Gold prices and their trends

Gold prices and trends: what is worth knowing before buying or selling gold?

Gold and its prices have been one of the most stable and reliable means of preserving value for centuries. Even during economic crises, this precious metal usually does not depreciate, but rather increases in value - so it is not surprising that the topic of gold prices interests both investors, jewelry buyers, and people planning to sell old gold items.

In this article, we will discuss, What determines the price of gold, what are its current trends, what may determine future changes?, and what anyone interested in gold products or their purchase should know.

What determines the price of gold?

Gold prices on the global market is not random. It depends on several key factors:

1. Global economic situation

During periods of instability – economic crises, bank failures, military conflicts – gold becomes a “safe haven.” As investors seek reliable value, the price and demand for gold increases, and so does its price.

2. US dollar exchange rate

Gold is most often quoted in US dollars on world exchanges.

When the dollar weakens, gold becomes more expensive.

When the dollar strengthens, gold can become cheaper.

3. Central banks and their policies

Many central banks are accumulating gold reserves. When they increase their purchases, gold becomes more expensive. Interest rates also affect the attractiveness of gold: high interest rates encourage investment in bonds, while low interest rates encourage investment in gold.

4. Industrial and jewelry demand

Gold is used not only for jewelry, but also for electronics, medicine, and even space technology. Increased consumption increases demand and raises the price.

5. Investor sentiment and speculation

The gold market is sensitive to psychology. If investors think the price will go up, they buy. In this way, the price actually goes up.

Gold prices and history: what has happened in recent years?

In recent decades, gold prices have repeated one clear rule: During times of unrest – the value of gold rises.

During periods of economic stability, when stock markets are strong and inflation is low, gold prices tend to stagnate or fall slightly.

Observing the overall curve, it can be seen that:

• Prices have been rising consistently over a long period of time.
• Sudden spikes are associated with geopolitical conflicts or financial crises.
• Record price levels are usually reached when there is great uncertainty in the world.

Therefore, gold remains one of the most stable means of preserving value.

Gold price trends: where is the market heading?

When it comes to current and near-term trends, several important directions can be distinguished.

1. Gold remains popular with investors

Rising inflation and economic uncertainty are driving investors to seek safe havens, keeping demand for gold high, helping to keep the price in the high zone.

2. Central banks continue to increase gold reserves

Many countries are moving to hold a larger share of physical gold in their reserves, a sign that gold is seen as a more reliable store of value than some currencies.

3. The jewelry market is strong

Gold jewelry still remains popular as a gift, investment, and lasting value. Jewelry sector demand tends to stabilize the price even when investors react to short-term changes.

4. Moderate growth in the long term

Most financial analysts predict that the price of gold will, in the long run:

• or will remain at a high level,
• or will grow slightly,
• and significant falls are unlikely.

Gold has a limited supply – it cannot be “printed”, so this naturally supports its value.

What should buyers and sellers in Lithuania know?

If you are planning to buy or sell gold, here are some important tips:

1. Always check the purity (assay)

The most common finenesses found in jewelry are:

• 585 (14K) – most popular in Lithuania
• 750 (18K)
• 999 (gold for investment)

The higher the fineness, the higher the value of gold.

2. Pay attention to the cost of the work

The value of the jewelry consists of:

• weight of gold,
• test,
• the price of a jeweler's work,
• uniqueness of design.

Even if the purchase price of gold falls on the market, the value of jewelry as art and work remains.

3. Don't just follow the global stock market price

The final price is determined by:

• purchase/sale service fees,
• market competition,
• the condition of the jewelry.

4. If you are thinking of investing – choose 999 fineness

Investment gold:

• does not distort,
• does not lose value due to design,
• the easiest to sell.

Gold remains a reliable store of value and an important metal in the jewelry industry. Although its price fluctuates constantly, long-term trends show stability and moderate growth. Whether you are buying a piece of jewelry, thinking about selling old gold, or interested in investing, it is important to understand what determines the price and how market changes can affect the value of gold.

With the right choice of time and place, gold can be not only a decoration, but also a smart financial investment.