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SDJB’s Gold Buying Business

April 24, 2010 by Administrator · Leave a Comment 

In the following media interview, the owner of San Diego Jewelry Buyers (SDJB) discusses the ways in which his company’s gold and jewelry impacts the local economy.

San Diego Jewelry Buyers has been in the gold, jewelry, and watch buying business for some thirty years. In these difficult financial times, what role do you see your company fulfilling with regard to the larger San Diego economy?

Owner: Every day, San Diegans bring me items which have been lying around in a dresser or safe deposit box, and trade it in for cash. Yesterday a woman in her 80s traded in her scraps of old gold for about $1800, and said she was going straight to Best Buy to get a brand new flat screen TV and home theatre for her apartment. All things considered, I think she’ll get a lot more enjoyment from that TV entertainment center, than she was getting from some old broken gold jewelry that had been lying around in her dresser drawer for 30-40 years. I joked with her that if someone ever breaks into her apartment, the gold would have been a lot easier to make off with than the new giant flat screen TV mounted to her wall!

So you are saying that San Diego Jewelry Buyers helps customers realize wealth they might otherwise have forgotten about?

Owner: In many cases, yes. But it also is more than that. When people find out that they have un-tapped wealth sitting in their drawers and cabinets, wealth that can be transferred into quick discretionary income, this feeds the local economy. Money is moved, circulated, spent, and re-generated through all the businesses that the customers patronize with their sudden “windfall”. In addition, taxes are paid on all of these new transactions, thus supporting local, state, and federal government services.

But at some point doesn’t this all run out? I mean, there is only so much of this “untapped” wealth lying around, right?

Owner: On the one hand yes, and on the other hand, no. People often ask me “you keep buying all this gold, don’t you think the public will run out of gold soon?” My answer is to point to the whole eBay phenomenon, which turned millions of everyday Americans into moonlighting dealers of second-hand merchandise. That started long before the current gold rush and economic crisis, and people are still selling their unused possessions on eBay, as much if not more so than ever. So do you think that Americans will run out of diamonds, gold, silver, jewelry, and fine watches anytime soon? Sure, the economy is bad now but it will eventually turn around. New precious items will continue to be bought, which eventually become “old” items, and SDJB will be here to turn those items into cash and transfer that wealth back into the economy.

From what I understand, you also see San Diego Jewelry Buyers’ business as contributing to more than just the economy, don’t you?

Owner: That’s right. As a professional jeweler and designer, I’ve been a longtime supporter of sustainable luxury. And when it comes to selling your gold to a company like SDJB, people are helping the environment by reducing the need for eco-harmful gold mining activities. The same thing goes for when consumers sell us their pre-owned diamonds and precious gemstones. It’s a win-win situation for our customers, for us, and for the community.

New Gold Jewelry & Precious Metals Law

August 5, 2009 by Administrator · Leave a Comment 

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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

June 28, 2009 by Administrator · Leave a Comment 

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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.

Gold Prices Jump to 7 Month High

February 25, 2009 by Administrator · Leave a Comment 

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The good news keeps coming for people looking to sell their gold in San Diego. Bloomberg reports that gold climbed to the highest level in seven months on demand from investors who want to protect the value of their assets as stocks slump and the global recession deepens. Read more

Buying & Selling Gold Bullion Coins at San Diego Pawn Shops

October 23, 2008 by Administrator · Leave a Comment 

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If you ever come across some gold bullion coins at a San Diego pawn shop and are considering buying them, there are a few things that you should keep in mind:

Remember that gold prices fluctuate all the time, sometimes quite dramatically. So be sure to check the current day’s spot price. What is gold’s spot price? That’s the current market price for the precious metal. In contrast, a gold bullion coin’s “melt value” refers the value of the coin if it is melted down and sold.

If you plan on buying a fractional gold bullion coin (that is, a coin weighing less than one ounce) you can expect to pay a higher percentage over melt value than if you were buying a one ounce coin.

The folks at the Professional Numismatists Guild say that the average retail commission that a seller charges is 5-6%. So if it seems like the pawn shop from which you are thinking about buying a gold bullion coin is charging a higher commission than that, you can likely get a better deal elsewhere

Lastly, as a general rule of thumb, remember that Kruggerrand bullion coins are usually sold for less than the American Eagle and Canadian Maple Leaf bullion coins.

If you are really keen on buying gold bullion coins, your best bet may be to look up a San Diego ANA (American Numismatic Association) bullion dealer by clicking here.

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People in San Diego often ask us just what the history of pawn shops is, where and how the whole business got started. For the curious, SDJB has now written: A Brief History of Pawn Shops.

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