Economics trumps sentimentality, and gold’s elevated price has some people raiding the family jewelry box to pay bills.
“Young people are not wearing grandma’s jewels. Most of the young people, they want an Apple watch. They don’t want a pocket watch,” Tobina Kahn, president of House of Kahn Estate Jewelers told Bloomberg.
“Sentimental is now out the door.”
When times are tough, treasures change hands, the late Burt Blumert, once a gold dealer and Mises Institute Board Chairman, used to say.
“Prices are high, and I need cash,” Branden Sabino, a thirty-year-old information technology worker said, adding that with the cost of rent, groceries, and car insurance rising, he doesn’t have any savings. He sold a gold necklace and a gold ring to King Gold and Pawn on Avenue 5 in Brooklyn.
“People are using gold as an ATM they never had,” said store owner Gene Furman.
At King Gold, fifty-five-year-old Mirsa Vijil pawned a bracelet to pay her gas bill.
“Gold is high,” she said, adding she’d never pawned her jewelry before but will do it again if she needs to.
Adrian Ash, director of research at online gold investment service BullionVault says there is twice as much selling as a year ago on BullionVault’s platform. “People are very happy to take this price.”
“It’s very busy and we are getting more calls than ever before about clients wanting to bring in their jewels,” Kahn said.
“I’m telling the clients to bring them in now, as we are at unprecedented levels.”
So while there is plenty of liquidating to pay the bills, demand at the United States Mint is tepid, with sales in March the worst since 2019 for its American Eagle gold coin.
A learned long ago, if one really wants to know how the economy is doing, keep an eye on gold. Biggies have the wealth to buy gold, so if they feel things are out of sack, they turn to gold. Not the infomercial with William Devane, it’s the bricks where wealthy buy. 1 ounce today is worth $2,360.00…..if u can find someone who will buy an ounce at that price.
Stock market isn’t a good indicator anymore…only cuz the wealthy play the market.
Nov right around the corner and hopeful this country will reprioritize being self sufficient AGAIN!