Gold Prices Hit the Roof as Stocks Head for the Basement
The volatile economy has resulted in gold prices reaching record highs.
With the stock market drop yesterdy, the value of gold soared reaching historic highs of over $1,700 per ounce. At close of market yesterday, the value of gold was marked at $1,744.70 per ounce, according to kitco.com.
“Precious metals keeping increasing because the dollar is so weak,” said James McKale, manager of Sabre’s Fine Jewelry in Collegeville.
McKale said the value of gold definitely climbed a lot today, and only a few days ago it was around $1,650 per ounce. He said the value was only $450 a few years ago and has been steadily increasing.
McKale said the increased value of gold has greatly affected his business. He said more people are selling their gold rather than buying, so his sales have dropped “drastically.”
According to McKale, this has been a trend since the market dropped in 2008, and with the market remaining unstable, people want to invest in something more stable than the stock market.
He said the value of gold, however, makes it difficult for his business to manufacture jewelry. The cost to make something today costs as much as it would have to sell it for retail value a few years ago, McKale said.
McKale said the gold market is unpredictable, so it’s hard to say when the value will stabilize. He said even the experts had thought it would’ve leveled off by now. He said until the economy turns around, gold’s value will likely remain unstable.
Lance Ginsburg, manager of It’s Sold Here, Inc. in Willow Grove, said he thinks the value of gold will continue to climb.
“No one wants dollars; no one wants our money,” he said.
Ginsburg said he had more customers than usual come in to sell gold yesterday, bringing in expensive coins and jewelry. He says his company sells goods on eBay and helps customers figure out what solution works best for them—even if that doesn’t result in the best profit for the company.
According to Ginsburg, depending on the product, it can have more value on eBay than it would being sold as scrap. For example, he has a watch from his grandfather that was worth $300 as scrap, but after having it fixed, the gold watch is now worth more than $1,500 on eBay.
FH Gold Buyers in Norristown has seen an increase in people selling gold over the past two weeks, said manager Hector Melendez.
Melendez believes the increase is because FH Gold Buyers will pay more than other stores for the gold, offering 93 percent to 95 percent of the value. He also said he believes the value of gold will continue increasing until the economy stabilizes.