Wed Apr 01, 2009, 10:59 PM EDT
Taunton -During these tough economic times, gold is once again the gold standard.
Lauded as a safe investment, gold has been trading at record prices, which translates into a lot of green for buyers and sellers.
One such exchange takes place this week at the Holiday Inn in Mansfield, where Evan Beck, owner of E&D Gold Buyers will be offering cash on the barrelhead for gold and silver.
Saturday’s event is one of about 200 Beck holds each year at hotels and motels across the Northeast. He’ll be at the Mansfield Holiday Inn Wednesday, Thursday and Friday this week from noon to 7 p.m.
In his ads, he asks sellers to bring in broken gold, silver, “old boyfriend jewelry” and items that are collecting dust to create a personal economic stimulus.
“It’s one of the feel-good stories of the poor economy,” Beck said.
Jewelry fads come and go, but gold never loses it’s shine especially in the midst a recession and sells for $900 an ounce.
“It’s an inverse relationship to the economy,” Beck says. “Times are bad, a lot of people have a little gold.”
Five years ago, when gold prices started to surge, Beck was reintroduced to the family business, which started in the 1970s. But as prices hovered around $300 an ounce for 20 years there wasn’t much of a market— or profit — in the gold and silver exchange.
But in today’s gold rush, sellers have pawn shops, jewelers, and mail order dealers pleading for their businesses.
“There’s a lot of competition,” Beck said. “The advantage we have is less overhead and thus we are able to pay more [to customers].”
Class rings, broken or dated jewelry, and bullion coins are some of the more common items customers swap for cash. And there are always the unwanted wedding bands and even gold from dental work. But in these parts, Portuguese gold is king.
“Basically, it’s a high-karat gold with a rich color,” Beck said. “It’s unique to southern Mass. I see a lot of it in the region.”
And a lot of people are willing to part with it, prompting Beck to make 30 trips to southern Massachusetts within the last year.
“There’s gold in them there hills,” he said. “It’s an area we like to come to.”
He uses time-tested methods to determine an item’s gold content and value, such as rubbing the metal on a stone and applying nitric acid. “It requires a practiced hand and eye, but the acid test is the answer.”
The decision to sell keepsakes and mementos for cash can be personal but with gold at all-time highs it might be financially sound.
“The public isn’t given enough credit for taking advantage of high prices,” he said.
Some items may seem to have little or no value. But, most customers leave about $400 richer, Beck said. “A lot of people don’t think they have much and they are surprised what it is worth.”
Beck sells a small percentage of what he trades to jewelers but most of the metal is sold to refiners who melt it into gold bars.
He also buys old silver jewelry, tea sets and silverware — items that many families have but rarely use.
“All the consumers come in and say ‘the kids don’t want it,’” Beck said.
Rather than store it and leave it unused, Beck said, customers are using the money for home improvements, vacations, and even for school textbooks.
“People wind up leaving happy and I’m happy,” he said. “It’s the best of both worlds.”
*This scenario can also be applied in the Philippines, it is time to gather for yourself actual gold and silver and find protection or hedge against the coming economic storm.
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