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.

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.”

Demand for Gold Bullion Coins Soars

Reuters (London) is reporting demand for gold coins has risen sharply, according to mints around the world, as interest in the precious metal soars on the back of financial instability and concerns over the inflation outlook. The Royal Canadian Mint, which produces Maple Leaf bullion coins, said it quadrupled its production capacity late last year as demand for gold and silver bullion products leapt. Read more

More Folks Turning Gold Jewelry into Cash

More Californians are taking advantage of a jump in the price of gold to turn their old gold jewelry into cash, says the Santa Cruz Sentinel. The price of gold, which rose to $1,000 an ounce last February and March, then dropped to the mid-$900s, is back above $900 an ounce, sparking a gold rush.

The newspaper article mentions that Santa Cruz Pawn is the only licensed and bonded pawn shop in the city of Santa Cruz, and that it has been in business for more than 10 years, paying cash on the spot for jewelry that might be damaged, missing pieces or just not your style. Bruce Pedersen, owner of Watsonville Pawn, says that most people don’t know that they can come to a pawn shop to sell their gold jewelry. This is unfortunate, since Pedersen said that when he called the “cash for gold” phone number advertised on television, he got referred to another phone number, where he found the voice mail full and no longer taking messages.

Pederson also stated that the $900 per ounce advertised price quote is misleading because it applies only to pure 24-karat gold. Most gold jewelry is 10 karat or 14 karat, so it is worth less, he said. For example, 12 karat is 50 percent gold so the price could be $450 an ounce, half the rate for 24 karat gold.

Other advice worth remembering is that “if it’s gold over silver, it’s worth less,” says Michael Craig, owner of Monterey Bay Estate Jewelry and Antiques, explaining that silver is priced at $12 an ounce.

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While people of all walks of life are turning gold jewelry into cash, the opposite is true too. Many people are now turning cash into gold, seeing gold as one of the few secure investments in this volatile economy. To read about the cash to gold trend, go to this article: Record Sales for Gold Bullion and Coins.

Record Sales for Gold Bullion & Coins

San Diego gold buyers and sellers take note. According to the Financial Times, investors are buying record amounts of gold bars and coins. Why? Because they are shunning risky assets for the relative safety of bullion as renewed fears about the health of the global financial system resurface. Read more

Is Gold Going to Become a Mania Asset?

Steve Ellis, a manager of RAB Gold Strategy, is reporting for Yahoo News that the US Federal Reserve has flooded the market with liquidity by more than doubling its balance sheet in less than six months. This means it may be unable or unwilling to withdraw it in time for fear of precipitating a secondary relapse in economic activity. Meanwhile other central bankers are predicted to face intense pressures to “support” their domestic economy by weakening the currency, leading to competitive currency devaluations. Read more

Gold Prices Jump to 7 Month High

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

Your Confidentiality & Security

With increased business being conducted by buyers and loan providers of gold, jewelry, diamonds, and watches, consumer concerns have been raised regarding personal confidentiality, as well as public security. In response to these concerns, and to clear up any potential confusion, we at the San Diego Luxury Pawn Shop Report thought it would be good if we laid down the kinds of security and confidentiality polices that your jewelry buyer or pawn shop should have in place. Read more

Selling Your Diamond Engagement Ring

San Diego Jewelry Buyers has updated its Knowledge section for sellers of fine jewelry, gold, diamonds, and watches with advice for consumers looking to sell their diamond engagement ring. “It is always a difficult and emotional situation when someone is thinking about selling an engagement ring or bridal jewelry,” says Alan Blyler, a spokesperson for San Diego Jewelry Buyers, “so we wanted to lay down some practical and personal things to think about before making a decision.”

On the personal side, San Diego Jewelry Buyers recommends that women who are in the process of getting a divorce should wait until the papers are signed before selling their engagement ring and other bridal related jewelry. Feelings among married couples often change at the last minute, and the prospect of losing an engagement ring and wedding band forever should the couple reconcile is something to remember. Customers in need of money immediately are advised to sell less sentimental diamond jewelry, or use it as collateral for a loan.

On the practical side, San Diego Jewelry Buyers informs potential sellers of diamond engagement rings that bridal jewelry which was appraised in the past for insurance purposes was valued at the estimated retail price. This price is much higher than what a customer can expect on the second-hand (used) jewelry market. Consumers who decide to get their engagement ring appraised before they resell it are advised to tell the appraiser that they would like a resell price estimate.

To read the rest of San Diego Jewelry Buyers’ tips for sellers of diamond engagement rings and bridal jewelry (as well as other timely advice on how to sell your gold, watches, and diamonds) please visit the Knowledge section of their website at:

http://www.sandiegojewelrybuyers.com/knowledge/jewelry/51-sell-your-diamond-engagement-ring.html

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Did you know that Mahama Ghandi had a favorite watch that he carried with him? It was a Zenith pocketwatch, and you can read about it at: Ghandi’s Watch Sold at Auction.

iGavel.com Now Auctioning Vintage Jewelry & Watches

San Diego holiday shoppers should take note that iGavel (a leader in online auctions) is currently hosting an online jewelry auction. As we are now in a buyer’s market, iGavel has worked with many of its consigners to lower estimates and reserves in order to have a successful auction. Therefore, this is a great time to purchase jewelry at prices that are more reasonable than have been seen in years.

The auction includes a varied selection of vintage and designer jewelry. Recent highlights have included a 3 carat sapphire and diamond ring, estimated at $1,200-$1,800 with a starting bid of $800; a Diamond, Gold and Pearl Convertible Brooch or Pendant, estimated at $2,500-$3,500, with a starting bid of $1,800; and an Antique 14K White Gold, Emerald and Diamond Pierced Work Horizontal Brooch, with the emerald under 2 carats, and diamonds totaling close to four carats. This piece is estimated at $3,000-$5,000, with a starting bid of $1,995.

The watches included in the iGavel auction are often exceptional. Over the past ten days, items have included a Bovet, Fleurier, Enamel and Gold Open Face Key-wind Watch for the Chinese Market, 19th Century, estimated at $500-$700, with a starting bid of $250; a Gold and Enamel Keywind Watch, Just & Son, London, 19th Century, Estimated at $800-$1,200, with a starting bid of $500. Also included is a Gold Cartier Ladies Watch, Paris, late 20th century, from a private South American collector. This piece is estimated at $2,000-$3,000, with a starting bid of only $900.

Check out iGavel.com to see if these items are still up for auction, and to discover what other new jewelry and watches have been placed up for bidding.

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Shoppers in San Diego take note that a huge stash of gold coins, jewelry, and other gold items are soon going to be up for sale. Read the details about the auction at: Treasure Trove to be Auctioned.

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