First Business News is the foremost news source for new and developing market information, broadcast around globe. The House of Kahn Estate Jewelers is proud to announce that Vice President Tobina Kahn has been featured in First Business News, to offer her knowledge on the recent Gold spike and a number of alternative jewelry investments to Gold that are in demand.

Many are seeking out smart alternatives to the climbing price of Gold. In this comprehensive interview, Tobina Kahn reviews a number of popular and sensible Gold alternatives.

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The House of Kahn Estate Jewelers is proud to be featured in the Palm Beach Daily News, Palm Beach, Florida’s premier newspaper since 1897! Highlighted below is an article written by Dian Vujovich, special reporter to the Daily News, in which the investing of Diamonds for the future is explored. Many are offering Diamonds as investments, as various reports are forecasting that Diamond demand will spike to double the pace of supply. Large Diamonds are currently rare and will only continue to increase in value.

Are Diamonds a Brilliant Investment?

by Dian Vujovich
Published February 11, 2012
Palm Beach Daily News

It’s Blingtime. What better way to show your intention or your heart’s affection than to dazzle a loved one with a rock? After all, Richard Burton knew the way to Elizabeth Taylor’s heart was via important diamonds (the super-sized ones). And Taylor clearly understood their value whether worn or stored.

The Chinese proverb “Better a diamond with a flaw than a pebble without one” probably carries more weight today than when it was written. Not because the diamond market in China exploded recently as more Chinese have become millionaires and billionaires. Rather, the proverb reminds us that there’s more to diamonds than sparkle and sentiment: They are, in many ways, the world’s ultimate quiet investment.

Diamonds indeed are an American girl’s — and guy’s — best friend. We are the largest purchasers on the planet of what’s considered to be nature’s hardest asset. But in addition to cut, clarity, color and carat weight, a hand or arm dripping in diamonds says one thing while a pocket — or safety deposit box — filled with these gems ancient Greeks believed were the tears of the gods, says quite another.

Prices on certified polished 1-carat diamonds rose about 19 percent last year, according to the Rapaport Group’s RapNet Diamond Index, a benchmark followed by those in the diamond industry. In 2012, the trend is expected to continue, particularly for investment diamonds — those between 1 and 5 carats.

Specialty, rare and important diamonds are likely to see greater price increases this year because of their rarity and size. Important diamonds are those of serious size, as in more than 5 carats, and into 10 or 20 carats or even larger, and whose brilliance can be spotted from across a room.

John Bianco, director of Circa in Palm Beach, grew up in the diamond industry. “The demand for large diamonds worldwide is excellent, like 6, 7 and 8 carats or larger,” he said, “especially with the advent of the foreign markets. China and India are burgeoning markets.”

But Bianco said he has some reservations about considering a diamond as an investment.

“I think of an investment as something that if you put money into, it will give you back a certain amount of money whether it’s 1, 3 or 5 percent. A diamond doesn’t do that, but it can appreciate over time.”

It’s that appreciation that may be overlooked for couples focused on the meaning behind giving or receiving the diamond rather than its long-term potential worth or value.

With romance aside, much of today’s interest in diamonds goes beyond the heart and into the reality of the very changing, challenging and uncertain world in which we live.

Tobina Kahn, vice president of House of Kahn Estate Jewelers in Chicago, said many clients are beginning to see the purchase of large diamonds as a way to preserve their wealth. She tells the story of a client who lost a fortune in the markets and told her husband not to buy stocks or bonds. She wanted a diamond instead. “And a big one!”

“So people are seeing specific events that are going on in the United States and around the world and saying, ‘Gee, I want something that I can see, touch and feel — and can store as a value of wealth.’”

Kahn is not alone in this observation. Moneca Kaufmann, president of Kaufmann de Suisse Jewelers on Worth Avenue, says many wealthy clients are concerned.

“There’s a value to diamonds you don’t find in other investments,” Kaufmann said. “You can’t melt a diamond, they don’t burn, aren’t made of paper and are very easy to transport.”

Bianco also said portability is of value.

“You can put a million dollars [worth of diamonds] in your pocket and get on a plane and no one will notice. There isn’t too much else you can do that with,” he said. “You can’t really do that with money, you can’t do that with bonds, you can’t do that with gold, but you can do that with diamonds.”

