For the first time, the price of gold has topped $1,700 an ounce. And, as more people jump into gold, the price keeps going up.
At the American Bullion in Brentwood, broker Kirill Zagalsky said they’re getting a high volume of calls from people wanting to convert their IRAs.
“For your retirement, would you rather be tied to the U.S. dollar, which is continuing to depreciate near (a) three year low (or) at the end of the day when you look a the risk to reward associated with the economy versus owning a piece of gold, it’s overwhelmingly in favor of gold,” said Zagalsky.
As the dollar drops in value and the stock market scares off investors, gold becomes more appealing, even if its price is up $200 from a month ago.
“When you look at gold you’re talking about basically a currency that the government can’t print more of, ” said Zagalsky. “The demand for paper currency is starting to falter, there’s more of it, it’s worth less, and on the other end you have gold, which continues to rise.”
The question now: How much longer will the price of gold continue to rise? Advisers at the American Bullion say it’s all about who’s investing.
“Over the last thirty days, demand for gold specifically from investor demand, has accounted for about thirty percent of last year’s entire demand…so you’re talking at record prices, investors and institutions are still buying at near record levels,” said Zagalsky.