Gold Fuels Pawn Shop Boom

KPLC TV News is reporting that the high price of gold has local pawn shops booming, as more people dig through their jewelry boxes for gold items they can trade or sell for cash. The Lake Charles news team interviewed a local pawn shop owner who says more customers are finding gold and pawn shops a great combination, especially since it’s hard to get fast cash from banks and other lending institutions.

“A lot people have single earrings, broken rings or necklaces that they’re not going to repair,” said the pawnbroker. “With the record price of gold now, a lot of times they’re pleasantly surprise with how much they can get for it.” He also advised customers to go local when you put your gold items on the market.

Many people are also mailing in their gold to companies who advertise frequently on television. Recently several of these businesses have come under intense scrutiny. New York Congressman Anthony Weiner (D-NY) has even called for the Federal Trade Commission to look into one company’s “deceptive practices,” after hearing several complaints from sellers who say the company didn’t give them the promised price for their gold.

And all experts agree (including us at the San Diego Luxury Pawn Shop Report) that before selling or trading to any gold buyer, consumers should get several quotes from different brokers.

Why Gold Remains Hot

San Diego gold investors and gold sellers take note that Business Week has an excellent interview online with commodities guru Jim Rogers, creator of the Rogers International Commodities Index, wherein he talks about gold’s current popularity.

Here is an excerpt:

MARIA BARTIROMO

Gold, as you know, hit an all-time high today, with the Russian central bank buying bullion. How high can gold go?

JIM ROGERS

Well, I own gold and I have for a while. How high can it go? I fully expect it to be over a couple thousand dollars an ounce sometime in the next decade—I didn’t say the next month, I didn’t say the next year, I said the next decade—because paper money around the world is very suspect. But right now everybody’s bullish on it, so I don’t like to buy things when that’s happening. But I’m not selling under any circumstances.

What’s behind the runup? Has buying by the central banks changed the equation here? Or is this still a demand story?

Certainly a demand story because, as I said, everybody’s printing so much money and people around the world are worried about that. But you also have central banks, which five years ago were selling gold, now buying. So that’s a huge shift in the marketplace. Central banks are like lots of other people—they just follow the crowd. There are probably better commodities to buy than gold, but you can’t tell that to central banks because they’ve got gold on the brain.

To read more, go to: Why Gold is Glittering.

Rare Gold Coins at the Long Beach Expo

The folks over at CoinNews.net are reporting that two huge California Gold Rush era assayers’ ingots, recovered from the famous SS Central America and with a combined weight of over 100 pounds of gold, will be exhibited at the next Long Beach Coin, Stamp & Collectibles Expo, September 10 – 12, 2009, in the Long Beach, California Convention Center, 100 S. Pine Ave.

During the three-day Long Beach Expo more than 1,000 dealers will be buying and selling rare coins, paper money, stamps, postcards, historic documents, antiques, estate jewelry and other collectibles. Some dealers will provide free, informal appraisals on gold coins and other items for visitors.

A free gold coin will be awarded daily to a registered visitor. Young numismatists’ activities include a children’s treasure hunt, educational programs, and collectors’ clubs meetings. Heritage Auction Galleries of Dallas, Texas, the world’s largest collectibles auction house, will hold a public sale of U.S. and world coins and paper money.

The public hours of the Long Beach Expo are Thursday and Friday, September 10 and 11, 2009, from 10 a.m. to 7 p.m., and on Saturday, September 12, from 10 a.m. to 5 p.m. (The show is closed on Sunday.) A complete Schedule of Events is online at www.LongBeachShow.com.

General admission is $6 (good for all three days); $4 for members of any coin or stamp club who display a valid membership card; and $3 for seniors 65 and older. Free admission for children ages seven and younger. Discount coupons are available online at www.LongBeachShow.com.

