Nation’s Debt Talks Spur Desert Gold Rush
The stalemate in Washington over the nation’s debt limit has spurred a modern-day gold rush, and on Monday, as negotiations between Democrats and Republicans stalled and stocks tumbled, the price of per ounce of gold soared to $1,602.40 for August delivery.
On Monday, stocks dropped nearly 100 points, and these days, people are thinking practically, taking money out of savings and exchanging gold rather than saving in a shoe box.
Shirley Unger and her husband have been collecting gold coins for decades, but little did the Indio resident know that her hobby would turn a profit.
“Today? The price is $1,625 per ounce,” said Unger. “Yes, that’s a huge investment.”
The price gold shot up $12.30 per ounce since Friday.
Gold prices are up 12 percent this year, and co-owner of the Palm Desert Coin Company, Paul Dibble, doesn’t see that number stabilizing any time soon.
“Some are predicting it might go to $2,000,” said Dibble.
Unger recently sold a one-ounce American Eagle $50 gold coin. The skyrocketing price of gold made the coin worth $1,600.
Along Palm Desert’s El Paseo Drive, there are several stores advertising gold exchanges. With the jewelry industry in an economic slump, store owners hope gold will provide a spark.
“Gold speaks through the world,” said Ein Kalmbach, an assistant manager at Out of the Box Enterprises Gold Store. “A dollar is a dollar, but gold and silver in all countries is the same value.”
Out of the Box on Highway 111 in Palm Desert has also seen a steady increase in demand for gold — so much so that they’ve posted 13 billboards across the Southern California’s Coachella Valley advertising they buy and sell it.
The gold store also has a 30-day guarantee on all jewelry it buys and sells. If the price of gold increases, customers can just bring in their receipt and claim the added profit.
“I had a few people getting a couple extra hundred dollars today, Sixty dollars, an extra tanks of gas, an extra dinner, anything,” said Kalmbach. “It really does help.”
“I believe those who wait reap the harvest,” said Unger.
