Council (WGC) revealed that gold demand in India reached 288.7 tonnes in the first half of 2024, an increase of 1.5% year-on-year. After the Indian government adjusted the gold tax system, it is expected that gold consumption may further increase by more than 50 tons in the second half of the year. This trend echoes the dynamics of the global gold market, showing gold's appeal as a safe-haven asset.
Tobina Kahn, president of Kahn Estate Jewelers, noted that with gold prices reaching highs above $2,500 an ounce, more and more people are choosing to sell jewelry they no longer need to boost their income. She argues that the cost of living is still rising, even though inflation has fallen, forcing people to find additional sources of funding. Kahn mentioned that many older consumers are selling their jewelry to pay for medical expenses, which reflects the tough economic times.
Kahn also noted that while the U.S. economy grew by a stronger-than-expected 3.0% in the second quarter, the average consumer is still struggling. She advised those who want to increase their income by selling gold not to try to time the market, as waiting to sell at the highs could result in missed opportunities.
Kahn said one trend she's seen in the market is older consumers coming in to sell jewelry they don't want to pay for their medical bills. She added that gold jewelry as an investment is doing what it's supposed to do, as gold prices are still hovering near record highs.
"These people have made a lot of money with bits and pieces of gold, which they wouldn't necessarily think about if prices weren't as high as they are now," she said.
Kahn added that those who want to boost their income by selling bits and pieces of unwanted gold should not try to time the market. She explained that at current prices, waiting to sell at the highs can lead to frustration over missed opportunities.
"I think gold will go higher because inflation is far from under control, but if you want to sell gold, you shouldn't wait," she said. I think most consumers can easily find $1,000 in cash in their jewelry box right now."
At the same time, Kahn said some consumers she has spoken with are reluctant to sell their gold amid rising optimism that prices could hit $3,000 an ounce. Kahn said $3,000 an ounce is a realistic long-term goal for gold, but it could take several years to get there.
"I think gold is going to continue to go higher because I don't think the economy is going to get a lot better, but I do think in the short term we're going to see higher volatility," she said. It's easy for gold to go down when you need extra money."
In its report, the World Gold Council noted that gold recycling in the first half of this year reached its highest level since 2012, with European and North American markets contributing the most to this growth. This suggests that globally, consumers are taking advantage of higher gold prices to cash out in response to economic pressures. While there may be higher volatility in the short term, Kahn expects gold prices to continue to move higher due to the uncertain economic outlook.
Post time: Sep-03-2024