Is Now the Time to Sell Your Gold?

With gold setting new highs do you sell or keep?Gold hit a new record price of more than $1,500 an ounce on Thursday. Economists say the recent strength of the precious metals market shows that investors are looking for a safe haven for their money as they worry about inflation, the strength of the dollar, oil prices, and shocks from Europe, Japan, and the Middle East.

Gold tends to be an economic indicator: The worse the economy is doing, the higher the price of this age-old commodity.

"When gas goes up, we expect calls. When the dollar goes down, we expect calls," says Jose Caba, who works with U.S. Gold Buyers, a refinery operation in the heart of Manhattan's jewelry district on 47th Street. The company -- one of many that advertise online -- does most of its business through sellers mailing in their gold items from all around the country. The refinery melts down the gold it buys into bars, which it then sells to specialty chemicals company Johnson Matthey.



While $1,500 an ounce is a new zenith for the shiny metal, is this the top? Gold's track record says maybe not. It has gone up every year since 2001, and jumped in price more than 25% in the last 12 months. It has gained 5.8% since the beginning of 2011, according to The Wall Street Journal.

In the small, windowless office that is the headquarters for U.S. Gold Buyers, Caba spreads out various pieces on a desk. An old suit-pin with the name "Vilo" in script, a shamrock tie pin, a pendant that says "Give Me A Break." It's a typical mail-in package, he says. While each piece is only a few grams, they can add up to hundreds of dollars for sellers.

Gold bubbles come and we go, including one in April 2010 that also sent buyers and sellers to market. Under normal conditions, Caba estimates his company receives between 200 and 250 overnight packages a week. Recently, he says that figure is around 400 or more.

"We see everything from rings, teeth, jewelry, pins and lighters. Everyone has a little gold somewhere," he says.

Other reports from gold buyers, pawn shops and jewelers around the country also show a bump in gold sales -- and price increases in everything from new watches to wedding bands.

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Vittorio

Every body needs to wake up. Those who blame the President for our financial problems, are simple minded and blind, leading the blind. The entire world economy is in trouble. Look at Europe, and don't put too much into China. Yes they have a booming economy but everyone knows the real reason why. But as long as it's going up we will try to make a buck.

President Obama is not president of the world, yet world finances are in trouble. The republicans were in charge for 8 years and the tax breaks to the rich did not bring us prosperity nor will it in the future. We the little people have ourselves to blame. we don't want taxes, but we want everything.

The Republicans play on this only because they Repesent the rich, and are most likely rich themselves or "well off". Had we all just accepted small tax increases in past years, we would not now be requiring crushing tax rates needed to pay for the years of excess. This Baby boom Generation will pay for their excesses in their old age, and expect the young generation's that they have robbed to take care of them.

So cut the rhetoric and take some of the pain for our doing now, and spare our children and grand children the pains that we plan on leaving them.

May 15 2011 at 11:00 AM Report abuse rate up rate down Reply
map1246

Under Obama the number of poor people has reached its highest level ever. Obama loves poor people so much he wants to make us all poor.

May 01 2011 at 8:20 AM Report abuse +1 rate up rate down Reply
theteleprompter

teating 123

April 30 2011 at 9:12 PM Report abuse rate up rate down Reply
John Dough

Robert & Lisa, that's a freaking ignorant lie, shame on you for spreading such garbage, are you cons so desperate that that's all you have left? Pathetic, just pathetic.

April 30 2011 at 8:37 PM Report abuse -1 rate up rate down Reply
1 reply to John Dough's comment
icemanbill23

Not pathetic at all...what do you think the phrase "too big to fail" is all about, John?..Quite simply, it's welfare for the wealthy! The truth always hurts..among other things your man Obama is a tool for the rich elite! Time for you to dump your progressive liberal ideology and join the majority of patriotic Americans who will rise up and bring real "hope and change" to this country.

May 01 2011 at 1:31 AM Report abuse rate up rate down Reply
Robert & Lisa

Our poverty rate has almost doubled since Obama has taken office. His real re-distribution of wealth was not from the rich to the poor, but from the poor and middle class to himself and his corrupt ultra rich friends. SUCKERS!!!

