 Did you know that a box filled with broken gold bracelets and chains, along with unworn and unwanted gold jewelry, could be worth more than $1,600 per ounce on any given day?
“The value of gold fluctuates every day, all day long,” said Rose Wateski, from Rainbow Jewelers, in Kingston.
As the price of gold fluctuates, jewelers who are in the gold-buying business constantly watch the fluctuations. For example, the price per ounce can swing between $1,500-$1,600 within a matter of hours. Gold is at an all-time high, having tripled since 2008. According to GFMS Ltd., the leading research group on gold, silver, and PGM (platinum group metals) markets, gold sales have jumped 137% between 2005 and 2010.
“In the 1970s gold was around $30 per ounce. Today it is averaging $1,600 per ounce,” said MaryAnn Ochman, from Ochman’s Coins and Jewelry, in Dallas.
Seeing the price of gold increase is nothing new these days, so what is making people turn to their jewelry boxes and sell? The jewelers in our area were consistent in identifying the main reasons as one of two categories. They sell either because they need the money or they don’t wear the item anymore and realize their unworn jewelry could be worth some extra money.
“We have had a lot of people coming in and selling their class rings dating back to the 1950s and 1960s,” Ochman explained.
“Older people have a lot of gold, especially yellow gold,” said Ron Thomas, from American Gold Buying, in Dallas. “Our customers are split 50/50; 50% are in need of the money and 50% are cleaning out their old gold that they don’t use anymore. Most of our customers come from word of mouth. They hear from their friends what they profited.”
Some families sell their gold valuables out of necessity.
“It can be very sad to hear the customer’s reasons for selling,” said Thomas.
“Times have been hard,” said Robyn, a single mom of three. “I had to sell some of my most memorable items in order to make ends meet. The cost of everything is going up except my income, but I remind myself that they are only material items and what’s important is survival for my family.”
The prices of staple grocery items continue to increase. Gas, milk, bread and eggs have increased 10% or more in the past two months. With natural disasters hitting NEPA hard this year, jewelers are beginning to see people coming through their doors to sell in order to rebuild.
“When looking to sell your gold you need to do your homework,” Ochman warned.
Gold buyers use pennyweight scales, which are inspected by the Department of Agriculture.
“Don’t go to the mall or hotels to sell,” Thomas insisted. “Make sure everything is done right in front of you.”
All jewelers are required by state law to have a license and to report all jewelry purchased. It is required that all such transactions be recorded into a central data system within 48 hours.
“This provides the community with a theft protection system,” Ochman added.
It allows law enforcement and other authorized users access for monitoring of reported thefts. In addition to the reporting requirements, persons selling gold must be at least 18 years of age and have a photo ID. Some vendors prefer the age to be at least 21.
At a time when our financial markets and economy struggle, Americans are cleaning out their jewelry boxes or finding a necessity to sell their precious gold items. Jewelers across NEPA have seen an increase in people looking to sell.
“It is a nice way to clean out your jewelry box,” Wateski noted.
Shop around and comparison shop is common advice among gold buyers.
“Ask around to neighbors and friends, see if they have heard of the business,” Thomas offered.
“Don’t be fooled by large out-of-town ads, they have nothing to do with large prices,” Ochman added.
So, the gold rush continues. Gold is up and many sellers are cleaning out and up. Some sellers are departing to survive, while others are looking at their unworn jewelry as extra cash. No matter the reason, many sellers are choosing to dig deeper into their personal materials and part with things that once had sentimental or financial value. Make sure you do your homework. Think of it as you would if buying a car. First shop around, find the best price, and make sure it is a reputable company. You want the biggest bang for your buck, or in this case the biggest buck for the bang.
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