The gold market has been where the action is for investors recently. As the stock market and also the European debt crisis spur predictions of a global financial meltdown, a vault full of gold is like a dose of Valium for stressed out investors. The spot gold price started at more than $ 1,200 dollars an ounce Wednesday, as investor fear continued to drive stocks lower. Gold is wanted by European investors and banks as the Euro tanks and also the dollar flutters. And investment gurus like Richard Russell are telling people to keep away from the stock market and purchase gold stocks instead.
Source for this article: Gold price soars, stock market tanks, cash for gold scams rise By Personal Money Store
Get cash for gold
The soaring gold price and prolonged economic downturn have brought cash for gold scam artists out of the woodwork. MarketWatch reports that as cash-strapped consumers who rely on quick payday loans sell their gold to pay for necessities, complaints against gold dealers are rising rapidly. The biggest offenders, as outlined by the Better Business Bureau’s website (BBB.org), are companies saying they’ll buy gold jewelry and advertising heavily on cable television channels.
Price soars for gold marker
The gold spot price set a record high on May 12 of $ 1,241–a jump of 2 percent six days following the stock market Flash Crash. The gold price has gone up a total of 34.2 percent given that May 2009. But Fortune reports the current gold market price, when adjusted for inflation, pales from the true peak in 1980, when the gold price hit $ 825.50 an ounce — $ 2,180.27 in 2010 dollars. As gold stocks provide hedge against risk in a volatile market, the gold spot is expected to continue rising. Jeffery Nichols, managing director of American Precious Metal Advisors, told Fortune the gold market price could reach $ 1,500 an ounce or higher by the end of the year.
Cash for gold scams
You will find numerous cash for gold scam artists taking advantage of the soaring gold price. There are some cash for companies that use "scam" in their site address and then say they’re honest. Other websites seek to protect consumers. On cashforgoldscams.com, one consumer complaint says a couple originally went to pawn shops and got offers up to $ 350. They wanted more and went to Cash4Gold, which offers a “fast cash” option where the customers waive their right to dispute the amount they receive. The couple received a check for $ 67.70 two weeks later. The rings were actually worth about $ 500 with a little over half an ounce of 14k gold.
Cash for gold scam law
WXPI.com reports that U.S. Rep. Anthony Weiner believes that Cash4Gold, one of the biggest advertisers on TV, is just ripping off all their customers. Weiner is proposing legislation that would make all of these companies give customers bids on the jewelry and force them to return gold by insured mail.
The Gold market really raises with inflation
Gold stocks are a hedge against the rising prices. Trillions of dollars in government bailouts in the US and Europe are adding inflation to the numerous fears investors already have. The Daily Reckoning reports that not just hyperinflation is the monster under the bed as the Federal Reserve floods the economy with free money. The U.S. National debt is already 12.8 trillion, but it rises to $ 19.1 trillion when it includes the Fannie Mae and Freddie Mac balance sheets. Throw in all of the Social Security, Medicare and Medicaid, the debt is $ 79.1 trillion — 5.5 times the U.S. GDP of $ 14.2 trillion.
Run on gold expected to continue
In his latest Dow Theory Letter prediction Tuesday, Richard Russell forecasts a huge stock market crash. Russell advises investors to get out of the stock market altogether, eliminate debt and convert all wealth into liquid assets. Richard Russell's Dow Theory Letter is taken quite seriously by investors. His predictions will probably make for a market sell-off and run on gold and cash.
Find more information on this topic
MarketWatch reports
http://www.marketwatch.com/story/gullible-consumers-may-get-gored-on-gold-price-sellers-beware-2010-04-22
Fortune reports
http://money.cnn.com/2010/05/14/markets/gold_record/index.htm?postversion=2010051413
cashforgoldscams.com
http://www.cashforgoldscams.com/scam2.htm
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