Economic Turmoil Fuels Gold Rush Among US Jewelry Retailers

As gold prices reach record highs amid economic uncertainty, a surge in gold transactions is evident at the St. Vincent Jewelry Center in Los Angeles. The center, home to over 500 independent vendors, is witnessing an unprecedented influx of sellers and buyers.

Alberto Hernandez, a gold refiner, recently processed nearly 100 grams of jewelry, yielding a highly valuable product worth $177,000 based on current market rates. “We’re seeing a lot of big pieces being melted down,” said Sabashden Hernandez, Alberto’s nephew. Customers are not just seeking cash; they’re also converting family heirlooms into liquid assets.

Los Angeles jeweler Olivia Kazanjian reported an uptick in clients selling familial items, including wedding bands and antique jewelry. One recent transaction involved a 14-karat gold bracelet with intricate craftsmanship, fetching $3,200 for its material value. However, Kazanjian opted not to melt it down, citing its artistic significance.

The trend arises as financial markets fluctuate due to ongoing economic pressures, including tariff announcements from political leaders. Many individuals perceive gold as a safer investment amidst this uncertainty, prompting a rush to acquire bullion.

While businesses focused on sales of gold bars thrive, those sourcing products from overseas are struggling. Puzant Berberian of V&P Jewelry noted rising import costs due to tariffs, impacting profit margins significantly.

Amid the market dynamics, customers are experiencing “sticker shock” as prices for gold jewelry soar. One example includes a 14-karat gold bracelet, whose price increased from $600 last year to nearly $900 today. According to industry experts, this trend may persist as demand increases and supply challenges continue.

As speculation about gold prices intensifies, investors remain hopeful for further increases. Jeff Clark from The Gold Advisor anticipates a possible rise to $4,000 or $5,000 per troy ounce by year’s end, attributing this to historical trends during similar economic climates.

In a world fraught with uncertainty, it appears that gold’s allure remains as strong as ever, drawing both sellers looking to convert old jewelry into cash and investors aiming to secure stable assets.