BRISTOL, Va. – Sheena Anagnostopoulos wants to spend part of July vacationing in the Dominican Republic.
But before she dipped into her bank account to pay for the trip, she raided her jewelry box.
Anagnostopoulos is part of the growing number of people hoping to cash in on the high cost of gold, which is approaching 28-year highs. They are selling their old jewelry, trinkets and scraps of gold to local jewelers.
For many, the chance to exchange their gold for cash is the latest defense against escalating gas, energy and food prices.
An ounce of gold sold for $935 on the New York Mercantile Exchange on Tuesday.
Precious metals are measured in Troy ounces, which equal approximately 32.1 grams, whereas a standard ounce is about 28.4 grams.
Last week, the price topped $1,000 per ounce, which is more than triple what gold was worth seven years ago, said John Chapman, co-owner of Southern Gold Traders, a jewelry store and gold buyer in Bristol, Va.
As a result, a number of folks have left his store pleasantly surprised and richer than expected, he said.
"Some ladies will come in with a pile of things that are out of style, completely outdated, or broken things, [they] think will get $100, maybe $200," he said, "They’ll leave with over a thousand and be practically dancing out the door."
If it’s gold, Chapman will buy it – from coins to rings and bracelets. He’ll even buy gold teeth – a box full once earned the wife of a dentist $2,000, he said.
And while many people are selling their outdated jewelry, Chapman said there are plenty who have parted with treasured possessions when financial struggles left them with few other choices.
"It’s kind of sad, sometimes people come in and they’ll say they need diaper money, they need gas money. You hear that more than anything. Gotta make the house payment, gotta make the rent, you see some sad cases, you do," he said.
Anagnostopoulos decided to trade in "old stuff I’ll never wear" after one of her friends pocketed $1,100 for a handful of costume jewelry.
On Tuesday, she was still searching for the same sort of deal. Two jewelers offered her, "shockingly low" amounts of money, leading her to speculate that they were appraising her jewelry for its gold value and ignoring the craftsmanship and precious stones.
The gold market’s volatility is another likely reason for the low offers. Her friend cashed in her jewelry two weeks ago, when the market dictated a considerably higher price.
Anagnostopoulos said she was warned by her friend to expect long lines of people waiting to have their gold appraised but she was the lone customer in the jewelry store on Tuesday.
"People have learned to watch the markets," said Cheryl Brown of Uncle Sam’s Loan, a pawn shop on State Street in Bristol, Tenn.
While the market continues to spike and dip daily, Chapman says gold takes its long-term cues from the value of the dollar. So as long as the dollar continues to struggle, the market will be as good as ... gold.
"All the factors are there for it to stay around where it’s at and for gold to go higher," he said.
BRENT CARNEY is a Media General multimedia intern and can be reached at (276) 645-2568 or bcarney@bristolnews.com
Email
Facebook
Google
Twitter
Favorites
More
Advertisement