Whether cupid’s arrow has you diamond hunting or the idea of making a valued portable investment, buying diamonds can be tricky. Aside from understanding the 4Cs (cut, clarity, color and carat), there’s the question of where to purchase them.

Choices here range from high-end luxury jewelers to the secondary market represented by estate jewelers. The others are the Internet and big-box retailers. Costco stores, for example, sell diamonds.

“I didn’t know you could buy diamonds where you buy potatoes,” said Adele Kahn, Tobina’s mother and the proprietor of The House of Kahn on Peruvian Avenue.

In the Costco on Northlake Boulevard is a notice directing shoppers interested in diamonds 1 carat or larger to the Costco website. There, I found a 3-carat solitaire diamond ring selling for around $45,000. The Sam’s Club website offers diamond rings, as well. Prices are just not as high.

You’d be unlikely to find a jeweler of any repute suggesting you buy a diamond online. Where’s the romance in that? Or the helpful eye of a professional salesperson? Or the “Oh darling I love you so much” experience buying it together?

Putting aside price and economic and political concerns, diamonds may be a hard asset and a source of wealth for many generations to come. And they are still as personal a gift someone might give — or receive.

When faced with such a purchasing dilemma, Bianco offers this simple advice: “If you buy what you love, you will always do well.”

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The House of Kahn Estate Jewelers is proud to be featured in today’s edition of the Chicago Sun-Times, known worldwide, in a segment that headlines the Business section. In this highly informative article, Tobina Kahn, vice president of House of Kahn Estate Jewelers, is interviewed on the recent historical surge in Gold prices and the rush to buy and sell valuable Gold jewels.

By: Francine Knowles
Published August 10, 2011
Chicago Sun-Times

With gold items in front of her, Tobina Kahn, vice president of House of Kahn Estate Jewelers, says her business has jumped the past few days as gold has hit record levels. The spike in gold prices has prompted people to sell their gold jewelry, coins and bars. She displays some recent acquisitions on Tuesday, August 9, 2011 in Chicago. | Richard A. Chapman~Sun-Times

There’s a gold rush under way again, now that gold has spiked to record levels, owners of gold jewelry, coins and bars are looking to cash in, say local dealers, who’ve seen business rise along with the value of the precious metal.

“We’ve had about a 30 percent increase in more people, more traffic more calls coming in,” in the past few days, said Tobina Kahn, vice president, of House of Kahn Estate Jewelers, which buys and sells estate jewelry.

There’s reason: A gold chain that she may have paid $2,000 for three years ago would garner about $4,000 today, she said.

“Pretty much everybody that’s coming in is selling. We’re seeing a lot of necklaces, a lot of rings, a lot of unique items. All of a sudden grandma’s jewelry is becoming very important because the younger people are saying ‘Gee, my grandma gave this to me and I can get a lot of money for it.’ They are so excited.”

Middle and upper-income individuals, young and old have been selling U.S. Gold Eagle, Canadian Maple Leaf and South African Krugerrand coins, said Harlan J. Berk, president of Harlan J. Berk Ltd., which buys and sells gold bars and coins.

“Anyone holding gold now is making money,” he said. “In the last week, we’ve really seen more sellers than buyers.”

Gold hit a record trading price of $1,782.50 Tuesday before closing up $29.80 to close at $1,743 an ounce. Its price has more than doubled since the recession began in late 2007.

Those looking to sell their gold should be smart about it, dealers say. First and foremost go to experienced, reputable gold dealers or jewelers to get an appraisal of what you have. The American Numismatic Association recommends getting more than one appraisal, and before selling make sure you know the actual spot price of gold and understand any fees or commissions involved. To find a dealer, visit the association’s website at www.money.org or the Professional Numismatists Guild at www.PNGdealers.com.

For those selling jewelry, “I tell people to be very careful about going to some places that melt your gold,” said Kahn. “You’re going to get much less than leaving it intact if it’s marked with a certain designer’s name. A 1940 or 1950 retro bracelet, old Tiffany old Cartier, you don’t want to melt it down. That’s like taking a Picasso and burning it and keeping the frame.”

Berk advises gainst doing deals in hotel rooms. He said established dealers pay more.

Please click here to view all the photos from the Chicago Sun-Times photoshoot.

