Do you have quite a bit of old gold jewelry lying around the house untouched? Rather than letting the gold collect dust, you might benefit from selling the gold for cash instead. However, to make sure you're getting the best prices, it's important to understand how the price of gold can be influenced by external factors. For example, the average price of gold could reach up to $1,400 per ounce after this year's presidential election. When determining when the best time to sell is, take these 3 factors into consideration.

The Presence of Any Global Crisis

When things go wrong globally, you should keep an eye out on gold prices because global crisis can cause gold prices to rise. People tend to invest in gold when they feel less confidence in their own government or economy. The higher demand for gold at these times drives prices up, which is why gold is often known as a crisis commodity. You can cash in during these unfortunate times by selling any gold jewelry or items you currently have.

The Stability of the Central Bank

If you want to look at more local influencers, consider the stability of the central bank. When the central bank becomes unstable, people tend to withdraw their money to invest it in a physical commodity, which is often gold. Bank failures and irregular economic policies make the banks appear unstable, which is when gold becomes a safer investment choice instead. Follow economic policies of the nation and the success of the central bank to determine when the gold market becomes a seller's market.

The Increases and Decreases in Interest Rates

Another surprising factor to keep in mind is the interest rates. When interest rates go up, you'll often find that the price of gold will go down. This is because more people are willing to liquefy their gold to take advantage of different investment opportunities that might have a higher rate of return. The best time to sell is when the interest rates offered by the banks are low, as this is when people with spare cash lying around are more prone to invest in gold.

Knowing how to anticipate which way the gold market will sway can really help you determine when the best time to sell might be. Look into a locations that provide cash for gold, such as the Pomona Pawn Shop, when you're ready to sell.