Gold has always been and will always be the most popular investment, especially during tough economic times. When the dollar is weak, gold holds its value. When the dollar is strong, gold is still a competitive investment.

In November 2005, Motley Fool.com paired the value of scrap gold against the value of Google stock. They both had the same value of $700.00 at the time. Four years later, Google’s value was just over $300.00 and Gold was over $1000.00. While a bull market will result in such stocks outperforming the value of gold, when stock prices slip, gold will remain steady.

You may have noticed an increase in the sale of gold jewelry by people who are in need of money. With gold being valued at over $1000.00 an ounce, it is no wonder a person will sell a pair of old earrings in order to cover the heating bill.

Be forewarned however that selling scrap gold (spare earrings, class rings, and other items that cannot be resold) will not get you the full value of your items, especially if they have sentimental value. Therefore, anything less than 24K its not pure gold. The price will drop substantially for 18K, 14K and 10K items. These items are hardly investment pieces.

This entry was posted on Saturday, October 24th, 2009 at 1:21 am and is filed under Jewelry Info. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.