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Gold Traders Report Spike in Sales

FOX 47 News

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Gold Traders Report Spike in Sales

CREATED Dec. 6, 2012

How popular is gold? According to Thomas Coulson from Liberty Coin Service in Lansing, he's selling coins and bullion to about 200 customers per week.

"Over the last month or so since the election, we've definitely seen an overwhelming demand for purchase of gold and silver bullion and coins," Coulson said.

He says that trend is not only local.

"Seems to be happening around the country. I called lots of my suppliers and they're running out of various types of gold coins."

MSU Economist Douglas Roberts looked at the bigger picture. Though he's not seeing major trends, he says the recent uptick may be a result of people trying to protect their assets from inflation and uncertainty.

"The weakness of the Euro, the uncertainty of what's happening in the European countries such as Greece, Portugal and Spain," Roberts said.

He also said the much talked about fiscal cliff only adds to recent uncertainties. However, while gold may be a more stable currency, economists warn it's always smart to invest with caution.

"There's nothing wrong in my opinion with having a small amount in a portfolio, but I do think you're taking unnecessary risk to put a large amount in gold because gold can go either way," said Roberts.

After all, we're talking about a lot of money. A one-ounce gold coin plus dealer's charge can cost you more than $1700.

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