Gold Jewelry in Your Drawers? Pass It On

By Dian Vujovich

In the first section of The Palm Beach Post on April 13, 2009 were three full-page color ads from various companies all wanting you to sell your gold, silver, flatware, watches, diamonds, coins etc., etc., etc., via their services.

With the stock market’s recent move upwards —but still in the overall tank— and investor sentiment not-so-hot, selling jewels, gems and collectibles can be one of the quickest way to pick up some cash. But is it the smartest? According to one report I read, the typical GoldKit customer gets less than 100 bucks for the items they sell which isn’t all that much to rave about. (GoldKit customers mail-in their goodies then receive the proceeds from that sale back via the mail. Lippincott is the parent company of GoldKit and RedSwan.com.)

I’m well aware of how a few hundred bucks can change an immediate financial problem. But, more than likely, it’s just a band-aid fix if your financial problems are big ones.

So if you’re not in dire need and doing some Spring-cleaning of collectibles stashed in your cupboards, bureau drawers, jewelry and/or safety deposit boxes, why not pass them on. I know for almost sure that there’s someone in your circle of friends and family who have been eyeing that gold Cocker Spaniel charm of yours, grandma’s ruby broach or the diamonds from forgotten engagement rings hoping that one day they’d be the lucky recipient. Cash, after all, can be so cold: Heirlooms, on the other hand, so very personal. And lasting. Provided, of course, the receiver doesn’t need the cash and head off to the pawnshop, go online or decide to have an in-house sell-your-gold and jewelry party.

BTW, there may be more money to be had from pawnshop stocks than old jewelry. For instance, CashAmerica (CSH), the nation’s largest pawnshop operator with over 600 stores, topped $1 billion in revenue last year for the first time in it’s 25-year history. Share prices this morning were up nearly 50 percent from their 52-week lows.

As for gold, prices are off their March highs. Around 10:45 this morning, New York spot gold prices were trading around $870; silver under $12 and platinum in the $1213 range.

Like I said, if you can afford it, why not give that jewelry away. It could make someone you care about very happy.