More people buying gold and precious metals
Arizona Coin Collector
http://www.ktvb.com/news/business/stories/ktvbn-oct1508-buying_gold.1162af26d.html
Business News
More people buying gold and precious metals
12:24 PM MDT on Wednesday, October 15, 2008
BOISE -- It should not come as surprise that lately pawn
and trade shops have seen a burst of activity as more
people become interested in buying and selling precious
metals - specifically gold.
NewsChannel 7 talked to one coin shop owner Tuesday,
along with a financial planner to find out more about
this trend.
Local trade shops say over the last few months their
business has actually been quite steady with buyers
and sellers hoping to turn gold into green.
The Rose Hill Coin Shop in Boise has been busy with
people looking to buy or sell precious metals such as
jewelry and coins.
"They don't feel their money's safe anymore. They
feel that they'd rather take their money and put it
into gold or silver," said Dan Brady, owner of Rose
Hill Coin Shop.
Brady says historically people have turned to gold
and silver as a safe haven in tough economic times.
"It's a secure place to put their money until things
get better again," said Brady.
Just recently Brady had a customer who traded in part
of her retirement savings for something she felt was
a better investment.
"She had a significant amount of money in a mutual
fund and she didn't trust, probably the underlying
stocks, but mostly the company who was holding her
money. She actually had brought in a check from the
investment company made out to her that she gave me
for gold and silver," said Brady.
Dave Petso, a local financial planner, says he's not
surprised people are looking for a quick way to
liquidate their goods for cash, but he cautions people
who are thinking about changing their long-term
investment plans in exchange for precious metals.
"It's a scary time. People have lost money in their
retirement accounts, but the market has done this
before and it will bounce back again and to make a
radical change now is succumbing to that fear and it
diminishes their investment results over time,"
said Petso.
But even if people are looking to buy gold right now,
Brady says they are left with fewer options.
"A lot more people buying than there are people
selling," said Brady. "If there is anything to buy,
you can't be very picky because supply is very tight."
Brady said there are a lot of sellers who are taking
advantage of the situation and adding on huge
premiums when selling gold and silver.
It pays to do your research to find out what
it's worth.
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