New Gold Jewelry & Precious Metals Law

Orange County readers of the San Diego Luxury Pawn Shop report should take note that a new law has been passed. The Shawangunk Journal reports that under this new law, anyone who has a business that buys second-hand jewelry (gemstones and precious metals) would have to have a license from the county and undergo a background check. In addition, two crucial rules apply. To sell gold jewelry to a store, you have to be over the age of 18 and you have to have photo ID for the store owner to see and if they want, to record. Then, the store or pawn shop must hold the items for 15 days before selling them.

The journal interviewed Dan Depew, Country Representative of the 18th District, who put it this way. “You can’t just ride into town, stay in a motel, and announce that you’re buying gold. Because, now you have stay in the county a while, and you have to register and undergo that background check.”

Police Chief McCann believes that the new law can be a win-win for everyone, saying that if pawn shops and jewelry buyers work it into their practices, then they can be sure that the police know they’re on the right side of things. McCann also added that residents can take steps to protect themselves. “Everyone [should maintain] a good record of the piece of jewelry, or property of any sort that has a value, or that they think is important to them. A photo is good, but if there’s some marker on the property that is known only to them, so they can ID that piece of jewelry, then that’s a great help to us in recovering things.”

Worst Ways to Buy Gold

Investor’s Chronicle (IC) has just published an article that San Diegans who are interested in buying gold as an investment. The IC reports that gold’s status as a safe haven in bad times has seen an unprecedented rise in popularity, with the World Gold Council recently reporting a 248 percent increase in the investment demand for gold, compared to the same period last year.

If you are thinking of buying gold in San Diego, experts warn that you must take care because physical gold is not a regulated investment market. So while lots of people think they should be buying gold, they don’t recognize that there are bad ways to buy the metal. According to the IC report, 3 of the worst ways to buy gold are:

1. Online auction sites: While this might seem obvious, eBay has seen a surge in gold-coin auctions as demand for physical metal has grown. The prices on online auction houses often out-strip true gold-market values – known as the “spot” gold price – by 25 per cent even for the plainest coins. Rarer gold coins are often bid up much higher, as new investors lack knowledge about what they are buying.

2. Newly minted “collectible” coins: So-called collectible gold coins can cost significantly more than the actual value of the gold they contain. Mints often charge 40% or more above the gold market value for these gold coins.

3. “Rare” gold coins: US authorities often warn investors against “hard-sell” dealers charging rip-off fees for what turn out to be anything but rare gold coins. Spotting a truly rare coin and knowing how much above the gold-content’s value it should cost takes experience and expertise. Take the time to build your knowledge and understanding before venturing into this market.

Investigating Gold Buyers

San Diego’s most watched news station, KUSI News, has released a special consumer report on selling gold in San Diego County. Conducted by former CNN reporter Sasha Foo, the report reveals that there are both good and questionable gold buyers operating in San Diego.

The special report is titled “Selling your gold? Don’t get scammed!” and includes an interview with Sheryl Bilbry, a staff member of San Diego’s Better Business Bureau (BBB). She tells Sasha Foo that San Diegans need to be smart when selecting a gold buyer for their gold jewelry, since some gold buyers may have file folders full of customer complaints. Cash4Gold, for example, has earned itself a D- minus grade from the BBB.

Bilbry explains that Cash4Gold customers have complained that their gold never got to the company; that they were told that within 10 days they could get their gold back, but then Cash4Gold wouldn’t return it; and that Cash4Gold didn’t pay them as much money as they said they would for their gold. Bilbry adds that citizens can get cash for their gold jewelry in San Diego by “credible” companies. They just need to investigate who they are.

Selling used gold jewelry, gold bullion coins, and other gold objects has become a big business during the past year due to the recession. But Sasha Foo warns San Diegans not to let that “stampede for cash turn into fool’s gold.” To illustrate how “legitimate” gold buyers operate in San Diego, Ms. Foo interviews Carl Blackburn, the founder and co-owner of San Diego Jewelry Buyers (SDJB) and a jewelry industry veteran.

