The other side of the gold rush: due to the crisis, more people go out to sell family jewelry

The other side of the gold rush: due to the crisis, more people go out to sell family jewelry

The precious metals have escalated to levels of record prices in recent months due to various factorsamong them the growing geopolitical tensions. The craze for gold, especially among central banks, particularly China, saw the troy ounce of gold pass in a few months 2,000 dollars at the beginning of the year to more than 2,400 in recent weeks.

Those who opted to take refuge in the precious metal are in congratulations, while jewelry lovers have seen the prices of different pieces increase. But for others, with economic and financial difficulties, the gold rush is perhaps a escape valve to face the imbalances in family budgets in the midst of the recession.

In this way, before the Inflationary escalation, the loss of income and purchasing power, more and more people, mainly middle class, are resorting to parting with, to the extent they can or have, not only savings and dollars spent years old but also family jewels.

It is a phenomenon that It is not only typical of Argentina, whose middle class, to the extent they can or have it, sells old dollars and/or grandmother’s jewelry to face the disruption of the family budget in the midst of a recession.

The disarmament of the so-called “canutos” was seen in recent months, even encouraged by President Milei himself and with it the retraction of informal dollars. But the sale of those considered by families as grandmother’s jewelry It intensified with the crisis and the rise of gold. First, expenses are adjusted and when limits are bordered, family treasures are released.

Part of it is seen not only in the boom of business advertisements specialized in buying and selling jewelry, gold and watches, etc. but also in consultations and transactions, for example, in the traditional Buenos Aires Libertad Street and its similes in the interior of the country. According to the “thermal sensation” of those who understand these issues, the Consultations increased between 50 and 60% so far this year, and operations the same.

In the same way, the pawn operation also intensifies, that is, leaving some jewelry as collateral in exchange for a sum of money. About, In CABA, Banco Ciudad is the traditional Buenos Aires vehicle to carry out pawns via the so-called pledged loans. It seems to have already registered almost a third of the operations of all of last year, according to market sources. They are a type of short and medium term personal loan.

The sale of grandmother’s jewelry: a phenomenon not only local

Now, as a consolation for fools, the crisis, whether due to inflation or loss of income, It also affects even the most developed economies, such as the US, where people go more frequently to pawn shops and sell jewelry due to the rise in gold.

Gene Furman, owner of King Gold & Pawn and Empire Gold Buyers, told Bloomberg that people are using the gold like an ATM you never had. He pointed out that Gold sales traffic at its Fifth Avenue location in New York has more than tripled since gold rose more than 15% from last February’s low.

Of course, when it comes to selling, the generational attitude is very different. Some just want to take advantage of rising gold prices but others are forced to sell due to the impact of inflation on their personal budgets.

Most sell even inherited jewelry with sentimental value, but as Tobina Kahn, of House of Kahn Estate Jewelers, explains, Young people don’t wear grandma’s jewelry, the majority want an Apple watch, they don’t want a pocket watch, the sentimental is now on the other side of the door. These young people, harassed by the higher prices of food, rent, car expenses, etc. They are dwarfed by the price of gold and are looking for cash to cover their monthly expenses.

As there is someone who sells, there is also someone who buys, that is why the supermarket chain Costco began selling one-ounce bars at the end of last year, at a rate of 100 and 200 million dollars a month, according to a Wells Fargo estimate. Today it also offers one-ounce coins of pure gold.

In other words, in this supermarket, among washing machines, detergents and food, the customer can also buy gold. According to the financial channel CNBC, the retail chain is setting the price of bars 2% above the spot price and if you are a premium member you get a 2% discount and those who use their Citigroup credit cards will receive an additional 2%.

Source: Ambito

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