Gold prices reach record highs as people look for safe investments
LAUREN FRAYER, HOST:
Gold is considered a safe investment during times of financial uncertainty and turmoil, which explains the historic run this precious metal has been having. Last week, it briefly topped $3,500 per ounce for the first time ever, and J.P. Morgan is forecasting that gold could get above $4,000 per ounce next year. So what does this mean for people who work in the gold business? Well, John Dineen is the manager of Sol’s Jewelry and Loan pawn shop in Omaha, Nebraska, and he joins us now. Welcome.
JOHN DINEEN: Thank you very much for having me.
FRAYER: So the value of gold is hitting historic highs. What does that mean for what you’re seeing in your shop?
DINEEN: You know, it definitely has picked up quite a bit just in these last couple months, with the articles that are out there talking about how gold is getting higher and higher. And, you know, it definitely has piqued people’s interest in coming in, selling items but also purchasing as well.
FRAYER: And what kind of items are people bringing in to sell?
DINEEN: You know, we’re seeing everything across the board. We have the collectors of your gold and silver coins that – since gold’s getting so high, and in the past couple years through COVID and everything, they were purchasing precious metals. Well, now their investments are going high enough that they want to cash out. And then you have your other clients that are going, boy, I’ve got all this excess jewelry in my jewelry cases. Let’s take it in, see what this gold chain is worth and get the cash for it.
FRAYER: And they’re walking out of your shop with a lot of money or a lot more than they would have six months ago or a year ago or…
DINEEN: You’re exactly right. In 2010, 2011, you know, gold was right around 1,800, and people then talked about, well, it’s going to hit 2,000. A lot of people were like, no, it’s not going to hit that. Well, boy, we’ve surpassed that. Then they said, OK, it’s going to 3,000. And now guess what? We’re there, and people are bringing in their gold chains, rings, and they’re walking out with substantial money. And they’re going, boy, I mean, this is well worth it.
FRAYER: And what are they telling you about, like, why they’re selling right now?
DINEEN: Definitely, I think it’s the articles. It’s the news. It’s what they’re seeing out there. Plus, with, you know, a lot of cost of goods right now, people are having a rough time a little bit, and so they definitely have money and value in their jewelry. So they’re coming in, and they’re selling those items, you know, to maybe help pay bills.
FRAYER: So we’re talking about selling gold, but is it actually a good time to buy as an investment? And if you are buying, like, what kind of gold is best? Is it jewelry? Is it gold bars? I mean, I don’t even know the different karats – 24, 48 – give me some advice.
DINEEN: It’s hard to say right now if it’s a great investment because, boy, like I said, you know, when it was 18-, 1,900, did I ever think it could get here? No. Now when they’re talking 4-, 4,500, 5,000 gold – boy, nothing’s impossible right now. But what we do tell all of our clients when they do come in – if you’re going to invest in gold, the best way is coins, bars. That is pure gold. That’s 24 karat. When you get into jewelry, it’s not a horrible investment, but you do have the different karats there – 10 karat, 14 karat, 18 karat. And all that means is the purity that you’re looking at.
So, you know, of course, the noviced (ph), when they’re seeing online or looking at the stocks, and they’re seeing gold at 3,500, well, that’s for a pure 1 Troy ounce of 24-karat gold. So when you break up, like, 14-karat jewelry, which is 58.5% pure, then you have to kind of do a little math. So I tell people, if you want to get into the investment side, get into the coin side. It’s just a lot easier.
FRAYER: Pure gold, coins, bars – and 24 karat is the top. I didn’t even know that.
DINEEN: Is the top – yes.
FRAYER: Shows you what I have or don’t have in my jewelry box.
(LAUGHTER)
DINEEN: In your forte there – well, we’ll teach you.
FRAYER: Spoken like a man who runs a gold shop.
DINEEN: (Laughter).
FRAYER: That’s John Dineen, manager of Sol’s Jewelry and Loan pawn shop in Omaha, Nebraska. Thank you so much.
DINEEN: Thank you very much. Have a great day. Transcript provided by NPR, Copyright NPR.