Friday, January 18, 2008

Weak dollar creates a gold rush

Carl Heartfield has seen an increase in traffic through his store, Heartfield's Fine Jewelry and Rare Coins, 3420 Calder Ave., in the past week.
Maybe the sign outside telling customers to come inside and sell their gold jewelry helps.

The fact that gold futures settled at $897.70, a new record, on Friday, according to the Associated Press, probably did him a bit of good as well.

"This is a very large stimulant to our line of business," Heartfield said. "A lot of people don't realize how much (gold) is worth at this point."

When adjusted for inflation, The Associated Press reported that gold still is below its all-time high of $875 an ounce in 1980. An ounce of gold at that price in 1980 would be worth $2,115 to $2,200 today.

"Usually what high gold prices are associated with are a weak dollar and when the value of the dollar falls then gold goes up," Jimmy Moss, chair of the economics and finance department at Lamar University said. "They move hand in hand in that way." . . .

Full story at: Link

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