2011 is the year for gold, and that’s not a good thing. People tend to demand gold when their economy is in trouble. Why have all your money tied up in a potentially unstable currency like the Euro when you can invest in gold that holds its value globally? This is the essential driver behind demand for gold and therefore the price of gold.
Since the financial crisis of 07/08, gold has become a highly sort after commodity. Economies were crashing and currency values were fluctuating heavily. Things had began to settle down towards the end of 2010; but it all kicked off again when Greece looked like it was going to default. Many economists have expected a complete Eurozone collapse with countries returning to their pre-Euro currencies; this has left many people concerned about storing fiat money as the value may plummet at any time. Understandably they have invested in something far more secure – gold. Of course gold prices cannot continue to increase in this way and their value will most likely fall once the Euro crisis has been avoided or realised. However, it certainly isn’t a bad time to consider selling your scrap gold for cash.