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The House of Kahn Estate Jewelers is once again proud to be featured in the Saturday, July 16, 2011 Edition of internationally renown London-based newspaper, The Financial Times. In this report, Jack Farchy interviews Tobina Kahn on the recent surge of Gold Bullion prices and its record-setting numbers over the past few days. Please contact Tobina Kahn at (312)-943-9937 or tobinajwels@aol.com for more information on buying and selling Gold jewelry during this historic climb.

by Jack Farchy
Published July 15, 2011
Financial Times

Gold dipped from its record high on Friday as a surge in prices encouraged consumers from Asia to the US to sell their gold for scrap.

Nonetheless, the yellow metal remained within reach of the psychological barrier of $1,600, trading on Friday at $1,588 a troy ounce, down from a nominal record of $1,594.16 touched on Thursday but still up 3 per cent over the course of the week.

Walter de Wet, head of commodities research at Standard Bank in London, said the rapid rise in prices had unlocked a wave of scrap selling.

“With gold below $1,530, physical demand was strong, which supported the gold price, but now support from the physical market has turned into resistance,” he said.

Other traders noted a similar theme.

Tobina Kahn, vice-president of House of Kahn, the Chicago-based jewellery group, said: “A lot of people are coming in here to ask what their jewellery is worth.”

Nonetheless, the selling was balanced by a wave of buying from western investors, who had been unenthusiastic about gold at current record prices.

The surge to record highs came amid a week of political and economic turmoil across much of the developed world, sending investors rushing to bullion as a means of protecting their wealth.

Investors bought 910,000 ounces of gold this week through exchange traded funds backed by physical bullion, according to data compiled by UBS.

The initial trigger for the rally was the escalation of sovereign debt concerns in Europe, with Italy becoming the latest focus.

Soon after, the focus moved across the Atlantic, with Moody’s and Standard & Poor’s warning that the US could lose its triple A credit rating if politicians failed to reach a deal on the country’s debt ceiling.

Finally, Ben Bernanke, Federal Reserve chairman, raised the possibility of a further bout of quantitative easing in comments to Congress, a move that analysts believe would drive more money into precious metals markets.

Traders believe gold could easily surpass $1,600 in the near term, though some believe a correction may be brewing.

“Given our belief that the US will avoid a technical default and that a third round of quantitative easing can be avoided, we would caution against a rapid move in the gold price above $1,650 an ounce in the near term,” said Xiao Fu, analyst at Deutsche Bank.

Although gold prices are at a record in nominal terms, when adjusted for inflation they are below the peak of 1980, which translates to about $2,400 in today’s money.

Silver also rallied hard this week as investors shook off the memories of its 25 per cent collapse in the first week of May. The metal rose 6.1 per cent to $38.84 a troy ounce, having touched a two-month peak of $39.34 on Thursday.

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Rare gold coins have found their way into the news once again, this time being heavily sought after by the U.S. Department of Treasury. Enclosed is an article in which the House of Kahn Estate Jewelers is interviewed by Bloomberg News titled “‘Double Eagle Gold Fight Recalls Last U.S. Default’”, written by Pham-Duy Nguyen. The article details an intriguing story that spans decades and begins in March of 1933, during the conclusion of President Hoover’s term and throughout President Roosevelt’s term. Even more apparent now than ever, the House of Kahn Estate Jewelers suggests estate jewels as a secure investment.

By Pham-Duy Nguyen
Published July 11, 2011
Bloomberg News

The 10 rare Double Eagle gold coins at the heart of a federal trial in Philadelphia are remnants of the last U.S. government default, almost eight decades before the current stalemate in Congress over raising the debt limit.

The daughter of a Philadelphia jeweler found the coins in a family safe-deposit box in 2003. The coins were confiscated by federal authorities. None were issued to the public after minting in 1933, the year President Franklin D. Roosevelt made it illegal for citizens to own gold and told investors that the government wouldn’t repay bonds with the metal. In 2002, a single Double Eagle fetched a record $7.59 million at auction.

Joan Langbord’s lawsuit to reclaim the coins is stirring passion among the numismatic community at a time when gold is near a record reached in May and has rallied every year for a decade. President Barack Obama and congressional leaders have failed to reach a compromise on reducing deficits and raising the $14.3 trillion federal debt ceiling before the government exceeds its borrowing authority on Aug. 2.

