SPRINGFIELD, Mo. — With Americans waiting to see the end of a trade war with China, there has been big movement on the price of gold in the United States.
The price of gold has been rising over the past few years, but this year has been one of the best ever for the precious metal.
Right now, an ounce of gold would run you about $1,500 dollars, which is the highest it’s been in about five years.
But like many aspects of the economy, its future is unstable.
The price of gold, as you can imagine, is a big part of what many jewelers do.
Cornerstone Fine Jewelry Office Manager Marshall Davidson explains what they look for when someone wants to come in and sell.
“We are looking at it by the purity of the metal, what metal is it, how pure is it, how much does it physically weigh.Then, we give you a price based on what we need as far as recycle. We are looking at sending this off, and basically refining it,” says Davidson.
According to CNN Money, the price of gold currently sits at $1,498.50, up over 20% from this time last year.
“We have seen a lot more people come in to sell gold, and we have adjusted our payout prices accordingly. Somebody brings in an ounce of gold, we aren’t going to give them $1,500. We try to stay at a certain percentage pretty high up there,” says Davidson.
Certified Financial Planner Stephen Evans says many people are buying up gold right now due to the state of the worlds’ economy.
“A lot of the reason gold has kind of been going up is that throughout the world, there is like $17 trillion of negative yielding debt out there. So people are looking for a safe haven to put their money, where they can earn something. Gold is typically known as a safe haven,” says Evans.
Evans says history has shown that gold can be just as volatile as the stock market.
“In 2008, it shot up all the way to $1,800 and fell to $1,000. There (are) no dividends in gold. It is all what people think it’s worth. It’s not like a company that has profits, and you can see it’s financials. Gold has no financials. It is percieved value of what people think it’s worth,” says Evans.
Analysts at CITIGROUP predicted that gold prices could hit $2,000 an ounce in the next couple of years, but those prices can change quickly.
Gold prices lost about a quarter of a percent Tuesday, but it is still up about 23% on the year.