Is gold losing its shine? Price dropping, but Lincoln experts say not to worry
LINCOLN, Neb. (KLKN) – With inflation continuing, many people are wondering what investments they can make to keep their money safe.
Gold has often been promoted as a safe investment that holds or even increases in value during a recession or high inflation.
But this may not be the case now, as the value of gold has dropped from about $2,075 per ounce in March to about $1,620.
Wilson Lin of Lin Jewelers in Lincoln said this drop might actually be a good time to buy gold and other valuables at a discounted price, especially if you’re looking for cheap jewelry.
“You gotta remember, we have 7 billion people on this planet, and everybody is using gold,” Lin said. “Gold is the most flowing precious commodity.”
He said the drop in gold prices is not a huge problem to worry about since the overall price has risen greatly over the past 20 years or so.
“Twenty years ago, it was like, $600, $800 an ounce, and now you’re talking about $2,000 or $1,800 in an ounce,” Lin said. “So, if you see gold price dropping, don’t be panicking, don’t be surprised, it’s OK. A little like a market adjustment there, and then it should go back to normal.”
According to Eli Mardock, a financial advisor at Stonebridge Insurance and Wealth Management, gold is just one of many commodities that have slumped recently.
He said everything from copper, aluminum and cotton is declining, so it can be hard to know where to invest to still make a profit.
“I think in times like this, it’s been a really messy investing environment this year,” Mardock said. “You know, the market’s down 23% overall. But generally, what’s important is that people sort of stick to their plans.”
Mardock said with the dollar surging right now, currency is less stable and prices for commodities are adjusting, but this doesn’t mean you should panic sell all your investments.
He said talking to a financial advisor can act as a buffer to keep you from making an emotional decision.
“What tends to happen is you have someone who has an investment, and they panic, and they end up buying when it’s high and selling when it’s low,” Mardock said. “And then they question why they never make any money in the market.”
He said if you want to make money during this time, you should try to cut out things like subscription services and vacations, while diversifying investments in consumer staples like paper products or energy if you want something safer than gold.