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Gold rises to record price
As gold prices rose to record highs Tuesday, many Bay Area jewelers held their collective breath that customers might shy away from purchases of the precious metal if they stay up.
"It effects us because we have to raise our prices," said Tina Pencovic, who owns Son of a Jeweler in Fremont and Carlyle Jeweler in San Mateo. "I don't see as many of the big bulky pieces selling as much."
Gold futures climbed as high as $1,045 an ounce in New York Tuesday, topping the previous record of $1,033.90 in March 2008. The spot price is headed for a ninth straight annual gain, the longest rally since at least 1948. The dollar fell as much as 0.7 percent against a basket of six major currencies.
"Gold is acting like the ultimate currency," said Chip Hanlon, the president of Delta Global Advisors Inc. "Central banks are following the same monetary course and trying to stimulate and inflate their way back to growth. Everyone's concerned about the dollar, but it's not like you can hate the dollar and fall in love with the euro or the yen."
Source: San Jose Mercury News
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