Gold sold for scrap outstrips new purchases

cohodk

Gold sold for scrap outstrips new purchases


For the first time in nearly 30 years, there are more people selling gold jewellery as scrap than buying new items. The high price of gold combined with the economic downturn has encouraged people to raise extra cash by selling everything from family heirlooms to tooth fillings. GFMS, the leading precious metals analyst, said yesterday that an estimated 500 tonnes of gold had been sold as scrap during the first three months of this year. Demand for new jewellery had nearly halved to 420 tonnes, the first time since 1980 that more scrap was being sold than customers were buying new rings and bracelets. GFMS added that scrap sales had hit a record level last year, rising 27 per cent to 958 tonnes.

RedTiger

So "Cash for Gold" is now a bigger factor than the IMF? What interesting times we live in. Who woulda thunk?

clouisejewelers

My company bought more scrap in 2008 than ever before. 2009 is well off that pace. I have done many gold parties and buying events and most people tell me they already sold their gold. Last year at this time I would have a line of people at my table and everybody had a pile to sell. This year it's only a few people with small amounts.

The working and middle class people have mostly sold their gold. The rich are buying it. The refiners and scrap dealers call me 3X per week asking if I have anything for them. Somebody with deep pockets is buying it all up.

SilverBaron

.........clouisejewelers........ EXACTLY .......

THIS is just 1 of the reasons why I am now buying gold with every spare $$ I get.

Those waiting for sub$850 ......... well ........ I doubt ittttttttttttt.