According to ONS data, a recession has been narrowly avoided after the UK economy grew by 0.5% in May 2022. However, the picture is far from rosy for many UK households. Should a recession come to pass, Brits will be squeezed harder than ever as the cost-of-living crisis shows no signs of abating.
Speculation remains high that the economy will go into recession, and with inflation at a 40-year high, the average household has never faced such uncertainty.
With all this in mind, many people are looking at ways to stay afloat during these tough times. The solution could be lying unnoticed in your home – in your jewellery box or stored in the attic. Yes, we’re talking about scrap gold. At Cash For your Gold, we offer you the best prices for your scrap gold and you can receive payment in just 24 hours. Keep reading to learn more about selling scrap gold during the cost-of-living crisis.
What are the chances of a recession in 2022?
The Bank of England is not predicting a recession in 2022, although as mentioned this was only narrowly avoided in May. The institution has predicted a significant downturn towards the end of the year with a contraction of almost 1% forecasted between October and December.
Some experts are still warning that a recession is possible this year or in early 2023. With household bills and inflation at record highs there are several factors that could plunge the country into recession.
Since April, there has been a 54% rise in gas and electricity bills, and the Bank of England expect costs to rise approximately 40% in October. With households and businesses having less disposable income at hand, spending could keep falling as price rises cause the economy to contract to the point of recession. For a recession to be declared, GDP must decline over two successive quarters , meaning a recession could be confirmed by the end of the year.
Brits look to tighten their belts during the cost-of-living crisis
There is some good news for savers. The Bank Rate, the interest rate set by the Bank of England, was raised in June 2022 from 1% to 1.25%. The Bank of England increases interest rates in an attempt to reduce spending and slow economic decline when the cost of living and inflation surpass acceptable thresholds.
However, with household bills set to rise in October, many households will not be in a position to save. Instead, some will require additional income to be able to afford increases to their energy prices.
This is where scrap gold can come in. At Cash for Your Gold, we offer some of the best prices for the sale of scrap metal online – visit our website to compare market rates. The good news for sellers is that gold prices are healthy. In January 2022, the gold price sat around £43.20 per gram, rising to around £46.30 prices in July. This means that if you have just five grams of 9 carat gold to sell today, July 25th, for example, you could make £82.50.
Sell scrap gold today to beat the squeeze
Using our scrap gold calculator, you can determine the value of your gold. All you’ll need to know is its weight and purity. You may have more scrap gold at home than you imagine. Fortunately, we accept a range of items including, jewellery, coins, gold bullion, watches and dental gold.