Gold prices hit record highs: What that means for Tampa Bay area stores, investors

Gold prices rising

At the beginning of the year, an ounce of gold was trading at $2,669 an ounce. On Friday, though, gold closed at $3,668 an ounce, which is up more than 200% in the last two years. Evan Axelbank reports.

TAMPA, Fla. - At the beginning of the year, an ounce of gold was trading at $2,669 an ounce. On Friday, though, gold closed at $3,668 an ounce, which is up more than 200% in the last two years.

"It was holding off for a few years, so I could keep buying it cheaper," said collector Daniel Knighton, who was shopping at Coinacopia in Lake Magdalene. "I think it's expected. Everything goes up over time."

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Coinacopia has seen a surge in those who are trying to either cash in gold, or buy some, in hopes the waiting game will work out.

"Surprisingly, they're buying more than they're selling," said co-owner Andrew Lydic. "Gold and silver have been the money of humanity from ancient times."

What they're saying:

Economists said the 39% jump in the price of gold is owed to a few things. 

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The falling dollar and the threat of inflation has people rushing for something seemingly more stable. The potential, though, for a cut in interest rates is making gold appetizing compared to government bonds.

"For short-term issues of inflation, uncertainty, and the fact that gold has momentum, I think it is a reasonable good place to diversify, to put some of your money in gold-related assets," said economist Michael Szanto.

Dig deeper:

At Gold and Diamond Source, gold chains that were going for just more than $2,000 a year ago are now going for nearly $6,000. 

Some are turning in old broaches and watches for the golden goal of making money on family heirlooms that have been sitting around.

"It's not really a really reactive metal," said gemologist Adam Johnson. "You can keep it, you can store it, and it's just something that people put their trust in when times are getting crazy."