Investors Turn To Gold Amid Wall Street Worries

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?

LISTEN: WCBS 880’s Marla Diamond reports

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…

  • Kent Waterman

    Read your FINANCIAL TIMES, people. Gold today in CPI-depreciated bucks is selling for less than $400/oz in actual value-similar currency. The Chinese know this, they’re buying hand over fist. You don’t. You just don’t believe that at $1769/oz. (8-09-11 close) your dollar is buying so very much less. Today’s buck buys 1-cent worth of goods, vs. a dollar’s worth of 1915 goods. We must get back to a gold/silver-backed currency. It’s the only way out of constant depreciation caused by irresponsible politicians, from FDR to Obama. . .

  • Realist

    Yes, yes it will continue to go up long-term. Equities are going down.

  • diver

    How to make $ in the market buy low and sell high. How you find gold a good investment when it’s at an all time high is beyond me. Sure it could go up but will it?

blog comments powered by Disqus
Charles Osgood Event

Listen Live