CARSON CITY, Nev. (KOLO) -- The decline in stock prices has some investors looking for more stable investments. As the Dow falls, the price of gold is seeing an increase. It's one of the few things going up in value since the first of the year.
Many investors right now are making what's called a "flight to quality." That's when they invest their money in something stable because other markets are too volatile. That in part is what is happening right now with gold.
"We have seen people moving their money out of stocks and going into either cash on the side or gold on the side as well," said Allen Rowe, owner of Northern Nevada Coin.
Since the first of the year, the Dow has seen a drop of nearly 2000 points. Meanwhile, the price for an ounce of gold has increased by $40.
"You can invest in gold if you are looking for swings, but the main reason to own gold is asset protection. You want to keep an asset that you have a value in," said Rowe.
Rowe says the increase in gold sales is likely a result of people trying to put their money someplace safe.
"Even if gold drops in value in the terms of dollars, it still buys the same amount of goods in a sense," said Rowe.
"I think in any investment strategy you are going to want some commodities in there, is gold going to be the first thing you buy? Probably not," said Richard Jay with Wells Fargo Advisors LLC.
Jay says go ahead and invest in gold, but also diversify your portfolio. Don't put all your eggs in one basket.
"At the end of the year we don't know what sector is going to be number one. We don't know what is going to be at the bottom. But if you are spread out, you know for the most part you are going to have that number one performing sector out there," said Jay.
So is now a good time to buy gold? It depends on where your money currently is in the market and where you want it to head.
"The main reason to own gold is to have a portfolio protection in your assets. Something that you can fall back on if your dollar suddenly becomes worth less. If you stocks suddenly become worth less," said Rowe.
It is important to know gold is also subject to big swings. About five years ago the price for an ounce was around $1900. Right now it is around $1100.