Research by gold refiner Capella lists 10 reasons why consumers sell.
UK-based gold refiner and bullion dealer Capella Manufacturing has carried out research into the current market for gold buying, creating a list of the top 10 motivators that cause consumers to part with their gold.
Capella says that consumers are now driven “as much by fashion as finance”, having worked closely with jewellers and pawnbrokers across the country to find out why consumers sell on their gold jewellery.
After compiling the views and opinions of the industry Capella said it found some “surprising conclusions”.
While the top motivator for selling gold was its high price and the second was the need for a bit of extra cash, Capello found that fashion – more, that yellow gold is apparently deemed less fashionable to the average consumer – was the third most regular reason for selling gold.
The company also found that consumers felt their unwanted jewellery was “dead money” that they could put to better use, while others sold on their jewellery due to difficulties in getting business investment.
The company currently works with around 350 outlets buying used gold directly from the consumer.
Kevin Bloor, managing director of Capella, said: “In terms of jewellery trends, our clients have noticed yellow gold is less desirable than white gold and other precious metals; however the demand, and therefore the price for the fine gold, remains high for dealers and investors.
“With old and unfashionable jewellery tucked away and an all-time high price for the metal the floodgates have opened for people to empty their old jewellery boxes to release some dead money.”
Blood added that if yellow gold was still in the height of fashion it would not explain why the company has seen so much gold being processed over the last few years.
Capella’s top 10 reasons for selling your 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
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 a 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
Capella is one of only three pure gold refineries in the UK and also offers full stone recovery, investment bars and scrap pricing. It is the only refining company in the UK which has been audited and FLO-CERT accredited to process Fairtrade and Fairmined gold.