By MIKE CAPUTO
Since January, area jewelers and coin dealers have experienced a gold rush unlike any other. Sami Saatchi, owner of SVS Fine Jewelry in Oceanside, said there has been a 60 percent increase in customers looking to sell gold or other precious metals.
"It is a shift," said Saatchi. "Instead of selling more, you are buying more. There are a lot more looking to sell."
Gold finished at the price of $930.90 as the New York Stock Exchange closed for the weekend on Friday, March 28. The prices, which change minute-by-minute in the open markets, reflect the value of an ounce of 24-karat gold. Only five months ago, the price of gold per ounce was hovering around $750. Even though collectors and traders are thriving from the high value of gold and precious metals, the U.S. dollar pays the price. As gold values have nearly doubled, the U.S. dollar has seriously weakened in comparison to Euros and Canadian currency. As of Friday, March 28, the U.S. dollar was about $1.58 against the Euro and about $1.61 against the Canadian dollar. Rich Kaufman, owner of Coin Galleries of Oyster Bay's store in Lynbrook, acknowledged that business has been great, but he would forgo the extra money in favor of a higher American dollar value and a more stable economy.
"Our business is good, but I rather 400 businesses be good," Kaufman said. "I will still make a living."
Bob Block, owner of the Jewelry Showroom in Cedarhurst, offered a similar take.
"Nobody likes instability," he said.
Several area jewelers have taken an aggressive approach. Many stores continue advertising campaigns to encourage customers to sell their gold.
However, each jeweler or dealer of precious metals has a unique approach to the rising gold market.
Some jewelers like Block do not buy gold and precious metals from walk-ups and other people who come off the street. He advises those who express an interest in selling, but encourages people to clean and modernize their keepsakes.
"Jewelry is more than a piece of metal," Block said. "You can often relive your memories through a piece of jewelry."
When advising sellers, Block also urges them to keep stones because they are valuable and can be used if they decide to purchase a new, customized piece of jewelry. Therefore a person can still preserve the sentimental value of the stone, Block explained.
Lloyd Leder, a third-generation owner of Leder Jewelers in Rockville Centre, said his store has always had a reputation of buying only from reputable sources. Smart buying methods prevent jewelers from purchasing stolen goods, he explained.
Steven Leibstein, owner of Jewelry by Steven in Long Beach, does buy gold and precious metals from customers, but is meticulous for all transactions. When buying, Leibstein photocopies the seller's identification and takes photos of the jewelry for his files.
"I usually buy from people that we know because I do not like to add into the 'secondary market of unsavory goods,'" Leibstein said. Once purchased, Leibstein begins his role as "craftsman." Through hand-drawn and computer renderings, he takes the gold and turns it into something new.
"The basic crux of what we do is that we design from scratch," he said. At his store in Oceanside, Saatchi prides himself upon the thorough process of transforming old gold jewelry into something fresh.
"We refine it and use your gold right," Saatchi said. "We turn it into something."
Sky-high gold prices do not necessarily bode well for jewelers who consider themselves "craftsmen." In addition to labor and material costs, the refined item itself becomes expensive.
"It puts our craft out of the grasp of most people," Leibstein said. "As a jeweler and a craftsman, we prefer it at [about] $400 an ounce."
Since gold prices change by the minute, many jewelers and collectors monitor the prices on Kitco, a Web site that provides real-time pricing and market news. As a result, some store owners adjust their products on display on a daily basis, or sometimes even more frequently.
Leder decided to uphold a policy of leaving prices on displayed jewelry until they are sold. The new price is then reflected on the replacement. In the world of collecting and trading, keeping abreast of gold prices can be crucial. That goes for people like Kaufman, who routinely takes risks.
"Our industry is full of gamblers," Kaufman said. "Some take risks every minute."
Selling can be risky business for uninformed customers. Kaufman urges customers to deal only with trustworthy people who are easy to talk to and keep the items in view. He explained that some dealers are only out to make a buck and can be misguiding. For those looking to buy and invest in gold, one jeweler vouches the importance possessing the actual gold bar rather than a stock.
"Have it in your hand," Leibstein said. "Do not trust people with paper."
For those planning to sell gold, "now is the time," Saatchi said.
Comments about this story? Mcaputo@liherald.com or 516-569-4000 ext. 210.
