The gold rush of 2008 is happening now as the price hits a record of $1,000 per ounce. In the past six months the price of gold has gone up about 40%. The cause in the rise is probably due to several things, including the value of the US dollar, the erratic movement of the stock market, and others.When the price of gold futures hit $1,000 an ounce last week, people starting going through their old jewelry boxes to come up with broken gold chains, ear rings without a match, and any article of gold that they no longer wanted.
With the increase in activity of buying and selling gold comes illegitimate businesses. When you are shopping your unwanted gold, check out the buyer. Make sure he is giving you a fair price. Do that by checking with several dealers. Check out businesses with the local BBB. Avoid selling to unfamiliar Web businesses or buyers who pop up out of nowhere.
When the price of gold goes up, its sister silver follows. Silver price has hit $20 per ounce, a gain of about 40% also.
What does this have to do with us other than selling unwanted jewelry? Probably not much unless you own gold coins, bullion, or other gold forms. If you are an owner, watch and wait to see if it will go higher, before selling.
If you are not currently an owner, you might be buying high. Again wait and watch for good entry points, before buying.
I love the commercial that states “Gold will never be worth zero”. After Bear Sterns, that seems to be good advice.
The caution is if it’s now in the news, then you are probably too late.
Filed under: personal finance | Tagged: gold, money, silver
