By SHERRI LONON
Special to the Tribune
Published: April 16, 2009
LAND O' LAKES - The gold-buying trend has made its way to central Pasco County.
Many jewelry and antiques stores and pawnshops have advertised a willingness to buy scrap pieces. There even are companies that will help you stage gold selling parties.
A billboard on State Road 54 in Land O' Lakes that once announced where residents could go to buy Rolex watches now reads, "We Buy Old Gold."
Why all the fuss?
Steve Richardson, owner of Famous Treasures at 4312 Land O' Lakes Blvd. in Land O' Lakes, said the economy has a lot to do with it.
"Gold is going up," he said. "People don't have faith in paper money."
Richardson pointed to different periods in history when gold and other commodities were more valuable than currency. People, he said, tend to put more stock in tangible assets when the economy turns.
Gold, he said, is a historical favorite because of its pricing stability.
"Gold has held its own for over 200 years," he said. Buyers are interested because "if you can own gold and hold on to it, it's always going to give you something to barter."
Recently, gold prices were more than $950 a troy ounce. A troy ounce is 31.10348 grams.
Richardson's antiques and treasure hunting store began buying gold this year. It has become a staple of his business as customers come in to sell broken or unwanted pieces.
For David Hevia, owner of Kiefer Village Jewels, 24144 S.R. 54, the experience is a bit different. He began buying gold in earnest about a year ago and has watched it become a big part of his business. His sellers aren't stating that they need the money per say; instead, Hevia said, many are coming in to get rid of old pieces they don't want, to turn their broken items into money or even to trade up for new pieces in platinum or white gold.
Hevia said he was at a trade association conference last year where other jewelers were discussing the trend in buying gold and selling it to refiners. "My peers across the country were giving feedback that this was working out for them," he said.
Shortly after hearing some of the success stories, his associates and customers started asking about the prospect. In May 2008, he decided to give it a try.
"It's a pretty big market out there," he said, adding that he cannot remember a day in the past few months where at least one gold purchase didn't take place at one of his store locations.
"The more we get the word out about buying, the more we do it."
Laurieanne Morse, sales director for Kiefer's Land O' Lakes location, said business has been brisk. She has found that many customers are coming in to sell so they can "clean out" and "upgrade."
"We provide a service that is needed in the community," said Meredith Kleker, sales associate. "It's an opportunity for them and us."
Once businesses such as Famous Treasures and Kiefer purchase gold, the options for resale can vary. Hevia and Richardson sell directly to refiners. Richardson sometimes auctions it as well.
Selling gold has become such a popular trend that it has found its way into local Parent Teacher Association fundraisers. The Quail Hollow Elementary School PTA has invited a gold buyer to two of its events. Sellers receive a check on the spot, and the PTA gets a percentage, said Shelby Hook, the PTA's secretary.
"We decided to add it in along with the spaghetti dinner and the carnival," she said. "We let people know if they needed the cash and had the gold, a buyer would be there. We received 15 percent of the checks they cut. We got quite a chunk of money."
Hook said the win-win situation is something that is recognized by parents and the PTA. She has sold some of her gold at the PTA events and was happy with the experience.
"I had old broken jewelry that I ended up making money on."
Richardson says sellers should understand how the process works. When jewelry is purchased, buyers are interested in gold content. This can mean a large piece might not fetch much if the content of gold isn't high. A small piece with high content, however, could be worth a fair amount.
Selling gold has become such a popular trend that it has found its way into local Parent Teacher Association fundraisers.
THE PROCESS
The process of selling gold can vary, but there are a few things sellers can expect. The process typically involves:
•A brief interview to ascertain that pieces belong to the seller;
•Verification of the gold content in a piece, which may include chemical testing;
•Weighing the piece(s);
•Calculation of the gold content based on karats and weight;
•The offer, based on market price, gold content in a piece and buyer and refiner charges;
•Paperwork, including thumbprinting and photocopying of an identification card for local police;
•Issuance of a check, which most sellers insist on rather than cash, to create a paper trail.