US jewel merchants experience a panic due to economic instability and escalating gold prices, causing a surge in demand for gold jewelry
Gold Fever Hits St. Vincent Jewelry Center
LOS ANGELES - Alberto Hernandez sparked up his machine and tossed a pile of gold jewelry, worth around $177,000, into the molten furnace. This spectacle is a regular occurrence at the biggest jewelry center in the United States, St. Vincent - a bustling hub of independent tenants, primarily jewelers, gold refiners, and assayers.
As gold prices skyrocket amid global economic jitters, the center witnesses a daily gold deluge. Many tenants confirm they've never seen such a rush in customers.
"It's a gold rush!" exclaimed Sabashden Hernandez, Alberto's nephew, who works at A&M Precious Metals. "Rappers, celebrities, and regular folks alike are melting their big pieces to cash in."
The current gold spike arises from President Donald Trump's ever-changing tariff announcements chaotic financial markets and looming inflation threats.
The influx of clients includes pawn shop owners, who scoop up gold, and everyday people looking for a quick cash infusion. On the flip side, some see gold as a safer investment than the tumultuous stock market, and are snapping it up at an equally fast pace.
Los Angeles-based jeweler Olivia Kazanjian shared stories of customers bringing in family heirlooms, even pieces from the 1800s, to melt down for gold. Kazanjian paid a client a hefty $3,200 for a beautiful, 14-karat gold bracelet adorned with intricate blue enamel work. However, she plans to preserve the piece, noting its artistic and historical value far outweighs the gold content.
"It's a work of art," Kazanjian said. "Historic pieces like these won't be replicated again. I've even persuaded some clients to reconsider melting their family treasures."
Business, understandably, is booming for those dealing in gold sales. Edwin Feijoo, owner of Stefko Cash for Gold in Pennsylvania, described the scene as a constant inflow and outflow of gold. "Everybody's busy right now," he said.
However, not everyone is profiting handsomely. Jewelers relying on imports from abroad - places like Italy, Turkey, and China - struggle with profit margins due to high gold prices and added tariffs.
"Our profit margins are razor thin," said Puzant Berberian, whose family founded V&P Jewelry inside St. Vincent in 1983. "Recent overseas shipments cost us an extra $16,000 in tariffs."
Customers are also experiencing sticker shock when they can't afford jewelry they used to purchase without a second thought. For instance, that chunky 10-gram bracelet that set customers back around $600 last year now costs almost $900.
As for the future of gold prices, some forecasters are optimistic. According to Sam Nguyen, who owns Newport Gold Post Inc., gold prices could climb as high as $4,000 to $5,000 by year's end. Jeff Clark, founder of The Gold Advisor, agrees, stating that gold's appeal as a safe-haven asset could drive prices even higher.
"History shows gold has soared much higher during times of economic instability," Clark said. "If the fear and uncertainty persist in the general population, then the prices definitely will continue to climb."
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- In the midst of escalating gold prices and economic uncertainties, Sabashden Hernandez, working at A&M Precious Metals in Seattle, witnesses a surge of customers attempting to cash in on their gold items.
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