Jewelers at the Miner’s Den filed and polished gold as they fashioned rings and other pieces, sending the tiny, sparkly flakes flying and landing into a drawer below that was set up to catch them.
Tom Schowalter — who owns the Royal Oak, Michigan, store with his older brother, Mike — weighed filings that had been scooped into a small, plastic container. Then, he punched calculator numbers to figure out the collected gold dust’s worth.
“That’s about $25,000,” Tom Schowalter said.
How much? He mentally checked his math and then repeated: “$25,000.”
With the price of gold soaring, jewelers are saving every speck of the precious metal, even the particles so fine they are like powder. The price of gold hit an all-time high of $3,500 an ounce in April, and has since settled around $3,367.
The Miner’s Den is even saving vacuum bags to retrieve sucked up gold dust.
The high price of gold has been driven by inflation, worries about investing in the stock market — even the bond market, which often is considered safer — and purchases of the precious metal by other countries, particularly China, in response to trade instability.
Buying and selling gold
Gold prices have come down somewhat since April.
But they are still sky-high, closing June 26 at $3,348 an ounce.
For many jewelers, that means they will pass some of the additional costs onto customers, although some jewelry makers like the Miner’s Den are willing to reduce their profit margins to keep their best customers coming back.
And for those with gold they are ready to part with, perhaps that 14K bracelet they haven’t worn in years or the heirloom gold pocket watch that no longer works, it means that this could be a good time to cash in.
Investors are asking their financial advisers — if they have one — if gold is a good buy.
The answer: If you are looking for a safe place to put your money, gold, a commodity, can diversify risk. It is subject to speculation, but unlike currency or stock shares, it isn’t something that a government or company can decide just to issue.
A year ago, gold was trading at about $2,325 an ounce, and it is now up more than 40%. Five years ago, gold was trading at about $1,600 an ounce. And a decade ago, it was only about $1,185 an ounce. That’s about a 180% increase.
What you should know about selling gold
In their lifetimes, more people will sell a couple of used cars than unload gold jewelry. So it’s key to take time to understand the process to get your best price as you hear more about record gold prices.
Some tips include:
Good time to buy gold?
Meanwhile, gold has become such a hot commodity that Costco is apparently limiting how much its members can buy.
The warehouse retailer began selling 24-karat gold bars to its members in 2023, with a limit of two bars per person. Now, that limit has changed to one per transaction and a maximum of two bars per 24 hours, when you look on the retailer website, as previously reported by Business Insider.
The price tag for a 1-ounce Gold Bar PAMP Suisse Lady of Liberty? $3,439.99, much higher than the $2,000 they were going for nearly two years ago, shortly after Costco began selling them.
Costco: Consumers still snapping up gold bars
The gold bars constantly sold out when they were first available online in 2023. “When we load them on the site, they’re typically gone within a few hours, and we limit two per member,” Costco’s then-chief financial officer Richard Galanti told analysts during the company’s earnings call in September 2023, according to a transcript from S&P Global Market Intelligence.
Costco could be making $100 million to $200 million a month by selling gold bars, Wells Fargo Equity Research estimated in April 2024.
If gold prices remain high and economic uncertainty continues, the bars could remain popular purchases.
“You know things are getting weird when your mom starts eyeing gold bars at Costco like it’s toilet paper in 2020,” one social media user quipped.
Contributing: Susan Tompor, Detroit Free Press, and Mike Snider, USA Today.
Contact Frank Witsil: 313-222-5022 or fwitsil@freepress.com.
This article originally appeared on Detroit Free Press: Gold is near record highs. What should you do with your old jewelry and coins?
Reporting by Frank Witsil, Detroit Free Press / Detroit Free Press
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