Rising Price of Gold

Gold has has soared to record levels rising to $1,000 an ounce for the first time. The price of gold has jumped nearly 20 percent since the start of the year after rising nearly 32 percent in 2007. The weak currency has also made gold more attractive because the metal is a hedge against inflation. Gold is perceived as a safe place to invest as John Waggoner mentions in his recent article on a golden opportunity. Global gold production has slipped by 6 percent since 2001, and analysts say current record prices are not expected to reverse the trend in the next several years. Gold could go up to $1,200 or $1,300 an ounce in the near future. It comes down to supply and demand, and the falling value of the U.S. Dollar. Foreign countries like China and Russia that are buying gold as opposed to buying the dollar. What does this mean for jewelry buyers? Fine jewelry prices may go up but gold holds its value so it is a safe investment. If you do not want to splurge on solid gold we offer gold-plated jewelry that is affordable and looks like the real thing.