(Kitco News) - In an uncertain world, gold is providing some much-needed certainty, and consumers are starting to take advantage, cashing in on significantly higher prices as gold sees its third one-day $100 rally this month.
In an interview with Kitco News, Tobina Kahn, President of the House of Kahn Estate Jewelers, said that she is seeing a new rush of customers coming in to sell their damaged and unwanted jewelry. While some consumers were hesitating to sell when prices were below $3,000 an ounce, Kahn said that their attitude has dramatically shifted.
Image courtesy of the House of Kahn Estate Jewelers.
“ I'm just amazed at all the stuff I'm seeing in gold, and I don't know if I would've seen it at $2,700,” she said. “ Literally, the writing is on the wall after somebody brought me 20 gold pens to sell. I would say that this is a once-in-a-lifetime opportunity for a lot of people, and they're not questioning it.”
The increase in recycling activity comes as gold prices trade near record highs above $3,400 an ounce, up 29% so far this year.
Kahn added that sentimental feelings are no match for current gold prices, as some consumers have sold cherished family heirloom pieces to pay down debt.
“Consumers are definitely motivated to sell their jewelry,” she said.
Although her customers do not fear the economy completely collapsing, Kahn said some of the comments she has heard are that higher gold prices are helping to compensate for free-falling equity prices, which have significantly damaged retirement funds.
While gold prices could see a rise in volatility, Kahn said that she expects gold sales to remain elevated for the foreseeable future. Even in a volatile market, she said she doesn’t see gold prices going below $3,000 an ounce again.
She added that even if President Donald Trump is able to make trade deals and resolve the tariff issues, the global trade war has caused significant damage to the economy.
“ This uncertainty is the new normal,” she said. “And gold is in the driver's seat.”
Kahn said that she expects the Federal Reserve to eventually lower interest rates to support economic activity, making gold even more attractive as opportunity costs fall.
Although higher gold prices are bringing out the sellers, Kahn said that she expects more buyers will come into the physical market when the momentum calms down.
“ Consumers are starting to see the utility of gold now, and that is making it a lot more attractive to own,” she said.
