Gold prices soar, but don't sell yet says investor

Douglas Ho
Douglas Ho
Forest Knott
Forest Knott
Jon Langseth
Jon Langseth

By Tim Sakahara - bio | email

HONOLULU (HawaiiNewsNow) - It's being called Blue Monday, the sixth worst day in the history of the Dow Jones Stock Index. Today it nose dived more than 600 points on the first day of trading after Standard & Poor's downgraded the United States credit rating.

But not all investor's portfolios are red. Gold investors are more excited than ever as the precious metal set an all time high and it isn't expected to fade.

Ten years ago today gold was valued at $268 an ounce.  One year ago today gold reached $1,200 and people were thrilled.  Now it's above $1,720 and those in the know say it's not even close to the ceiling.

It's a beautiful thing if you have a lot of it like coin dealer Douglas Ho.

"In the monetary theory it's the ultimate form of money," said Douglas Ho, Classic Coins.

Three years ago we did the same story with him when, like today, stocks sank and gold spiked.  And back then gold's high was $875 an ounce.  If someone would have bought after that story they could have doubled their money.

"You're going to see even more historic days by the end of the year," said Ho.

If you did buy back then you may want to sit on it awhile longer.  Ho predicts gold will hit $2,500 by the end of the year.

"If you were in it and you don't need the money no it's not the time to sell, not at all," said Ho.

Some people are selling and gold buyers are busy.  A couple brought in more than 400 grams of gold to Secured Gold Buyers at Ward Warehouse and walked out with more than $11,000.

"It's not uncommon to see 10, 15, in some cases $20,000 in jewelry that some people just decide it's time to part ways with," said Forest Knott, Secured Gold Buyers.

If you do sell now the advice is to shop around.

"We encourage it. We absolutely encourage that. Shop around and come to the Gold Guys, we guarantee highest price," said Jon Langseth, The Gold Guys, Co-Manager.

"Nine times out of 10 we're seeing those same people back later in the day," said Knott. "When they sell I do ask them some of the prices they were offered and it's all over the board."

And just because gold is at a high not every buyer's quote is.

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