Blackburn explains to Foo how trustworthy gold buyers go about buying used gold rings, gold chains, and other gold jewelry, demonstrating how gold purity and weight is tested. He advises San Diegans to shy away from any gold buyer who guarantees they will beat the price of any other gold buyer, as well as anyone who does not make the customer feel totally comfortable with selling their gold. Blackburn also says that a “red flag” is when a customer calls a San Diego gold buyer for today’s gold price and the buyer doesn’t want give out the information.

SDJB’s website SanDiegoJewelryBuyers.com is filled with articles and tips that can help San Diegans make better selling decisions when selling their gold, diamonds, and fine watches.

To watch KUSI’s full special report on San Diego gold buyers, please go to: Selling Your Gold? Don’t Get Scammed!

New Jersey Jewelers Join Gold Rush

San Diego jewelers take note, your colleagues in New Jersey are taking advantage of the recent popularity in gold buying parties, reports the Ashbury Park Press…

When Thomas Calabro said, “We are at the heart of a gold rush right now,” he was holding up the heart: a mound of gold jewelry on a red velvet display board surrounded by South African Krugerrands.

All told, the assortment was valued at about $250,000. The coins alone were worth almost $40,000, sold to Calabro by a longtime client while gold was spiking at $954 an ounce.

“The last time gold was sky high was around 1979, the year we opened,” said the owner of Twin City Jewelers on Clifton Avenue in Lakewood. “We built this place on the last gold rush.”

In 1980, gold peaked at about $850 per ounce. Last March it broke the $1,000 mark for the first time in history.

Calabro has the current recession to thank.

As trust in traditional money investments erodes, many people are turning to the most reliable of currencies. And that means quadruple the business for Calabro in the gold sector.

The boost in the “scrap metal” trade for jewelers has hedged a slowdown in retail. So now’s the time when jewelers and jewelry owners are perhaps the only people in the country able to bask in this economic climate — indeed, they’re throwing parties.

After spending a while on the sidelines watching their businesses lose to private “gold parties” — the much flashier cousin to the Tupperware affairs — jewelers have started to play a hand.

Earth Treasures in Eatontown is advertising to host “gold-selling” fund raisers for charities, in which partygoers sell unwanted jewelry, silver, coins and scrap gold for cash, with the charity receiving a percentage of each transaction.

Calabro himself has visited many homes, arriving sometimes with $20,000 in cash and leaving after some hors d’oeuvres with a case of jewels.

“It was very frustrating,” Calabro said of the initial competition. “But if you can’t beat them, you have to join them.”

7 Quick Questions to Ask Your Gold Buyer

San Diego Jewelry Buyers has announced the publication of a new education article appearing on their online Knowledge pages for consumers wanting to sell gold, fine jewelry, diamonds, and timepieces. Titled “7 Quick Questions to Ask Your Gold Buyer,” the article intends to help consumers avoid many of the pitfalls that have been recently documented by investigative news programs, where gold buyers have been engaging in dubious practices to buy gold from sellers for far less than what they deserve.

“Over the past year, there have been literally hundreds of new people and companies getting into the gold buying business,” says Alan Blyler, a spokesperson for San Diego Jewelry Buyers. According to Blyler, while some of these gold buyers are upstanding and follow industry accepted practices, many more, especially some of the big online outfits, are engaging in practices that long-time gold buyers do not support.

For example, some gold jewelry buyers immediately offer a customer a higher amount when he or she rejects the company’s first buying offer; and then a higher cash amount again when that person rejects their second offer. “An upstanding gold buyer will give you their best buying offer right from the start. Period,” says Blyler.

One sample from San Diego Jewelry Buyers “7 Quick Questions to Ask Your Gold Buyer” is the following:

How much are you paying per gram today for 14 karat gold (or 10K, or
18K, etc.)?

CORRECT ANSWER: According to today’s market price of gold, we are paying ___ per gram for 14K gold (or 10K, or 18K, etc.).