April 30 2011 at 6:04 AM Report abuse +1 rate up rate down Reply
Robert & Lisa

The dollar is going down so better hang on to your guns, gold and religion because the government will be trying to take them away from you soon. Why is this you ask? The ultra-rich like the movie stars and George Soros are pushing us into socialism where they control all of the wealth and power and we are their poor slaves. Want an example? Look no further than Mexico who is the largest silver producer in the world, but 99% of the people live in poverty, yet the richest man in the world is a Mexican. That is what Obama and Demoncrat backer-puppet master George Soros is doing to us.

April 30 2011 at 6:01 AM Report abuse +1 rate up rate down Reply
byte312

I keep reading the word "bubble" however the price of gold has been rising against the dollar ever since the gold and silver standard was removed. The dollar which is not backed by anything, does not rise in value except for short periods of time and in respect to foreign currencies. If you look at the long term charts for gold silver and the dollar you will get the true picture. The dollar will decline while gold and silver hold thier value. The price of gasoline is still the same in terms of how much silver it would cost to buy a gallon. There are wealthy people who do not want you to understand that the dollar you are earning is essentially worthless. When enough people earn nothing but worthless paper, what the rich have is really cheap labor and greater riches. The amount that we owe China should force the value of the dollar down about 50% from where it is now. If a candy bar cost 10 cents as it did back in 1972 when the dollar also bought 2 gallons of gasoline, it might seem foolish to buy gold or silver. Going forward, a candy bar could cost $10 and a gallon of gas could cost $50. It may seem impossible to imagine but what ever happened to gasoline at 20 cents? Since the dollar is loosing value, why does it make any sense to invest the dollar in an account that pays 1/4 percent interest or in an IRA? Even if your dollar amount doubles, its value will be reduced to a fraction of what it started at. The dollar amount of your home mortgage will fall in value also. When $70 dollars buys a hamburger, fries, and a softdrink, you won't have much trouble paying off your home mortgage if you invested in gold and silver. If you do not invest in gold and silver, how will you afford a hamburger and fries?

April 28 2011 at 12:37 PM Report abuse +2 rate up rate down Reply
1 reply to byte312's comment
icemanbill23

What you say just seems like common sense to me, but for some reason many people refuse to accept the decline of the U.S. Dollar. Sentimental value I suppose? Your reasoning for purchasing gold and silver would not have applied back in the 80's when gold prices soared to an all time inflation adjusted high, but that was then and this is now. We are in "uncharted waters" and entering a "brave new world" where past history is no longer relevent. The "new world order" will be one that no longer respects the fading power of the U.S.Dollar!

April 28 2011 at 3:06 PM Report abuse +1 rate up rate down Reply
1 reply to icemanbill23's comment
icemanbill23

Furthermore...a 10 yr. comparison of the rise in gold prices to recent asset bubbles proves that gold is definitely not in a "bubble". The huge gold bubble in the 80's shows a striking difference when compared to the long term steady gains of the past 10 yrs. for gold.

April 28 2011 at 4:02 PM Report abuse +1 rate up rate down
martinsportraits

Yeah ..sell all your Gold ...if you are a complete idiot , wait until it hits 1800 ...To doubt Golds future is to have faith in the dollar or any other fiat currency and their collective endless supply printed like confetti....Good luck with that by the way!

April 28 2011 at 4:37 AM Report abuse rate up rate down Reply
jjjhk273

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April 26 2011 at 11:30 PM Report abuse rate up rate down Reply
desking9

The US dollar is being destroyed. It has been since Lyndon Johnson was President. Nothing has changed since then. We have had booms and busts along the way but the debt ceiling has always been increased every year leading to the destruction of the US dollar. More dollars printed but from many different sources since LBJ. Just relax and enjoy yourself while you can. Go out and have a good time, before you become a toilet jockey to some wealthy foreigner who wants to use the toilet in your casino. Maybe that's why there are so many casinoes opening up across America. Pennsylvania never had casinoes but now they have many. Just relax, enjoy yourself, have fun now while you can.

April 26 2011 at 8:15 PM Report abuse rate up rate down Reply