Rising Gold Prices Lead to Increase in Sales at Pawn Shops and Jewelry Stores
Minnesotans are flocking to pawn shops and jewelry stores to sell off jewelry and coins as the price of gold hits record highs. The price of gold has been steadily increasing since February amid inflation and economic uncertainty, with gold reaching around $2,400 per ounce on Thursday. This surge in gold prices has prompted a surge in people looking to cash in on their gold possessions.
Michelle Miller, vice president at Gloria’s Jewelry in St. Paul, expressed her surprise at the unprecedented high price of gold, stating that gold has risen about 20% so far this year. She noted that more and more people have been coming into her store to offload various gold items, including rings, coins, and even gold teeth.
Additional Insight: The current economic climate, paired with the uncertainty brought about by inflation, has led individuals to seek a more stable form of investment, with gold being a traditional safe haven in times of economic turmoil.
People Cashing in on High Gold Prices
Don Kinney of New Richmond, Wisconsin, is one individual taking advantage of the soaring gold prices. He visited a jewelry store with a variety of collectibles, including gold coins and rings. This was Kinney’s first time selling his gold items, realizing that they were just sitting around at home when they could be put to better use.
Miller estimated that Kinney had nearly $5,000 in gold coins alone, which he plans to use to buy equipment for his small business as a field service engineer for local eye doctors.
Rush on Gold Bars and Investment
Besides selling jewelry and coins, the rising price of gold has also led to a rush on gold bars. Stores like Costco have been selling 1-ounce gold bars at a slight markup, resulting in significant monthly sales of up to $200 million, according to a new report from Wells Fargo.
Additional Insight: The increased interest in gold bars underscores people’s desire to invest in tangible assets that are known to retain their value over time. Gold is seen as a safe investment option for many individuals looking to diversify their portfolios.
Speculation on Future Gold Prices
As for what the future holds for gold prices, Miller shared her uncertainty, stating, “It’s hard to say, hard to say. Everybody predicts it’s going to stay at least this price or go up.” The unpredictability of the market makes it challenging to gauge where gold prices may head in the coming months.
