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All That Glitters Might Be Cash

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By SHERRI LONON IN THE LOOP

The Tampa Tribune

Published: March 25, 2009

Whether it's a sign of the times, or a desire on the part of people to get rid of broken or unwanted pieces of jewelry, is a matter of debate. What is certain is that the gold-buying trend has made its way to central Pasco County.

Many jewelry, antique and pawn shops throughout the area have announced their willingness to buy people's scrap pieces. There are even companies that will help hosts stage "gold selling parties."

A billboard on State Road 54 in Lutz that once announced where residents could go to buy Rolex watches, now reads "We Buy Old Gold."

Why all the fuss?

Steve Richardson, owner of Famous Treasures, 4312 Land O' Lakes Blvd., in Land O' Lakes said the economy has a lot to do with it.

"Gold is going up," he said. "People don't have faith in paper money."

Richardson pointed to different periods in history when gold and other commodities were more valuable than currency. People, he said, tend to put more stock in tangible assets when the economy turns.

Gold, he said, is a historic favorite because of its pricing stability.

"Gold has held its own for over 200 years," he said. Buyers are interested because "if you can own gold and hold on to it it's always going to give you something to barter (with)."

As of last week, gold prices were more than $950 per Troy ounce. A Troy ounce is a unit of measure that equals 31.10348 grams.

Richardson's antique and treasure hunting store began buying gold earlier this year. It's now become a staple of his business as customers come in to trade their broken and unwanted pieces for money they can use.

For David Hevia, owner of Kiefer Village Jewels, 24144 State Road 54, the experience is a little bit different. He began buying gold in earnest about a year ago and has since watched it become a big part of his business. His sellers aren't stating that they need the money per say. Instead, Hevia said, many are coming in to get rid of old pieces they don't want, to turn their broken items into money or even to trade up for new pieces in platinum or white gold.
Hevia said he was at a trade association conference last year where other jewelers were discussing the trend in buying gold and selling it to refiners. "My peers across the country were giving feedback that this was working out for them," he said.

Shortly after hearing some of the success stories, his own associates and customers started asking about the prospect. In May 2008, he decided to give it a try.

"It's a pretty big market out there," he said, adding that he cannot remember a day in the last few months where at least one gold purchase didn't take place at one of his store locations.

"The more we get the word out (about buying), the more we do it."

Laurieanne Morse, sales director for Kiefer's Lutz location, said business has been brisk. She has found that many customers are coming in to sell so they can "clean out" and "upgrade."

"We provide a service that is needed in the community," agreed Meredith Kleker, sales associate. "It's an opportunity for them and us."

Once businesses like Famous Treasures and Kiefer purchase gold, the options for them to resell it can vary. Both Hevia and Richardson sell directly to refiners. Richardson sometimes auctions it off, as well.

Selling gold has become such a popular trend that it has even found its way into local Parent Teacher Association fundraisers. The Quail Hollow Elementary School PTA has invited a gold buyer into two if its events so far. When this takes place, sellers receive a check on the spot and the PTA also receives a percentage of the proceeds, said Shelby Hook, the PTA's secretary.

"We decided to add it in along with the spaghetti dinner and the carnival," she said. "We let people know if they needed the cash and had the gold (a buyer would be there). We received 15 percent of the checks they cut. We got quite a chunk of money."

Hook said the win-win situation is something that is recognized by both parents and the PTA. She also has sold some of her gold at the PTA events and was happy with the experience.

"I had old, broken jewelry that I ended up making money on."

While some people might be drawn to the fast cash of selling their gold, Richardson does caution sellers to understand how the process works. When jewelry is purchased, buyers are only interested in gold content. This can mean a large piece might not fetch much if the content of gold isn't high. A small piece with high content, however, could be worth a fair amount.

For more information on selling gold, contact Famous Treasures at (813) 996-1787 or Kiefer Village Jewels at (813) 909-2393.

The Gold Selling Process

While the actual process of selling gold can vary somewhat depending on the outlet sold to, sellers can expect a few things in common. The process will typically involve:

• A brief interview to ascertain that pieces belong to the seller;

• Verification of the gold content in a piece, which may include chemical testing;

• Weighing of the piece(s);

• Calculation of the gold content based on karats and weight;

• The sales offer, based on current market pricing, gold content in a piece and buyer and refiner charges;

• Legal paperwork, including thumb printing and photocopying of an identification card for local police;

• The issuance of a check, which most sellers insist on rather than cash to create a paper trail.

Although buyers will typically issue a check on the spot, they will hold on to the pieces for at least two weeks to give law enforcement time to make sure the pieces are not stolen.

Editor Sherri Lonon can be reached at (913) 948-4287 or at slonon@mediageneral.com.

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