Glittering Prices Aren’t Driving Customers To Sell Gold

Just because gold prices have hit a record-breaking $1,500 an ounce, doesn’t mean people are emptying out their jewelry boxes to cash in on profits.

David Hevia, the owner of in Land O’ Lakes, said he’s seen his gold-buying business steadily decline over the last few years, despite increases in the price.

“Pretty much, everyone has emptied out their jewelry boxes,” he said April 20 – one day after gold had hit the record-breaking mark.

Kiefer, which sells high-end pieces such as Rolex watches, began buying gold about three years ago, Hevia said. Customers kept asking sales associate Meredith Kleker about the service, she said. As more and more people inquired, Hevia decided to look into it.

The very first day they started buying gold in 2008, they had five separate transactions. The peak of the store’s purchases came that year. 

“Then it was down 20 percent in 2009,” Hevia said. “Now, it’s probably 30 percent below that.”

That doesn’t mean the business had dried up though. They still take in about five buys a day, Kleker said.

Gold prices, however, don’t seem to have as big of an impact on sellers as they did before. A customer who was in the store on Wednesday said she didn’t know gold had hit the record mark. She just wanted to get rid of pieces she would never wear.

This, both Kleker and Hevia said, is the more common trend these days. Many customers are also looking to update their jewelry designs.

Customers that have jewelry in yellow gold, for example, might want to remove the stones and have them reset in white gold. They sell the gold and keep the stones for a new piece.

“I really enjoy my job,” Kleker said. “I get to help people turn things that have value into something special.”

Environmental issues also come into play.

“(About) 90 percent of the gold used in jewelry is recycled gold,” Hevia said.

Recycling gold, he said, cuts down on the need to mine for ore. This, in turn, helps the environment.

According to a flier that Kiefer gives out to customers, recycling a single gold wedding band can avoid generating 20 tons of mine waste.

Because of those numbers and other environmental impacts, Hevia is proud of his stores’ recycling rate.

“Last year as a jeweler, we recycled 20 pounds of gold,” Hevia said. “We sold 20 ounces of gold.”

Customers who come in to Kiefer to sell their gold have their pieces carefully studied before an offer price is given. That price is dependent on the purity of the gold, the total weight and the price refiners are paying. The $1,500 an ounce figure, Hevia pointed out, is for 24 karat gold. Most pieces of jewelry are rated at between 10 and 18 karats, which means they are not pure gold.

Kiefer does take a percentage of the refiners’ rate for its own expenses and profits. The expenses include the appraisal and lots of paperwork, Hevia said.

“It’s a paperwork nightmare,” he pointed out.

Customers must provide a thumb print and fill out a form that says they own the gold and it is theirs to sell. They must also provide their driver’s license or identification card. The paperwork is then submitted to the Pasco County Sheriff’s Office. There is a waiting period of about two weeks before gold can be shipped off to a refiner for processing. Kiefer customers get their payment right away, but the store must wait for clearance from law enforcement before it receives its money, Hevia said.

The waiting period is a gamble, Hevia said. During that time, the price refiners pay can fluctuate based on the current rate for an ounce.

Still, Hevia said he enjoys offering the service to customers. He’s also pleased that his store is able to help them preserve their stones in other pieces if they so choose.

Customers, he said, often come to Kiefer to sell their gold because they know the store’s reputation.

“Jewelers are interested in long-term relationships,” he said. “Our reputation as jewelers is more important than one gold buy.”

Kiefer, 24144 State Road 54, is open from 10 a.m. to 6:30 p.m. Monday through Friday, 10 a.m. to 5 p.m. on Saturdays and from noon to 5 p.m. on Sundays. For more information, call 813-2393. The store also has locations in Dade City and The Shops at Wiregrass.