Gold prices soar to new levels as investors cash in

Gold is turning to green for an increasing numbers of investors and individuals.
With political unrest and renewed talk of another recession at home and confidence-shaking economic events occurring worldwide, more people are turning to gold as a stabilizing factor — selling it to generate funds or buying it to help allay their fears for the future.
The end result is a skyrocketing price of gold, which closed Friday at $1,648 an ounce after hitting a record high of $1,663.40 an ounce earlier in the week.
International Gold, Silver and Diamond Buyers, a Springfield, Ill., company, had representatives in Lafayette last week buying precious metals and other items from willing sellers.

“They say, ‘There’s no use in letting the stuff sit around.’ Usually it’s broken necklaces, mismatched earrings and rings that nobody wears,” said Kort Brashear, a company manager. “We’ve seen a fair amount. We’d like to see more.”
Last week in Lafayette, Brashear had paid to buy jewelry that contained gold. He also purchased an original Barbie doll for $900.

Chad Ramsey, a manager at RamZ’s, a Lafayette store that buys and sells items that include jewelry, coins, antiques and collectibles, said the federal debt ceiling debate that recently played out in Washington, D.C., has helped generate brisk business with buyers and sellers of gold.
“With the recent political event, it really puts thoughts in people’s minds about what the dollar is going to be doing. Some people are thinking, ‘I want to make money off this,’ and they’re storing gold and silver,” Ramsey said. “Some people are selling because they’re thinking they bought it years ago so they’ve already made a profit. They’re reinvesting in other items.”

Amid some commodities advisers’ speculation that the price of gold could blow past $1,800 an ounce, Ramsey said he can lament not accumulating more of the precious metal when the price was much lower.
“If I’d known back in the day. … I think that all gold and silver will continue to rise,” he said. “I could see $2,000 (an ounce). It wouldn’t surprise me to see $2,500. We just don’t know.”
Brashear said he agreed that the future price of gold is unpredictable. “I wish I could forecast the future When the economy keeps going bad, precious metals go up. Right now it’s just anybody’s guess.”
International Gold, Silver and Diamond Buyers evaluated and purchased items brought to the Best Western Lafayette Executive Plaza and Conference Center in Lafayette.
“We hope to spend at least $200,000 while we’re in town, purchasing people’s old coin collections, vintage bank notes and scrap gold, silver and diamonds,” said company spokesman Ron Smith. “Just a small handful of gold can add up to hundreds of dollars very quickly.”

Article source: http://www.jconline.com/article/20110808/NEWS/108080325/Gold-prices-soar-new-levels-investors-cash-in?odyssey=mod%7Cnewswell%7Ctext%7CFRONTPAGE%7Cp