At the largest jewelry center in the United States, Alberto Hernandez recently fired up his machine, heating it until it glowed bright orange. He then melted down jewelry—rings, earrings, and necklaces weighing roughly the same as a bar of soap, just under 100 grams (3.2 troy ounces). A quick X-ray showed the metal was 56.5% gold, valued at $177,000 based on the day’s gold price.
With gold prices hitting record highs amid global economic uncertainty, a significant amount of gold is flowing through St. Vincent Jewelry Center in downtown Los Angeles daily. The center’s 500 tenants, including jewelers, gold refiners, and assayers, have reported a surge in customers. Many businesses are seeing a wave of new clients, including people melting down their family heirlooms or large jewelry pieces, often to cash in.
One such example is Sabashden Hernandez from A&M Precious Metals, who noted a rise in business from customers, including celebrities and people wanting to melt down their old family jewelry for cash. Los Angeles jeweler Olivia Kazanjian also mentioned that some clients are bringing in valuable family heirlooms to be melted down. One customer recently sold a 14-karat gold bracelet for $3,200 based on the gold content, although Kazanjian chose not to melt it, recognizing its artistic and historical value.
On the flip side, businesses selling gold, such as Stefko Cash for Gold in Pennsylvania, are struggling to keep up with the surge of customers wanting to buy or sell gold bars and other precious materials. Meanwhile, some jewelers are facing financial challenges due to rising gold prices and additional tariffs. For example, Puzant Berberian, from V&P Jewelry inside St. Vincent, highlighted how tariffs on imported goods have eaten into profit margins, especially when buying supplies from places like Italy, Turkey, and China.
For consumers, high gold prices are leading to “sticker shock” as gold items become more expensive. A 14-karat gold bracelet that once cost around $600 now costs closer to $900. Meanwhile, many expect prices to continue to rise. Sam Nguyen, who buys and sells gold at St. Vincent, predicts that the price of gold could reach $4,000 to $5,000 per troy ounce by year’s end, while gold investment expert Jeff Clark believes that history shows gold can increase in value during times of economic fear and uncertainty, suggesting that prices may continue to climb.