Rising gold price attracts theft

Thieves target valuable goods, simple fact of life. Gold is not only valuable, but also durable, fungible, liquid, easy to transport, divisible, impossible to counterfeit, homogeneous and easily recognised. All these qualities make it attractive to both honest citizens, petty thieves and governments.

As the gold price rises US criminals are turning their attention from banks and paper dollars to jewellers and private gold hoards. There were at least six gold shop robberies in the city of Los Angeles in the months of June and July. Even average citizens have to be very careful nowadays since women have had gold necklaces yanked from their necks on the street. Break-ins and burglaries have also risen.

The FBI does not keep adequate records on gold or other precious metals related crimes, but local statistics indicate that theft has risen rapidly in the United States.

Unlike pearls or diamonds, but very much like other forms of money, gold is fungible. It can be melted down and poured again as bars or coins. This means that it is as hard to track as cash and more durable. This quality is universally appreciated, be it by refugees fleeing a holocaust, dictators escaping their country or just normal people wishing to preserve their wealth and privacy. As Alan Greenspan once said "gold is a protector of property rights".

However it does mean that private gold owners should take good care to protect their precious metal from theft. High security vaults, insurance, allocated storage and privacy are a must. After all, criminals can only go after what they know about.