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Gold Prices Reach Record High

By Rachel Ousley

Story Created: Jul 19, 2011 at 6:23 PM MDT

Story Updated: Jul 19, 2011 at 6:23 PM MDT

Gold prices have reached a record breaking $1,600 per ounce. Plus experts are expecting the price to climb another hundred dollars before the end of the year. Other precious metals such as silver and platinum are also rising in value, while other commodities are decreasing. Analysts attribute the changes to the debt crisis. People are losing faith in the value of a dollar and gold is becoming more attractive.

During hard economic times people are finding ways to make extra cash through selling old jewelry. This is especially common now that the price of gold is at a record high. Roughly 14 grams of sterling silver is worth about $15. If you sold it to a jeweler or pawn shop you would probably get about $10 for it. However, the same weight in 14 karat gold is worth over $350 dollars. A store you probably buy it from you at $200. Jessica is the Manager at Pawn-A-Rama in Great Falls. She says with the rise in the value of gold, the store is seeing a lot more gold buyers from out of state.

Counting for inflation, the price of gold after the spike in price in the 1980's was higher. However, this is the highest dollar amount ever for gold. Daryl Rogers is the owner of Rogers Jewelers in Great Falls. He says it’s quite scary how gold has doubled to tripled in price in just the last year.

Many people think the price of precious metals is rising because of the debt crisis. Rogers says the main thing is inflation. The American dollar is getting weaker with the debt crisis and American spending. Jessica from Pawn-A-Rama says, “money and stocks have gone down, but gold and silver have never been worth flat zero”.

Many currencies are backed in gold. Its value changes almost every day, but most believe gold will at least remain more stable than the dollar. Jessica says, “gold will never lose its value”.

Other metals are also becoming more popular with rising gold prices. Jessica says in her opinion, there is more interest in titanium and other metals trying to replace gold because gold is too valuable. Rogers says that the trouble is, thought, that gold is sturdier than other metals including silver. Gold will last longer under heavy wear and tear and secure stones better.

It is a great time to sell gold because of its high price, but it’s also a good time to make investments in gold since it seems to be gaining in value. Jessica worries that in the near future fold will be hard to find and further down the road she fears gold will truly be rare by the time she has grandchildren.

Rogers has seen a slight decrease in people buying gold while the price is high. However, his business will likely continue to be strong because of his other lines in silver and stones. For now the debt crisis and the jewelry business are closely tied.

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