“The government is broke and, eventually, they will dig into everyone’s pockets,” said Tobina Kahn, the vice president of House of Kahn Estate Jewelers in Chicago. “Anyone who puts money into gold coins has no confidence in the government or fiat currencies.”

Gold has rallied 9 percent this year and reached a record $1,577.40 an ounce on May 2 as the U.S. kept borrowing costs at a record low and purchased Treasuries to help boost the economy. Gold priced in euros was the highest ever today as investors sought a haven against declining currencies amid Europe’s sovereign-debt crisis.

Melted at Mint

A single 1933 Double Eagle believed to have once belonged to King Farouk of Egypt sold at auction in 2002 for $7.59 million, according to the court filings. The government minted fewer than 500,000 of the $20 coins in 1933, and all were ordered to be melted, according to the U.S. Mint.

Langbord believed the coins belonged to her father, Israel Switt, according to the filings. The government, in a court filing, said the Secret Service in 1944 investigated “Switt’s involvement in the apparent theft of 1933 Double Eagles from the Mint.” The U.S. Attorney’s Office declined to prosecute Switt, citing the statute of limitations.

The family gave the Double Eagles to Daniel Shaver, the chief counsel for the U.S. Mint, saying they wanted to sell the coins and split the proceeds with the government. Officials concluded that the coins were authentic and were government property.

Example of 1 of the 10 'Double Eagle Gold Coins' being featured in the ongoing Federal jury trial (Image Credit: Thomas Mulvaney, courtesy of the United States Mint)

Langbord’s attorney, Barry Berke, didn’t immediately respond to a message for comment. Patty Hartman, a spokeswoman for the U.S. Attorney’s Office in Philadelphia, said the trial is expected to last two weeks.

Thirteen of the Double Eagles are known to exist, according to Robert W. Hoge, the curator of North American Coins and Currency at the American Numismatic Society. Besides the 10 coins on trial in Philadelphia, the Smithsonian has two and the King Farouk coin is currently on display at the Federal Reserve in New York.

The coins, which have less than an ounce of gold in them, were “too expensive for most people to consider collecting them at the time they were minted,” Hoge said. “There’s so much history with these coins. The gold value of the piece is minimal compared to its historical value.”

Double Eagles were minted during the Depression, when Roosevelt was trying to prevent hoarding of gold and a run on bank deposits. The coin depicts an eagle with spreading wings on one side and the other has the image of a woman portraying liberty as designed by Augustus Saint-Gaudens that had been in use since 1907. In 1986, the same design for liberty was chosen for American Eagle Gold Coins.

Confiscation Unlikely

It’s unlikely that the government of today would confiscate private gold holdings as it did in 1933, said Michael Haynes, the chief executive officer of American Precious Metals Exchange, an online bullion dealer.

“Unlike the period to the 1930s, the U.S. currency is not now convertible into gold and silver,” so the circumstances that led to Roosevelt’s order don’t exist, he said. APMEX sales are headed for a record year and may be up more than 67 percent from a year earlier.

The case is Langbord v. U.S. Department of Treasury, 06- cv-5315, U.S. District Court, Eastern District of Pennsylvania (Philadelphia).

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Movie legend Judy Garland was well-known for passing down magnificent jewels to her beautiful and talented daughter, Liza Minnelli. Just last weekend, the House of Kahn Estate Jewelers acquired this marvelous David Webb brooch that belonged to this Hollywood star’s family. As a result, the House Of Kahn was featured in an article published by Palm Beach Daily News.

by Robert Janigian
Published June 22, 2011
Palm Beach Daily News

Yes, it’s true.

A couple of weeks ago, Liza Minnelli, the veteran Oscar-winning actress and singer, unloaded a few of her possessions at a friend’s yard sale in East Hampton, NY.

Indeed, reports from the seaside town, a summer destination for celebrity types from coast to coast, mention that Minnelli even belted out a few numbers during the sale.

You can take the gal out of the cabaret, but you can’t take the “Cabaret” out of the gal.

(Sorry, had to do that)

So, wouldn’t you know it, but a couple of things purchased from Minnelli have made their way to Palm Beach?

A longtime friend of island estate jeweler Adele Kahn happened to stop by the sale and picked up a few items, which were passed along to her, for a price, of course.

They might be friends, but they also do a little business now and then.

Anyway, the always-acquisitive Kahn, took two of Minnelli’s yard-sale treasures off their hands, which she showed me yesterday at her Peruvian Avenue store.