REASON: Some gold buyers will use deceptive techniques in order to get you into their store. For example, they might say, “Today’s gold price is ___ per gram.” Then when you come in they will explain that the price they quoted you on the phone was what they sell gold for, not what they buy it for. They do this in hopes of capturing a certain number of people who will still go through with the transaction despite the “misunderstanding.”

To read the rest of SDJB’s essential questions to ask a gold buyer, please visit their website at: SanDiegoJewelryBuyers.com

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Looking for more information about people’s personal experiences with gold buyers, and why you should compare before choosing one? Then check out this good news article: It Pays to Compare Gold Buyers.

It Pays to Compare Gold Buyers

If you watched the Super Bowl last week, you probably saw the ad with Ed McMahon and MC Hammer – both known as men sometimes in bad need of ready cash – touting a company called Cash4Gold. According to a recent article in Newsday, the Florida-based company spends millions each month on advertising on the Web and the airwaves to convince folks to mail in their gold jewelry, coins, medallions, or trophies to get cash back in a flash. What Ed and MC didn’t mention is something that the company’s Web site does: Customers may get more at their local gold dealer.

In other words, Newsday reports something that we have been telling our readers for a long time. That is, many local dealers provide substantially better buying offers for gold. And that if you are concerned about getting the best price for your gold (or for anything else you want to sell) information and comparative shopping are your best defense.

The Newsday article cites Amit Verma of Nassau Gold Buyers, in Hicksville and Rockville Centre. She says that gold sellers should go to several dealers to convince themselves that offers are competitive, and “get referrals from people who are happy with how they are treated.”

Murray Gordon of Whitman Coin & Jewelry in Melville, a store that buys gold jewelry and gold collectibles and which has a pawnbroking section as well, also confirms the fact that mail-in companies could easily pay less than what the gold could get elsewhere.”Believe it or not, a few earrings can add up to a hundred pennyweights, which can be worth $1,500, $1,800, depending on the quality of the gold,” said Mr. Gordon.

So San Diego gold jewelry sellers don’t forget to call around to your local gold buyers or drop by their shop before deciding who you are going to sell your gold to.

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It certainly is obvious that selling used gold is becoming a hot trend in San Diego and around the country. For further evidence about the selling gold for cash trend, read this interesting article: More Folks Turning Gold Jewelry into Cash.

Treasure Trove To Be Auctioned Dec. 16th and 17th

San Diego buyers of precious metals get prepared. Jewelry, stacks of gold and silver coins, and assorted medals are among more than 3,000 lots of unclaimed property treasures the state is auctioning off at James G. Murphy Inc., located at 18226 68th Ave. NE in Kenmore, beginning at 9 a.m. on Dec. 18 and 19.

The auction will continue each day until all lots for that day are auctioned off. Interested parties can preview items between 8 a.m. and 4 p.m. on Dec. 16 and 17, or online at www.murphyauction.com. Online bids can be made during the auction.

Pocket watches, bars of silver, and assorted souvenirs are samples of items turned over to the State Department of Revenue after banks and credit unions lost contact with owners who rented safe deposit boxes and held the boxes without rental payment for at least five years. The department has sought out owners of the safe deposit contents, but by law must auction off the property within five years of receipt.

The state now holds $650 million in unclaimed property, belonging to three million people, accumulated since the 1950s. In addition to safe deposit contents, unclaimed property includes uncashed payroll checks, savings and checking accounts, and stocks and bonds. Each year more unclaimed property is turned over to the department. An online searchable database and claims system makes it easy to check for property – a system that has enabled the Department to return more than $112 million to about 240,000 rightful owners over the past three years. The database is available at ClaimYourCash.org.

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For those interested in the fine print regarding the trade of gold and silver jewelry, then we have just what you are looking for. Go to the following article for the details: Essential Guide to Trade in Gold & Silver Jewelry.

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