The New York Times:
Gold and silver prices have fallen from the peaks they reached 2 months ago, but after 5 years of steady increases, they’re still at levels that are spurring people to cash in unwanted jewelry for its scrap value.
In Patchogue, N.Y., a gold buyer, Jim Sarno, owner of Budget Buy and Sell, says customers have been hauling in jewelry boxes and emptying them onto his countertops. The sudden and unrestrained exhibition of personal belongings often means only 1 thing: the people are there to sell. ‘If you aren’t wearing your jewelry, you’re losing money,’ said Lisa Hubbard, executive director of the international jewelry division of Sotheby’s. ‘Focus on what the cash would do for you.’
Scrapping gold for cash is an appealing option for those who are getting rid of odds and ends - like a single earring or a broken chain - and can be profitable, especially if you have an accumulation of castoffs. Outlets for sales range from local jewelers or gold buyers to smelters who advertise on the Internet; gold buying is highly competitive, and shopping around is advisable. ‘Show the jewelry to 2 or 3 active buyers,’ suggested Russell Fogarty, a wholesaler at Kazanjian & Fogarty in Beverly Hills, Calif. ‘Buyers base their offering prices for modern gold items by 1st weighing them and determining the actual gold content. If the pieces are wearable and relatively desirable, the offer will be above the intrinsic value of the gold.’ But simple gold chains, he said, would go for less.
Keep in mind that prices offered by buyers are for pure material, and that nearly all gold, platinum and silver jewelry is made of alloyed substances that require the addition of other metals to make them strong enough to withstand daily wear and tear. Gold that is 14 karat is 58% pure gold, while 18 karat means 75% and 24 karat is 100%; the price paid will reflect the amount of actual gold that is bought.
Gold now sells for $633 an ounce, down from $725 in May. But that is much more than about $265 an ounce in July 2001. Jon Nadler, a precious-metals analyst at the bullion dealer Kitco.com, does not expect the price to fall below $540 an ounce, and he says it could hit $730 next year.
The resale market for antique and estate jewelry is so closely scrutinized for valuable items that much of what is sold for scrap is instead salvaged and sold as jewelry. ‘Even the smelters and scrap buyers are smarter than’ to let some items be melted down, explained Barry Weber, the chief executive of Edith Weber & Associates in New York, a gallery specializing in rare, antique and estate jewelry, who often appears on Antiques Roadshow. ‘They pick out anything that has greater than scrap value,’ and it ends up in retailers’ showcases. Read more.
Subscribe 
