26 Jan
Despite price drop, people still unloading their gold
Although gold has dropped in value since it hit an all-time high of more than $1,000 per ounce in March, people are still anxiously unloading their gold jewelry and coins to jewelers and gold buyers.
“They’ve been going crazy selling it. … People do need money to pay their bills,” said tiffany jewelry Iorio Casterline of Iorio Jewelers in Wilkes-Barre.
Iorio said her gold purchases have slowed only slightly since the precious metal hit a high of $1,011.25 per ounce on March 17.
Since then, prices dipped as low as $712.50 in October, and the average daily price has been about $865. December gold futures in New York closed Wednesday at $808.50 per ounce after hitting $822 during the day.
Scott Mitchell, owner of Gold Buyers of America, said the price of gold reached a peak this year because the economy was so bad. He agreed that many are selling gold because they need the money.
Mitchell, of Bucks County, set up shop in a meeting room at the Host Inn in Wilkes-Barre in October and again one weekend earlier this month. About 100 people stopped in to make sales in October, and about 60 more in November.
Ron Thomas, owner of American Gold Buying at Valentine’s Jewelers in Dallas, said there’s definitely been an increase in the number of customers bringing in their gold.
“Unfortunately, it’s under pretty nasty circumstances, too. … I kind of get the impression they don’t tiffany necklaces want to sell, but it’s a necessity. … People make comments about needing gas to heat their homes, and in some cases, food,” Thomas said.
All the jewelers agreed, however, that not everyone is selling gold out of necessity.
Some sellers no longer wear some pieces of jewelry and are taking advantage of the current high prices to convert them into cash. The daily average price this year has been about $879 per ounce, compared to a daily average price of $505 per ounce between 2003 and 2007.
Carol and Bob Sebolka, of Glen Lyon, brought some gold rings and silver coins to Mitchell after reading a newspaper ad about him buying gold “just because they were there and we always wondered what they were worth,” Carol Sebolka said.
The Sebolkas liked Mitchell’s offer and made the sale.
“I thought we would get maybe $30, but we got $300. We did better than we thought. The price of gold is really up there,” Bob Sebolka said.
The jewelers and gold buyers interviewed for this article offered some advice to those considering selling their gold.
Thomas recommended only selling to someone you know.
The jewelers agreed some gold buyers will try to take advantage of potential sellers.
“Don’t ever sit down and tell somebody you don’t know if it’s any good or were going to throw it tiffany accessories or I don’t know if it’s worth anything. They won’t know if you took it somewhere else (for an appraisal),” Mitchell said.
Casterline suggests holding on to the gold if it has sentimental value, because regrets might follow the sale.
Mitchell also said not to expect to get back what was paid on custom jewelry because the materials cost was marked up and much of the final price was based on craftsmanship.
And don’t be shocked if an offer falls well below an insurance appraisal, which estimates a piece of tiffany keys value for about 30 times what it’s actually worth on resale, he said.
Sellers should also keep in mind that gold jewelry is composed of a mix of gold and one or more metals to make it hard: 24 karat gold is pure; 22 karat is 90 percent gold; 18 karat is 75 percent gold; 14 karat is 57.8 percent gold; and 10 karat is 37 percent gold, Mitchell said.
