Gold Surge at St. Vincent Jewelry Center
Recently, at the largest gem center in the U.S., Alberto Hernandez activated a machine and awaited the result. Moments later, a shimmering liquid metal filled a rectangular mold, roughly the size of a woman’s shoe. The X-ray revealed it to be 56.5% gold, valued at $177,000 based on the current gold price.
As gold prices continue to reach unprecedented heights amidst global economic anxiety, substantial amounts are flowing through the St. Vincent Jewelry Center in downtown Los Angeles. The center’s 500 independent vendors, which include jewelers, refiners, and assayers, report an influx of customers like never before.
“We’re now seeing a lot of artists melting down their larger pieces,” shared Sabashden Hernandez, Alberto’s nephew who works at A&M Precious Metals. “Many new clients are bringing in items inherited from grandparents, and we’re almost always melting those down.”
The current gold boom coincides with ongoing financial uncertainty, particularly regarding shifting customs taxes that are stirring concern in the market and rekindling inflation worries. People across the country are now selling and melting old jewelry looking for quick cash. Others believe investing in gold is safer than the unpredictable stock market.
Los Angeles jeweler Olivia Kazanjian noted the trend of customers bringing family heirlooms. “People are turning old wedding items from the 1800s into cash,” she mentioned. Recently, she crafted a custom brooch from a client’s 14-carat gold bracelet, which amounted to $3,200 based on the weight in troy ounces, a metric for precious metals.
However, Kazanjian is hesitant to melt pieces with such artistic and historical significance. “You just can’t let that craftsmanship go,” she said. She often encourages clients to reconsider their decisions about melting valuable items. “It’s part of your history; if you inherit it, that’s something special.”
Businesses involved in sales are inundated, striving to keep pace with this rush. “Gold comes in and goes out just as quickly,” noted Edwin Feijoo, who owns Stefko Cash for Pennsylvania gold. “Right now, everyone is busy.”
Yet, the booming business climate isn’t universal. For some jewelers relying on imports from places like Italy, Turkey, and China, high gold prices and tariffs are squeezing their profit margins and dampening demand.
“Our margins are razor-thin,” explained Puzant Berberian, whose family established V&P Jewelry at St. Vincent in 1983. Customers are facing “sticker shock” as prices rise. A 14-carat gold bracelet that might have sold for about $600 last year is now nearing $900.
Looking ahead, some anticipate these trends may persist for both buyers and sellers. Sam Nguyen of Newport Gold Post Inc. mentioned that customers have been trading gold for five years and expect prices might reach $4,000 to $5,000 per troy ounce by year’s end despite current slowdowns.
Investment advisor Jeff Clark concurred, suggesting that rising gold prices could continue as more people see it as a safe haven amid recession fears. “History shows prices have surged dramatically in the past,” he remarked, recalling the price spike during the 1970s double-digit inflation. “If public fear persists, so too will rising prices.”
