Jewelry Display Boxes

Gold prices have reached a record high and silver is the highest in three decades.

Customers are coming into American Gold and Silver exchange to sell their gold.

"Most of the items I buy haven't been worn in years. They've been sitting in their jewelry boxes," says owner Keith Harvey.

Gold is at its highest peak, $1,300 an ounce. "Investors usually buy on a dip. When it goes down they buy. When it goes up, they're selling us gold coins and gold bars," says Harvey.

Professor Michael Pakko is the chief economist for economic advancement at UALR.

"Gold is traditionally considered a hedge against inflation and general economic uncertainty," says Pakko.

Both Harvey and his customers are making money. "I pay them usually 88 percent of what its worth, so that is 12 percent we are going to make on that gold," says Harvey.

Harvey says about 90 percent of his gold is melted down and then resold to jewelers but other items like rings and watches can be sold as is in his store.

Silver owners, like Byron Byars, are cashing in too.

"If silver continues to rise then I'll make enough to have another loaf of bread maybe," says Byars.

That's Pakko's biggest word of caution, be careful on betting on the economy.

"There is always the possibility that prices will fall and you will lose on the investment," says Pakko.

Harvey also recommends getting several quotes before selling your gold.

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