Mythical Sea Creature Brooch accompanied by Cabochon Emerald. Set in 18 karat Yellow Gold. Signed David Webb. Circa 1960's. Previously owned by Liza Minnelli, inherited from her mother, Judy Garland.

She bought an Art Deco-style sculpture and a brooch, [the latter] shown in the photo above.

Kahn doesn’t know much about the sculpture, but says she liked the looks of it.

And it is signed by Minnelli on the bottom (though when I examined the signature, I couldn’t really make it out, but was assured that it was Liza’s scrawled name I was looking at).

The brooch, on the other hand, is something the jewelry-savvy Kahn knows a thing or two about: it’s an 18-karat-gold signed David Webb piece, probably from the 1960s, in the form of a mythical sea creature. Its eye is a cabochon emerald.

She recalls having seen it once worn by Minnelli’s mom, the late, great Judy Garland.

Movie legend Judy Garland and daughter Liza Minnelli, singing together onstage. Image credit: blogspot.com

I asked if she intended to sell the Webb piece, as she has many other Webb designs on display in her cases, all with price tags.

“I don’t really want to sell it,” she said. “It’s got a great history.”

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Dear Valued Clients,

The House of Kahn Estate Jewelers is proud to be featured in Bloomberg Markets, one of the most highly regarded sources of business news worldwide. The article below, titled “Sparkling Investments”, discusses the importance of Elizabeth Taylor’s jewels and how her jewelry collection may be the most important collection of the 21st century.

Collectors driving record sales await the possible auction of Elizabeth Taylor’s Krupp Diamond ring.

Written By Lewis Braham
Published on Friday, June 14, 2011

Nothing better captures the craze for very pricey jewelry than Christie’s International’s upcoming auction of the estate of Elizabeth Taylor. Investors are especially interested in the late movie star’s famed 33-carat Krupp Diamond ring, which then-husband Richard Burton Gave her as a gift in 1968.

“That will become the most famous diamond of the first part of the 21st century if it comes up for sale,” says Malcolm Logan, a partner at Nelson Rarities Inc., an estate jeweler in Portland, Maine. “The price will go through the stratosphere.”

The Krupp, which Logan estimates could sell for as much as $20 million, would take jewelry investing to new heights following the doldrums of 2009. Christie’s, the market leader, hit a record of $426 million in jewelry-auction sales last year, and auctioneers say the boom hasn’t lost steam in 2011. Investors who are worried about inflation and the continued decline of the dollar view jewelry like gold – as a hard asset that’s more likely to retain its value. On May 2, gold reached a high of $1,557.57 an ounce.

Long-term jewelry investor Kathleen Markiewicz, 67, the widow of a shipping exporter in Chicago, cashed out part if her retirement account’s stocks and bonds last year to buy more jewelry.  Markiewicz’s favorite pieces include a gold and pink-enamel scorpion brooch from the Edwardian period and a 1950s jewel-encrusted miniature hansom cab, which has a rock crystal engraving of Queen Elizabeth’s face on it to commemorate her coronation. “I want to put my money where at least I know it’s worth something,” she says.

Some pieces are easier to value than others. Putting a price on a diamond bracelet or gold pendant begins with calculating the worth of their raw materials – a value that roughly tracks the broader diamond and gold markets. Gary Schuler, director of jewelry at Sotheby’s in New York, estimates the Krupp ring’s stones and metal to be worth as much $6.5 million. For investors, the tough part is calculating the added value based on the piece’s design or provenance, which is mostly a matter of opinion. The fact that Elizabeth Taylor owned and even flaunted the Krupp may up its value by perhaps $13.5 million, but no one really knows.

If you want to play it safer, look for jewelry by established designers, particularly from the art deco era of the 1920s and1930s. “Investment-minded people are more driven to buy signed jewelry because they think it will have a more marketable value in the future,” says Carrie Imberman, co-owner of Kentshire, a New York - based jeweler. “Old Cartier, old Van Cleef, old old Tiffany are very collectable right now.”

Signed pieces may also better hold their value when the precious metals markets drop, says Rahul Kadakia, head of Christie’s jewelry department in New York. “Jewelry at that level of design doesn’t follow the markets,” he says. “It has to do with purchasing art. You will always have gold, but you will not always have an art deco bracelet by Cartier.”

