USA: New Yorkers sell old jewelry as gold prices hit a record high

Record ID: 788462

  • Title: USA: New Yorkers sell old jewelry as gold prices hit a record high
  • Date: 20th August 2011
  • Summary: NEW YORK CITY, NEW YORK, UNITED STATES (AUGUST 19, 2011) (REUTERS) VARIOUS OF DIMITRIY NEZHINSKIY, PARTNER AT DIAMOND DISTRICT GOLD BUYERS, PUTTING GOLD JEWELRY IN A BOX GOLD COINS ENTRANCE OF DIAMOND DISTRICT GOLD BUYERS PILE OF GOLD JEWELRY (SOUNDBITE) (English) DIMITRIY NEZHINSKIY, PARTNER AT DIAMOND DISTRICT GOLD BUYERS, SAYING: "I've been getting a lot of calls. People ask me they come because people follow the news. Like I said, they see prices high so they figure now is a good time to sell." NEZHINSKIY TALKING TO A SELLER CLOSE VIEW OF A JEWELRY PIECE VARIOUS OF NEZHINSKIY LOOKING AT JEWELRY MORE OF NEZHINSKIY TALKING TO A SELLER (SOUNDBITE) (English) DIMITRIY NEZHINSKIY, PARTNER AT DIAMOND DISTRICT GOLD BUYERS, SAYING: "Mostly I hear a lot of people that they have to mortgages or rent. Because people don't want to lose their properties, a lot of people are losing properties so they have to sell all the gold that they have been saving over the years to pay the mortgage. That is the most common story that I hear." JEWELRY IN PLASTIC BAGS GOLD COINS RINGS ON A TABLE VARIOUS OF ELLEN WEIDER, JEWELRY SELLER, TALKING TO A BUYER (SOUNDBITE) (English) ELLEN WEIDER, JEWELRY SELLER, SAYING: "I decided that -- I heard that gold was at an.. I have been following it, on and off just for a couple of weeks and it's so high that I thought today is the day to bring in the things that I never wear and see how much they're worth." MONEY LAYING ON TABLE WEIDER COUNTING MONEY WEIDER PUTTING MONEY IN HER BAG MORE OF NEZHINSKIY WEIGHING GOLD NEW YORK CITY, NEW YORK, UNITED STATES (RECENT) (REUTERS) VARIOUS OF GOLD JEWELRY ON DISPLAY GOLD EARRINGS ON DISPLAY
  • Embargoed: 4th September 2011 13:00
  • Keywords:
  • Location: Usa
  • Country: USA
  • Topics: Economic News
  • Reuters ID: LVA7CCEWO1RSVUBJ16U9CL9MHZ6T
  • Story Text: Equity markets continued to extend their losses on Friday (August 19) fueling fear of a new recession. But amidst the gloomy financial outlook, one business in soaring - that of gold buying.
    Gold set a second-straight day record high on flight-to-safety buying, selling for $1,877 (USD) an ounce on Friday.
    And while buyers see their business boom, sellers take the opportunity to make some extra money by getting rid of their old jewelry.
    Dimitriy Nezhinskiy is a gold buyer in the Diamond District in New York, and partner at Diamond District Gold Buyers.
    Nezhinskiy says that his business has gone up about 40 percent in the past weeks.
    "I've been getting a lot of calls. People ask me they come because people follow the news. Like I said, they see prices high so they figure now is a good time to sell," Nezhinskiy told Reuters.
    Nezhinskiy says that he pays his sellers 99 percent of the spot gold market price, but the 1 percent profit on the value added up makes for a lucrative business.
    He says that his shop buys an average of $100,000 (USD) worth of gold on a daily basis.
    Most of his sellers, according to Nezhinskiy, sell their gold out of necessity.
    "Mostly I hear a lot of people that they have to mortgages or rent. Because people don't want to lose their properties, a lot of people are losing properties so they have to sell all the gold that they have been saving over the years to pay the mortgage. That is the most common story that I hear," he said.
    Ellen Weider walked in the store to sell her old rings that she almost never wears.
    After following gold prices for a while, Weider decided that today was the day.
    "I have been following it, on and off just for a couple of weeks and it's so high that I thought today is the day to bring in the things that I never wear and see how much they're worth," Weider told Reuters.
    The extra cash will go towards a long needed vacation, although she also said that she might hold on to it for a while.
    For her old jewelry Weider got over $1100 dollars.
    On Friday spot gold has posted its biggest one-week gain in 2-1/2 years and remains on track for its biggest one-month rise in nearly 12 years in August. Bullion is up 30 percent so far this year.
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