Experts have been saying that, despite recent price fluctuations, gold is still a safe form of investment. Gold has also been known as a form of currency and many banks own large amounts of gold to protect themselves in case of any currency collapse.
Lauren Rozyla/KFOX14 News Reporter
Posted: 9:11 pm MDT August 27, 2011
EL PASO, Texas -- Despite recent fluctuation in gold prices, local investors say gold can be a safe form of investment.
Ron White, an investment advisor of Raymond James Financial in West El Paso said gold is often thought of as a lucrative option because it has been known in the past as currency. White also said many banks often own large quantities of gold.
Earlier this week, some investors and traders finally decided to cash in their recent huge gains in the yellow metal, driving the price down Tuesday after a six-day rally sent it to record highs.
Near-term futures in New York fell $30.40, or 1.6%, to $1,858.30 an ounce in the regular trading session, then slid to $1,835 in electronic trading.
The price had reached a record $1,917.90 in electronic trading late Monday.
The sudden large swings could give some potential gold buyers pause, analysts said.
Silver, which had been up for seven straight sessions through Monday, fell $1.04, or 2.4%, to $42.28 an ounce Tuesday. Silver had closed at $43.32 on Monday, its highest price since May 2, when the metal was beginning a steep plunge after hitting a 30-year high.
Precious metals have streaked higher this summer on fears of another global recession and as Europe's government-debt crisis has worsened. The dive in stock prices since late July also has fed demand for gold as a haven.
White recommends investing no more than five to ten percent of your money in gold.
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