The gold industry has changed significantly over the years, with gold nuggets becoming a commodity now rarer than diamonds. This scarcity has caused demand to spike, and now prices of gold nuggets are on the rise. However, there are plenty of other factors, besides demand, that determine gold nugget prices.
Some of these factors include but are not limited to:
- Country of origin
The reason that gold nuggets are running out is that they form closer to the surface than any other type, and as such, are the most commonly discovered and easily extracted. Majority of the nuggets in possession today are only recently discovered, as opposed to coins and bars.
How the purchasing process goes
When you attempt to purchase gold nuggets, you will be quoted a gram price. You can then choose from a selection of nuggets to which this price will be applied based on its weight. However, if you buy in bulk, you could quite easily get better prices per gram. As the buying price of nuggets goes up, it can become an attractive investment opportunity.
Nuggets generally have a higher buying price than other forms of bullion, making your overhead investment a little more sizable than you might be comfortable with. The increasing rarity of nuggets, however, is likely to drive prices upward.
How to preserve the value of nuggets
If gold nuggets do come into your possession, do not try to alter them in any way. Melting them down, breaking them into smaller pieces, and other manipulations are likely to reduce their value greatly. If there is an added historical value to the piece, it will be lost if the nugget is damaged.
This is true in the cases of gold rushes in Alaska and Australia, where some of the biggest, rarest, and most uniquely-structured nuggets were found. Having the right certifications accompanying your piece can affect its value as well as supply and demand.
If you are unsure about the specimen in your possession, take your piece to a professional assaying bureau to determine its true value.
The 6 Grades of Gold Nugget Value
There are different grades of value when it comes to these nuggets, which are determined by the quality and history of the piece, among other things. As follows, the grades general follow these guidelines:
- Melt Grade. These are nuggets that are mixed with host rocks and contain some mineralization, and these are normally smelted down to make other shapes. The prices for this grade fall under the spot gold price.
- Common Grade. These have minimal or little host rock mixing and mineralization. They are generally considered aesthetically pleasing and are priced between 50 to 80% of spot gold price despite being considered a low grade. This, of course, is affected by how beautiful the piece appears.
- Collectible Grade. These have only the tiniest bit of its host rock and mineralization. For a piece to be considered collectible grade, it has to be fairly beautiful. In terms of price, they are generally priced similarly to Common Grade Nuggets. One difference is that these nuggets tend to hold their value when the market fluctuates, as opposed to lower grades.
- Jewellery/Investment Grade. These are nuggets with the least amount of host rock and mineralization. Only high-purity, clean, and shiny specimens can qualify for this grade. Lovely surface textures and colours can also contribute to the value. These are normally priced double the spot gold price and can go even higher, depending on the beauty, rarity, and size of the nugget. This grade features the greatest stability in times of fluctuating gold prices.
Gold has been a feature of human trade since the dawn of civilization. Its value to human commerce has been constant throughout human existence and remains to this day a fantastic form of wealth. And the best part is, investment techniques can be applied to its trade, making gold nuggets a form of wealth that can multiply itself.
If you’re looking for a trader of gold nuggets in Australia, send us a message at the Gold Nugget Shop. We want to make your next gold deal as lucrative as possible for everyone involved.