Price of Gold Breaks Record High

The gold market in Sarasota is hot.

“It’s a good time right now for people to sell their gold,” said Rich J., Manager at The Gold Rush Store, 1901 S. Tamiami Trl. "We have definitely noticed an increase [in sales]." 

Nationally, demand has driven the price of the commodity to record-breaking highs. Gold reached $1,800 per ounce Aug. 10. In summer 2008, it traded for $900 per ounce, according to The Associated Press.

Historically, if a country’s economy crashes and its currency loses value, gold is the next likely medium for bartering. Although the U.S. economy is nowhere near that point, gold and silver serve as reassurance for people who would rather not invest in stocks or U.S. dollars.

“The price goes up because the dollar is going down,” said Jim Garland manager of the . "Our government not taking action like they should be ... they have uncertainty in their dollar bill.”

Art Huprich, technical analyst at Raymond James in St. Petersburg, said a number of factors have caused the spike in price. 

Those factors include: fear of a global slowdown or financial crisis like the one in 2008, devaluation of the dollar and the Federal Reserve keeping interest rates low.

“Gold is a safe haven,” Huprich said. “Gold has outperformed stocks for the last 10 years. ”

But choosing to buy gold right now presents a timing issue.

“At this point, it would have to pull back in price before I believe our strategist would say to buy it,” Huprich said. It’s more profitable to buy low and sell high.

Nationally, interest in gold has been increasing. The trend has been so strong that eBay now has a separate section on its site for buyers and sellers of gold and silver bullion. At the Bullion Center, users can choose between bars, rounds and coins of gold and silver.

Local merchants' tips for selling gold:

• Watch out for scams; don’t mail gold in an envelope to someone you haven’t met.
• Try to figure out what you have before you sell it; that way you know you’re getting a fair deal.
• Know the purity and the mass of the gold you’re selling.

Shop around to different dealers for a good price.