Will the Apple Watch Cause Gold Prices to Soar?

Every time Apple introduces a product in a new category, rumors start to fly. Because the new Apple watch will be launched soon, it is happening again.

A lot of the rumors and speculations center on gold. Today, let’s consider them one at a time.

Rumor: One Third of the World’s Gold will Be Used in the New Watch

According to this rumor, Apple will have to get its hands on as much as 33% of the world’s gold just to make the devices.

Our view? We cannot believe that this will be the case. Granted, a ton of circuitry will be packed into the Apple watch. But our qualified gold refiners, who have been extracting gold from circuit boards for years, think that it is unlikely that the electronics in one Apple watch could contain more than about $3.50 worth of gold. So even if Apple produces a billion watches, it can’t possibly need one-third of the world’s gold supply.

Rumor: Apple Stores Are Installing Special Safes to Prevent Crooks from Stealing the Gold in Watches

There’s a rumor flying around that the new watches will contain so much gold that Apple stores are upping their security to protect them. This story is apparently true, but the new safes are being installed to protect high-end Apple watches that have 18K gold cases, not lower-end models that have only a few bucks worth of gold in their circuit boards.

Rumor: Apple Watches Will Sell for $20,000 or More

This story, which you can read in many places online, reports that high-end Apple watches will cost $20,000 or more.

Well, who knows? According to the best information that we can find, the most basic model will cost about $350. The price of a top-end model with a posh 18K gold case could soar above $10,000. Of course, there is a chance that aftermarket customized editions of the watches could cost more. We would hesitate to embed diamonds into an electronic device that will become obsolete in a few years, but we’re probably more frugal than the Kardashians.

Rumor: Gold Prices will Soar after the Apple Watch Launches

The rumor is that the demand for gold will soar after the launch of the Apple watch and that gold prices will rise.

Our view? We do not know. But when a story hits the news about a new need for gold, the excitement level certainly rises. If you have gold that you are thinking of recycling, this could be a very good time. Why not call us at 800-426-2344 to learn how to turn your bright shiny stuff into cash. Will your recycled gold end up in a new Apple watch? Well, who knows?

And don’t forget . . . there are reports that Apple will start making a car in a few years. If you think rumors are flying now, just wait until that happens.

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