What is driving the cash for gold market?

Thursday, 28 June 2012, 11:33 am
Press Release: New Zealand Gold Merchants

DRAFT
Media Release 28 June 2012

What is driving the cash for gold market?

UK Based gold refiner and bullion dealer Capella Manufacturing has recently released research on the top 10 motivators that cause UK consumers to part with their gold.

“It is interesting that in the UK one of the top 10 reasons is because consumers perceive Yellow Gold has gone out of fashion. Whilst this could be one possibility, in New Zealand this is certainly not the case for our local market. However we do agree that nearly all of the other reasons are very similar for us.” Says New Zealand Gold Merchants Director Tony Coleman.

Capella found that the top two motivators were the current high price of gold combined with the need for extra cash.

“Currently in New Zealand based on earlier calculations we have done we estimate that there is at least $80M of unwanted gold and silver jewellery sitting in old jewellery boxes.” says Coleman.

The top 10 reasons for selling your old gold

1. The price of gold is at an all time high
2. Incomes are hurting and a bit of additional cash is welcome
3. Yellow gold jewellery is going/has gone out of fashion (not the case in NZ we believe)
4. Gold is getting a lot of publicity which means that people are comfortable that it is a good time to sell
5. Unwanted gold at the bottom of the draw is dead money
6. It’s a matter of timing – you sell when you need the money
7. It’s now very easy to sell used gold
8. Business investment is hard to come by
9. Inherited gold that no longer has a home
10. Recycled gold from industrial and technological components (again not the case in NZ)

ENDS

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