NY Times Features Rush to Cash In on Rising Gold Prices

In an article entitled “Gold Bars, Gold Necklaces, Gold Earrings: The Rush to Cash In,” The New York Times noted that “Gold prices are soaring to historic levels, drawing newcomers and regulars alike to New York’s diamond district.”

The Times relates:

The lights weren’t even on yet at Bullion Exchanges in Midtown Manhattan, but a customer was already standing outside, holding a crumpled Target bag stuffed with what she hoped were valuable treasures.

Jennifer Tessler had rummaged through a drawer to dig out a few pieces of her long-dead mother’s gold jewelry and several gold charms from her own baby bracelet that she wore 77 years ago. It was finally time to cash in, and she knew exactly where to go: the diamond district.

Ms. Tessler joined what has become a growing pilgrimage to 47th Street, as newcomers and longtime regulars hope to profit from gold prices that have climbed to historic levels, a signal that investors are looking for a safe place to stash their wealth amid concerns about the economy.

When The New York Times wrote the story gold was selling at $4,267.90 an ounce; it has since surpassed $4,500 per ounce. Silver was selling at around $50 an ounce; it is now selling at more than $75 an ounce.

Plastic bins of shimmering necklaces, earrings and bracelets were stacked on the floor. Zip-lock bags of gold rings lay scattered across a desk. The real-time price of gold flashed across a screen mounted to the wall.

The store lights flickered on, and Ms. Tessler was beckoned inside.

Back when she was given the charms — a tiny gold tennis racket, slot machine and whistle — the price of gold was around $35 per ounce. Her mother had at some point bought a gold bracelet, which Ms. Tessler also brought with her, along with the biggest piece she was hoping to sell, an 18-karat gold necklace. She eyed the family heirlooms as she plopped them on the counter. With no children and an upcoming trip to Portugal, Ms. Tessler had decided to let it all go.

“This is the last of the gold,” she said. “I’ve given away everything else.”

A clerk took the small pile and began testing it, filing away at the pieces and putting them under a special X-ray-like machine to test their purity. Ms. Tessler quietly fidgeted, and the room filled with the sound of $100 bills flicking through an automatic counter as workers prepared for the day.

The clerk returned with bad news. Her gold necklace wasn’t actually made of gold. It was a fake. Ms. Tessler grimaced.

But there was good news too. She looked down at the receipt that tallied the value of the rest of her items: $7,338.

“I’m shaking — I can’t believe it!” she said, flabbergasted at her earnings. “I think I’m going to take a limousine home.”

As the morning wore on, a line formed outside. People held heavy Trader Joe’s and Walmart bags. Some stood lopsided, the weight of the metals in their pockets tugging on them. Jewelers joined the line, hoping to unload items that had sat on their shelves for years without selling. One man walked into the shop, took the Rolex off his wrist and set it on the counter. Another opened a padded envelope and dumped out a bag of rings and necklaces.

Amidst the day’s business The Times recounts how one customer after another stepped to the counter with their old jewelry and were shocked when they received their payout. The Times notes:

Albert Chan stepped up to the counter. He unwrapped two chunky gold necklaces he had received as a wedding present. They had been in his closet for 20 years, and with gold so high, he decided to see what price he could get.

He gasped when he learned the payout: $10,163.

The story concludes:

Around closing time, the last two customers of the day entered. One unfurled plastic wrapping to reveal a kilogram bar of gold he wanted to sell. Another emptied several tubes of gold coins that clinked onto the counter. Each sale was worth nearly half a million dollars.

When will the price of gold stop climbing, one of them asked aloud.

“This,” Mr. Tseytlin said, “is beyond anything I’ve ever seen before.”

So… What do you have in your closet? Give us a call at Alpha Gold Exchange, 908-892-9610 and see if you’d like to cash in your broken and unwanted jewelry, gold and silver, coins and bullion. You might be pleasantly surprised at how much money you have sitting in your closet collecting dust.