Ounce for ounce, pound for pound, few things are worth more than gold.
ItB次元官网网址檚 the hottest commodity around and itB次元官网网址檚 becoming even more popular for investors.
This modern-day gold rush has people rummaging through jewelry boxes and drawers to trade yesterdayB次元官网网址檚 treasures in for cash.
Some of the reasons for selling are practical. When Shelley Smith needed money for grad school two years ago, she sold off gold jewelry that belonged to her mother, who had recently passed away.
She didnB次元官网网址檛 want to resort to student loans and said the gold had no meaning to
her. B次元官网网址淚 know my mother
would (approve of) me using it for betterment,B次元官网网址� she said.
She made $3,500 from the sale, half of what she needed to obtain her degree.
Geoff Beattie, owner of BarclayB次元官网网址檚 Fine Custom Jewellers in Oak Bay, has been buying gold on a daily basis from clients like Smith.
He knows the rush is on.
B次元官网网址淓veryone is aware that gold is at an all-time high,B次元官网网址� he said. B次元官网网址淧eople read it in the paper and since itB次元官网网址檚 been peaking, it is now at $1,500 an ounce. People are bringing in their gold if they are not wearing it.B次元官网网址�
About 12 years ago, he said, gold was selling at between $350 and $400 an ounce. B次元官网网址淲e did do the odd trade of gold, but it wasnB次元官网网址檛 anything near what it is today.B次元官网网址�
Brian Kotila, manager of Olde NB次元官网网址� Gold on Fort Street, said the reasons for people selling are as varied as the customers.
B次元官网网址淏ut there are two main thrusts: people who need the money or donB次元官网网址檛 need the merchandise,B次元官网网址� he said.
The past two years have been busy for Beattie. B次元官网网址淥nce it got over $800 and broke $1,000 it was seen as a milestone. Who knows what will happen? It could go up or down. ItB次元官网网址檚 not the first time that gold has spiked and dropped dramatically.B次元官网网址�
Bruce Crowle, vice-president and investment advisor for RBC Dominion Securities Victoria, said the pricing is a matter of supply and demand.
B次元官网网址淭he gold market is not a huge market. One of the big factors in gold pricing is the fact that no additional supply from mines has come into place in the last 10 years and the demand for gold for investment purposes has skyrocketed in recent years,B次元官网网址� he said.
India, Russia and China are buying much of the gold. The sixth-largest holder of gold is SPDR Gold Trust, which trades on the New York Stock exchange and owns more than $53 billion of the material.
B次元官网网址淲hen you buy gold and hold it in vaults around the world, there is less supply in the marketplace,B次元官网网址� Crowle said.
Years ago people wanting to buy gold would purchase it through a jewelry store or their local bank and then pay to insure it and store it.
These days it can be bought and sold on a daily basis in RSP accounts, investment accounts and exchange-traded funds.
B次元官网网址淗istorically, gold has had a relationship with inflation and a lot of investors move to gold when there is uncertainty in the world,B次元官网网址� Crowle said. B次元官网网址淚n our opinion, gold is meant to be a portion of a clientB次元官网网址檚 overall investment portfolio and not to make up their entire portfolio.B次元官网网址�
For those looking to divest of gold, ads on TV suggest mailing it in for cash. Beattie doesnB次元官网网址檛 recommend it, adding that people looking to sell should go with someone they trust.
B次元官网网址淲e are recyclers of gold. People sell it directly to us and then we send it to the refinery in Toronto.B次元官网网址�
There are many other jewellers who are reputable and safe for this transaction, he said.
B次元官网网址淎 lot of people are reluctant to put metal into an envelope and send it off to a business. The prudent thing to do is deal with people you know and shop around to see if you are getting a fair price.B次元官网网址�
Beattie has had people in his shop looking to sell more than $5,000 of gold jewelry, but the majority are in the hundreds.
Past predictions of goldB次元官网网址檚 pricing have been inaccurate, Crowle said, but it has been in a bull (rising) market for 10 years after a few decades of underperformance.
B次元官网网址� with files from Emma Prestwich
editor@oakbaynews.com
