More People Selling Jewelry Now That Gold Has Passed $1,000 Mark
Bloombergreports that there has been an increase in people selling their old jewelry now that gold is over the $1,000 an ounce mark again. Scrap gold supplies are projected to reach a record 1,485 tons this year. This comes after an all-time record of 1,218 metric tons last year.
"Every time we hit the $1,000 mark, we see this phenomenon of people stepping in to sell their gold," Kahn said. "They sell their old jewelry sitting at home, things they got as gifts. They need instant money."
Demand for the precious metal pushed gold to a record of $1,033.90 an ounce in March 2008. The gains enticed jewelry sellers and sent scrap supplies to an all-time high of 1,218 metric tons last year, said GFMS, the former research unit of South Africa's second-largest gold producer.
Scrap supplies will jump to a record 1,485 tons this year, Klapwijk said in a Sept. 14 interview. The gains may "play a role in capping" the bullion rally, said Klapwijk, who joined two other managers to acquire a unit of Consolidated Gold Fields in 1998 to create GFMS. Scrap gold represents about 25 percent of global supply, according to the World Gold Council in London.
The combination of people needing cash because of the recession and the high value of gold is likely leading to the record amount of scrap gold supplies. Gold first passed the $1,000 mark in March of 2008.
