KTVN Channel 2 - Reno Tahoe News Weather, Video - Is the Gold Bubble About to Burst?
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Monday gold traded at $1,056 an ounce. That growing value has a lot of people dealing with the precious metal.
Some are cashing in on scrap gold and broken jewelry, others are investing in coins and bullion.
Experts say keep it all in perspective. "A lot of people are hurting right now and are trading in what gold they have just to pay bills or buy groceries. This economy is effecting everyone," says Rick Landrus, owner of Horseshoe Jewely and Loan in downtown Reno.
He says business is strong for him but right now, more people seem to be selling than buying. And he makes his money on sales. So he even finds himself lowering prices to keep up.
A few streets away, Silver State Coin and Bullion has been doing record business for more than a year now.
Not only are older investors selling off gold, younger investors are picking it up monthly. "The thing about gold is it's not an investment," says owner Tony Mithcell. "Gold is your insurance policy. If everything else becomes worthless you have the gold. But people buying gold these days should be banking on the idea it will go down in price. It's there if you need it but you're hoping the other investments recover."
He adds people who can't afford gold are buying up to $30,000 dollars on a credit card which is not the way to view gold at all. "It should be a portion of your portfolio, not what you intend to depend on. And you should be balancing that at about 10% of your total. Be smart and it can pay off for you either way," Mitchell says.
