Star Jeweler Invests In Gold

While the dollar continues to lose value against foreign currencies and economists debate a potential recession, one investment is still shining bright: Gold.

“I am invested in gold,” jeweler to the stars Neil Lane tells MainStreet. "I trust its value." Lane, whose clients include Miley Cyrus, Johnny Depp and Julie Christie, is not just talking gold bars, but earrings, necklaces and bracelets. "I have a historical collection of jewelry that I have had since I was a child and who knows what that is worth now," says Lane. "I trust in period things too. I invest in items from different centuries and eras, as well as contemporary pieces.”

These days Lane's timeless investments are only gaining in value. On Monday bullion hit $982 an ounce, and experts say that price should continue to increase. “Gold has been in a long term uptrend since 1999 when we were trading around $300 an ounce,” says Peter Grant, metals analyst at USAGOLD-Centennial Precious Metals. “That’s a pretty significant appreciation this decade.” There are a couple of driving forces, Grant explains, responsible for gold’s ongoing rise in value: the decline in the dollar's value, the sub prime crisis,  inflation, the rise in oil and food prices, and the U.S. credit crunch. “Gold is the classic hedge against inflation,” says Grant. “As prices spiral higher, gold benefits."

Already, the price of gold is up nearly 20% this year, says Grant. And as people take their assets out of volatile investments such as stocks and mutual funds, Grant says a lot of them will turn their money into gold. “We see potential beyond $1000 per ounce and even $1,200." Talk about a gold rush!