Staff Writer
The United States’ falling credit rating might be bad news for the dollar, but it’s good news for anyone with unused jewelry lying around.
ZACH BOYDEN-HOLMES/STAFF
Michael Zibman, of Windsor Jewelers, inspects a ring. Increasing gold prices have tempted people to trade in jewelry for cash.
Gold is currently $1,789 per ounce, up almost $200 in just one month. Over the past year, gold prices have broken and re-broken record-high prices, meaning people selling gold are getting more per ounce than ever before.
“Activity has picked up significantly,” said Don MacNeil, the marketing director for Windsor Jewelers in Augusta.
MacNeil said many customers who come in selling gold see it as a way to trade something they don’t use for something they can use.
“I think they see an opportunity. The high prices are a heck of a motivator,” he said.
He said he believes these high prices won’t go away anytime soon. MacNeil said the rush on gold is directly related to people’s lack of confidence in the economy.
“I think the high prices will stay that way as long as there is uncertainty about world currency,” he said.
According to certified financial planner Steve Marbert, with Richard Young Associates in Augusta, MacNeil is right on track.
“Debt issues in Europe and the U.S. have increased interest for sure,” Marbert said. “As long as these debt issues are front and center, I think gold is probably going to remain strong.”
Marbert said most gold investors can be divided into two groups: speculators and those guarding against what he calls “financial Armageddon.”
Speculators, Marbert said, buy gold with the intention to sell it at a high point in the future. Other gold buyers, however, invest in gold as insurance against a financial disaster.
“There is a growing segment of people who are investing as a kind of insurance,” he said. “But overall, I would say most are really buying as speculators.”
Marbert said he rarely recommends gold as a part of his clients’ portfolios, but some people find comfort in investing in gold because of its value through the centuries.
“When people think of protecting themselves financially, they go to gold,” he said. “It’s definitely unique.”
While the price of gold probably won’t significantly drop soon, Marbert said you can just never tell.
“Momentum is definitely behind gold staying high,” he said. “But there’s still risk there.”
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