Glittering Prices Aren't Driving Customers to Sell Gold

Source:

"Although gold prices have hit a record-breaking $1,500 an ounce, people are not emptying out their jewelry boxes."

Just because gold prices have hit a record-breaking $1,500 an ounce, doesn't mean people are emptying out their jewelry boxes to cash in on profits.

David Hevia, the owner of Kiefer Village Jewels in Land O' Lakes, said he's seen his gold-buying business steadily decline over the last few years, despite increases in the price.

Kiefer, which sells high-end pieces such as Rolex watches, began buying gold about three years ago. The very first day they started buying gold in 2008, they had five separate transactions. The peak of the store's purchases came that year.

"Then it was down 20% in 2009," Hevia said. "Now, it's probably 30% below that."

That doesn't mean the business had dried up though. They still take in about five buys a day, Kleker said.

Gold prices, however, don't seem to have as big of an impact on sellers as they did before. A customer who was in the store on Wednesday said she didn't know gold had hit the record mark. She just wanted to get rid of pieces she would never wear.

Get Our Streetwise Reports Newsletter Free

A valid email address is required to subscribe