At $832 an Ounce, All That Glitters Is Gold

Economic uncertainty drives price toward 1980 highs
By Jim O'Neill,  Newser User
Posted Nov 12, 2007 3:05 PM CST
Gold prices break $800 high during trading.   (Getty Images)
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(Newser) – Gold’s lure as a safe haven from economic upheaval has Wall Street worried that investors are turning their backs on the markets, reports the LA Times. Gold prices have pushed steadily toward $850 an ounce, a level it hasn’t seen since 1980. "The markets' statement is that the US has lost its way," said one economist.

Globally, most commodities are up. Gold’s price has risen rapidly for 3 months; one analyst projects it will reach $3,400. But experts counsel caution. After 1980, as the economy recovered from inflation and a struggling dollar, gold fell to $250. Treat gold like other investments, the pros say: Make it part of your portfolio, and be ready to sell.