More and more rushing to cash in gold
BY FRANCINE KNOWLES Business Reporter fknowles@suntimes.com August 9, 2011 5:42PM
With gold items in front of her, Tobina Kahn, vice president of House of Kahn Estate Jewelers, says her business has jumped the past few days as gold has hit record levels. The spike in gold prices has prompted people to sell their gold jewelry, coins and bars. She displays some recent acquisitions on Tuesday, August 9, 2011 in Chicago. | Richard A. Chapman~Sun-Times
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Updated: September 11, 2011 12:49AM
There’s a gold rush under way again, now that gold has spiked to record levels, owners of gold jewelry, coins and bars are looking to cash in, say local dealers, who’ve seen business rise along with the value of the precious metal.
“We’ve had about a 30 percent increase in more people, more traffic more calls coming in,” in the past few days, said Tobina Kahn, vice president, of House of Kahn Estate Jewelers, which buys and sells estate jewelry.
There’s reason: A gold chain that she may have paid $2,000 for three years ago would garner about $4,000 today, she said.
“Pretty much everybody that’s coming in is selling. We’re seeing a lot of necklaces, a lot of rings, a lot of unique items. All of a sudden grandma’s jewelry is becoming very important because the younger people are saying ‘Gee, my grandma gave this to me and I can get a lot of money for it.’ They are so excited.”
Middle and upper-income individuals, young and old have been selling U.S. Gold Eagle, Canadian Maple Leaf and South African Krugerrand coins, said Harlan J. Berk, president of Harlan J. Berk Ltd., which buys and sells gold bars and coins.
“Anyone holding gold now is making money,” he said. “In the last week, we’ve really seen more sellers than buyers.”
Gold hit a record trading price of $1,782.50 Tuesday before closing up $29.80 to close at $1,743 an ounce. Its price has more than doubled since the recession began in late 2007.
Those looking to sell their gold should be smart about it, dealers say. First and foremost go to experienced, reputable gold dealers or jewelers to get an appraisal of what you have. The American Numismatic Association recommends getting more than one appraisal, and before selling make sure you know the actual spot price of gold and understand any fees or commissions involved. To find a dealer, visit the association’s website at www.money.org or the Professional Numismatists Guild at www.PNGdealers.com.
For those selling jewelry, “I tell people to be very careful about going to some places that melt your gold,” said Kahn. “You’re going to get much less than leaving it intact if it’s marked with a certain designer’s name. A 1940 or 1950 retro bracelet, old Tiffany old Cartier, you don’t want to melt it down. That’s like taking a Picasso and burning it and keeping the frame.”
Berk advises gainst doing deals in hotel rooms. He said established dealers pay more.
The Better Business Bureau offers these tips:
†Recognize that you’re not going to get the spot price for gold. If gold is worth $1,700 per ounce, you won’t get $1,700 for every ounce you have. The ounce quote is for pure gold only. A 14-karat gold necklace, for example, is composed of just 59.5 percent gold, so ask how much the company’s going rate is for each ounce of each karat you are selling. The lower the karat, the less the gold content.
†Don’t let jewelry of different karat value be weighed together. Some dealers will weigh all jewelry together and pay for the lowest karat value, so separate your jewelry by karat value.
†Recognize the diamonds in jewelry can be saved if not too small. Engagement rings diamonds should be given a value separate from the gold.
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