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At $1,000, Gold Bugs Come Out in Chicago

By Peter A. McKay
September 18th, 2009

Gold’s recent run over $1,000 has caused many people to take a second look at the several exchange-traded funds, futures, and other investment vehicles linked to the metal. But some are also digging into their jewelry boxes and dressers to see what they can get for their heirlooms.

So says Tobina Kahn, a Chicago estate jeweler who sometimes checks in with us to offer a woman-on-the-street view of the gold market. Unlike a typical shopping-mall jewelry outlet, an estate jeweler like Ms. Kahn acts as both a seller and a buyer at various times.

Her recent experience has an interesting twist: Last week, as gold approached $1,000 for the first time since February, Ms. Kahn said the headlines surrounding that round-number milestone attracted perhaps 8 or 10 new sellers a day into her shop, looking to unload everything from designer jewelry to simpler pieces. It would normally take about a month to get that kind of foot traffic, Ms. Kahn estimates.

This week, as gold has edged beyond a $1,000, the number of visitors to the store has stayed high. But Ms. Kahn says the stream has also included more buyers, including some worried about the sagging value of the dollar or a possible reversal of the stock market’s recent boom.

Her take on those buyers: “People are willing to look at gold more as an investment. They’ve moved beyond the old idea that, hey, it doesn’t pay a dividend. I mean, who would be better off today — a person who bought bank stocks looking for the dividends or someone who bought gold?”

Of the sellers, she said: “You still have a lot of people who need money, but they’re also being more selective. Some people are disappointed at what we can offer for one ring or one necklace. In some of those cases, they don’t go through with a sale.”

— via MarketBeat

House of Kahn Estate Jewelers
60 East Walton Street
Chicago, Illinois 60611
USA
312-943-9937

House of Kahn Estate Jewelers
231 Peruvian Avenue
Palm Beach, Florida 33480
USA
561-655-3743

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