If you're using a lot of gold in your business, then you've noticed the price fluctuating a bit recently. It's been trending upward for the last several years, but there are little ups and downs in the market on a daily basis. Gold itself is such an interesting metal that watching its market ebb and flow can be quite addictive.
Given the seemingly constant changes in the market and the speed of most businesses nowadays, it typically makes sense to turn your gold over quickly to maintain steady cash flows. Your best profit margins are almost always found on reinvesting assets back into your business: turning scrap precious metals in for remelting, getting the value out of them, and returning those funds back to the business. You might realize a few dollars here or there, but we've found that if you hold gold waiting for the price to hit a certain amount, the chances are equally great that the price could go in the opposite direction. Holding gold that isn’t actively keeping your cash moving is like holding onto a check: if you hang on to the scrap of paper, it does your business no good. But cash the check and the money is contributing value, increasing productivity and helping to realize more profits.
Manhattan Gold and Silver Refining Services is in business to help you with that. We're ready to help you turn around the scrap metal from your business as soon as you turn it in. That's the best way to make a profit for your firm.
At Manhattan Gold and Silver, it's our business to help you recycle scrap precious metals like gold. We take in bits of gold, silver, platinum and other precious metals, remelt them and return the value of the metal to our customers. We generally think turning around the scrap so you can reinvest the money back into your business is the best way to keep things humming.
The price of gold has been climbing fairly steadily since 2008. The trend upward started in late 2001, but with an off year in 2007, the sharp move upward began in 2008.
This week, the price fell a little. Investor demand has hit a slight slump as investors become more confident about the economic outlook. The dollar is seeing a little added strength, which has investors a little less desperate for the stability offered by gold.
In fact, a new Bloomberg subscriber survey showed many of those polled would be cutting their gold holdings in the next six months. They are feeling more confident in the equity markets and moving to put money into stocks instead of increasing their holdings of precious metals.
That may mean future buying opportunities for your business as you restock your own supply of gold. That's something we'll see playing out over the coming weeks and months, if the market continues to build value as it has recently. We’ll keep updating our blog as the gold market continues to evolve.
"It was late August in Los Angeles and hotter than the price of gold. For two long weeks a super-heated Santa Ana wind had been blowing in from the desert, and the city of Angels was beginning to curl up and shrivel. Like cheap bacon on a hot grill."
That's a quote from the popular TV series, The Incredible Hulk (1978-82), starring Bill Bixby, Lou Ferrigno, and Cameron Mitchell. The quote is indicative of a warm day with a certain seamy quality in a seedy part of Southern California. It also underscores just how hot the price of gold was in 1981 when this particular episode was produced.
Gold was a novelty item for investors in those days. The year-to-year numbers were astoundingly interesting. It began 1978 (when the series started its run), at about $170 per ounce, dipped and soared to close the year just above $225. In 1979, after opening around $230, the price more than doubled to the $500 mark. In 1980, it started above $500 and ended (after a huge up-down cycle in January) at around $600. 1981 saw the price open at $600 and fall to $400 per ounce. And in 1982, the price shifted downward from $400 for most of the year, then gained to around $460 by year's end.
Yes, The Incredible Hulk was right, the price was “hot” and it has, over time, continued to get hotter. For more information about the history of the price of gold, check out our Historical Gold charts.