Looking back at the year that was 2016, so many events – from politics to entertainment to economics – have influenced the way we look at things and how people conduct business as usual. And in a truly digital planet where everything and everyone is increasingly interconnected, the ripple effects of a particular event can be felt far and wide in real-time. So it is with many things, including the value of one of the planet’s most sought after resources: gold.
As a Refinement Services gold exchange affiliate or partner, understanding the factors that influence the value of this precious metal can help you seize opportunity where it arises to increase your revenues by converting leads with the right information and conversations when they at their most topical. So let’s take closer look at factors that affect the value of gold.
1. Supply and demand
This simple yet age-old concept is a big influencer in how gold is valued. As is the case with most goods or services, a high demand coupled with low supply results in gold’s value to rise. For the tenacious gold seller who keeps an eye on supply and demand fluctuations, information on this constantly shifting trend can present them with opportunities to secure more cash for their gold.
Think of how you can use relevant information to inform sellers on why the time is right for them to sell their gold to you. Even if supply is at a peak and demand at a low, sellers will continue to return to your website to gauge the value of gold and engage your exchange program when the opportune moment comes to convert their gold into cash.
2. The value of the U.S dollar
Still the world’s most dominant reserve currency, the U.S. dollar will remain a sought-after resource for international trade and will yield its influence far and wide and for a long time to come. It’s standing amongst other world currencies places the almighty dollar in a uniquely juxtaposed position to gold in the sense that when its value decreases, gold’s value takes an upturn and the same applies for the opposite.
An example of this is when the dollar’s value rose by 2 index points, which in turn, resulted in a decrease in gold’s value back in September of 2014. But gold’s value against that of the dollar isn’t always measured in such simplistic terms. Investors may see a strong dollar as an opportune time to purchase gold as an long term investment, which creates opportunities for savvy sellers to get maximum returns on the gold in their possession.
3. The ever-changing geopolitical landscape
With the recent U.S. presidential election results taking virtually everyone by surprise, the lesson for us in the gold exchange industry is to never assume a foregone conclusion. Post-election gold values took a 4% surge thanks to the outcome of the election, which presented gold sellers with a great opportunity to cash in if they had their ears to the ground on how the outcome would affect the value of their gold.
Moving further abroad, it would be interesting to see how the value of gold will be affected after the inauguration of the president-elect. Never one to maintain the status quo, the incumbent president can be expected to stir things up in the coming months and these events may have further effects on gold, other precious metals and the global economy as a whole.
This could create real opportunities for both gold sellers and buyers to make good money on exchanges, so keeping an ear to the ground on geopolitics may just be the best insider tip we can give you.
4. Wealth protection
The economic crises of the late 2000’s serves as a reminder that things can change in a moment’s notice – but that’s only if you’re not paying attention. It’s fair to say that people in the know had ample warning of the impending crisis and hopelessly attempted to prevent it from spilling over into the worldwide phenomenon it became. Being forewarned means being forearmed so keeping your finger on the pulse of what transpires in the local U.S, economy will uncover opportunities that others could miss to get the most value out of their gold.
Since people flock to gold in times of economic uncertainty, those in the gold exchange industry stand to gain from it by encouraging people to engage in their exchange programs and sellers may choose to part with their gold for more cash in hand, while investors look to secure more gold to buffer themselves against an unstable dollar.
5. The media’s far-reaching influence
In a time where the media plays such a massively influencing role on people’s perceptions and views of the world, it’s almost no surprise that it can also affect the value of gold rather significantly. With the recent recession sparking a scramble to accrue gold, the Discovery Channel’s Gold Rush: Alaska, a reality show about miners in Alaska, brought in millions of viewers per week, and by extension, a higher level of awareness of gold’s value.
In fact, the Gold Prospectors Association of America saw their membership figures double in 2008, thanks to the high viewership numbers of the television program and other factors.
Strike while the iron is hot and watch your revenues increase
Whether you are a Refinement Services affiliate or fully-fledged gold exchange partner, keeping your ear to the ground on the factors that affect the value of gold will undoubtedly help you increase your commission figures. People, today, are always on the hunt for information that can help them make better deals, buy better products or save a buck.
As someone who operates in the gold exchange sphere, you’re virtually spoiled for choice when it comes to providing your leads with encouraging information to turn their gold into cash, so stay in the loop and tap into current events that affect the value of gold. It’s an investment that will pay dividends in the near and longer terms. Interested in starting your own affiliate or exchange program with the country’s leading gold exchange and refinement specialists? Get in touch today!