Rising prices have people panning for gold

Font Size:
Default font size
Larger font size

FARGO (AP) - With gold futures soaring, more people are digging in their drawers to find old rings, necklaces and even teeth to sell.

Brad Wimmer says he thought nothing of it when a customer brought eight rings into his Fargo jewelry store recently, along with a gold tooth.

"It's a little funny, but it happens," he said.

The price of gold has jumped nearly 20 percent since the start of the year after rising nearly 32 percent in 2007, the result of a weaker dollar and record-high crude oil prices.

Gold recently hit a milestone, rising to $1,000 an ounce for the first time in futures trading.

The impact is "huge" for jewelry stores, Wimmer said. For example, he said, a gold wedding band that once cost $300 is now as much as $600. Still, business is not slowing.

"People are still getting married," Wimmer said. "As the gold goes up, people don't stop buying."

The current price of gold does not match the all-time high of $850 in 1980 if inflation is factored. An $850 ounce of gold then would be worth $2,177 in today's dollars.

Treasure Island Coins owner Greg Olson said the past few months have been as busy as 1980, with customers buying and trading gold items. The business continues to get old dental work from customers looking to exchange gold for money, he said.

"We have to bust the teeth out. We don't buy teeth," Olson said.

Print Email

/news/state-and-regional
 
Sponsored by:

Connect with Us