Economic jitters and soaring gold prices create a frenzy for US jewelry merchants

JAIMIE DING

Sat, May 10, 2025, 9:03 PM 4 min read

LOS ANGELES (AP) — At the biggest jewelry halfway successful the United States, Alberto Hernandez fired up his instrumentality connected a caller time and waited until it glowed agleam orangish wrong earlier shoveling successful an assortment of rings, earrings and necklaces weighing astir arsenic overmuch arsenic a barroom of soap: conscionable nether 100 grams, oregon 3.2 troy ounces.

Minutes later, the bubbling liquid metallic was cooling successful a rectangular formed the size of a woman's shoe. An X-ray instrumentality determined it was 56.5% gold, making it worthy $177,000 based connected the terms of golden that day.

As golden prices soar to grounds highs during planetary economical jitters, hundreds of thousands of dollars’ worthy of golden are circulating done the doors of St. Vincent Jewelry Center successful downtown Los Angeles connected immoderate fixed day.

Many of the center’s 500 autarkic tenants, which see jewelers, golden refiners and assayers, accidental they person ne'er seen specified a surge successful customers.

“Right now, we’re seeing a batch of rappers and worldly melting their large pieces,” said Alberto’s nephew, Sabashden Hernandez, who works astatine A&M Precious Metals. “We’re getting a batch of caller customers who are conscionable getting each of their grandfather’s stuff, melting it down beauteous much.”

Gold’s current rally comes arsenic President Donald Trump issues ever-changing announcements connected tariffs, roiling fiscal markets and threatening to reignite inflation.

In response, radical crossed the state are flocking to merchantability oregon melt down their aged jewelry for speedy cash, including middlemen similar pawn store owners. Others, reasoning their wealth mightiness beryllium safer successful golden than successful the volatile banal market, are snapping it up conscionable arsenic fast.

Los Angeles jeweler Olivia Kazanjian said radical are adjacent bringing successful household heirlooms.

“They’re melting things with their family’s wedding dates and things from the 1800s,” Kazanjian said.

She precocious paid a lawsuit for a 14-karat golden woven bracelet with intricate bluish enamel enactment that could beryllium turned into a brooch. The lawsuit walked distant with $3,200 for the magnitude of golden contained successful the portion measured successful troy ounces, the modular for precious metals equivalent to 31 grams.

But Kazanjian doesn't program to melt the piece. The existent creator and humanities worth was a batch more, she said.

“It’s conscionable stunning … and you won’t spot that benignant of craftsmanship again,” Kazanjian said, adding she has persuaded immoderate customers to alteration their minds astir melting items. “It’s a portion of history, and if you’re fortunate capable to inherit it, it’s a portion of your family."

Businesses connected the income broadside of the action, offering golden bars and different material, besides are moving hard to support up with the frenzy.