FORT LAUDERDALE, Fla., May 06, 2008/PRNewswire via COMTEX/ The still-high price of gold is enticing wealthy consumers to venture where they have never gone before – selling the family jewels.
According to Michael H. Gusky, president of online gold buyer GoldFellow.com, today’s high gold price is enticing more affluent consumers to exchange out-dated jewelry for cash instead of trading-up for more fashionable bling.
Though gold prices have dropped in recent weeks, they are still hovering in the $800’s per troy ounce.
“We’re only about $150 off gold’s highest price, but more than $500 up from the lowest gold price of the past six years,” says Gusky. “Even though gold prices are dropping, this is still the sweet spot in time to sell old gold.”
Gusky says he finds even his affluent clients are sometimes surprised by the cash value of what’s been lying around in their drawers and safes.
“It never occurred to me to sell my old gold jewelry,” said Merle Lundy who, with her retired surgeon husband, owns homes in Jackson Hole, Wyoming and South Florida. “I nearly fell of my chair when they told me a couple of 80’s style earrings and chains I never wear anymore were worth $700.”
Lundy, who sold her old gold jewelry to Gusky’s company, acknowledged that she didn’t need the money to pay her bills – but would put it to good use.
“I’m making a wedding for my daughter – I can always find something to spend $700 on,” she said. “It really pays to clean out your drawers.”
GoldFellow.com staffers say some customers admit going through tough times but many, like Lundy, say they plan on using their gold-selling windfalls for discretionary purchases like fine dining and gifts – including a horse one client claimed she purchased for her daughter’s birthday using the money she got in exchange for her gold jewelry and one-ounce gold coin.
According to Gusky, GoldFellow.com has been purchasing large numbers of gold coins like South African Krugerrands and US $20 Gold Pieces as well as high-karat gold jewelry from individuals across the country.
“These items are not typical of low income households,” he observed.