As the price of gold climbs to record heights, people are digging through their jewelry boxes in search of mismatched earrings, old class rings and broken necklaces to sell.

The run-up in gold prices since 2008 has created a new gold rush, luring buyers to home gold-buying parties, hotel gold-buying events, and jewelers, hoping to cash in on the increasing value of their precious metals.

Whether you want to sell your old gold jewelry or are looking into investing in gold as a hedge against a poor economy, experts warn that there is much to consider - including the skyrocketing prices.

“The rise in price is driven mainly by fear and emotion because people are afraid of what’s going on in Europe and the U.S. with the debt crisis,” said Ed Kohlhepp of Kohlhepp Investment Advisors in Doylestown. “The same thing occurred in the late 1970s and early 1980s.”

On Monday, the price of gold rose $17.82 to $1,900.70 an ounce in London; U.S. floor trading was closed for the Labor Day holiday.

Source: Patch.com