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Investors Turn To Gold Amid Wall Street Worries

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Gold items are seen for sale in the Diamond District of Manhattan. (Photo by Mario Tama/Getty Images)

Gold items are seen for sale in the Diamond District of Manhattan. (Photo by Mario Tama/Getty Images)

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NEW YORK (CBSNewYork) — With all the ups and downs on Wall Street, demand remains strong for safer investments, especially gold. But is it the right investment for everyone?

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Gold closed up nearly $30 Tuesday, finishing at $1,769 an ounce. It was the first time the price fo gold has ever broken the $1,700 mark.

Related: Complete Stock Market Coverage from CBS Money Watch

“We’re seeing investors flock to it for a safe haven and right now, investors feel like it’s prudent to have 15 to 20 percent of their portfolio in gold,” explained David Beahm, vice president of economic research with precious metals dealer Blanchard & Company.

But Tim Hanson, head of global equities research at Motley Fool, isn’t ready to join the gold rush. He recommends buying low-cost stocks.

“The great thing about money, the very powerful thing about money, is that it can compound,” said Hanson. “Gold has trouble compounding where a great company compounds very easily.”

But the news that gold has hit an all time high, people have been pouring in to stores looking to cash in on their old gold jewelry.

“Right now, it’s a gold rush. “Ever since gold topped $1,500, it’s been a frenzy,”
said Barry Fixler of Barry’s Estate Jewelry in Rockland County.

But if you are investing in gold, Hanson warns be wary of scams.

Experts advise sellers to deal with established buyers, get multiple estimates and be sure you are not sentimentally attached to your gold.

Are you investing in gold? Let us know in our comments section below…

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