Rushing to cash in gold August 10, 2011 – Posted in: Press

by Francine Knowles
Published August 10, 2011
Chicago Sun-Times

With gold items in front of her, Tobina Kahn, vice president of House of Kahn Estate Jewelers, says her business has jumped the past few days as gold has hit record levels. The spike in gold prices has prompted people to sell their gold jewelry, coins and bars. She displays some recent acquisitions on Tuesday, August 9, 2011 in Chicago. | Richard A. Chapman~Sun-Times

There’s a gold rush under way again, now that gold has spiked to record levels, owners of gold jewelry, coins and bars are looking to cash in, say local dealers, who’ve seen business rise along with the value of the precious metal.

“We’ve had about a 30 percent increase in more people, more traffic more calls coming in,” in the past few days, said Tobina Kahn, vice president, of House of Kahn Estate Jewelers, which buys and sells estate jewelry.

There’s reason: A gold chain that she may have paid $2,000 for three years ago would garner about $4,000 today, she said.

“Pretty much everybody that’s coming in is selling. We’re seeing a lot of necklaces, a lot of rings, a lot of unique items. All of a sudden grandma’s jewelry is becoming very important because the younger people are saying ‘Gee, my grandma gave this to me and I can get a lot of money for it.’ They are so excited.”

Middle and upper-income individuals, young and old have been selling U.S. Gold Eagle, Canadian Maple Leaf and South African Krugerrand coins, said Harlan J. Berk, president of Harlan J. Berk Ltd., which buys and sells gold bars and coins.

“Anyone holding gold now is making money,” he said. “In the last week, we’ve really seen more sellers than buyers.”

Gold hit a record trading price of $1,782.50 Tuesday before closing up $29.80 to close at $1,743 an ounce. Its price has more than doubled since the recession began in late 2007.

Those looking to sell their gold should be smart about it, dealers say. First and foremost go to experienced, reputable gold dealers or jewelers to get an appraisal of what you have. The American Numismatic Association recommends getting more than one appraisal, and before selling make sure you know the actual spot price of gold and understand any fees or commissions involved. To find a dealer, visit the association’s website at www.money.org or the Professional Numismatists Guild at www.PNGdealers.com.

For those selling jewelry, “I tell people to be very careful about going to some places that melt your gold,” said Kahn. “You’re going to get much less than leaving it intact if it’s marked with a certain designer’s name. A 1940 or 1950 retro bracelet, old Tiffany old Cartier, you don’t want to melt it down. That’s like taking a Picasso and burning it and keeping the frame.”

Berk advises gainst doing deals in hotel rooms. He said established dealers pay more.

Please click here to view all the photos from the Chicago Sun-Times photoshoot.