You can find better deals by avoiding the auction houses, which charge commissions of 12 to 25 percent, and buying from estate jewelers. They act as wholesalers for used pieces, and because their rich clientele want to keep the deals discreet, estate jewelers often don’t have a storefront. Nelson Rarities operates from the seventh floor of an office building. Markiewicz’s jeweler, House of Kahn Estate Jewelers, is an exception, with stores in Chicago and Palm Beach, Florida. “Our customers sell to us when someone needs their college tuition,” says Tobina Kahn, the jeweler’s vice president. Kahn bought and sold pieces from Bernard L. Madoff’s fraud victims at the Palm Beach store.

Even if you get a good price on a necklace, don’t expect to trade it quickly for a profit. The jewelry market can be highly illiquid. “To buy it for a straight return on your money, you have to be very sophisticated,” Imberman says. “The people I know investing in it are buying big diamond pieces or big signed pieces and are content to put them away in their safe and just wait.”

The biggest gamble for investors might be buying at inflated prices jewelry that had been owed by marquee names. As Logan discovered, fame can be fleeting. At an estate sale many years ago, he bought several pieces owned by late screen legend Myrna Loy. “I was thrilled to buy her jewelry, and it was really nice, but when I went to sell it, hardly anyone knew who Myrna Loy was,” he says. While Logan still made a profit, the provenance didn’t boost the sales price. Even Elizabeth Taylor’s fame may one day fade, making the Krupp a tantalizing and dangerous bet for investors.

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Carat Count published in the Palm Beach Daily News on April 03, 2011
Written by Robert Janjigian

Estate jeweler Adele Kahn, who’s been a fixture on Peruvian Avenue for more than 40 years, was thinking of a way to toast the town’s 100th birthday. To that end, she recently acquired a necklace from a Florida estate that looks like something one of Palm Beach’s grande dames over the past century might have worn, and, in terms of carat weight, cleverly references the number 100. The very striking necklace features just over 100 carats of Ceylon sapphires and almost 100 carats of white diamonds. Check out the $1 million piece at the House of Kahn, 231 Peruvian Ave.

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The House of Kahn Estate Jewelers is pleased to announce that we have been featured in the Financial Times, an Internationally Recognized News Paper. The Financial Times is based in London and is the world’s most respected source for Business, Finance and Economic news.

In this enlightening article, Financial Times reporter Lucie Greene interviews Tobina Kahn extensively on the finer caveat details of melting your gold jewels. The House of Kahn Estate Jewelers is considered to be one of the most knowledgeable sources on this fascinating topic.

Precious Pieces Lost in Cash-for-Gold Rush

Specialists are trying to counter the trend to melt down fine items.

Written By Lucie Green
Published on Friday, March 25, 2011

Tobina Kahn, Vice President, wears and displays a selection of
important Estate Jewelry from The House of Kahn Estate Jewelers
in Chicago, Illinois and Palm Beach, Florida.

“You don’t take a piece of Van Cleef and melt it. That’s like taking a Picasso for the frame,” laments Tobina Kahn, vice-president of House of Kahn, the US estate jewellery group, of the recent trend for cashing in on fine jewellery by melting it to extract the high gold value.

Cash-for-gold companies have exploded in recent years as the value of gold has continued to rise. However, estate (pre-owned and vintage) jewellers say many people are ill-informed or have consulted the wrong dealers and are disposing of precious vintage jewellery pieces that would be more left intact.

“There are huge commercials all day long: ‘Cash for gold, cash for gold’. Ever since gold went up [in value]. At least three times a day, we have customers asking about melting pieces. We try to save them from the melting pot. We explain to people, if it’s a great design piece like a 1950s brooch it can be worth five times, its weight in gold,” says Ms Kahn. “There are collectors who want these pieces. You just need to know where to go.”

“They’re bringing in everything [to melt down]. There’s so much good antique jewellery being lost,” says Claude Morady, estate jewellery boutique owner in Beverly Hills, Los Angeles. “They don’t understand what it is. Lots of nice things are being melted down by people who don’t know or don’t care.”

Gold has seen a huge increase in value over the past three years, as economic turmoil, doubts over oil and unrest in the Middle East, prompt many to invest in alternative commodities. This month, gold hit a peak of $1,444.40 per troy ounce (compared with $1,050 in January 2010.) Silver has also risen, hitting a peak of $36.70 a troy ounce – the highest price in 31 years in nominal terms.

