Consumers increasingly opt for gold coins over paper money
With the American economy in flux, a growing number of investors are turning to gold items such as coins to protect the value of their assets, reports the New York Times.
The price of the rare metal reached a high of $1,424 per ounce on Tuesday. While the value of the dollar has declined 6 percent over the past two months, gold has risen 17 percent. According to gold investor Abhay Deshpande, the rising interest in gold shows that there is something amiss with the economy.
“People are coming in to buy 50 or 100 coins at a time, which is pretty hefty for individuals,” Mark Oliari, chief executive of CNT, a Massachusetts coin broker, told the source. “It’s not just rich people, either. A lot of people are putting 30 to 35 percent of their net worth in gold; they are scared to put money in paper assets.”
While many consumers are putting more money into gold, they still need to be careful about who they purchase their coins from. The Los Angeles Times recently reported that a growing number of fly-by-night dealers are setting up operations in hotels and other temporary offices to take advantage of unknowing gold buyers.