Gold prices hit a record high of $1,900 an ounce in the last week of August, but with wild swings in the stock market and an uncertain economy, should you be investing in this precious metal? What about grandma’s old gold necklaces and gold jewelry handed down through your family, is it time to sell them? We have prepared some tips and advice on investing in gold.
Why the Rise in the Price of Gold?
Gold is like this universal currency, it’s good everywhere not just like the dollar here, it can be accepted in every country around the world. When people are afraid they think inflation and other economic woes which prompts them to invest in something they think is solid, secure, or a sure thing. So when you see gold prices going up it means people are afraid.
If you look at the one year history of gold prices in August 2010 and now in August 2011 it is a significant jump in value. So now is a good time to invest in gold, If you’re not old and don’t need income from your portfolio, you should have a little gold in your investment portfolio, about 5% to 15% of gold in your portfolio. Don’t forget this will not kick off any income for you, it’s more of a long term investment, you have to have to time to hold it and don’t go hog wild in buying either.
What about pieces of Gold you have around the House?
If you have bracelets, necklaces, and other gold jewelry you are looking to sell you have to be careful. Some people think that I have a gold jewelry that weighs an ounce, that is $1,900! But gold isn’t sold like that, remember if you have a 14kt gold bracelet it’s only comprised of 58.5% gold, likewise 18kt is 75% and 24kt is 100%. You also want to get your gold jewelry appraised by different persons before you decide you decide to sell, this will give you a good idea of what you can expect to get for your gold.