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For Sellers, Cash Is Good As Gold

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By NEIL JOHNSON

njohnson@tampatrib.com

Published: November 23, 2008

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 Magnon Jewelers in South Tampa, owner Winnie Marvel organizes gold parties. A host provides the house and wine; friends bring gold.

"I buy and they party," Marvel said.

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

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

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

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.

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

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

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

Online business has been increasing for Cash4Gold.com, company President Howard Mofshin said.

"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.

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