Cash for Gold as Prices Soar

The gold rush is on. Just ask local gold merchants, who are ecstatic about the golden lining in this cloudy economy.

“It’s almost fever pitch,” said John Cline, owner of . “It seems like the canary in the coal mine, to some degree.”

Demand for gold is driving the price to record breaking highs across the nation. Gold reached $1,800 per ounce Aug. 10. In summer 2008, it traded for $900 per ounce, according to The Associated Press.

Investors holding gold will benefit the most, with even ordinary people who own expensive gold jewelry or heirlooms turning to their local pawn shops for some easy cash in hard times.

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.

“This is indicating that other sectors are failing or are so volatile that people don’t want to invest there,” Cline said.

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

They 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.

But the higher prices may drive some people to sell the gold pieces they own. What was a treasured heirloom may be result in quick cash during hard times.

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.

Sgt. Tom Nestor, spokesman for the Pinellas County Sheriff’s Office, said he has not noticed spike in gold theft. But he did have advice for gold owners.

“I wouldn’t advise people not to be hoarding large amounts of gold in their houses unless they have security systems in place,” Nestor said.

He said gold owners should probably get a safe deposit box at a bank, especially if they spend a lot of time away from home.

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.

Places in St. Petersburg to pawn your gold for cold cash

Gold and Diamond Center
• 727-896-3000
• 222 37th Ave. North

• Cash America Pawn
• 727-866-7601
• 3805 34th Street S.