13 WTHR IndianapolisTime to invest in gold?

Time to invest in gold?

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INDIANAPOLIS - The Dow finished up Tuesday after Monday's 634-point plunge. The price of gold is soaring, so is now the time to invest in gold or sell off old jewelry?

At a record $1,780 an ounce, gold looks more tempting to the average person to sell than to buy - and a lot of people are trying to sell. Gold has been a safe harbor from the stock market turmoil in recent days on concerns that the economic slowdown will worsen after Standard & Poor's cut the USA's credit rating.

"My 401k, pretty much everything I had, I converted to gold and silver. I paid the penalties, but I made that back already," said Kemp Goode.

Goode says that decision has paid handsomely, an investment that's increased roughly 40 percent in three years.

Gold buyers say they are seeing a lot of customers trying to sell old jewelry to cash in on the soaring prices. But for buyers of gold, they see this as a safety net in a shaky economy.

"This is the first time I'm ever selling jewelry, so I'm hoping I have some luck," said Andrea Gombosh, who was selling gold.

Analysts with JP Morgan said Tuesday that gold prices may hit $2,500 an ounce by year's end. That would surpass the inflation-adjusted high that gold hit in 1980. For people looking for hedges in a shaky economy, analysts say that gold is a good investment.

"It's something you can count on. It's something - not like the US dollar that's gonna fluctuate. Gold and diamonds are basically the smallest form of wealth that you can take anywhere in the world. It's not like a house in Geist. It's not like a Mercedes. It's something you can fit in your pocket," said Catherine Folger, independent appraiser.

For investors like Goode, gold is why they're not sweating Wall Street's declines.

"It's not over. Um, I need more," he said.

Whether it's investing for the future of making a quick buck, gold has never looked more like a sure thing. If you're just looking at selling off some old gold jewelry, it pays to shop around since prices can vary.

Questions to consider before buying or selling gold.