SELL YOUR GOLD JEWELRY
Compared to other metals gold is expensive. at $1,406 an ounce gold is similar in price to platinum which is $1,518 an ounce. Platinum is about 15 times rarer than gold and historically has been more expensive. Compared to rhodium, gold is even more overpriced. Rhodium is currently $1,025 an ounce. Rhodium has historically been as much as ten times as expensive as gold.
The price of a man’s suit. A popular metric for valuing gold is price of a man’s suit. Ever since Biblical times, a high quality man’s suit would cost about the same as 1 ounce of gold. Today you can buy a man’s suit for as little as $99, which would make gold 14 times overpriced. Another popular metric is the price of 300 loafs of bread which historically have cost the same as 1 ounce of gold. Admittedly loaves of bread were much larger than today, but even so gold would seem expensive.
Gold has been rising 11 years in a row. It’s very rare for any asset to keep rising continuously for this length of time.
The trend is you friend. One popular method used by traders for predicting future trends is the moving average. If the price is above the moving average then this indicates an upward trend. The gold price is below the 200 day moving average of $1,409. This indicates a downward trend and the price could continue falling for a while.