All that Glitters…

Posted by Elizabeth Halpern | Posted in Credit Report | Posted on 17-10-2010

“No gold-digging for me… I take diamonds! We may be off the gold standard someday.” So said the platinum-haired actress, Mae West. Although Ms West may have had the right idea, today’s gold prices are hitting an all-time high. Although it has taken 140 years for gold to double its fixed price from 1834, gold prices have quadrupled during the last decade and investors are, once again, seeking their fortunes in that fickle yellow metal. First, a few facts about ‘au’ (gold’s chemical symbol, if you were wondering); 

  • From 1834 to1933 –  the U.S. adopted a fixed price of $20.67 in 1834, remaining largely unchanged until 1933 when President Franklin D. Roosevelt nationalized the gold owned privately by U.S. citizens.
  • August 1971 – the U.S. announced it would no longer convert dollars to gold at a fixed rate, allowing the value of the dollar to float and gold prices to rise.
  • January 1980 – growing inflation, rising oil prices and increased tensions with the Soviet Union led to rising prices for precious metals around the world.
  • September 2001 – the price of gold dropped until the September 11th terrorist attacks, when it started a $1,000 increase over the next nine years.
  • October 5, 2010 – gold hits $1,338.90 per ounce.

(statistics: Chicago Tribune, Business, 10/6/2010)Gregory Karp, author of Sold Gold in the Tribune, writes that “the behind-the-scenes gold business directly affects what you’ll be paid for your unwanted gold jewelry and coins, as well as what you’ll pay when you buy products with gold in them…jewelry, cell phones, dental work.”If you are planning on selling your unwanted gold coins or jewelry, you should get several price quotes; plan on receiving 60% to 80% of scrap melt price (currently $1,596/ounce). Remember, prices are based on 24 karat (pure) gold; your jewelry is probably only 10, 14 or 18 karat gold. Although shopping center kiosks, online and television businesses may sound attractive and be convenient, they may pay far less than a trustworthy jeweler, coin dealer or pawn broker. Be sure to get paid for any precious or semi-precious stones in your pieces.If you are experiencing mounting credit card and mortgage bills, you may be hoping to sell your gold to make some payments. However, that is probably a stop-gap measure, at best. If you are considering filing Chapter 7 or Chapter 13 personal bankruptcy protection, contact the knowledgeable and experienced bankruptcy attorneys at Legal Helpers. When you call 800-260-1402 for your initial free consultation, stop into one of 100 offices across the country or log onto www.legalhelpers.com, you can begin the journey to financial freedom.

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