Demand for gold coins has surged in the past year, and that’s left mints around the world scrambling, and failing, to keep up with demand. According to Reuters, the US Mint saw demand for gold coins surge 258%, and production can no longer keep up.
That’s had spillover effects for mints around the world, and it’s impacted inventories that investors rely on to increase their own stacks.
Canadian Investors Seek Inflation Hedge
The pandemic and government relief efforts to keep economies afloat throughout lockdowns are at the root of the gold shortage. There are concerns that relief efforts have injected so much new cash into the economy that once the recovery gets underway, things will overheat, and inflation will reach levels not seen in Canada in decades.
When investors start worrying about inflation, they look for cash alternatives that tend to hold their value long-term against inflation. Gold bullion is one of the most popular safe haven assets that work as an alternative to cash.
There’s also been an increase in interest from new investors riding on the tails of a social media-driven rush on silver and gold alike. Between seasoned investors seeking cash alternatives and new buyers discovering the benefits of bullion, demand continues to remain high in 2021.
Buy or Sell Gold in Canada?
With investor demand for gold strong, now could be the ideal time to sell gold in Canada. Investors snap up bullion for a range of reasons, such as wealth preservation or hedging against inflation. Even poor bond yields are a good reason to switch funds into gold.
For the everyday Canadian with some old jewellery or some inherited gold coins, selling it could be just what they need to inject their budgets with some extra cash. And a recent survey shows that many Canadians could use the extra funds more than ever.
An alarming 53% of Canadians are only $200 away from not being able to meet their monthly debt obligations, and insolvency is a growing concern. Paying down debt is one of the best things you can do when you sell gold, especially if you’re concerned about interest rates rising. Why not take advantage of high demand for gold and pad your budget?
Where to Sell Gold in Canada?
Ready to part with old jewellery or coins? For the most part, old gold will be melted down for bullion and turned into bars. However, certain designer brands may have a higher resale value. Since you want to make sure you get the best price possible, you may want to avoid just stepping into any old cash-for-gold business.
Find a gold dealer that actually works with collectibles and can connect with the people who offer higher prices for designer brands and real antiques.
High demand for gold and the struggle of mints to keep up make now a great time to sell gold and put the money toward paying debts or other investments.
