Diving deep into the volatile gold price in Canada this summer


Welcome to one of the most breathtaking eras for the gold price in Canada and beyond. Due to the pandemic and political turmoil, major volatility has affected gold and silver—in the past six months, the price of gold has been driven up by more than 22%.

ForexLive wrote on June 5: “[Gold] is experiencing an unprecedented shift in value amid the pandemic confusion and is trading at its highest level since April 2012.”

The current gold price in Canada is $2,536 an ounce ($1,933 an ounce in USD) which should be encouraging to anyone looking to sell or buy gold. After all, this is the time to take advantage of the shining outlook on precious metals by trading in your used jewellery and gold items for a nice return, and if you’re looking to invest in gold, the price may be higher than in the spring but expect more surges ahead.

“There are a lot of signals that say that gold prices could stay at elevated levels with quite a bit of volatility for some time,” Tom Palmer, CEO of mining giant Newmont Corp, told Kitco recently.

Another expert told Forbes in August: “Precious metals volatility are expected to continue and gold prices should be expected to trade a wide range.”

In other words, gold observers will be seeing a lot of peaks and valleys over the next few weeks and even months.

The current gold price in Canada reflects the turmoil we’ve seen in the spring and summer during the pandemic. Since the pandemic disrupted the market, gold was seen as impressively resilient, as it often is during stock market crashes. The two are negatively correlated. Generally, when one rises, the other tends to go down.

How the gold price in Canada affects you

You may not be neck-deep in the weeds of precious-metals speculation, so why should it matter to you about the climbs and drops of the current gold price in Canada?

It’s simple: If you have gold items you’d like to sell now, perhaps because the financial crunch has been overwhelming or you aren’t sure why you’re still hanging on to these coins and rings and necklaces, now is an ideal time to trade in that gold for cash. Find a reputable gold buyer who is experienced in this space, otherwise you may be dealing with amateurs looking to give you an unfair price for your gold.

Of course, there may be mementos and legacy items you don’t want to part with if you associate them with loved ones or cherished memories, but the majority of gold owners usually hang on to their pieces for a rainy day.

And it doesn’t get rainier than 2020, right?

You might also be looking at the gold price in Canada and wonder, “Is now a smart time to invest in gold?” The price may be surging (or it could have leveled off by the time you read this post) so you’ll have to see if fits with your budget and expectations, but you may not want to miss on this opportunity to own bullion or gold coins, which may increase in value as the market continues to shake up.

When financial bumps in the road hamper the path to market prosperity, gold is often very attractive. As Forbes notes, even during the most recent bear market when equities dropped by 33%, the gold index decreased by only 2%. The price of gold then ratcheted up over the next few months to record levels.

It might be sunnier times for the current gold price in Canada and the U.S. because mining companies are also trying to be more resilient than they have during past pandemics. Barrick Gold CEO Mark Bristow told CNBC that his company learned several lessons from the 2014 Ebola outbreak.

“What that’s taught us is how to manage these situations and the importance of knowing where people have come from, making sure that we attend to hygiene and that we control the access of people into our operations,” Bristow said.

You might also want to get a leg up in understanding how the pandemic has influenced the gold price in Canada and beyond by reading our informative post on the topic.

What you need to know about the current gold price in Canada

Learning about what forces affect gold is important to understanding the precious metal’s volatility and fluctuations. As we reported in this post on understanding the price of gold in Canada, if the Canadian economy faces a slumping period, that could bruise the Canadian dollar, and make the US dollar more attractive and stronger, therefore including gold, albeit indirectly. Most likely, in that scenario, the price of gold will shoot up.

As noted earlier, too, gold can often be seen as a safe haven for investors. “Given the persistent nature of the US-China trade conflict, which has injected greater doses of recession fears into markets, the overall demand for safe haven assets is expected to remain resolute,” said Han Tan, market analyst at FXTM, a currency broker, according to CNN.

If you’re considering selling your coins or gold jewellery, talk to one of our specialists who can help you. Also, contact us with any questions about the price of gold in Canada, investing in gold, and understanding the nuances of the turbulence within the precious-metals market.


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