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Tough Times Have People Turning Their Gold Into Cash

News Channel 8 photo by JAMES FARQUHAR

Barbara Blair of St. Petersburg brings her old gold and silver to The Gold And Diamond Source in Clearwater on Wednesday hoping to get enough money to pay this month’s bills.

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By NEIL JOHNSON | The Tampa Tribune

Published: November 20, 2008

Updated: 11/20/2008 03:05 pm

TAMPA - Tough economic times are turning jewelry stores into buyers instead of sellers as people bring their gold to convert glitter into green.

"It's the way a lot of our jewelers make their money now," said Sarah Streb, chief operating officer of the Retail Jewelers Organization, a Newton, Iowa-based group with about 800 retail jewelry store members.

The jewelers buy from customers and sell to a refiner at a profit.

"It's recycling the gold," Streb said.

The trend started about midyear.

"That's when our members started talking about it," Streb said.

At the South Tampa Magnon Jewelers, owner Winnie Marvel has gold parties. A host provides the house and wine. Friends bring gold, and Marvel buys it.

"I buy and they party," she said.

Recently, Barbara Blair of St. Petersburg took some jewelry to the Gold and Diamond Source in Clearwater to convert into cash.

"I am one of those many people that live paycheck to paycheck. And you've got to do something to be able to pay house payments, buy food," Blair said.

Most transactions are based solely on the value of the gold.

About the middle of this year, gold prices were in the stratosphere, topping $950 an ounce in July. Since then, the price has seesawed, hitting more than $900 in October and currently dropping to the $750 range.

Streb said some areas have seen a concurrent fall in retail sales as customers shifted from buyers to sellers.

"It depends on where you are," she said.

Some parts of the country, such as Michigan, are more economically distressed than others.

"Some of our members are having their best year ever," she said.

Blair didn't like selling jewelry she had accumulated over the years or that came as gifts from her parents.

"It's kind of rough," she said. "But I like to eat, and I like to have power, so I have to take care of it somehow."

Business has been increasing for the online Cash4gold.com business, said President Howard Mofshin.

Mofshin did not know whether the increase has been the result of financially stressed sellers or increased awareness of the company.

"It might have something to do with the economy, or it might be based on our brand name becoming better known," he said.

News Channel 8 reporter Peter Bernard contributed to this report. Reporter Neil Johnson can be reached at (813) 259-7731 or njohnson@tampatrib.com.

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