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Gold prices soar to nearly $1,000 an ounce

March 13, 2008 12:00:00 AM PDT
For the first time in history, gold prices hit a new landmark Thursday.The high price is good news for investors, but not such great news for consumers.

Jeff Rosen, owner of J.R. Jewelers in Sherman Oaks says he has never seen the price of gold jump like this in his career.

"People that bought engagement rings months ago have come back to buy wedding bands. Because this is wedding season they are finding that the price of the wedding band they had anticipated to be $700 is now approaching $1,000," said Rosen.

With gold prices soaring to nearly $1,000 an ounce, that old watch or forgotten pair of earrings you might have could be exchanged at a jeweler or wholesaler for cold hard cash.

Rosen says he is seeing more and more people come in to cash in.

"A lot of people have been going through their jewelry boxes grabbing whatever scrap pieces of metal that they have and coming in to try to sell it to take advantage in the appreciation of price," said Rosen.

This rush is happening all over the country.

Jewelers in New York are soliciting sellers. Although there isn't one official explanation for the spike in gold, many analysts say the mortgage crisis, gas prices and the weak dollar overseas could be to blame.

But Rosen says although it's a good time for people to sell it's a bit of a bad time for business.

"Commodities have generally escalated enormously the price of diamonds has also gone up. The quantity and supplies of the better quality stones is restricted. So prices across the board have gone up," said Rosen.

Jewelers say that consumers that are in financial situations are bringing in old jewelry to help pay their bills.

 

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