Gold prices spike, local gold traders see more customers

There's been a rise in gold prices since 2016.

Prices spiked by almost $100 an ounce on Wednesday due to tensions in the Middle East.

Analysts say uncertainty oversees translates into an uncertain dollar. More investors are turning to gold as something they can count on.

Local gold traders say they've seen a spike in customers wanting to buy and sell the precious metal.

Owner of Bismarck Gold and Silver Exchange Larry Schneider knows the value of gold from firsthand experience.

"I started up town here in 1979 and been here every year since. Before that I operated out of my home and just did a lot of traveling," said Schneider.

Schneider witnessed an increased interest in gold when the U.S. went off the gold standard in 1971.

"It gave the treasury the power to print more money. We've been printing a lot of money in the last 10 to 15 years. So, people kind of buy gold and silver pretty much not so much as an investment but as an insurance policy," said Schneider.

Over the past year the value of gold has been going up as the federal reserve has lowered interest rates.

"When the federal reserve lowers interest rates, that is usually weaker for your dollar. That is also friendly for the value of gold. It's called an inflationary effect," said President Heartland Investor Services Eugene Graner.

The inverse relationship is because a falling dollar increases the value of currencies of other countries. This increases the demand for commodities, including gold. It also increases the price.

"A lot of people have been coming in the door buying and believe it or not we've had a lot of selling going on, too," said Schneider.

The price of gold is more than $1,500 an ounce, which is higher than it's been since 2013.

If you're looking to buy or sell your gold you can visit Bismarck Gold & Silver Exchange at 212 North 4th Street.