As a result, cash-for-gold businesses, offering instant money for melted down jewellery, have boomed.

Phillip Klapwijk, chairman of GMFS, a London-based independent precious metals consultancy, says: “There’s been a significant lift in scrapping of jewellery by the public over the past two to three years, driven by the increased price of gold. People are finding it quite an incentive to go through old jewellery and cash in.” He says it has been embraced by people from every part of the economic spectrum. “It’s tripled in volume over the past four years.” One of the fastest-growing areas, according to Gold Fellow, a US gold and jewellery buying company, is the higher end of the market. Michael Gusky, founder and chief executive, says: “Two weeks ago, we brought a diamond for $55,000. That’s not someone who needed grocery money. We opened a division in 2009 for buying large diamonds. It’s become a significant part of our annual turnover.”

“We hardly used to separate estate fine jewellery from the rest. Now, we have five people dedicated specifically to managing it, including qualified gemologists. Every piece is scrutinized. If it’s a signed piece, it’s offered for auction. There are half a dozen recognized brands worldwide. Not all pieces by them are worth more than the value of the material. If it’s a 1920s Cartier piece, then it’s of significant value as it is.”

Ms Kahn says many important pieces are being overlooked by less knowledgeable traders. “They [cash-for-gold companies] say they will flag something if it’s rare. But they don’t really know,” says Ms Kahn. “People [also] think if they melt it, they will get what gold is selling for per ounce. A 14-carat gold chain is only 58 per cent gold though. An 18-carat gold one is 75 per cent. Twenty-four carat is 99.9 per cent gold, but you don’t see lots of jewellery made of that as it’s not collectable in the US. Plus there are melting fees.”

Ms Kahn says a high quality signed estate piece, such as a David Webb bracelet, can sell for between $6,000 and $8,000 to an estate jeweler, roughly 30 per cent more than the same piece would receive if melted for its gold content.

Pieces achieved by estate jewellery are continuing to rise, by “As much as 30 per cent in the past year, especially for great pieces from the 1920s 1930s and 1940s”, says Ms Kahn. “They don’t make the pieces any more. There are wars over great designs. Money is no object.”

Chris Del Gatto, chief executive of Circa Jewels, a New York-based jewellery buying company, says “There are huge misconceptions. If you bring [jewellery] to the right people, they understand it’s worth more as a design piece.” He says one of the fastest-growing areas of his business is consulting on accurate valuations of estate jewellery.

He adds: “We have lots of retailers coming to us saying they know a piece shouldn’t be melted but don’t know what it is. They don’t want to give inaccurate valuations to clients.”

Cash-for-gold companies have come under fire on both sides of the Atlantic. Anthony D Weiner, a congressman representing New York, has called for legislation to regulate companies as Cash4Gold for only paying customers 11 to 29 per cent of the value of the jewellery sent in and refusing to send jewellery back with the 12-day appraisal period.

In the UK, the office of Fair Trading (OFT) last September ordered cash for gold businesses to improve their working practices, alleging a failure to be transparent about their valuation processes and not giving people enough time to refuse the appraisal offer on the value of pieces.

However, as David Schraeder, a spokesman for the World Gold Council points out, there is also a general misconception of gold value from pieces.

“People expect to be paid a spot price, but they’re selling at wholesale, not the full retail value. Gold buyers have a build in a mark-up to make a reasonable profit.”

He adds, however, that many of the less reputable companies in the headlines had not been offering fair value for pieces.

Mr Klapwijk and Mr Gusky note that rare pieces are still a relative minority. Recent 14-18 carat gold jewellery by big brands are still worth more for the material than the design.

Mr Schrader’s tip for vintage owners? “Know who you’re selling to. If you have a beautiful piece of jewellery, find a specialist who will know its value.”

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The House of Kahn Estate Jewelers features an exquisite Necklace and other jewels that embody Elizabeth Taylor’s legendary love for jewelry. Her jewels were classic and iconic resembling her passion for life. Interest in her private collections of jewelry have spiked. Please contact the House of Kahn Estate Jewelers for a unique perspective on Elizabeth Taylor’s luxurious life of jewels.

Please click here to watch the news segment in its entirety.

Reported by Suzanne Le Mignot on CBS 2 News.

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