TALLAHASSEE, Fla. - The deadline is about a week away and still no decision in Washington about raising the nation's debt ceiling
That uncertainty is creating a rush for gold and plenty more questions about investments.
Gold hit a new all-time high Wednesday pricing on the markets for just over $1,600 per ounce.
Paul Barattini, owner of
Grace Estate Buyers at Governor's Square Mall, says gold is for many a financial security blanket.
The high price "is mostly spawned by economic uncertainty on whether we're going to raise the debt ceiling," Barattini said.
Barattini says the pricing of gold is really about supply and demand to an extent. The more concern there is about the future of the nation's finances, the more people want something safe like gold.
Gold itself doesn't really hold much value, Barrattini says, but has become the default status of currency in the global economy.
"It's the international standard of wealth, it's the language we speak country to country," Barattini said. "When we trade oil in Saudi Arabia, they don't want US dollars, they want gold."
For those buying in gold, Barattini says it's an investment being made.
While gold may be a worthwhile investment for some, Terri Jackson with
Jackson Financial Group in Tallahassee, cautions against people putting all of their eggs in one basket.
"Gold just like everything else is a piece of your asset allocation," financial advisor Terri Jackson said. "But, nobody should have all of their money in one asset."
Jackson says the same goes for other investments and 401K.
"What people need to remember is that all of your money shouldn't be in the stock market to begin with," Jackson said. "A good rule of thumb is 3 to 5 years worth of cash you should keep aside and that should not be vulnerable to any kind of risk."
Lawmakers in Washington have also been warning that without a raise in the nation's debt limit, interest rates would likely go up.
While there may be truth to this, Jackson says the impact will primarily be on future lending.
"Most people agree that any short term default will be just that, short term," Jackson said. "Yes, interest rates can rise, cost of borrowing will go up, mortgages will go up, credit card rates, however what a lot of people need to remember is that you already have a mortgage. It's fixed for 30 years. You already have a car payment. It's fixed for five years, your student loan is fixed so it's going to really impact people who are looking for new money to borrow than those with existing fixed debt."
