MEDFORD, Ore. — What goes up must come down.
The skyrocket of the price for an ounce of gold in the 2000’s had some people digging through their jewelry boxes for anything they could part with.
With the price of gold falling more than 20 percent since its peak in 2011, the trend now is starting to shift to buying gold and not selling it. Owner of Father and Son Jewelry, Bob Galas, has seen prices for an ounce of gold rise and fall during his time at his downtown Medford store.
“When gold was up to 16, 18, $2,000, things were tight, people didn’t want to spend the money. With the gold coming down now, it’s more affordable. Guys can get their gals gifts and end up getting the wedding bands they wanted,” Galas said.
The price for an ounce of gold steadily climbed year after year in the 2000’s, reaching a peak around $1,900 in 2011.
Since the then, the price has begun to slide including a $140 one-day drop earlier this month – the steepest one-day skid since the 1980’s. Investment Consultant Douglas Armstrong at Armstrong Wealth Management says gold can do well, even when the market is extremely low.
“Gold historically is good in inflation, as we talked about, and also for crisis, if the world has financial upheaval, gold tends to do well in those environments,” Armstrong explained.
Galas said he, like his customers, prefers the price of gold to be low because then more business typical comes through the door.
“If you can buy the goods at a lower cost and still have your same percentages, then the customer makes out and it’s a win-win situation for everybody. They may even buy two pieces of jewelry instead of one,” said Galas.
Analyst believe $1,300 is the number gold must stay above to maintain a healthy outlook. Tuesday gold finished the day up more than four dollars, finishing at $1,476.40.
Armstrong Wealth Management is an independent firm with securities offered through Summit Brokerage Firm Services Inc. Member FINRA SIPC.