Will my Gold Increase in Value?


[Cover photo credited to – Moneymagpie.com]

Nowadays, with uncertainty increasing in the form of unexpected economic crises or pandemics, people prefer to stockpile their wealth in the form of gold (as gold rarely loses its value unlike other pieces of investment like stocks or real estate).

Gold market outlook for 2021:

From 2020 to 2021, gold prices have spiked owing to low interest rates and covid-19 market crash. It rose from £36 a gram to over £45 last year. Many people preferred to used gold for parking their wealth as it was the only piece of investment guaranteeing security in times of uncertainty.

Factors that affect demand for gold:

Gold and Jewellery

Mostly, gold is used in making jewellery. According to World Gold Council, in 2019 half of the worldwide demand for gold (approximately 4400 tonnes. The largest consumers of gold for jewellery are China, USA, and India.

Wealth Protection

Considered as a safe haven for investors, people usually invest in gold because it retains and increases in value overtime. During turbulent times, such as economic crises, gold is the best bet for investors to invest their wealth in as compared to stocks, bonds or real estate.  

Gold Production (Supply and Demand)

Like all metals, gold has to be mined and refined for its commercial use. But unfortunately, mining of gold these days is not very easy because gold that was easily accessible has already been mined. Miners digging deeper to reach the gold is not advised by the health experts and it exposes them to environmental hazards. Since 2016, gold mining has not changed significantly, which in fact means, that the gold rotating throughout the world is the same whereas, the demand has increased exponentially. For a valuable commodity if the demand far exceeds its supply, its price is going to go through the ceiling. Applying the simple concept of supply and demand, same phenomenon has happened to the prices and demand of gold.

USD and Gold

It is important to mention the relationship of gold to US dollar (USD), as most of the global trade is conducted in US dollar. USD and gold have an inverse relationship. Simply put, the price of gold decreases as the value of USD increases and vice versa. However, with high debt rate and inflation in the US economy, USD has been on the trail of devaluation. On the other hand, it is good news for people seeking to invest in gold as the prices of gold have increased in relation to the value of USD (instead of investing in USD people are now preferring to invest in gold).

Central Bank Reserves

Central banks of countries also invest in different commodities, such as paper currencies and gold. These are called the reserves of the country. Many countries are now attempting to have their reserves in the form of gold. Hence, the increase in demand and price of gold.

Gold and next five years

Considering the aforementioned factors, we can rightly assume that the price of gold would be further propelled making it an attractive piece of investment. Moreover, from 2020 to 2021, gold prices have spiked owing to low interest rates and covid-19 market crash. It rose from £36 a gram to over £45 last year. Many people preferred to used gold for parking their wealth as it was the only piece of investment guaranteeing security in times of uncertainty. Below are the two scenarios for the price of gold. 

Prediction #1:

If we weigh up the current global political and economic situation, the pundits predict the prices of gold to go as high as $3000 to $5000 per ounce in the next 5 to 10 years. It would become a worthwhile asset from the seller’s as well as from the buyer’s perspective.

Prediction #2:

To the contrary, some industry experts predict the price of gold to fall as economies would recover from the pandemic shock and overtime the political situation would stabilize. So whoever sells gold right now, would be at an advantage as according to the experts the prices would decrease in future. However, gold is not a short-term investment, that means even if the prices decrease now, they would most likely increase in future, making it a win-win situation for the sellers.  

Sell your Gold at Lux Merchant:

Without doubt, the shopping retail experience has transformed over the last decade. Out of convenience and comfort, people now prefer to shop online rather than visiting brick and mortar stores. From shopping clothes and groceries to booking air tickets, everything is more or less present at the customers’ disposal, thanks to the internet.

However, when it comes to selling valuable commodity, such as gold and gem stones, people still prefer to go to the gold shops. This is primarily because of the fear of scams and fraudulent activity over internet. Fortunately, at Lux Merchant, based in the UK, we offer transparent and secure services for selling your gold. Our integrity and reliability stems from our promise to protect the customers from all sorts of deception and counterfeit items. We do not entangle our customers with cumbersome processes as you can browse through the testimonials and customer reviews on your website.

At Lux Merchant, we have two primary goals:

  • To help you get a great price for your gold
  • To make sure the process is as easy and secure as possible

In addition to our in-store service at any of our locations, we also offer an online-accessible mail-in option to help you confidently receive a great offer for your items without ever having to leave the comfort of your home.

Sell Gold Bullion, Gold Jewellery, Gold Coins or Scraps of Gold in London:

At Lux Merchant we accept all forms of gold. We intend to provide you with:

  • The best price possible (keeping in view the current market price).
  • You can request to get a free quote your gold (according to weight and karat).
  • If you agree to the price quote, please proceed with bringing in the gold by yourself to our store or you can also ship us through our insured shipping service.
  • Once the deal is sealed, we provide you with immediate payment (through the seller’s preferred mode of transfer, that is, cash or bank transfer).


Sell Gold online for cash:

  • Best price: With more than 25 years of experience in the gold market, our experts offer the best price per gram for your gold.
  • No hidden fees or charges: Unlike other companies, that deceive customers into selling their gold by hiding charges and then later on including them in the final price, we do not believe in scamming our customers. The price that we quote is the price at which we buy your gold.
  • Secureand quick – you need not worry about scams at Lux Merchant. We offer insured shipping service for those who cannot come to our store in London. The payment is made as soon as the deal is negotiated.

How to sell Gold at Lux Merchant?

No time could be better than this to sell your gold. We accept your gold in all forms; bullions, coins, jewellery, wedding bands, scrap gold and broken gold. Our main office is located in London. Make an appointment and visit us. Or to make it more convenient you can simple contact us through email or phone number. Our representative will get in touch and guide you through the remaining steps.

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