5:56 am November 12, 2009, by Henry Unger
So much for predictions about gold prices.
The price of the gold hit a record $1,119 an ounce on Wednesday — confounding market analysts who thought there was no way gold would remain so expensive when it first cracked the unheard-of $1,000 mark last year, the Associated Press reports.
The remarkable run has implications far beyond savvy investors. In New York’s diamond district, more people started showing up late last year to sell their gold, and the crush hasn’t let up, Anthony Iannelli, owner of Iannelli Diamonds, told AP.
“They’re bringing in jewelry from the ’70s and ’80s they don’t wear anymore,” he said. “They’re following the news and see prices are high. They realize they have a little cache, and want to take it out of the vault.”
Typically, gold is a safe place for investors to park their money, not something they buy to make money. But this time, investors are buying gold to protect themselves against the falling dollar.
Currencies are weak investments around the world because of record-low interest rates.
So gold has become particularly attractive to investors, who have pushed prices up 7 percent this month, and 26 percent for the year.
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