What do gold prices say about the economy?

SAN DIEGO — It might be time to cash in on your gold jewelry and coins. For the first time, a troy ounce of gold is worth $2,500. That means a massive 400-ounce gold bar is worth $1 million.

Christopher Altbaum of Coin Mart Jewelry showed us gold bars, coins and jewelry that are now worth a pretty penny.

“All of these things that people have in their jewelry collections that they no longer use are now very expensive, the prices have gone up a lot,” Altbaum said. “If you have things like that, you should definitely consider monetizing them.”

We weighed CBS-8 photojournalist Mike Edison's 14-karat gold chain, which he bought about 15 years ago for $400 and is now worth $722 by weight.

Altbaum said 20 percent of a person's savings should be invested in metals, especially gold.

“Gold is the ultimate inflation hedge,” he said. “It's the safe zone where people move their money when there's trouble in the world.”

He compared the metals market to the stock market: when there is a dip, you should buy. He believes the price per ounce will rise to $3,000, and others predict even higher prices.

Higher gold prices can be a sign that investors expect the Federal Reserve to cut interest rates soon. When interest rates fall, gold prices tend to rise.

“You can put a $2,500 coin in your pocket and go virtually anywhere and sell it,” Altbaum said.

Owning gold is also considered a long-term investment and a safety cushion in cases of economic hardship.

“Pretty much everyone who has ever bought gold is sitting on their profits because the price has gone up so much,” Altbaum said. “I don't see how anyone could have lost money on gold right now.”

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